Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Treasurer. Ratings agency Standard & Poor's has today warned that Australia's AAA credit rating will be at risk unless the Treasurer stands by his commitment to a surplus in 2021, a commitment which is in the Treasurer's own budget papers that bear his name. With his chaotic management of the budget, does the Treasurer take any responsibility for placing Australia's AAA rating at risk?

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the member opposite for his question. The budget is projected to return to balance in 2021. That balance is contingent upon the $40 billion worth of budget improvement measures that are contained in the budget and the forward estimates being passed by this parliament. I am pleased that the Prime Minister has just reminded the House that some $20 billion of that $40 billion has already been passed through this parliament in just these few sitting weeks since the last election. That demonstrates that this government is getting on with the job of implementing our budget measures. But there remains a further $20 billion, which those opposite remain substantively opposed to. The greatest guarantee for the AAA credit rating that those opposite could give the Australian people is to say that they will support the government's budget savings measures.

The government has laid out our plan in the budget. What stands in our way is the refusal of those opposite to stand up to their economic responsibility, heed the warnings from the ratings agencies and pass the government's budget. But they have an alternative plan! Their view is that the ratings agencies would rush to reaffirm Australia's AAA credit rating if the deficit were to be increased by $16.8 billion. So confident were they that that would be the case that they took a $16½ billion increased deficit to the last election. And what happened at the last election? You took a $16½ billion deficit increase to the last election and it was no surprise that the Australian people rejected you.

Mr Perrett interjecting—

Ms Macklin interjecting—

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

The member for Moreton and, again, the member for Jagajaga will cease interjecting. We are heading down a certain track, I fear, with the member for Jagajaga.

Ann Sudmalis (Gilmore, Liberal Party) Share this | Link to this | Hansard source

My question also is to the Treasurer. Will the Treasurer update the House on how the government is strengthening Australia's economy by reducing the deficit and arresting debt? Will the Treasurer again explain how important it is that the budget measures currently before parliament are passed to protect Australia's AAA credit rating?

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for her question and her keen interest. More importantly, I thank her and those who sit on this side of the House for their support for the government's budget, which is projected to return to balance in 2021. But, as I just remarked to the House, there are some impediments that stand in the way of that, and they sit opposite. I turn to none other than the support given by the former Treasurer and Prime Minister, Paul Keating, who said this earlier this year: 'When Commonwealth revenue has been so affected, the penny ought to drop; that what we should be doing is cutting spending. That is what the Treasurer'—referring to myself—'has said for some weeks now, and on this point he is actually right.' So we have the former Treasurer and Prime Minister, whom the shadow Treasurer claims is his great mentor, telling him direct, just as the ratings agencies are telling him direct: pass the budget savings measures to ensure the security of Australia's AAA credit rating.

Since 2013, as a government, under both Prime Minister Abbott and Prime Minister Turnbull, we have already cut the rate of spending growth from 4.2 per cent, as it was under the budgets of those opposite, to around 1½ per cent under the budgets of the coalition government. That is what we have achieved, and that is how we are arresting the debt. But we are faced with the impediment of those opposite, who would rather spend more and tax more and raise debt to even higher levels than actually face up to their economic responsibility and come into this place and support the government's comprehensive plan to achieve budget repair. Of the measures that I refer to, we have already been able to pass some $20 billion worth through this parliament. They include the superannuation measures, which included some $6 billion in additional revenue. That also included $3 billion of investment back into the superannuation system—a world-leading superannuation system—to ensure that it is fairer, more flexible and sustainable.

Those opposite spoke an untruth to the Australian people at the last election. On superannuation, they said in their own estimates that they would do the same thing as the government when it came to the revenue net position. They did not tell the Australian people that they wanted to tax contributions more. They did not tell those who run home based businesses, those who are contractors and those who are seeking to catch up on their concessional contributions because they have been carers or they have been having children. They did not tell them they were going to strip those flexibility measures away. They did not tell them that at all. They went to the Australian people and misled them on superannuation and now, in this parliament, they have made a promise that, at the next election, the only party that is going to be taxing superannuation more is led by the Leader of the Opposition. (Time expired)