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Katie Woolf spoke with Federal Finance Minister Mathias Cormann · 360 with Katie Woolf

• 0:00
  Speaker 1: Joining me on the line is the Federal Finance Minister
• 0:03
  Speaker 1: Mattias Corman. Good morning, Good morning Now Minister COVID nineteen
• 0:08
  Speaker 1: has pushed the budget deep into the red in an
• 0:11
  Speaker 1: effort to try and steer the economy forward. The Treasurer
• 0:13
  Speaker 1: Josh Friedenberg last night announced tax cuts and incentives to
• 0:17
  Speaker 1: try to get Aussie's into jobs and spending and well
• 0:21
  Speaker 1: to get small business moving. How many jobs will be
• 0:24
  Speaker 1: created for the Northern territory.
• 0:28
  Speaker 2: Across Australia. We expect that about a million jobs will
• 0:32
  Speaker 2: be created through the budget that we delivered yesterday and
• 0:35
  Speaker 2: clearly a proportionate proportion of that will take place in
• 0:40
  Speaker 2: Northern Territory. Now, you know, Australia and Northern territories and
• 0:46
  Speaker 2: people all around Australia were hit very hard by the
• 0:50
  Speaker 2: economic and jobs impact of the coronavirus pandemic. We know
• 0:53
  Speaker 2: why we are in a position we're in. But the
• 0:54
  Speaker 2: budget last night is our plan to get Australia out
• 0:58
  Speaker 2: of this COVID recession and back to the strongest possible
• 1:01
  Speaker 2: economic and jobs recovery moving forward.
• 1:04
  Speaker 1: Minister, do the measures an Ounstove and Night provide businesses
• 1:07
  Speaker 1: with the confidence to invest and keep people employed.
• 1:11
  Speaker 2: Well we believe that do. I mean, you know, in
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  Speaker 2: most parts of Australia the economic recovery is already in
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  Speaker 2: full swing. I mean in jurisdictions, you know, including the
• 1:20
  Speaker 2: Northern Territory I'm madad which has had zero active crisis
• 1:24
  Speaker 2: for a very long time, which I can't remember whether
• 1:27
  Speaker 2: there has been any locally acquired community transmission in Northern Territory.
• 1:31
  Speaker 2: So I mean in most parts of Australia the economic
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  Speaker 2: recovery is already in full swing and the plan that
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  Speaker 2: we outlined yesterday will help provide a significant boost to that.
• 1:40
  Speaker 2: We are providing time limited tax incentives, so we're really
• 1:46
  Speaker 2: signed to business. If you are thinking of investing in
• 1:49
  Speaker 2: your future growth and success, this is the time to
• 1:51
  Speaker 2: do it because we are allowing you to immediately, fully
• 1:55
  Speaker 2: expend and fully deduct the entire value of your investment
• 1:59
  Speaker 2: in in the one financially and that will, we believe,
• 2:03
  Speaker 2: trigger a lot of investment all around Australia, including the
• 2:05
  Speaker 2: Northern Territory. And of course, a business that invests in
• 2:08
  Speaker 2: its future growth and success, a growing business will hire
• 2:11
  Speaker 2: more Australians, will hire more territories and we.
• 2:14
  Speaker 1: Know that there is also going to be a job
• 2:16
  Speaker 1: maker hiring credit. It is going to be paid for
• 2:20
  Speaker 1: a year to businesses who hire an unemployed worker aged
• 2:23
  Speaker 1: between sixteen to thirty five from the job Seeker program.
• 2:27
  Speaker 3: Why is this only eligible for young people?
• 2:30
  Speaker 2: Well, the reason is that young people were particularly hard
• 2:35
  Speaker 2: hit by the job's impact of the coronavirus pandemic, and
• 2:39
  Speaker 2: the learnings out of previous recessions are that it's very
• 2:44
  Speaker 2: dangerous for the economy as a whole if younger people
• 2:48
  Speaker 2: remain disconnected from the labor market of an extended period.
• 2:52
  Speaker 2: It's very very important for us, through a measure like this,
• 2:56
  Speaker 2: to get young people back into the labor market, back
• 2:59
  Speaker 2: into the workforce as soon as possible, so that they
• 3:02
  Speaker 2: don't become entrenched on income support because that, ultimately, I mean,
• 3:08
  Speaker 2: it's bad for them and it's bad for the economy
• 3:10
  Speaker 2: as a whole. So the reason here really is there
• 3:13
  Speaker 2: was a disproportionately high impact on young restrains. We need
• 3:17
  Speaker 2: to ensure that we don't have them entrenched on welfare
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  Speaker 2: support and we get them back into the active economy
• 3:23
  Speaker 2: as soon as possible, because that's important all around.
