Jim Chalmers (Rankin, Australian Labor Party, Shadow Parliamentary Secretary to the Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Treasurer. Can the Treasurer advise the House what gross debt is projected to rise to in dollar terms by 2027-28?

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

I refer the member to page 7-9 of the statement, which says:

The total face value of CGS—

Commonwealth government securities—

on issue is projected to rise to $725.0 billion by 2027-28.

The face value of CGS on issue is projected to rise to a within-year peak of around $649 billion in 2021, which is what I confirmed to the House yesterday. It is important to understand, on these figures, that from 2018-19 the Commonwealth will no longer be raising new debt to pay for things that are everyday expenditure, because from 2018-19 the net debt peaks and comes down. I confirm that the net debt at the end of that period is projected to fall to 8.5 per cent of GDP, or $255.8 billion.

When the Howard-Costello government paid back Labor's debt, they paid back the $96 billion in net debt. That was the debt that was paid back by the Howard-Costello government. It was the former Treasurer, the member from Lilley, who began the process of revving the debt up again. We have been able to get the debt that we have inherited, which was growing at three times the rate that it is now, under control.

Under the budget I announced on Tuesday night, the net debt will fall. It will fall to just 8.5 per cent of GDP.

Dr Chalmers interjecting—

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

The member for Rankin is warned!

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

Within one year from now the Commonwealth will no longer be paying for everyday expenditure by raising new debt. Importantly, around $85 billion of the debt that was referred to for the 725 is to ensure that we do not raid the Future Fund. As a result, a century of taxpayers will not have to pay additional tax to meet our unfunded superannuation liabilities.

The other additional debt that is represented there is to pay for important infrastructure projects—infrastructure which is building our nation, infrastructure which is growing our economy and infrastructure which is supporting more and better-paid jobs. The only debt those opposite are interested in is the debt from putting everyday expenses on the credit card. From 2018-19, the Turnbull government will not be doing that. The Turnbull government will be reducing our net debt, just like the Howard-Costello government was doing, and we are doing it by keeping our expenditure under control to less than two per cent of GDP. The rate of growth in gross debt has fallen by two-thirds under this government. This is a government that can be trusted with our nation's finances. The member opposite needs to tell the Australian people how he is going to fund his empty promises. It is another cruel hoax on the Australian people. (Time expired)