Louise Markus (Macquarie, Liberal Party) Share this | Hansard source

I think today reflects just what Labor are about, and that is about leading us into a deep hole of debt and not taking responsibility for their decisions and where they have left this nation.

I am pleased to rise and defend the decision of the government regarding the fuel excise, which was announced in the 2014 budget. Yes, I would highlight to the members opposite that this is not a measure that has ambushed Australian citizens, or blustered into the House as an afterthought. The reindexation of fuel excise is part of our May budget, which contains tough but necessary measures to manage and bring under control the previous Labor government's deficit disaster, which they still fail to acknowledge.

Labor's legacy is well known in this place and throughout the nation. It affects and is felt by all Australians. Let me remind the House: 200,000 unemployed; gross debt projected to rise to $667 billion; $123 billion in cumulative deficits; and, as has been mentioned by members on this side, the world's largest carbon tax. Yet Labor have the audacity to say that the coalition are adding to household pressure. It is a hard to believe, but the reality is that Labor's five record deficits and reckless spending has created an intergenerational debt for many years to come. It is this side of the House that are making the decisions to take responsibility and to reset our future.

We are about fixing the budget. The carbon tax is gone. The mining tax is gone. Now the government continue to enact their economic action strategy to build a strong and prosperous economy and a future that Australians can depend upon. Fuel indexation is a very important structural budget reform that the government do not announce lightly. The coalition government have been up-front about the budget. We announced the measures in the 2014 budget because we wanted to partner with Australia in getting the economy running smoothly. The change in fuel indexation will increase the cost of fuel for a typical household using 50 litres of fuel a week by around 40c per week by the end of 2014-15. This, in my calculation, is roughly around $20 a year. That is 40c per household. The money raised will be diverted directly into building roads and infrastructure, and actually contributing to reducing travel costs for the average Australian.

Now, let us reflect on Labor's legacy in contrast: $1 billion in interest per month contributing to Australia's debt—a debt left to us by the Labor government's mismanagement. Labor's debt did not bring us any investment in future infrastructure. Collectively, 40c per household will generate about $2.2 billion over the forward estimates and around $19 billion over the next decade. It is investment that will go to building our future roads and infrastructure.

We are serious about managing Australia's debt and bringing it under control. Australians know that, although many of Labor's decisions have caused us to arrive in this fiscal situation, responsibility lies with all of us to act sensibly to now bring it under control. The impact on households is modest when we consider the impacts of Labor's deficit. Members opposite have failed to talk about the impact on the carbon tax. As the member for Paterson has already mentioned, there is a vast difference between $20 annually and $550 annually for households. I think Labor need to reflect upon their own policies and their own legacies before they lecture the coalition.

The Hawke government introduced indexation, and it seemed to be a good idea at the time. It is a shame Labor have no good ideas to help manage their debt now. Labor say the fuel excise will add further pressure to Australian households, but what really adds pressure to Australian households is $1 billion of wasted money added to the national debt each month. What would add more pressure to Australian households is the extra $550 of costs to the average household per year that Labor placed on households as a result of the carbon tax.

This is a government that follows through on its promise to build a strong and prosperous nation. It is up-front about that, and about what it is going to do to provide a future for every Australian.

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