Josh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Hansard source

I thank the member for Wentworth for his question and acknowledge his experience as a diplomat representing Australia, including at amabassadorial level, and his experience in the private sector before he came to this place. When we came to government, unemployment was rising, investment was falling and the budget was deep in the red. As a result of the work we have done, we have seen the current account reach a surplus for the first time in more than 40 years. We've seen welfare dependency get to its lowest level in 30 years. We've seen the biggest tax cuts in more than 20 years, and the budget is in balance for the first time in 11 years.

But we have faced a number of economic shocks that have been outside our control. Clearly the trade tensions between the US and China had an impact on the global economy, including here in Australia. There are the ongoing effects of drought and fires; and now the coronavirus. The spread of the coronavirus is clearly still evolving, but the economic impact of the coronavirus will be much more significant than both SARS and MERS before it. We know that because China is a bigger part of the global economy since that time. The Chinese economy is four times the size it was at the time of SARS. In terms of the Australian economic relationship with China, it's a lot greater today than it was at the time of SARS. Our two-way trade with China is worth more than $200 billion a year, and about a third of our exports go to China. China is the No. 1 source of international students to Australia, and that market is worth more than $12 billion a year. In terms of tourism, China is the No. 1 source of international tourists to this country, and that market is worth more than a billion dollars a year.

At the same time, we are seeing, as a result of the spread of the coronavirus, disruption to international supply chains and disruption to international students and tourists coming to this country, but our fiscal response will be responsible, it will be considered and it will be targeted. There won't be the reckless and wasteful spending that we've seen from those opposite when it comes to economic shocks. What we will see is a responsible, considered and targeted response focusing on ensuring that businesses and those affected are stronger when they come out of this crisis and that we continue to see strong employment growth across the Australian economy.

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