Dean Smith (WA, Liberal Party) Share this | Link to this | Hansard source

My question is also to the Minister representing the Prime Minister, Senator Birmingham. Can the minister update the Senate on how the Morrison government's economic recovery plan is helping to chart our way out of the COVID-19 pandemic?

Simon Birmingham (SA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I thank Senator Smith for his question. As all Australians appreciate and as people right around the world know, in the last 12 months the world faced the largest economic shock since the Great Depression, but, pleasingly, Australia's economic recovery is working. We're seeing Australians getting back into jobs and seeing confidence building across the Australian economy. Just last week, we learnt the unemployment rate had fallen yet again across Australia from 6.6 per cent to 6.4 per cent in January. Indeed more than 59,000 full-time jobs were created across the Australian economy in January. Around 93 per cent of those jobs lost at the height of the pandemic have come back and that means hundreds of thousands of jobs have been created over the past few months. Pleasingly, the majority of those jobs have seen Australian women re-entering the workforce. We have seen the underemployment rate hit its lowest level in years.

Not only are we seeing new jobs being created but the economy is showing great resilience. Today the wage price index increased by 0.6 per cent in the December quarter, beating market expectations. The outcome was driven by stronger growth in private sector wages, which increased by 0.7 per cent, the strongest quarterly outcome in private sector wages since 2014.

We have seen business and consumer confidence get back to their pre-pandemic levels, resilience in the housing market and in motor vehicle sales. We've also seen resilience across the Australian economy in relation to government support programs, with more than two million people graduating off of JobSeeker in the December quarter and another half a million people graduating off of JobKeeper just last month.

Fitch, the credit rating agency, has reaffirmed Australia's AAA credit rating, one of only nine countries in the world to have a AAA credit rating from the leading three credit ratings agencies. That's a testament to Australia's economic strength. There is a job to continue to do. But we are absolutely seeing significant progress.

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

Senator Smith, supplementary question?

Dean Smith (WA, Liberal Party) Share this | Link to this | Hansard source

Can the minister advise the Senate how the vaccine rollout will support confidence and help secure an Australian way out of the pandemic?

Simon Birmingham (SA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Fitch, in their restatement of the credit rating, noted that the vaccine rollout should support domestic sentiment and said, 'The Australian economy has weathered the pandemic well compared with peers.' They pointed out our, 'successful virus containment and an effective fiscal and monetary response' to the pandemic.

The vaccine rollout commenced this week with the rollout of the Pfizer vaccine around the country. This is a significant step in our fight against the COVID-19 pandemic and the next stages of recovery. The vaccine rollout will help to reinforce confidence across our economy. We ask every Australian to get the vaccine, which is critical to protecting them from serious illness or potentially something even worse. People in priority groups who are most at risk and who need protection the most will and are receiving the vaccine first. Under our plan some 240 aged-care facilities across the country and 16 major public hospitals, 60,000 Australians living and working in aged care and disability care will receive the vaccine first along with frontline workers— (Time expired)

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

Senator Smith, a final supplementary question?

Dean Smith (WA, Liberal Party) Share this | Link to this | Hansard source

Can the minister outline to the Senate further measures that will underpin our continued strong economic recovery post the pandemic?

Simon Birmingham (SA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I said earlier we have seen good news on the jobs front in January when we went through the last change in gear on JobKeeper and JobSeeker. We have always maintained that these were temporary measures designed to taper off as economic confidence recovers and momentum builds and we're seeing that recovery underway. We recognise there are some challenges ahead though, that's why we're making some permanent changes to our social security system, as announced yesterday. As at 1 April 1.95 million Australians who are currently accessing working-age payment will see a permanent $50 per fortnight increase in their rate of payment. It is the single biggest year-on-year increase to the rate of unemployment benefits since 1986 but comes at significant budgetary cost of around $9 billion. In addition, we are also permanently increasing the amount of money jobseekers can earn before they lose a cent of payment to $150 per fortnight. This is a continuation of the carefully considered, balanced approach our government has taken through the pandemic to supporting Australians and the Australian economy.