Treasurer Josh Frydenberg puts states on notice over future border closures

Treasurer Josh Frydenberg has issued a stern warning to the states over future border closures, saying the effect would be ‘immense’.

Treasurer Josh Frydenberg has put state and territory leaders on notice, saying jobs “will be lost” if borders are closed following the end of the JobKeeper program.

About 1.3 million workers are supported by the wage subsidy, which will end on March 28.

There are fears more than 100,000 workers, especially those on zero hours, could end up on the dole following the end of the scheme.

But Mr Frydenberg, who maintains the support was always temporary, will on Tuesday night issue a warning to the states over borders.

In a speech to the Business Council of Australia he will remind leaders that the economic consequences of border closures are “immense”.

He will tell guests the end of JobKeeper will force state governments to think twice before closing borders, and any response to new COVID cases needs to be “targeted and proportionate while commensurate with the risk”.

Josh Frydenberg repeatedly called for state borders to open throughout the pandemic. Picture: NCA NewsWire / Sarah Matray

Australia’s interstate borders were fully open for the first time in a year on Monday.

Prior to the speech, Mr Frydenberg agreed that the health advice on borders must be followed.

However, the Treasurer pointed to NSW Premier Gladys Berejiklian, who he said had shown that an outbreak such as the one in the northern beaches did not require a statewide lockdown.

“It is those statewide lockdowns that are so destructive not just in confidence but also to jobs in broader economic activity,” Mr Frydenberg told ABC RN.

“We can provide the cheap fares, we can provide the economic benefits to tourism companies and to travel agents, but unless you keep those borders open, then those jobs will be lost.”

He said Qantas cancelled 1500 flights to Queensland in January following border closures, a move that affected hundreds of thousands of passengers.

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Lines for the dole snaked around buildings last March as people found themselves out of work due to coronavirus shutdowns. Picture: Rohan Kelly

Commonwealth Bank of Australia economists have predicted at least 110,000 people will be out of work when JobKeeper payments dry up.

Industries expected to be hit hardest include travel, accommodation and transport.

“However, given the strength of the leading indicators of the labour market, we expect that the overall impacts on the labour market will be short-lived and any negative impact on spending will be minimal,” CBA said in an economic note.

Mr Frydenberg also reiterated that the unemployment rate was falling.

The national jobless rate in January was 6.4 per cent.