Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Hansard source

I thank the member for Chisholm for her question because she knows that she is pleased to be part of a coalition government that has been getting on with the job of consolidating the budget and, in particular, getting expenditure under control. This government has so far taken through this parliament budget improvement measures which account for $14 billion. That is what we have already been able to achieve as a government just since the last election.

Under the budgets of those opposite, spending grew in real terms at 4.2 per cent a year. That is what those opposite did with spending—grew it by 4.2 per cent a year. Under the budgets of this government, that has been cut to 1½ per cent. That is a dramatic reduction in the growth of spending, which is arresting the debt. We have a plan to continue to consolidate the budget, and the budget is projected to return to balance in 2021. When the budget returns to balance depends on whether the Labor Party is prepared to face up to their economic responsibilities and pass the savings and budget improvement measures which will return the budget to surplus. But those opposite have not engaged in that process to the full extent possible and they know themselves that that will continue to put the budget position at risk and the ratings at risk. Those opposite know that the ratings agencies have warned that unless the parliament is there to support the budget consolidation and the budget savings and improvement measures of the government then that rating gets put at risk.

Those opposite know that but they have an alternative and that alternative is not to reduce the deficit more, not to pass more budget savings measures but to actually increase the deficit by $16.8 billion. They think the answer to saving the rating is to increase the deficit by $16.8 billion, and that is after they abolish things like the corporate tax cuts for small- and medium-sized businesses in this term. They want to oppose those cuts that actually help small- and medium-sized businesses give workers more hours. We know that our plans are designed to drive investment, drive jobs and drive growth and we are in a competitive market.

We know that the Trump administration will be bringing down tax cuts for companies. We know that the May administration is prepared to go even further when it comes to reducing the tax burden on businesses so they can support jobs, support investment and support growth. And this government wants to do the same. But those opposite stand in the way despite supporting those sorts of measures for decades. This government has a plan to drive jobs and drive growth. This opposition only has a job to drive the budget into the ground.

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