David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Mr President, my question is to the Minister for Finance, Senator Cormann, representing the Treasurer. Can the minister update the Senate on the government's plans for more investment, more jobs and a stronger economy?

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

I thank Senator Bushby for that question. As a government, every single day we are focused on how we can ensure that we attract more investment to create more jobs and to strengthen our economy. Every day as a government we are focused on how we can ensure that we continue to successfully transition from resource investment driven growth to broader grounds of growth in a more diversified economy.

And the government is delivering results. When we came into government we inherited a weakening economy. Today, we are growing at a stronger three per cent. When we came into government we inherited rising unemployment. Today, employment growth is stronger and our unemployment rate, at 5.7 per cent, is well below what had previously been anticipated when Labor was in government. Only yesterday, the Senate supported a government proposal to save tens of thousands of jobs when the Senate voted in favour of Senator Cash's proposal to abolish the Labor and union attack on small business owner-operators in the trucking industry. What a great achievement that was by Senator Cash.

Across the board, the government, every single day, continues to implement its plan for stronger growth and more jobs. That is why we are working on making our tax system more jobs and growth friendly. That is why we are pursuing an ambitious deregulation agenda. It is to ensure we are as competitive and as innovative as possible. That is why we are pursuing a jobs and growth friendly innovation agenda. That is why we are pursuing an ambitious defence industry agenda. That is why we are pursuing an ambitious infrastructure agenda. That is why we are pursuing an ambitious free trade agenda, helping our exporting business get better access to key markets around the world. The Australian people know that this government is focused on stronger growth and more jobs.

David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. How are the government's policies helping to create more jobs and drive stronger growth?

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

Cleaning up the construction industry will lead to more investment and jobs in the building industry—whether that is in relation to the construction of schools, hospitals, roads or other vital infrastructure—by reducing the cost of construction, reducing the level of lawlessness and getting rid of all the troublemakers that are causing grief outside of the law. We are making it easier for people to invest with confidence in high-quality and necessary projects. By removing taxes, by making our tax system more jobs and growth friendly, by improving our regulatory frameworks, by opening up trade and by investing in innovation and infrastructure, we are strengthening growth and the opportunities for additional investment, which, in turn, will help to create more jobs. The proof of the pudding is in the eating: if you look at what is actually happening in the economy right now compared to what was happening under Labor, the economy is growing more strongly and more jobs are being created. (Time expired)

David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Is the minister aware of any risks to future economic growth and jobs growth?

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

Yes, sadly, I am. The biggest risk to future economic and jobs growth is Bill Shorten and the Labor Party, because the Labor Party have not learned anything from their failed past. They have not learned a thing. They are coming up with their tax and spend proposals yet again—more than $100 billion in additional taxes that would be raised under Labor over the next decade, according to their own figures, only to spend it all and more; $100 billion in additional taxes. What do you think that will do to economic growth and investment? It will undermine our successful transition from resource-investment driven growth to broader drivers of growth.

Then of course there is their proposal to increase capital gains tax, which will drive down investment. There is their ill-thought-out proposal to make changes to negative gearing, which will drive down the value of property, push up the cost of rent, reduce the level of investment in the housing sector and make it harder for middle-income families across Australia to get ahead by leveraging their existing income and assets to strengthen their own opportunities. (Time expired)