Amanda Stoker (Queensland, 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 strength of the Australian economy?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

Indeed I can. Under our government, our economy is strong and continuing to grow. Our economy now is into its 28th year of continuous growth. Just last Tuesday the Reserve Bank of Australia not only noted the strong 3.4 per cent growth over the past year but also upgraded its economic growth forecast for 2018 and 2019 to an average 3.5 per cent growth over those two years.

This stronger economic growth has a real impact on real Australians. It means real jobs for Australian workers. Indeed, 1.15 million new jobs have been created so far since we came into office. Remember, when we came into government we inherited a weakening economy, rising unemployment and a rapidly deteriorating budget position. Today the economy is stronger, the economic growth outlook is stronger, employment growth is much stronger and the unemployment rate is well below where it was anticipated it would be. In the last financial year alone, 2017-18, about 350,000 new jobs were created in the Australian economy, and Australia's employment growth is stronger than in any of the G7 nations. The unemployment rate fell to five per cent in September. Back in December 2013 the shadow Treasurer was saying that the test was whether we could keep it below 6¼ per cent. I'm still waiting for his letter to confirm that we are the superior economic managers, because he, as Treasurer, left behind a weakening economy, rising unemployment and a rapidly deteriorating budget position.

We know that stronger growth and more jobs mean higher wages over time. We know that it means more revenue for government to pay for the important services provided by government. That is a key reason our final budget outcome last year was $19.3 billion better off than forecast. (Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Stoker, a supplementary question.

Amanda Stoker (Queensland, Liberal Party) Share this | Link to this | Hansard source

What is the government doing to ensure continued growth in the Australian economy and a better standard of living for all Australians?

Louise Pratt (WA, Australian Labor Party, Shadow Minister for Environment and Water (Senate)) Share this | Link to this | Hansard source

Not much.

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

The Labor Senator over there said, 'Not much.' Well, let me tell you, we inherited a weakening economy, rising unemployment and a rapidly deteriorating budget position from Labor as a result of a misguided, reckless, higher-taxing agenda of the past, which Labor wants to bring back. Our government, despite the strong track record over our first five years in government, will not be complacent. We know there is much more to be done to lock in continued growth and more jobs for the future. That is why we're backing small business. That is why the Prime Minister, when he was in Queensland last year, was able to talk to small businesses in Queensland about our lower taxes for small business. He was able to talk about the continuation of our instant asset write-off to allow businesses to invest in new equipment, which will increase their output and their productivity. And we are backing our farmers. Since we last met, we've announced the creation of the Future Drought Fund, which comes on top of— (Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Stoker, a final supplementary question.

Amanda Stoker (Queensland, Liberal Party) Share this | Link to this | Hansard source

What is standing in the way of more jobs and more growth in the Australian economy?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

Senator Stoker, thank you for that very important question. The only thing standing in the way of continued economic growth, of continued opportunity for Australian families to get ahead, would be a return to a recklessly high-taxing Labor government. A Labor government under Mr Shorten would pursue a recklessly higher-taxing, antibusiness, class warfare, politics-of-envy agenda, which would make the Australian economy weaker, which would lead to less investment and lower growth, fewer jobs and higher unemployment. Labor want to pile $200 billion of new taxes onto the economy—taxes that would choke the economy and put jobs at risk, no question. They want to put new taxes on property investors, which would mean less investment, lower property values and higher rents. They want to impose new taxes on family trusts so that small and family businesses would find it harder to get ahead. They even want to put new taxes on retirees. Wherever you look, more Labor taxes. (Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

Before I call Senator Collins, I'm going to observe that for a Monday there was substantially too much noise across the chamber, particularly from my left, during that answer. In a week when there is a little bit more attention than normal on this chamber, I ask us to think of our better selves.