Russell Matheson (Macarthur, Liberal Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. Will the Prime Minister update the House on the action the government has taken to strengthen the Australian economy? How do these measures support jobs and growth?

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I thank the member for Macarthur for his question, and for his support for the small businesses in his electorate. I can assure the member for Macarthur that the Australian economy is strong and getting stronger. I can assure him and the parliament that exports are up by 5 per cent in the March quarter—the strongest quarterly rise since September 2000. Housing construction is up by 4.7 per cent in the March quarter—the strongest quarterly increase since September 2009. Consumer spending is also up solidly, helped by lower interest rates, lower fuel prices and lower power prices.

The good news, the very good news, is that today's national accounts show that the Australian economy grew by a very strong 0.9 per cent in the first three months of this year—strong growth in our economy. Today's data showed that services exports, including items such as tourism and education, are up 8 per cent over the past year, in line with rising demand from Asia. This is the fastest growth since 2007.

There are other signs of a strengthening economy. Retail sales have risen for 10 consecutive months, and building approvals are at near record highs. The Westpac Melbourne index of consumer sentiment jumped 6.4 per cent in May to the highest level since January last year. The ANZ-Roy Morgan consumer confidence index is above its long-running average, and 11 per cent above the levels of a year ago. Over 200,000 new jobs were created last year. Jobs growth is quadruple the rate seen in 2013, and the ANZ job ads are at the highest level in two and a half years, having risen in 10 of the past 11 months.

None of this happens automatically. Strong growth is the result of a government and a country that is open for business. Since the election, this government has provided environmental approval for $1 trillion dollars worth of new projects. There have been three free-trade agreements. We have cut business red tape by $2 billion a year. Last year's budget achieved savings of some $30 billion, and in this year's budget we delivered the largest ever tax cut for small business—the best budget ever for small business. Economic security and national security are exactly what this government is delivering—a strong and prosperous economy for a safe and secure Australia.