Treasurer Josh Frydenberg reveals priorities ahead of federal budget

An ambitious jobs target, huge spending in aged care and mental health, and ‘targeted’ investment to get more women into work are pillars of next week’s federal budget.

It’s Australia’s one shot at getting everyone into a job and through the COVID-19 recession and Treasurer Josh Frydenberg is determined not to miss it.

He is laser focused on driving down unemployment with a confidence built on the nation’s staggering jobs recovery to date, and has signalled a new era of economic policy for the federal Liberal Party.

Federal Treasurer Josh Frydenberg with his wife Amie and children Gemma, 6, and Blake, 4. Picture: David Caird

“Coalition values are lower taxes, backing small business and the private sector to create jobs, home ownership; that’s what you’ll see in this budget,” he said.

With interest rates at rock bottom and austerity measures ruled “out”, Mr Frydenberg has seized the moment to pivot the Coalition ­toward door number three: growing our way out of debt via an ambitious jobs target.

Huge spending in aged care and mental health will be balanced with “targeted” investment to get more women into work, housing, childcare and skills.

As the pandemic rages on abroad, Mr Frydenberg told the Telegraph next week’s federal budget was geared to ensure Australia avoided the long-term “scarring” endured after previous recessions.

“This is not a green light to spend on every program that’s been sitting in the bottom drawer, this is a very targeted approach to getting Australia to the other side of the pandemic,” he said.

The Treasurer says the focus of the budget will be to secure Australia’s COVID-19 recovery. Picture: David Caird

As China flexes its muscles in the region, Mr Frydenberg said Australia would not shy away from defending its interests, with significant investment in Defence, cyber security and safeguarding our assets through foreign investment and ­interference protections.

“The Australia-China relationship … is mutually beneficial,” he said. “But where there are issues of the national interest we will be clear and consistent.”

The government is also expected to extend an olive branch to women, with spending on domestic violence initiatives and measures to increase female workforce participation.

“There’s never been more women in the workforce … but there’s more to do, a lot more to do,” Mr Frydenberg said.

“We’re looking at retirement incomes, we’re looking at workforce participation … skills and entrepreneurship … science and technology (jobs).”

Heading into his third budget as Treasurer, Mr Frydenberg’s confidence in the jobs market is a clear sign Australia is on a path to full ­employment, a complete turnaround from six months ago.

Already in March there were 200,000 more people in jobs than expected, meaning the country’s welfare bill was $3 billion less and the government’s tax income was $2 billion more than anticipated.

Early signs also indicate the end of JobKeeper will not be the employment cliff previously feared, with fewer people going onto JobSeeker at the same time the wage subsidy ended.

Mr Frydenberg said while he was keeping a watching brief on inflation rates, it was not an imminent problem.

“We might see some pockets of spikes … but the overall national view right now is not a great concern,” he said.

Originally published as Treasurer Josh Frydenberg reveals priorities ahead of federal budget