David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance and the Minister representing the Treasurer, Senator Cormann. Can the minister update the Senate on recent employment and economic growth numbers?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

(—) (): I thank Senator Bushby for that question. Since we last met, there have been some important updates on Australia's economic performance and our performance when it comes to employment creation. What these numbers show is that the government's long-term economic plan for stronger growth and more jobs is working. The national accounts released earlier this month show, for example, that Australia has one of the fastest-growing economies in the developed world. Australia's economy is growing faster than any economy in the G7. Of course these things have not happened by accident. These things have happened because this government has worked hard to turn around the situation that we inherited from our predecessors. When you look at the jobs numbers, for example, nearly 300,000 new jobs have been created since we came into government: 111,000 since the beginning of this year, over 22,200 every month, which is six times as many as in the last year of Labor. Of course, when we came into government, when we inherited a weakening economy, rising unemployment and a rapidly deteriorating budget position, we implemented our plan for stronger growth and more jobs and to repair the budget mess that Labor left behind. We got rid of the job-destroying carbon tax. We got rid of the mining tax. We reduced the red tape cost for business by more than $2 billion per year. We rolled out a record infrastructure investment program, investing in our future economic growth. Of course, the Minister for the Environment has made rapid approvals for projects worth about $1 trillion—projects that were lingering on Labor's desk when they were in government. That is, of course, how you strengthen growth and create more jobs— (Time expired)

David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Will the minister advise the Senate of the government's plans to further strengthen economic growth and job creation?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

As the Senate knows, the government's second budget was designed to build on the progress that we have made over the first 20 months or so in government and it seeks to keep the momentum on jobs and growth going. Today the Senate passed the centrepiece of our small business and jobs package, and we are very grateful for the Senate's support for a 1.5 per cent tax cut for small business, for a very important initiative in the $20,000 immediate asset write-off, which will encourage small businesses across Australia to invest in their future success and, as they become more successful, to employ more Australians. We understand that, as Australia goes through a significant structural adjustment, small business is going to be critically important in generating the growth of the future. Four and a half million Australians are employed by small business today, and we want many more Australians to be employed by small business in the future. (Time expired)

David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Will the minister inform the Senate of any alternative approaches, and what would be their effect on growth and jobs?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Yes, sadly, I can inform the Senate of some of the alternative proposals that have been put forward. We of course know that the Labor Party wants to reintroduce the carbon tax. We of course know that Mr Shorten and the Labor Party have not learned from their mistakes. They have not learned that the carbon tax was a job-destroying tax. They have not learned that reintroducing the carbon tax would just serve to push up the cost of electricity, push up the cost of doing business, cost jobs, cost investment—and of course they want to press ahead. We also know, as a result of the forensic questioning by coalition senators in Senate estimates, that the Labor plan for higher taxes on business will cost jobs. There was absolutely unequivocal evidence by Treasury officials that Labor's plan to increase taxes for business will cost jobs. Then of course we have Labor's $56 billion budget black hole. There is only one way Labor can fund that in the future if they ever get back into government, and that is through higher taxes. (Time expired)