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 responsible budget management provides the financial resilience necessary to respond to economic shocks like the coronavirus, bushfires and drought? Is the Treasurer aware of any alternative approaches?

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

I thank the member for Lindsay for her question, and note the work that she and members of her community have done to help those in fire affected areas: the provision of community care kits that have linen, pots and pans, stationery for kids going back to school and the like—all prepared by the member for Lindsay and her team in her electorate.

It has been a devastating summer with the bushfires taking lives and destroying livelihoods. We've seen the ongoing drought and, of course, the coronavirus and the harm that it has brought. The Morrison government's response has been unprecedented. What we have seen in relation to the drought is $1.3 billion of commitments since the election, on top of what was previously announced.

In relation to the bushfires, and the Prime Minister has alluded to it, we've established the national bushfire recovery fund with $2 billion, which is initial and additional to other payments and allowances that the Commonwealth makes through the states. It's money for mental health, money for the tourism sector, money for small businesses and for primary producers, and money for wildlife habitat restoration and to support those many, many animals that have been injured in these bushfires.

Our ability to respond to these crises has been enhanced by the fact that we have been disciplined economic managers. We inherited a budget deficit of $48½ billion dollars and we've delivered the first balanced budget in 11 years. This has given us the ability to spend on those areas of need. We have a strong economy because more than 1½ million jobs have been created since we've come to government. Unemployment under Labor was at 5.7 per cent; today it's 5.1 per cent. Under Labor, employment growth was one-third of what it is today. Under Labor, 62,000 small businesses closed their doors in their last year in office, and in the last reported year 75,000 small businesses have been created by this government. The contrast is very clear. Earlier today the Governor of the Reserve Bank addressed the Press Club. This is what he said about the Australian economy:

Australia's economic fundamentals remain very strong and they provide a solid foundation for us to be optimistic about our future.

This is the Governor of the Reserve Bank of Australia. There's only one group of people talking down the Australian economy, and it is those opposite.