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

My question is to the Minister representing the Treasurer, Senator Cormann. Can the minister update the Senate on the national accounts data released today and what this shows about the Australian economy?

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

I thank Senator Bushby for that question. What it shows is that the Turnbull government's pro-growth, pro-opportunity, pro-jobs agenda is working. It shows that our economy continues to grow. In recent weeks we have seen evidence of more jobs, more investment, higher wages and more exports. Real growth of 0.8 per cent over the past quarter is more than twice the rate of the previous quarter. In year-average terms, at 1.9 per cent throughout the 2016-17 financial year, real growth is higher than the 1¾ per cent real growth forecast in the last budget.

Of course, Labor is not interested in the strength of our economy or in opportunity. They are only interested, for political reasons, in going back to their old failed socialist agenda of the past. At budget time, the Labor side was saying, 'These growth forecasts are way too ambitious', and, of course, we've come in above the growth forecast. But do you know what the shadow Treasurer says today: 'This is too low.' At budget time, he said we were being too optimistic, too ambitious and that we would never deliver on the economic growth forecasts in the budget. Well, we've exceeded them. They say today, 'It's too low.' They haven't got a clue. That is what socialism does to you. Socialism clearly leaves everyone worse off and it clearly is already having an impact on the Labor Party.

Export volumes rose 2.7 per cent in the June quarter and 4.3 per cent throughout the year. New private business investment grew by 1.1 per cent in the quarter to be 1.5 per cent higher than a year ago. New machinery and equipment investment expanded 3.2 per cent in the quarter. There is more business investment in Australia, with capital imports increasing by almost 25 per cent. There is so much more— (Time expired)

Opposition Senators:

Opposition senators interjecting—

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

Order on my left! Senator Bushby, a supplementary question.

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

How are the government's policies supporting growth in the Australian economy and the creation of more jobs?

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

One of the central planks of our national economic plan for jobs and growth is a tax cut that benefits 87 per cent of Australian workers working for private sector businesses—a tax cut which the Labor Party is opposing. They used to support it, but now that they've gone back to their socialist past—to a time when your Labor government of the past wanted less opportunity for people to get ahead and was quite happy for less growth, less investment, fewer jobs and lower wages—they are now against a business tax cut to benefit 87 per cent of Australian workers working for a private sector business, even though they would know these tax cuts help protect jobs, help to create more jobs and help to drive increases in real wages over time. We also, unlike those opposite, have a commitment to keep the tax burden on the economy below 23.9 per cent. (Time expired)

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

Senator Bushby, a final supplementary question.

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

Can the minister explain to the Senate why the government is pursuing policies that lead to equality of opportunity, and is the minister aware of any alternative approaches?

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

We are pursuing policies to provide equality of opportunity because we want every individual Australian to have the best possible opportunity to get ahead. That is why, among other things, we are pursuing policies to provide a safety net for those in need of support but also to encourage reward for effort and hard work and to encourage Australians to do the best they can so that Australians today and future generations of Australians can have the best possible opportunity to succeed, because pursuing equality of outcome leaves everyone worse off. The evidence is in. The case studies around the world have demonstrated that, if you pursue policies designed to achieve equality of outcome, you leave everyone worse off and the people that get hurt the most are low- and middle-income earners. Labor don't care about the opportunities for low- and middle-income earners. Labor just want to pursue an outdated socialist agenda— (Time expired)