Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Hansard source

I was saying we have increased the childcare rebate, we have introduced the education tax refund, we have increased the pension—all of this delivered within our tough fiscal rules. We are increasing family tax benefit part A and extending the education tax refund as part of our election policies. We also understand the importance of delivering a sound fiscal strategy.

The senator refers to the Mid-Year Economic and Fiscal Outlook, which I also referred to in answer to the first question from Senator Cameron, and I would make this point: the high dollar has hit government revenue—some $10 billion wiped off government revenue over the forward estimates. Notwithstanding that, this government remains on track to deliver a surplus. So the senator can criticise all she likes but the reality is we made the decision, both during the election campaign and in the context of the MYEFO budget update, to ensure that we offset new spending to deliver savings to hold the bottom line in the face of a substantial write-down in government revenue as a consequence of a high dollar.

I would just remind the senator that, for example, Australia’s net debt as a percentage of GDP in 2010 is about 5.7 per cent. The average for the G7 is 74.4 per cent, and the peak net debt for major advanced economies is projected to be about 90 per cent of GDP in 2015. Ours will be 6.4 per cent.