• 3:26
  Speaker 3: Now.
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  Speaker 1: Jim Chalmers, the Opposition spokesperson for Finance says that the
• 3:30
  Speaker 1: budget leaves many Aussies out in the cold, does it.
• 3:35
  Speaker 2: No, I mean he's just making a political point. I mean,
• 3:38
  Speaker 2: you know, here we are, we've been hit with a
• 3:42
  Speaker 2: one in one hundred year global pandemic with serious implications
• 3:45
  Speaker 2: on our budget. We've been working hard to cushion the
• 3:48
  Speaker 2: blow on the economy, on jobs, you know, in the
• 3:50
  Speaker 2: initial phase, we've been working hard to help facilitate the recovery.
• 3:55
  Speaker 2: The budget yesterday is our plan to get Australia out
• 3:59
  Speaker 2: of this cold recession, to get all Australians back into
• 4:03
  Speaker 2: a position where they have the best possible opportunity to
• 4:06
  Speaker 2: get ahead. And I mean he's just polit politicking, and
• 4:10
  Speaker 2: it's very disappointing.
• 4:11
  Speaker 1: I guess there will be some people listening this morning though,
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  Speaker 1: who are aged over thirty five and who may be
• 4:17
  Speaker 1: on job seeker or job seeker or job keeper and
• 4:21
  Speaker 1: are concerned about what's going to happen for them after
• 4:24
  Speaker 1: that ends.
• 4:25
  Speaker 3: What would you say to those territorians.
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  Speaker 2: Well, all of those territories will benefit from the strong
• 4:33
  Speaker 2: economic and jobs recovery that this budget will help facilitate.
• 4:36
  Speaker 2: I mean, you know, all the more experienced Australians with
• 4:39
  Speaker 2: a longer truck record in the workforce prior to this crisis,
• 4:43
  Speaker 2: hitting are several steps ahead compared to younger Australians and
• 4:47
  Speaker 2: they'll find it comparatively much easier to get back into
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  Speaker 2: the labor market because they're able to demonstrate a work
• 4:54
  Speaker 2: history and a level of performance that lets them get
• 4:58
  Speaker 2: back into the labor market. Does the opportunities come back
• 5:01
  Speaker 2: on stream? All the strains of all ages will benefit
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  Speaker 2: from the strong economic and jobs recovery that will follow
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  Speaker 2: as a result of the many initiatives in the plan
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  Speaker 2: that the Treasurer released last night.
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  Speaker 3: Now Minister.
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  Speaker 1: Locally, the Federal opposition are saying that the budget's going
• 5:18
  Speaker 1: to rack our the trillion dollars of debt, but the
• 5:20
  Speaker 1: Northern Territory is still copying are one hundred million dollar
• 5:23
  Speaker 1: cut to our GST payments which will obviously make recovery
• 5:27
  Speaker 1: more difficult. In their words, what is in the budget
• 5:30
  Speaker 1: for the Northern Territory?
• 5:32
  Speaker 2: Well, you know, for firstly, I've I've got to completely
• 5:35
  Speaker 2: reject that proposition has just put I mean GST payments
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  Speaker 2: is a Northern Territory are estimated to be two point
• 5:41
  Speaker 2: seven billion dollars in twenty twenty twenty one. That is
• 5:44
  Speaker 2: an increase of two hundred and twenty one point six
• 5:46
  Speaker 2: million dollars compared to what was in the twenty nineteen
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  Speaker 2: twenty budget. Overall, total payments to the Northern Territory are
• 5:54
  Speaker 2: increasing by four hundred and two million dollars. There is
• 5:56
  Speaker 2: an increase of sixty six point five million dollars to
• 6:01
  Speaker 2: the Northern Territory Health and hospital system. There, you know,
• 6:05
  Speaker 2: is one hundred and ninety million dollars they'reabout of additional
• 6:11
  Speaker 2: funding for infrastructure projects in the Northern Territory. There's there's
• 6:15
  Speaker 2: there's significant funding for education and skills training across the
• 6:19
  Speaker 2: Northern Territory. About one hundred and twenty thousand income taxpayers
• 6:23
  Speaker 2: in the Northern Territory. We receive tax relief for the
• 6:26
  Speaker 2: twenty one financial year. And of course there are many
• 6:31
  Speaker 2: territories that continue to receive a job keeper and enhance
• 6:35
  Speaker 2: job Seeker payment. And indeed the cash flow Boost measure
• 6:39
  Speaker 2: for businesses is benefiting many small and medium sized businesses
• 6:43
  Speaker 2: in the Northern Territory.
