Natasha Griggs (Solomon, Country Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer please update the House on how the government is supporting the transition from the mining boom, to the investment boom, to a more diversified economy? Is the Treasurer aware of any threats to this transition, and what impact would higher taxes have on hardworking Australians who are working, saving and investing in our new economy?

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

I thank the member for Solomon for her question. One of the key issues that the government is focusing on is ensuring the consolidation of our fiscal position and ensuring that the budget remains on that strong path to reduce our expenditure as a share of the economy from 25.9 per cent down to 25.3 per cent, which was outlined in the mid-year statement of December last year. I am pleased to say today that Fitch have given their report, and the AAA rating of the government has been confirmed—but they raise an important point. They say that the outlook is stable, but, when they talk about future developments that could result in some change, they say that the thing that we should be focused on is ensuring that there is not a sustained widening of the fiscal deficit without remedial policy actions. Those on this side of the House have policy actions to ensure that we remain—

Mr Dreyfus interjecting—

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

I have asked the member for Isaacs to cease interjecting.

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

on that credible and solid path to ensure that we are reducing expenditure as a share of the economy. The strength of the government's fiscal position is one of great confidence to the economy, because we know that consumer sentiment has risen 11 per cent in the last six months and that consumer confidence in the economic outlook for the next 12 months is up over 20 per cent. We know from the employment figures today that the unemployment rate has fallen to 5.8 per cent in the last month. There are 114,000 additional jobs and a growth rate of employment of 2.1 per cent. Most importantly, in the last six months the youth unemployment rate has fallen from 12.8 per cent to 12.2 per cent.

But to ensure that we keep this fiscal consolidation on track the thing we should not do is the thing that those opposite would do if they got control of the treasury bench. Those opposite want to add another $60 billion of expenditure to the government's figures. That includes $13.4 billion in savings that they refuse to support in this parliament, some $11.4 billion worth of new expenditure that they have announced since the last budget and almost $35 billion of expenditure on measures that they are suggesting to the Australian people they would reverse if they came into government. That is some $60 billion, which is equivalent to almost one per cent of GDP, that those opposite want to put on outlays.

Do you know how they are going to pay for that $60 billion? They have come up with just over $1 billion in savings! But they also have some taxes. Those opposite think announcing a tax increase is a substitute for a policy, but it is just a tax increase. Some $7 billion in additional taxes is what those opposite are proposing. Of course, that includes a 50 per cent increase in capital gains tax on investment—the last thing a transitioning economy needs. (Time expired)