Bill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. Economist Chris Richardson has said that the Prime Minister's centrepiece 10-year tax cut for big business would cost $55 billion. This morning, when asked about this $55 billion figure. the Prime Minister said, 'He may well be right.' Prime Minister, Australians want to know: is he right? Is it $55 billion? And, if not, what is the 10-year cost?

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

():The estimations and forecasts and calculations of experienced economists like Dr Richardson are always taken into account by the public and, indeed, by members of this House. I took care to say that I am not confirming or commenting on his estimate other than to say he is a former Treasury economist and we should heed his advice: it may or may not be correct. His estimate depends, as we all know, on the assumptions that he has made. Whether the assumptions are well founded or whether they prove to be correct, time will tell.

Let me be very clear about this. The opposition is entitled to ask what the 10-year cost of the enterprise tax cuts will be. They are entitled to ask that. But, as the member for McMahon knows very well, as a former Treasurer and a biographer of many treasurers, the practice has been for many years that detailed line items for all measures are set out over the forward estimates—over a period of four years. The medium-term projections, which are also set out in the budget papers, do not identify those individual line items, and they are not and have not historically been provided in the budget papers.

The fact is that what the opposition is seeking to do, as I said a moment ago, is distract attention from the enormous black hole they have in their own forecasts. They have over-estimated the receipts that would come from an increase in tobacco tax by $20 billion. Their black hole keeps on getting bigger.

Mr Brendan O'Connor interjecting—

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

The member for Gorton is warned!

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

What we have done is set out in the budget papers detailed four-year estimates, as has always been the case, and then a medium-term outlook that sets out what the overall outcome of the budget is likely to be over that 10-year period, recognising the many uncertainties that attend such a long projection. That has always been the case. What honourable members opposite are asking the government to do is to provide a detailed element in the Treasury's calculation, which has never been the practice of Treasury to provide before

The projections over the medium term, as honourable members know, are to give the parliament—the public—an estimation, a projection, of the direction the budget is heading in, and that is exactly what it has done.

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

My question is to the Prime Minister. Will the Prime Minister please outline to the House how the government's economic plan and growth will open up new opportunities for young Australians?

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

I thank the honourable member for his question. Every measure in our national economic plan is driving jobs and growth so that we continue our successful transition from the mining-construction investment boom to the new economy. We are at a critical time in this transition. Every policy under our plan is directed at securing continued strong economic growth and more and better paying jobs for Australians, their children and their grandchildren. Our plan includes the Innovation and Science Agenda, to generate the jobs and industries of the future. It makes a historic investment in our defence industries to underpin our 21st century defence capabilities and advanced manufacturing for years to come. Our economic plan has delivered export trade deals with the large and growing economies of Asia to provide unprecedented access for our farmers and service industries. Our economic plan ensures that our tax and superannuation systems are sustainable and that the government moves towards a balanced budget. And we have a Ten Year Enterprise Tax Plan to lower company tax rates, with the small business sector the early beneficiary. That encourages more investment, higher wages and more jobs.

Our plan includes an ambitious program for employers to work with young unemployed people to prepare, trial and hire. It is a path from welfare to work. Our PaTH initiative is vital for workforce participation and productivity. It is important on just about every social measure that we have as many of our young working-age Australians in gainful employment as possible. It helps a young person to get in a job and stay in a job. It helps them build the skills and experience and confidence that they need for a fulfilling working life. Our new PaTH program will help up to 120,000 young people over four years to get into an internship with businesses around Australia. The internships will last from four to 12 weeks. The program will see young people learn on-the-job skills and build relationships with employers and work mates. After that, we will be encouraging a transition into ongoing employment through wage subsidies of between $6,500 and $10,000.

Industry and the welfare sector have been very supportive. As ACOSS CEO Cassandra Goldie said, it is 'an opportunity for young people to get work experience in real jobs' with a wage subsidy, something we have urged for some time and something that should be used more widely. BCA's CEO, Jennifer Westacott, said, 'Business will offer as many opportunities to young people as possible.' This is a plan to give young people a great opportunity, to set them up not just for a few months but for decades to come. (Time expired)

Mr Perrett interjecting—

Mr Mitchell interjecting—

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

The members for Moreton and McEwen will cease interjecting.

Bill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer to the Prime Minister's previous answer. Does the Prime Minister know the Treasury 10-year costing and is simply refusing to say? Or does he just not know what the cost of his budget centrepiece will be over 10 years?

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

I thank the Prime Minister for the opportunity to respond, because both of us know full well every single measure that is in the budget, because this is our national economic plan for jobs and growth. But as the Prime Minister has rightly said, it has been the longstanding practice of governments of all persuasions to produce the estimates over the budget and forward estimates, and you will find within this document a more—

Terri Butler (Griffith, Australian Labor Party) Share this | Link to this | Hansard source

Mr Speaker, a point of order: the state of the knowledge of the Prime Minister is a matter within his own knowledge exclusively. The minister is not able to answer the question.

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

The member for Griffith has no point of order. The member for Griffith has already been warned. The Treasurer has the call.

Ms Plibersek interjecting—

The member for Sydney is warned!

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

I know those opposite are looking for taxes. I know they are looking for some revenue to find to fill the hole in the Leader of the Opposition's speech tonight, but they need to understand how budgets are put together. They will find on page 25 the full summary of costings of all the revenue measures that are contained in the budget over four years.

Mr Dreyfus interjecting—

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

The member for Isaacs is warned!

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

They may have forgotten, but I refer them to the comments of the then finance minister, Penny Wong, on 18 March 2012. In relation to these sorts of questions, when they are put, 'What is the 10-year cost?' of the particular item, she said, 'We don't release 10-year costings.' That was the policy of their government. It has been the policy of pretty much every government. So we follow the practice put in place by those opposite.

If they go to Budget Paper No. 1, page 3-11, they will find the underlying cash balance predicted to 2026-27 and they will know, if they have had an involvement with the budget before, that what happens is you take the individual measures and you combine them all together and you look at what the long- and the medium-term projection is over 10 years to 2026-27. What that document means is that our Ten Year Enterprise Tax Plan ensures that, on projections, we move to a position of budget balance in 2021 and we stay there until 2026-27. That includes our Ten Year Enterprise Tax Plan. So every measure across the medium term, across the short term in the budget and forward estimates is affordable, and the way we have done it is we have not spent more than we have saved and we have not taxed more and increased the tax burden over previous projections. But, from those opposite, every time you see the Leader of the Opposition's lips moving tonight, he will be spending more money, which means only one thing—he is going to be taxing you harder and harder and harder.