Mike Symon (Deakin, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer outline the importance of investing in jobs and growth in supporting Australians in their workplaces?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for Deakin for that question, because the government put jobs and growth at the heart of our agenda every single day. In fact, that is what we did during the global financial crisis to ensure that Australia avoided the full force of the global financial crisis and the global recession. By doing that we avoided the permanent skills destruction that has caused so much damage to people and communities right across the developed world. Here we have got low unemployment and we have created over 850,000 jobs. Of course, if you looked at what has happened across other developed economies, there is massive unemployment and millions and millions of people out of work. As we have been handling those situations in the global economy, we have been concentrating on an agenda to lift productivity, to create the high-skilled, high-waged jobs of the future. That is what our investment in infrastructure has been all about. It is what the NBN is about. It is what our investment in innovation is all about. It is about reforms to the tax system, most particularly it is about tripling the tax free threshold.

All of that has produced a situation where our economy is now 13 per cent larger than it was prior to the global financial crisis with 850,000 jobs created over that period. Our concern is to use this prosperity so we can support working Australian families, modern Australian families that need access to affordable health and education, modern Australian families that want dignity in their retirement That is why we have put in place one of the most significant increases in the age pension, and it is, indeed, why we are so committed to compulsory superannuation. It is why we have tripled the tax-free threshold which is so important for work incentives and for cost-of-living relief for many people on the lowest incomes. That is why we have been committed to the Schoolkids Bonus for 1.3 million families, so we can assist them with the cost of sending their kids to school. Of course, there is a real contrast here with the actions of those opposite. They want to rip away up to $500 from the superannuation accounts of 3.6 million Australians.

Of course, they have opposed the increase in the superannuation guarantee, which goes to all working Australians. And Joe can tweet what he likes; he came into this House and opposed the increase in the superannuation guarantee. And of course we know they want to rip out the tripling of the tax free threshold: another savage attack on those on low incomes and low wages. We know that when it comes to working Australians, the opposition will always bow down to the feet of the fortunate few.

Now, I heard that the Leader of the Opposition this morning claimed that he was a friend of the workers. Well, God help the workers if he is a friend of theirs! The opposition are the architects of Work Choice; the architects of this savage attack coming right now against low-income Australians.

Tony Smith (Casey, Liberal Party, Deputy Chairman , Coalition Policy Development Committee) Share this | Link to this | Hansard source

My question is also to the Treasurer. I refer the Treasurer to his statement of 27 October 2011, when he said, 'The revenue from the mining tax will be spread right across the country.' Given that the mining tax has raised just $126 million in its first six months, can the Treasurer confirm that when he stated he would spread the benefits of the mining boom he really meant $5.50 for every Australian?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

You could tell how embarrassed the member was with that ridiculous question.

Tony Smith (Casey, Liberal Party, Deputy Chairman , Coalition Policy Development Committee) Share this | Link to this | Hansard source

I'll give you five bucks to answer it!

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

And I will give you 94(a) to leave the chamber. The member for Casey will leave the chamber.

The member for Casey then left the chamber.

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I was saying before, that the attitude that has been taken today is similar to the attitude that their predecessors took with the PRRT. The PRRT was opposed, tooth and nail, by vested interests and by the Liberal Party but it has raised $28 billion.

A government member: They kept the money!

They kept it. They did not come into government and say, 'We'll get rid of it.' So, what we have seen again is that they are opposing the MRRT—the MRRT, which is an important long-term reform for Australia, to make sure that Australians get a fair share of the mineral wealth they own 100 per cent.

It just so happens that its introduction has coincided with a bout of global volatility towards the end of last year which had a dramatic impact on commodity prices—a very dramatic impact on commodity prices. This was not an impact on commodity prices that was forecast by anyone in the private sector, by any of the companies, and it most certainly was not forecast by our official forecasters. But the opposition should at least acknowledge that it has had a dramatic impact on revenue. And that is what the government has acknowledged.

But what the opposition will also not acknowledge is that in the second half of last year it was not just the PRRT and the MRRT; it was company tax, capital gains tax and so on. All of them took a very significant hit from this global volatility. The reason this is so important, and the reason this debate demonstrates just how dangerous those opposite would be if they were running the country, is this: what they are saying is that to make up this 'revenue hole', if you like, that has emerged because of all of these circumstances, they would take the axe to the social safety net and put a sledge hammer through our economy. That is how reckless they are.

And, of course, we heard in the House last week of the retrospective approach they would have taken during the global financial crisis, when they came in here and effectively said that during the crisis they would have cut to the tune of $160 billion, which was the revenue write-down. Well, where would the Australian economy be today if they had been in charge and done that?

So what all this demonstrates is just how dangerous they are, because they are in denial of the most basic facts that go to the core of Australia's prosperity and economic success over the past five years: the ability of a government to move in and protect people and protect families, understanding the volatility in a global economy. Lives depend on that but those opposite are a dangerous alternative because they do not understand the basic facts of our economy— (Time expired)