Jason Falinski (Mackellar, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Can the Treasurer tell the House how today's strong national accounts figures reflect better days ahead for the Australian economy? What does this mean for the budget?

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

I thank the member for Mackellar for his question. He knows that today's national accounts demonstrate that the better days ahead for our economy are beginning to emerge, and that's good news for all Australians.

It's good news that the entire House should welcome in fact, because in these figures we have seen more growth, with real growth in our economy—up 0.8 per cent in the June quarter. That's more than double the pace of the March quarter. In year-average terms, that's 1.9 per cent growth over the course of the year, which is above the forecast for that year, which we had in the budget of this year—coming in ahead of the budget. Of course, the nominal growth in our economy came in on forecast at six per cent. There is six per cent nominal growth in our economy. There's more investment. New private business investment expanded for the third successive quarter and, at 1.5 per cent growth through the year, that is the first time we've had a positive year since March 2013. And we're seeing strong business investment in new machinery and equipment, which was up more than three per cent in the quarter. Investment across all levels of government was up 5.7 per cent in the quarter and it was almost nine per cent through the year.

And there's more to come, because there's $75 billion worth of infrastructure, like the projects the minister was just referring to, coming to our economy. Defence investment is up 26.3 per cent in the quarter. It's part of our industry plan for defence that is driving jobs and growth in our economy. There are stronger exports. They grew by 2.7 per cent in the June quarter, despite the disruptions and the tragedies of Tropical Cyclone Debbie. Those exports rose 4.3 per cent over the year, and that includes 18.7 per cent in agriculture exports. And service exports have been growing, on average, by seven per cent for the past three years.

Of course, we have stronger industries, with agriculture and services driving growth across the year. I note manufacturing in the June quarter bounced back, with the strongest quarterly growth in manufacturing production in six years. There are more jobs and wages, as we've already learned. Wages and salaries rose 0.7 per cent in that quarter and went up 2.1 per cent over the year, and that is on the back of the strongest jobs growth we've seen in a fiscal year since the GFC. We've seen the strongest growth in full-time jobs in the last six months that we've seen in 40 years.

This is the product of the economics of opportunity triumphing over the politics of envy, which is driven by the Labor Party over on that side of the House. These figures show us that last year's budgeted outcome will be bettered when we see the final outcome in a few months' time—a stronger budget, more jobs, more growth, more exports, more investment— (Time expired)