Chris Ketter (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance, Senator Cormann. I refer the minister to Peter Costello, the man the minister calls 'a great Australian'. Does the minister agree with this great Australian, who says the Abbott government's tax slogan, 'Lower, simpler, fairer', is 'a morbid joke'?

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

I absolutely agree with the senator that Peter Costello is a great Australian, and I have to say: the overwhelming support across the chamber—the overwhelming noise across the chamber—after the senator referred to Peter Costello as a great Australian was so loud I could not really hear the rest of the question. But let me just say—

Stephen Parry (President) Share this | Link to this | Hansard source

Pause the clock.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, on a point of order, given that the minister, out of his own mouth, said he did not hear the question, perhaps the senator could repeat the question.

Stephen Parry (President) Share this | Link to this | Hansard source

That is a fair request, Senator Wong. Senator Ketter, would you repeat the question. We will reset the clock for both the question and the answer.

Chris Ketter (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Does the minister agree with this great Australian, who says the Abbott government's tax slogan, 'Lower, simpler, fairer', is 'a morbid joke'?

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

Peter Costello is indeed a great Australian. He was a fine Treasurer for Australia over nearly 12 years. But let me just say that I disagree with him on this, because, of course, this is a government which is committed to lower, simpler, fairer taxes. This is a government which has brought taxes down over the forward estimates compared to what they would have been under Labor. There is absolutely no doubt that, under this government, taxes are now lower than they would have been under Labor. We got rid of the carbon tax. We got rid of the mining tax. On Tuesday, we delivered a small business tax cut. We delivered immediate asset write-offs for small business up to $20,000. This is a government that does tax lower than Labor any day.

Would we like to do more? Of course we would. Of course we would like to bring down taxes by more. We have brought down a budget which is measured, which is responsible, which is fair, and which puts the budget back onto a credible path to surplus on the same timetable as last year's budget. Our budget repair effort is predominantly focused on the spending side of the budget. We have kept spending growth under control, much better than the previous government. We inherited spending growth of 3.6 per cent above inflation, on average, per annum, from the previous government. We have brought that down to 1.5 per cent spending growth, on average, over the forward estimates.

Senator Conroy interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Conroy.

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

Let me just pause here for a moment to say that in the whole period that Mr Shorten has been the Leader of the Labor Party, how many savings do you think he has identified? Tell us how many spending reductions Mr Shorten has identified? It is a big, fat zero. There is not a single dollar that Mr Shorten has suggested should be saved. And guess what? Tonight, Mr Shorten will have the opportunity to fix that. Tonight, Mr Shorten will have the opportunity to tell us where he is going to save.

Chris Ketter (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister confirm that net government debt will escalate to 18 per cent of GDP in 2016-17 and total $325.5 billion in 2018-19?

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

I am pleased to see that the senator is able to read our budget papers where everything is laid out, openly and transparently, for everyone to see. What I can confirm is that net debt under this government will peak in 2016-17 at 18 per cent before coming down. Of course, over the medium term, it is going to come down to seven per cent as a share of the economy, or about $201 billion by 2025-26. The crocodile tears from this Labor Party over there are quite extraordinary, because we are the only ones who are actually trying to get the budget back under control. We are the only ones who are making an effort. You are the ones who are working to a huge expenditure growth. The Labor Party is not helping. If you are so concerned about bringing spending growth down, if you are so concerned about bringing debt down, come and join us in the national interest. Come and work with us in the national interest. Come and work with us in a bipartisan fashion to put Australia on a stronger foundation. (Time expired)

Chris Ketter (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister confirm that under him government debt is higher than at any point in Australia's history including under the Whitlam government?

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

What I can confirm is that we inherited a budget in a mess from the worst finance minister in Australia's history. We inherited a budget position that was rapidly deteriorating. We inherited a debt growth trajectory that was rapidly deteriorating. What I can confirm is that the position that we are in now is much better than what it would have been if the Labor Party had been re-elected to government in 2013. What I can confirm is that this side of the parliament is working hard to strengthen growth, to create more jobs and to get the budget back to surplus.

Stephen Parry (President) Share this | Link to this | Hansard source

Pause the clock. Minister. Senator Moore on a point of order.

Claire Moore (Queensland, Australian Labor Party, Shadow Minister for Women) Share this | Link to this | Hansard source

I was on my feet before the minister sat down, Mr President. I wanted to know, on direct relevance, whether we would get any answer to the issue about debt and whether that was coming into the minister's answer.

Stephen Parry (President) Share this | Link to this | Hansard source

Thank you, Senator Moore, I will remind the minister of the question. Minister, you have 28 seconds.

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

Thank you very much, Mr President. The spending growth trajectory that we inherited from the worst finance minister in Australia's history was taking us to 26.5 per cent spending as a share of the economy by 2023-24. We are actually now heading down. Under Labor, spending as a share of the economy was heading up, debt was heading up. We have now turned that situation around and debt is now heading down, and government spending as a share of the economy is heading down. It will peak in 2016-17 and it will— (Time expired)