Luke Howarth (Petrie, Liberal Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. Will the Prime Minister please update the House on the resilience of the Australian economy, despite recent volatility in global markets? How are the government's policies on jobs and growth contributing to confidence in our economic future?

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I thank the honourable member for his question. We have seen considerable volatility in global share markets over the last few months, concerns about growth in China and big swings in fortunes on all the major indexes, and that, obviously, is calculated to undermine confidence somewhat. But data released this week demonstrates that our economy remains, despite all of that, strong and resilient. The National Australia Bank business confidence index was unchanged in January. Given the volatility and uncertainty of which I just spoke, that is a remarkable result. Business confidence is highest in Queensland, followed by Tasmania and New South Wales in trend terms. The Westpac-Melbourne Institute consumer confidence index rose by 4.2 per cent in February, and the ANZ Roy-Morgan weekly consumer confidence measure picked up last week as well.

In terms of our business leaders, we have heard from Ian Narev, the Chief Executive Officer of the Commonwealth Bank, and he said just yesterday:

… through the latter part of 2015, the Australian economy continued its steady transition from a resource-dependent economy to a more diversified one. … the economy overall is starting to generate a broader base of jobs.

Inflation remains low, unemployment is down to 5.8 per cent—the lowest rate since April 2014. In trend terms, the ANZ job ads index has increased by 0.6 per cent in January to be 11.2 per cent higher than a year ago. More than 300,000 jobs were created in Australia last year, and 90 per cent of those jobs were in the private sector, which is the engine room of our economy. There are more women in full-time work than ever before. At around 77 per cent late last year, the participation rate for women aged 35 to 44 has never been higher.

The government is not complacent. We are not taking any of this for granted. We are continuing to drive that productivity and drive that growth. The national innovation statement has 24 separate measures to drive innovation, to drive the economy of the 21st century, to build on greater linkages between primary research and commercialisation and to ensure that it is easier for innovative companies to raise money.

We have a $5.5 billion small business package, incentivising small businesses to employ and invest. And of course we have—regrettably opposed by the Labor Party—a $3.2 billion new childcare subsidy that will see even more women able to go to work and participate in the economy.