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  Speaker 1: Minister, can I just go back to that point about GST,
• 6:47
  Speaker 1: because this is something that the government here in the
• 6:50
  Speaker 1: territory raises quite often and it is often the blame
• 6:53
  Speaker 1: for you know, for us going through financial difficulties or
• 6:57
  Speaker 1: you know, different issues within their own budgets.
• 7:00
  Speaker 3: Just to make it really clear for our listeners.
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  Speaker 1: This morning, what you're saying is that there hasn't actually
• 7:05
  Speaker 1: been a reduction of one hundred million dollars to our GST.
• 7:08
  Speaker 3: You're saying that it's been increased.
• 7:10
  Speaker 2: Let me be very explicit. The Northern Territory in twenty
• 7:14
  Speaker 2: twenty one is expected to receive two point seven billion
• 7:17
  Speaker 2: dollars in GST payments and that is an increase, an
• 7:21
  Speaker 2: increase of two hundred twenty one point six million dollars
• 7:25
  Speaker 2: compared to twenty nineteen twenty So.
• 7:28
  Speaker 1: Why do you reckon the Northern Territory government? And also
• 7:32
  Speaker 1: the federal opposition is saying that that is still a
• 7:35
  Speaker 1: one hundred million dollar cut, So they're basically saying that
• 7:37
  Speaker 1: we're going to receive that two point seven billion in
• 7:40
  Speaker 1: GST payments this financial year and that it's a reduction
• 7:43
  Speaker 1: of about one hundred million.
• 7:45
  Speaker 3: Are they going on forward estimates or.
• 7:47
  Speaker 2: You'll have to ask them that, like, but you know,
• 7:50
  Speaker 2: I mean clearly all around Australia. All jurisdictions are dealing
• 7:54
  Speaker 2: with the impact of a one in a one hundred
• 7:56
  Speaker 2: year pandemic and that has had an impact on consumption
• 8:00
  Speaker 2: all around Australia's had an impact on business and jobs
• 8:03
  Speaker 2: all around Australia. And we're all doing our best. But
• 8:06
  Speaker 2: when it comes to payments to the Northern Territory, let
• 8:09
  Speaker 2: me repeat, there is an increase of two on twenty
• 8:11
  Speaker 2: one point six million dollars in GSD payments to the
• 8:15
  Speaker 2: Northern Territory this year compared to last year.
• 8:18
  Speaker 3: Minister, let's move along. I'm keen to talk about gas.
• 8:21
  Speaker 1: There was mention of gas and energy as well as
• 8:23
  Speaker 1: manufacturing in the budget overnight. What part does the Northern
• 8:27
  Speaker 1: Territory have to play in the nation's energy needs.
• 8:31
  Speaker 2: Well, you know, clearly there's opportunity for the exploration, production
• 8:35
  Speaker 2: of increased exploration and production of gas out of the
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  Speaker 2: Northern Territory. And you know, we'd like to see that
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  Speaker 2: the Northern Territory and all relevant jurisdictions around Australia apply
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  Speaker 2: their part in boosting the supply of gas so that
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  Speaker 2: we can also boost the reliability and affordability of gas
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  Speaker 2: supplies which will help to underpin the international competitiveness of
• 8:58
  Speaker 2: our manufacturing sector way that is environmentally more efficient.
• 9:02
  Speaker 1: So are there any confirmations about additional gas pipelines from
• 9:06
  Speaker 1: the Beaterloo basin connecting to the rest of Australia, or
• 9:09
  Speaker 1: what exactly are the federal government's plans in this space.
• 9:13
  Speaker 2: Look, look, I encourage you to get my good friend
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  Speaker 2: and colleague Keith Pitt and perhaps Angerstyler on your program
• 9:22
  Speaker 2: and they'll be able to take you in some great
• 9:24
  Speaker 2: detail through all of the various components of what we're
• 9:27
  Speaker 2: planning in that regard.
• 9:28
  Speaker 3: Well, we will have them on.
• 9:29
  Speaker 1: We are very fortunate to have them on fairly regularly. Now,
• 9:33
  Speaker 1: I do want to talk about the fact that the
• 9:34
  Speaker 1: budget overnight obviously a lot of the modeling seem to
• 9:37
  Speaker 1: be based on a vaccine. What happens if we don't
• 9:40
  Speaker 1: have a vaccine as soon as the government is predicting.
