Mark Baker (Braddon, Liberal Party) Share this | Link to this | Hansard source

My question is addressed to the Treasurer. Would the Treasurer inform the House of the latest survey documenting Australia’s progress over the last decade? What does this indicate about the need for more reform to keep Australia moving upwards and forward?

Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the honourable member for Braddon for his question. I can tell him that yesterday the ABS released its Measures of Australia’s Progress, which looks at where Australia was 10 years ago and where it has come over the last 10 years. I think members on both sides of the House will welcome the fact that, over the last 10 years, national income in Australia has substantially increased. Between 1994-95 and 2004-05, national disposable income per capita grew around three per cent per year, an important measure of the strength of the economy.

The good news is that national disposable income grew for all sectors of society, including the lowest paid. Importantly, real average disposable income grew for all Australian households by 21 per cent, but for lower income households it grew by 22 per cent over the last 10 years. So, over the last 10 years, it is true to say that the rich got richer and it is true to say that the poor got richer too, which I think most members of this House would believe in.

On average, real net worth per capita increased 0.9 per cent a year between 1995 and 2000. Our housing improved, our productivity kicked up, our life expectancy increased, our education and training increased, with more Australians becoming educated, and the unemployment rate continued to decline.

That made me think I ought to take my mind back to 1994-95—a trip down memory lane. In 1994-95, we had a famous publication released by the then Minister for Finance, a publication called Shaping the Nation, about the achievements of the Labor government. In this section on the economy—have a listen to this—this is what he reported in 1994-95: ‘The Labor government has transformed the economy with low interest rates, low inflation and a huge growth in employment.’ ‘Low interest rates’ is what the then Minister for Finance claimed Australia had in 1994-95. Do you know how low they were? Ten and a half per cent. Boy, I’m glad they weren’t high! He also had a ‘huge growth in employment’. Unemployment was at 8.3 per cent in 1994-95.

You have two documents: one from the ABS and one from the former Minister for Finance. They tell the story and they tell it eloquently: you cannot trust Labor with economic management.