David Coleman (Banks, Liberal Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. Will the Prime Minister update the House on the importance of the coalition's national economic plan for jobs and growth? Why is a responsible, fair and prudent budget critical to delivering economic security and new growth opportunities for Australians?

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I thank the member for Banks for his question. Of course, as the chair of the House Standing Committee on Economics, the member for Banks is keenly aware of the vital need for responsible economic management as we make the transition from the mining and construction boom to a stronger, more innovative, more diverse economy. Tonight the budget will detail my government's national economic plan for jobs and growth. It will set out our carefully designed changes to create a sustainable tax system to meet the government's responsibilities to our children and our grandchildren.

Opposition Member:

An opposition member interjecting—

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

It will demonstrate very clearly the responsible economic management which is required to balance the budget to reduce the burden of long-term debt and deficit. The opposition, in contrast, has already failed this test of competent economic management. As I observed a moment ago, Treasury analysis shows that Labor's best practice tobacco policy will raise fully $19.5 billion less than it claims. It is a $19.5 billion black hole in Labor's policy costings. The Leader of the Opposition and the member for McMahon cannot hide, as they seek to do, behind the Parliamentary Budget Office.

An opposition member interjecting—

Let me set out why. Their best practice tobacco policy was released on 24 November last year. It stated it would raise $47.7 billion over 10 years, which was based on May 2015 budget assumptions. As every member in a House is aware, in December last year the government released the Mid-Year Economic and Fiscal Outlook, MYEFO, that contained the latest state of the budget's books. MYEFO explicitly noted:

Excise and excise equivalent customs duty has been written down by $4.1 billion over the forward estimates, mainly reflecting lower tobacco and alcohol excise collections and weaker forecast consumption of these goods.

That was on page 40.

Ms Plibersek interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Sydney.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

In December, Labor knew its costings required updating to ensure its promises were honestly fully funded. They were warned in MYEFO. What did they do? Did they have the Parliamentary Budget Office recost their policies? No. Instead, the Leader of the Opposition has gone from school to school and hospital to hospital claiming Labor's policies are fully funded, and now they have been completely caught out. They have had nearly 6 months since the release of MYEFO to update their costings and they have failed to do so. The Australians people know Labor cannot be trusted with money. It cannot be trusted to get its sums right. It cannot be trusted with the management of our economy.

Opposition members interjecting—