• 9:43
  Speaker 2: Well, when you say a lot of the modeling, I
• 9:45
  Speaker 2: mean you know you're right. I mean we have made
• 9:48
  Speaker 2: an assumption, based on expert advice, that there will be
• 9:52
  Speaker 2: a vaccine by the end of twenty twenty one in
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  Speaker 2: place for MAUS distribution. That is one of many, many,
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  Speaker 2: many assumptions in the budge. And you know, in the end,
• 10:03
  Speaker 2: you know, budget estimates are precisely that they're estimates, and
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  Speaker 2: they're based on the best avilable information. You never have,
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  Speaker 2: you know, one hundred percent certainty about the information in
• 10:13
  Speaker 2: front of you about what may or may not happen
• 10:14
  Speaker 2: in the future. But we believe that right now, based
• 10:17
  Speaker 2: on what we know right now, that is the most
• 10:19
  Speaker 2: realistic assumption. Now, if the information changes, I mean, if
• 10:25
  Speaker 2: the vaccine is available sooner, there will be a positive
• 10:28
  Speaker 2: variation in future budget updates. If the vaccine ends up
• 10:31
  Speaker 2: being available later, there'll be a negative variation in the
• 10:34
  Speaker 2: budget updates. But bearing in mind that there are a
• 10:37
  Speaker 2: lot of assumptions, hundreds and thousands of different assumptions that
• 10:41
  Speaker 2: are made across many different aspects, and it's always swings aroundabouts,
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  Speaker 2: and you know, all of that gets reconciled in future
• 10:49
  Speaker 2: budget updates.
• 10:50
  Speaker 1: Now, Minister, Finally, there has been a lot of discussion
• 10:53
  Speaker 1: in the Northern Territory about whether we will lose a
• 10:55
  Speaker 1: seat in the Lower House of Parliament. No doubt you've
• 10:58
  Speaker 1: heard Senator Melandary Cathy and also Senator Sam McMahon pushing
• 11:03
  Speaker 1: quite hard for the Northern Territory to retain those two seats.
• 11:07
  Speaker 1: Do you support the Northern Territory keeping that representation?
• 11:10
  Speaker 2: Well, Senator McMahon is a very strong advocate for the
• 11:13
  Speaker 2: Northern Territory and there's a process currently underway both through
• 11:17
  Speaker 2: the Joint Standing Committee on electrom Others and through our
• 11:21
  Speaker 2: party room to determine the most appropriate position moving forward.
• 11:25
  Speaker 2: Of course, I mean, you know, of course, like in
• 11:28
  Speaker 2: a general sense, you know, the Northern Territory is a
• 11:32
  Speaker 2: very large jurisdiction, you know, which is you know, in
• 11:36
  Speaker 2: need of appropriate representation, and all of that will be
• 11:39
  Speaker 2: properly considered and you can rest assured that Sanata McMahon
• 11:43
  Speaker 2: will be a very very strong voice for the territory
• 11:45
  Speaker 2: to ensure that the right decision is made.
• 11:48
  Speaker 1: Well, we're really hoping so, Finance Minister Mattias Corman. We
• 11:52
  Speaker 1: really appreciate your time this morning. I know it's an
• 11:54
  Speaker 1: incredibly busy day for you. Thanks for having a chat
• 11:56
  Speaker 1: with us.
• 11:58
  Speaker 2: Thank you so much, talk soon.
• 11:59
  Speaker 3: Thank you.
• 12:00
  Speaker 1: You are listening to Mix one oh four point nine
• 12:02
  Speaker 1: three point sixty now if you would like to call through.
• 12:05
  Speaker 1: Following on from that, discussion with Senator and Finance Minister
• 12:09
  Speaker 1: Matis Coleman talking about the budget. We'd love to hear
• 12:11
  Speaker 1: from you this morning. Eight nine four one one oh
• 12:14
  Speaker 1: four nine. Are you a small business or a business owner?
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  Speaker 1: How are you feeling following on from those budget announcements
• 12:20
  Speaker 1: overnight and some of the incentives which are in place
• 12:24
  Speaker 1: to try and really keep business moving. Or are you
• 12:28
  Speaker 1: somebody who is who is really looking at employing a
• 12:30
  Speaker 1: young person. Love to hear from you today. Eight nine
• 12:33
  Speaker 1: four one one oh four nine.