Opposition Members:

Opposition members interjecting—

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

Members on my right! Just before I call the Prime Minister—I'm going to allow the question, so the Leader of the Greens can relax—but I'm just making the point with these 45-second questions the complaint often is there's a lot of preamble. I'm just flagging where there's a whole series of questions, and there were quite a number there, it does get close to the point where it would be better put on the Notice Paper, given the Prime Minister only has three minutes to answer them all. I will allow the question.

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

It will be a great relief to the Australian people that the government does not intend to adopt the economic policies of the Greens. I can't speak for the Labor Party, because they're known to like quite a few of the Greens' ideas when it comes to economic policy, and so I don't think they can provide that same assurance.

What our government will continue to do is lower taxes and to support small and family businesses around the country to ensure that we continue to expand our trade markets all around the world. We've seen trade deals for our country expand from 26 per cent of our trade to over 70 per cent of our trade, and we're heading to 90 per cent. We're going to continue to build the infrastructure that is necessary to grow our economy; $100 billion is the plan that we've been rolling out now for many years. We will continue to invest in the skills that Australians need to ensure that they can be part of the vibrant economy that we know is ahead for this country when you get the right policy settings in place. We will continue to ensure that we put in place the fiscal discipline that ensures we treat taxpayers' money with great integrity and ensures that we are spending it on the things that matter to Australians on the ground—building their infrastructure, supporting their communities and giving them the opportunity to get ahead.

We will also invest in the climate resilience of this country going forward. We will continue to support, through myriad investments, the energy sector and, more broadly, investments in renewable energy. I'm pleased to let the member know, as he raised it specifically, that throughout 2019 the government's Renewable Energy Target and Emissions Reduction Fund carbon markets delivered more than 50 million tonnes of emissions reductions. This is expected to ramp up to more than 59 million tonnes in this calendar year, in 2020, I understand. This was a record year for carbon markets in Australia. Total renewable investment grew strongly to a record of 6.3 gigawatts in 2019, and it's expected 2020 will achieve similar results.

Our policies are growing the Australian economy. Our policies have led to the creation of more than 1.5 million jobs in this country, while cutting taxes and relieving the burden on the cost of living for Australians. Energy prices have fallen. Electricity prices have fallen 3½ per cent in the last year as a result of the many measures we've put in place to ensure that customers get a fair deal. That includes legislation passed through this parliament—the big, thick legislation—which was championed by the Minister for Energy and Emissions Reduction and which those opposite have always wanted to have a bet on each way every time on that legislation. They were for it; they were against it; they were for it; they were against it.

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

The Prime Minister's time has concluded.

Bert Van Manen (Forde, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer remind the House why the Morrison government's responsible fiscal management plan is keeping our economy resilient while we meet the threat of uncertain economic challenges? Is the Treasurer aware of any alternative approaches which would undermine our capacity to do so?

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

I thank the member for Forde for his question. I acknowledge his background in business and the fact that across his electorate there are more than 17,000 small businesses that are benefiting from our instant asset write-off, like RAMS Autocare in Beenleigh, which I visited recently.

When we came to government, we inherited an economy where unemployment was 5.7 per cent and rising, investment was falling and the budget was deep in the red, with a deficit of $48½ billion dollars. That was around five years after the GFC and the Labor Party had enjoyed iron ore prices at around $180 a tonne, or more than twice of what they are today. In contrast, since we've come to government we've helped to create more than 1½ million new jobs, legislated more than $300 billion of tax cuts and delivered the first balanced budget in 11 years. That has helped build the resilience of the Australian economy to respond to drought, to respond to trade tensions between China and the US and to deal with the fires and the coronavirus.

I'm asked whether there are any alternative approaches. Yesterday we heard that the member for Rankin's alternative to a balanced budget was a 'wellbeing budget'. I want you to picture this alternative: the member for Rankin is about to deliver his first wellbeing budget. He walks, barefoot, into the chamber, robes flowing. Incense is burning. Beads in one hand and speech in the other hand. Gone are the seats, gone are the benches, and in their place meditation mats for all. The member for Rankin stands up to address the chamber, to announce that his wellbeing tour has gone national. Hugs for all! But there's a warning to every Australian: when the member for Rankin provides them with a hug and a kiss, he's going to take away their wallets.

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

My question is to the Treasurer. Why doesn't the Treasurer, in these long and predictable answers, ever acknowledge that the domestic economy was already floundering before the coronavirus, with weak consumption, business investment going backwards and a big fall in construction?

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

In December last year no-one was talking about the coronavirus, but what happened to unemployment? It fell to 5.1 per cent. What happened in the September quarter last year before the coronavirus? Household disposable income, off the back of our tax cuts, had its biggest increase in a decade. What happened to retail sales volumes in December last year before the coronavirus? They had their biggest jump since 2018.

The reality is that before the coronavirus, as the Reserve Bank governor had said, the economy had reached a gentle turning point and Australians could be confident about their economic future. Why? Because the current account surplus is occurring for the first time in more than 40 years, because we have the lowest welfare dependency in more than 30 years, because we've delivered the biggest tax cuts in more than 20 years and because the budget is back in balance for the first time in 11 years. Why is it that the member for Rankin and the Labor Party are always talking down the Australian economy? The reality is that investment is stronger, unemployment is lower, taxes are lower and there's more money in Australians' pockets as a result of this coalition government.