Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Hansard source

I thank the member for Deakin for his question, and I thank him for his deep interest in the economy, knowing that it offers jobs and prosperity to working Australians. I thank him for his deep interest in the budget, knowing that it matters to working Australians that tonight's budget responds to the needs of our economy, bringing the budget to surplus whilst of course protecting front-line services for families and building the things that our nation will need for the future, like a National Disability Insurance Scheme, like a better aged-care system and like a better way of looking after the dental needs of Australians who most need our care and concern for their dental care.

There is no clearer sign of a strong economy than a surplus, and in tonight's budget we will bring the budget to surplus. We have achieved that despite the global financial crisis and despite continued uncertainty in the global economy. Bringing the budget to surplus is the right economic measure now. It will give us a buffer should the global economy take a downturn in the future and it offers the Reserve Bank the maximum room to move on interest rates should it choose to do so. Members in this parliament—or at least on this side of the chamber—would have recognised the relief that many Australians felt when interest rates were reduced by the Reserve Bank in their recent decision, helping people pay the mortgage because of the pressure of the mortgage on Australian family budgets.

I understand, and the government understands, that Australians are concerned about cost-of-living pressures, and we will continue to work with families to help them make ends meet. That is why we are investing more money in child care than ever before. That is why we instituted a paid parental leave scheme. That is why we have worked to ensure that the tax-free threshold will be tripled so people can see more of the benefits of work in their hands. And that is why we are also introducing a schoolkids bonus, so families can get the benefits of dollars in their hands as they pay for the costs of kids going to school. We know that those school bills, whether they are for excursions or uniforms, can put a lot of pressure on working families.

Tonight's budget will be a practical plan for Australia to return to surplus and to deliver on Labor values. It will be a truly Labor budget that goes in to bat for millions of Australians on low and middle incomes. They are the people that we have been concerned about as we have put the budget together. It is a budget that goes in to bat for them whilst delivering a budget surplus, the right choice for our economy now.

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