Brett Whiteley (Braddon, 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 government's plan for Australia to make a successful transition to the new economy? How is steady and responsible economic management contributing to positive trends in investment, jobs and growth?

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

I thank the honourable member for his question. The enthusiasm with which his constituents in Tasmania are embracing the opportunities opened up by the new free trade agreements, especially with China, is absolutely palpable when visiting his constituents.

The greatest challenge facing us today, the greatest opportunity, is the transition from the historic highs of the resources investment boom into the new economy for the 21st century. That is why every lever of my government is focused on driving innovation, investment and the take-up of new technologies and opening global markets to create new and better jobs for all Australians. It is why, since I became the Prime Minister, I have been relentlessly focused on assuring Australians that they can be confident—they should be excited—about the opportunities this transition to the new economy presents. In the face of what we recognise as global headwinds, nonetheless our economy, confident and strong, continues to transition from the mining-construction boom and grow. Real GDP grew by 0.6 per cent in the December quarter and by a strong three per cent compared to a year ago. We are growing faster than every other economy in the G7 and growing well above the OECD average. Key drivers of economic growth in the December quarter included household consumption, new housing construction and services exports, more than offsetting the continuing declines in resources investment as the mining-construction boom declines—as it always was going to do.

The road to the new economy is an exciting one. It offers enormous opportunities. But global uncertainty and some strong economic headwinds mean that we have to take the right decisions to ensure the economy continues to transition and grow. So in December we launched our $1.1 billion Innovation and Science Agenda to bring more Australian ideas to market, incentivise entrepreneurs and invest more in education and research. We provided incentives to invest—real incentives to invest; tax incentives to invest. I can only note that those opposite want to increase the tax on successful investments by 50 per cent.

The defence white paper, launched last week, provides the blueprint for our national security for decades to come and a plan to create jobs and spur innovation and new technologies. Our commitment is a successful transition to the new economy. We have the plan. We know how to get there. We have the commitment to ensure this is the most exciting future for Australians. (Time expired)