Melissa McIntosh (Lindsay, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer explain to the House how the Morrison government's strong budgetary position enables us to deliver the essential services that Australians rely on? Is the Treasurer aware of any alternative policies that may undermine this approach?

Josh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for Lindsay for her question. I acknowledge her extensive experience in small business before she came to this place and that there are more than 70,000 taxpayers in her electorate that will get the benefit of the tax cuts that pass this parliament as well as more than 14,000 small businesses in the electorate of Lindsay that will be able to access the instant asset write-off.

On 2 April I announced that the budget was back in the black and back on track without increasing taxes. What we have seen since the coalition have come to government is more than 1.4 million new jobs being created, welfare dependency at a 30-year low, the biggest tax cuts in more than 20 years and the first balanced budget in 11 years. And today the ABS have confirmed that the current account surplus is the highest on record: $7.9 billion.

The benefit of a strong economy is that we can guarantee the essential services that Australians rely on—like fully funding the NDIS, like increasing funding for schools and hospitals by around 60 per cent as well as the most recent announcement of a new aged-care package, with aged-care funding also at a record level. We've also brought forward $3.8 billion of infrastructure spending. We have announced since the election more than $1 billion of additional funding in drought support and in our drought response, which has been critical. These are all the benefits of a strong economy with responsible budget management.

That is in stark contrast with what those opposite have taken to the Australian people. We know that the former Labor Treasurer, the member for Lilley, Wayne Swan, promised four budget surpluses—budget surpluses that he's still looking for. We know that those opposite enjoyed iron ore prices that were more than double what they are today, but they still racked up $240 billion of accumulated deficits.

Ms Plibersek interjecting—

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

The member for Sydney is warned.

Josh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Link to this | Hansard source

We know they took to the Australian people $387 billion of higher taxes that are still on their books. We know that they attacked the small businesses across Australia as being from 'the top end of town'. Those opposite attacked the millions of Australian retirees and said that they were complaining from the back of their yachts. That's how they treated retirees. That's how they treated small businesses. That's how they treated the workers of Australia. Only this side of the House can be relied on to deliver a stronger economy, to lower taxes and to create more jobs.

Jim Chalmers (Rankin, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer to the Prime Minister's answer in question time today in which he claimed the Liberal government has not increased debt. Can the Prime Minister confirm that, since coming to office, the government has more than doubled Australia's debt, meaning more than half of Australia's debt is Liberal debt? Can the Prime Minister confirm he has just misled the parliament again today?

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

If the member would like to go and look at the budget that the Treasurer handed down this year, for 2019-20, it shows the budget will be in surplus for the current year, and it shows that this year and over the forward estimates, in the budget forecasts that were provided for 2019-20, the levels of net debt fall by some $50 billion over those four years.

Hon. Members:

Honourable members interjecting—

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

Members will cease interjecting. The Leader of the Opposition on a point of order?

Anthony Albanese (Grayndler, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

Mr Speaker, it goes to relevance. It wasn't about forecasts; it was about this government's record of doubling the debt. That's what the question was.

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

The Prime Minister, I believe, is in order. He is addressing the topic.

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

I know, for Obi-Swan's Padawan over there, it is a complex sort of thing for him to understand, because in the Labor Party they haven't had a surplus since 1989. When you go into surplus, it means you're able to reduce debt. That's what's happening. What I have said is that, in the 2019-20 budget, the budget is coming into surplus this year, which means that we are able to pay down debt. In 2019-20 we did not put up taxes. We actually delivered, again, generational tax relief for Australians.

Those opposite were saying very clearly at the last election that they thought the remedy to the challenges the Australian economy was facing was to load it up with $387 billion of higher taxes on the Australian people. We don't share that view. We share the view that Australians should keep more of what they earn. What I said very plainly is: in our budget, we are delivering record funding for schools, we are delivering record funding for hospitals, we are fully funding the NDIS and we are doing that in our budget without increasing the debt and we're doing it without increasing taxes and with responsible financial management.

I understand responsible financial management is a complete mystery to those who sit on the other side. The Australian people do not trust Labor with their money. We know that the Australian people know that, when Labor run out of their own money, they come into the pockets of the Australian people. They know that Labor cannot be trusted with money, and we have demonstrated time and again that only the Liberals and Nationals can be trusted with the finances of this nation, to ensure we can guarantee the essentials that Australians rely on. Labor make all sorts of promises, but they write cheques that their own poor financial management can never cash.

Dave Sharma (Wentworth, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer explain to the House why disciplined and responsible economic management is so important at a time of global headwinds and uncertainty? Is the Treasurer aware of any alternative policies that would compromise this stable and certain approach?

Josh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for Wentworth for his question and acknowledge his extensive experience as a leading Australian diplomat before he came into this place. In his electorate, there are more than 80,000 taxpayers who will benefit from the tax cuts that we on this side of the House have supported. More than 30,000 small businesses in the electorate of Wentworth will be able to access the instant asset write-off again, which we announced in this year's budget. The Australian economy faces significant global and domestic headwinds. We know, with the trade tensions globally, that the IMF have said that, if they don't abate next year, you could see $700 billion come off global GDP. And we know, in terms of the devastating drought here in Australia, that agricultural output in the last two years is down by more than 14 per cent and that this drought is affecting around two-thirds of Queensland and about 95 per cent of New South Wales.

Despite those economic headwinds, domestic and global, the Australian economy continues to grow. We're in our 29th consecutive year of economic growth. While Germany, the United Kingdom and South Korea all experienced negative growth this year, the Australian economy continued to grow. We have a AAA credit rating and employment growth is around two per cent, which is around three times what we inherited from the Labor Party and more than double the OECD average. And today the current account surplus is the highest on record: $7.9 billion. It's through the work of this government that we are opening up access to markets for nearly two billion new customers across the region, as a result of the FTAs that we've entered into.

I'm asked about any alternative approaches. Now, despite S&P saying this week that the outlook for Australia is sound, despite Deloitte saying that the growth momentum is picking up, despite the Reserve Bank of Australia saying the economy has reached a gentle turning point and despite the IMF and the OECD saying that Australia, next year, will have faster growth than any G7 nation, those opposite, particularly the member for Rankin and the Leader of the Opposition, talk down the Australian economy. It's probably the first time and the last time I'll say it in this place, but the Leader of the Opposition should listen to Wayne Swan when he says: 'It's important our political leaders not be out there talking down the economy. Relentless negativity from the doomsayers insults the hard work so many Australians put in to make our economy strong.' I say to the Leader of the Opposition and the member for Rankin: they should dwell on that fact when they continue to talk down the Australian economy, despite this side of the House and this government cutting taxes and creating more jobs. (Time expired)