Fiona Scott (Lindsay, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer update that House on the recent G20 finance ministers meeting and the support of the world's economic leaders for structural reform and sustainable fiscal policy to support economic growth? How important is it that we support economic growth and jobs through lower spending and lower taxes?

Mr Feeney interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Batman will cease interjecting.

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for Lindsay for her question and her keen interest in jobs and growth, particularly for Western Sydney. At the G20 on the weekend there was a real consciousness of the strong headwinds that are facing the global economy, and that is no stranger to Australia. We understand that as well, as do Australians. We understand the volatility of the times and the uncertainty that comes with that. There was also great recognition, though, of the enviable performance that Australia has economically, the position that we currently hold and the positive transition that is occurring with our economy as we move from the investment phase of the mining boom and we diversify our economy.

Compared to the G20, we are in a position of having higher growth, lower debt and stronger budgets. Our position is the envy of others in the G20. Our contribution focused on the things that we think will continue to drive that performance—that is, unlocking private investment and the challenges that are associated with that, driving productivity growth through innovation and sensible investment in infrastructure and these programs.

There were alternative views expressed about the need to go back into a cycle of tax and spend. I know those views are shared by those opposite, because they were the ones who engaged in it last time when they thought that was the answer to the world's policy problems. Thankfully, that was not a universal view, because German finance minister Schaeuble said—I think, very soundly—'using debt to fund growth just leads to "zombifying" economies.' That is what he said. His goal in his economy is to get to a debt to GDP ratio of 60 per cent. That is more than twice what Australia's current level is, and they aspire to these levels. He also said, 'Talking about further stimulus just distracts from the real tasks at hand'. At the moment, all that those who crow on the other side—

Ms Macklin interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Jagajaga.

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

have announced is higher taxes. That is all they have done. They say they are policies, but all they are is reaching into the pockets of Australians to the tune of $8 billion over the budget and forward estimates.

But it is not bad enough that the only thing they want to announce is higher taxes. It is why they want them. They want the higher taxes because they want to spend more and more and more—$8 billion to count for some $25 billion in higher expenditure of the measures that they refuse to support from this government and the new expenditure they have announced just since the budget—and then to reverse $30 billion in savings measures on top of that. Those opposite, whether it is their increases in capital gains tax by 50 per cent on all assets that are affected by capital gains tax—a 50 per cent increase in capital gains tax on all assets that are affected—or their other myriad increases in tax proposals, are all about a tax-and-spend policy which has nothing to do with growth.

Ms Macklin interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

Just on that note, I would ask the member for Jagajaga not to interject. She continued interjecting right through the answer. I was not going to interrupt the minister answering. The member for Jagajaga is now warned.