Cory Bernardi (SA, Australian Conservatives) | Link to this | Hansard source

My question is to the Minister for Finance, Senator Cormann, representing the Treasurer. Reserve Bank interest rate cuts and recent tax cuts have not yet proved successful in stimulating our slowing economy. The key to consumer consumption and business investment is confidence in the future. Minister, can you detail what firm plans the government has to restore economic confidence for all Australians?

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

The firm plans that this government has are the plans that it took to the last election and that are, of course, reflected in its budget. I am pleased to report to Senator Bernardi and to the Senate that more than $16 billion worth of tax refunds has been put into the pockets of hardworking Australians as a result of the income tax relief that was legislated by the Senate in that first sitting week in July.

I refer to the recent statements by the Governor of the Reserve Bank. He made the point that he expected, looking forward, growth in Australia to strengthen, to be around trend over the next couple of years. That outlook is being supported by a low level of interest rates, recent tax cuts, ongoing spending on infrastructure, signs of stabilisation in some established housing markets and a pick-up in the resources sector. Our government continues to implement our plan for a stronger economy, with $300 billion of income tax relief, providing incentive to hardworking Australians, encouraging them to get ahead; lower taxes for business; an ambitious infrastructure investment program, with a pipeline of $100 billion worth of investment; and an ambitious free trade agenda. We are working to cover 90 per cent of our exports in products and services with free trade agreements—it was 26 per cent when we came into government—to give better access to key markets around the world. And we have an ambitious plan to bring down electricity prices for business and households.

The Australian people were presented with two alternative plans for the economy moving forward. They opted for our plan of lower taxes, stronger growth, more jobs and higher wages over time. If you look at the last 12 months: 2.6 per cent growth in employment compared to 1½ per cent employment growth when the budget was delivered for the 2018-19 financial year. It is very clear that our plan is starting to work. (Time expired)

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

Senator Bernardi, a supplementary question?

Cory Bernardi (SA, Australian Conservatives) | Link to this | Hansard source

I thank the minister. Australia ranks poorly in global cost-of-living surveys, with high utility, housing, transport and food costs all negatively impacting on many Australian families. What is the government actually doing to lower the cost of living for Australian families?

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

We are very committed to easing cost-of-living pressures for families and are taking action to ease the strain in areas like tax, energy, housing and child care.

Opposition Senators:

Opposition senators interjecting—

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

We're getting interjections from the Labor Party. Just remember: if the Labor Party had been elected in May we would now have higher taxes, a 45 per cent emissions reduction target—

Senator Wong interjecting—

Apparently something that Senator Wong is still fighting for to drive up the cost of electricity. We are focused on more affordable child care, with costs for families down 7.9 per cent following our reforms; and more affordable medicines, with over 2,100 new and amended listings added to the PBS since October 2013. Labor had stopped listing medicines on the PBS because they'd made such a mess of the budget. We're focused on more affordable energy, with energy costs down by up to 15 per cent for over half a million families and small businesses under our policies. More affordable housing: we have successfully implemented the majority of measures announced in the reducing pressure on housing affordability 2017-18 budget package. We are about to introduce further reforms in this space. We have legislated $300 billion worth of tax cuts— (Time expired)

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

Senator Bernardi, a final supplementary question?

Cory Bernardi (SA, Australian Conservatives) | Link to this | Hansard source

Minister, government intervention and bureaucratic red tape have distorted many market based pricing mechanisms in critical industries like power and construction. Red tape is bogging down small business and mining, reducing investment activity and jobs growth, and making prices for consumers higher than they would otherwise be. What is the government doing to reduce these imposts on these vital drivers of our economy?

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

We have been and we continue to be committed to making it easier to do business in Australia so that more successful businesses across Australia can hire more Australians and pay them even better wages over time. We are committed to reducing red tape and unnecessary regulation, to reduce the costs of doing business, making it easier for business to invest, create jobs and grow the economy.

Assistant Minister Morton is leading the work across government to take a new approach to regulatory reform by tackling a range of barriers to investment in key industries and activities, with the aim of boosting efficiency, productivity and job creation, in addition to continuing the work the government has done in removing unnecessary red tape. This will look at the issue from the perspective of businesses standing on the factory floor, to experience regulatory burden firsthand, and he's inviting the states and territories to participate. This is not about simply cutting regulations; it's about systemicly tackling the costs of regulatory compliance and processing and removing disincentives to invest and innovate, particularly for new entrants. The government has a rock-solid track record— (Time expired)