Home

Treasurer Josh Frydenberg opens up about Australia’s debt recovery

Jade GailbergerNCA NewsWire
The Morrison government handed down a big-spending budget.
Camera IconThe Morrison government handed down a big-spending budget. Credit: News Regional Media

Josh Frydenberg says the government does have a path to manage the trillion dollars of debt racked up in its big-spending budget.

The Treasurer last week handed down his third federal budget, which forecasts gross debt will have reached a whopping $1.2 trillion in 2025.

But Mr Frydenberg said there was quite a positive picture about Australia’s ability to reduce the increased debt that came with the biggest economic shock since the Great Depression.

“We certainly do have a path to manage that debt,” he told Today.

Get in front of tomorrow's news for FREE

Journalism for the curious Australian across politics, business, culture and opinion.

READ NOW

“The key is to get more people into work, and the good news for Australians is that half a million jobs were created since last year’s October budget.”

FRYDENBERG PRESSER
Camera IconJosh Frydenberg said Australia went into the pandemic in a strong financial position. NCA NewsWire / James Gourley Credit: News Corp Australia

Mr Frydenberg said the budget contained a plan to get a further 250,000 people into work, which would add $5bn to the bottom line.

“That is the Treasury analysis and that is because you are getting more income tax receipts and lower welfare payments,” he told Sunrise.

His secretary, Dr Steven Kennedy, has also warned that cutting spending too early could harm Australia’s economic recovery – but says it will need to be reined in to pay for increased outlays in essential services.

Shadow Treasurer Jim Chalmers
Camera IconOpposition Treasury spokesman, Jim Chalmers, has questioned how the government will pay back the debt. NCA NewsWire / Gary Ramage Credit: News Corp Australia

The federal budget also contained a contentious assumption that the international border would gradually reopen from mid-2022.

Business leaders have put pressure on the government to announce a timeline for Australia’s reopening to create certainty in their sectors.

But Scott Morrison has remained strong, saying Australia will not risk losing lives to reopen borders.

Virgin chief executive Jayne Hrdlicka was among leaders to say Australia should reopen its international borders when the most vulnerable are vaccinated despite the risk of death.

“Some people may die but it will be way smaller than with the flu,” Ms Hrdlicka said on Monday.

However, Mr Frydenberg said he thought Ms Hrdlicka would choose different words if she had her time again.

“What she was trying to say is that, over time, we need to open the borders,” Mr Frydenberg said.

“But what we make no apologies for, and the Prime Minister is absolutely right when he said this, is for keeping people safe.

“Our job is to reduce the likelihood of an outbreak because we have seen how costly that can be on the economic side but also what it can mean in terms of the loss of lives and livelihoods.”

Originally published as Treasurer Josh Frydenberg opens up about Australia’s debt recovery

Get the latest news from thewest.com.au in your inbox.

Sign up for our emails