Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

I thank Senator Bernardi for that question. Overnight, indeed, the OECD released its Economic outlook publication on the world economy, a biannual publication. The OECD has forecast global growth for 2016 of 3.3 per cent, which is a bit less than previously forecast, picking up to 3.6 per cent in 2017. As a trading nation, what happens in the global economy matters to us, because we do not have direct control over it. What we do have direct control over, of course, is the policy choices we make here in Australia. The previous government, when we were facing global economic headwinds, decided to put more lead into our saddlebag, decided to make it harder for Australia to be successful economically and decided to spend more than we could afford given the economic outlook in front of us.

This government is focused on making sure we strengthen growth by being more competitive, by being more productive, by being more innovative and of course by making sure we are as resilient as possible in the face of inevitable future global economic shocks and are in the best possible position to take advantage of future global economic opportunities. The OECD in its report is providing a strong endorsement of our efforts, stating in its report—and maybe people on the Labor side should listen to this: 'The prospect of structural reforms such as in taxation adds to the upside risks'—that is, for Australia. They are talking about the government's focus on improving Australia's tax system, noting that a tax mix switch away from distorting income and transaction taxes 'would significantly improve the growth friendliness of Australia's tax system'. (Time expired)