A peak welfare group has raised concerns over Treasurer Josh Frydenberg’s attempt to recast the economic narrative as returning to normal, as the government prepares for an election fight centred on the economy.
Mr Frydenberg delivered a speech to the Australian Industry Group on Monday, declaring now is the time to start “confidently moving back towards normalised economic settings”.
His comments came as Treasury analysis showed over one million workers started new jobs from August to November last year.
“The rate at which people are taking up new jobs is now almost 10 per cent higher than the pre-COVID average,” he said during his address.
“Unlike some countries, we are seeing a ‘great reshuffle’ rather than a ‘great resignation’.”
But Australian Council of Social Services CEO Cassandra Goldie said she was “deeply concerned” the treasurer could consider the economic situation in Australia as anywhere near “normal”.
“Australia faces major challenges in the months, and next years ahead. We are far from finished with this pandemic,” she said.
“There are still 1.1 million people languishing on the $45 a day unemployment payment.”
The federal government has also forecast unemployment - currently sitting at 4.2 per cent - could drop below 4 per cent later this year, which has not been seen in almost half a century.
As it prepares to hand down a pre-election budget in March, the Coalition is determined to refocus the political narrative on its economic management during the pandemic.
Dr Goldie said people from the lowest incomes continued to be the hardest hit by COVID-19 and remained “at greatest risk of ongoing disadvantage and hardship”.
Labor’s home affairs spokesperson Kristina Keneally also said the government’s response did not show the full economic picture.
“We’ve got 1.5 million Australians who can’t get enough hours to pay their bills. Prices are going up - wages are staying stagnant,” she told reporters.
“The only reshuffle that should happen is that Scott Morrison and Josh Frydenberg - having failed so spectacularly during this pandemic - should go out and find other jobs.”
During his speech, Mr Frydenberg warned the tap for financial support during the pandemic must be turned off, as he described Australia’s health and economic response as among the world’s best.
“This level of government intervention must not become entrenched and become a permanent feature of our system,” he said.
“It is time for the private sector, who have taken the baton, to continue to run hard.”
Mr Frydenberg also announced tax breaks would be offered for businesses and individuals who use rapid antigen tests (RATs) to be able to attend work.
The decision responds to mounting pressure over access to and the cost of the tests.
But Dr Goldie said tax deductions risked giving greater assistance to those on higher incomes, rather than those on lower incomes.
“For many, the decision to buy a RAT means a missed meal or a bill that can’t be paid on time - those are real time decisions which cannot be put off.”
More than six million concession cardholders can also access free RATs, as well as those with symptoms or who are considered close contacts at testing locations.
Labor leader Anthony Albanese has promised to make the rapid tests available free to everyone through Medicare, but has not said what limits might have to be applied to ensure supplies.
