Trevor Evans (Brisbane, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer update the House on how the government is reducing deficit and arresting debt by returning the budget to balance? Is the treasurer aware of any alternative policy proposals that would increase the budget deficit, threaten Australia's AAA credit rating and jeopardise the jobs of hardworking Australians?

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

I thank the member for Brisbane for his question and for his background in economics. He knows very well the importance of ensuring that we return the budget to surplus and that we continue to implement policies that grow the economy so you can lift revenues through jobs and people being able to get increased hours of work, and that is why we are progressing with our enterprise tax plan. Since the last election, the government has secured $20 billion and more in budget improvement measures passed through this place and the other place. That is a significant rate of progress that we have been able to achieve in implementing the budget measures that we took to the last election and announced in our budget in May and in the carry forward of measures that we have been pursuing, in some cases, for three years. In addition to that, we have seen real growth in expenditure reduced from some 4.2 per cent under the budgets of those opposite. Under the budgets of this coalition, starting with Treasurer Hockey and me, we have been able to get that real growth in expenditure down to 1.6 per cent. It has fallen from 4.2 per cent down to 1.6 per cent. Slowing the growth in expenditure is enabling us to get back on a trajectory to come to a balance in 2021 based on the current projections.

The warning that we have received from the ratings agencies is a warning that has been applied to this entire parliament, and that warning is to pursue and implement and pass the savings and revenue measures that the government have put in the budget to ensure that the trajectory and projection for return to a balance is achieved. Now, that is a very sober warning for those who sit opposite, and for the states' house in the other place, because it is incredibly important that if these measures are not passed, then the AAA credit rating of this country will be at risk. And if those opposite want to play Russian roulette with Australia's AAA credit rating by refusing the budget measures—

Jim Chalmers (Rankin, Australian Labor Party, Shadow Parliamentary Secretary to the Leader of the Opposition) Share this | Link to this | Hansard source

What about the $50 billion tax cut?

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

Member for Rankin!

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

and the consolidation path that this government has laid out in the budget, then the loss of that rating will hang around the neck of the Leader of the Opposition and the shadow Treasurer. It won't be the first time, because we remember when the ratings were lost last time; it was lost under the Labor Party, and it was regained with Moody's and S&P's under the coalition government. But those opposite have an alternative plan—

Jim Chalmers (Rankin, Australian Labor Party, Shadow Parliamentary Secretary to the Leader of the Opposition) Share this | Link to this | Hansard source

You don't have a clue.

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

The member for Rankin is warned!

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

but it is not an alternative plan which makes sense because—

Dr Chalmers interjecting—

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

The member for Rankin will leave under 94(a).

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

even as Saul Eslake said:

… it seems hardly sensible for a would-be Labor government to tolerate a significantly greater budget deficit over the next four years.

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

The Treasurer has completed his answer.

Paul Fletcher (Bradfield, Liberal Party, Minister for Urban Infrastructure) Share this | Link to this | Hansard source

The real truth is Swannie.

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

The Minister for Urban Infrastructure is warned. The member for Rankin was warned—he did not hear it, perhaps, because he kept interjecting, but I had indicated to him before to cease interjecting—and he will leave under 94(a).

The member for Rankin then left the chamber.

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

To conclude, Saul Eslake said, based on the $16½ billion increase in a budget deficit under the policies of those opposite—that is, the Labor Party:

… they are potentially risking the AAA credit rating if they outline significantly bigger deficits.

(Time expired)