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

I have received a letter from the honourable member for McMahon proposing that a definite matter of public importance be submitted to the House for discussion, namely:

The failure of the Government's economic plan.

I call upon those members who approve of the proposed discussion to rise in their places.

More than the number of members required by the standing orders having risen in their places—

Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

Gross debt has crashed through half a trillion dollars for the first time in Australian history and will remain above that mark for the next decade. Net debt for the coming year is double what it was when the Liberals came to office. The deficit for this year is more than six times larger than it was forecast to be in the 2014 budget. Wages growth is at record lows, barely keeping up with inflation as electricity prices rise and private health insurance costs go up. Economic growth remains well below trend at a time when growth is picking up all around the world. We are seeing 120 economies experiencing economic growth—the first time we've seen that in years—and yet our economic growth remains below trend. Our unemployment rate, which during the global financial crisis was one of the lowest in the OECD, is now higher than the OECD average and higher than in many comparable countries like the US, the UK, New Zealand and Germany.

There's no doubt that this economic plan is failing, but there is the small matter of whose plan it is, the small matter of who actually writes the economic plans which get implemented in this country. We're discovering more and more that the economic plan is not written by the Treasurer. You might think that's a good thing, knowing the Treasurer, but you have to think of the counterfactual: who is writing the economic plan? One of the few people I can think of worse to write an economic plan than the Treasurer would be Pauline Hanson.

When the government announced they had a deal with One Nation to pass their big-business tax cuts there were a few surprising elements about it. I thought One Nation claimed to be on the side of the little guy, but they were voting for these tax cuts. Then they announced that they'd done a deal for an apprenticeship program in return for the big-business tax cuts. I will make a confession. I thought, 'Geez, maybe the government are better negotiators than I gave them credit for, because they've got a very modest, very small—

An opposition member: There's no-one here.

Mr Deputy Speaker Hogan, there's no member of the executive present. The House is not in order; it must be shut down immediately. The standing orders are very clear.

Kevin Hogan (Page, National Party) Share this | Link to this | Hansard source

I'll refer to the clerk.

Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

There's no member of the executive present. The Assistant Minister to the Treasurer wasn't here, Mr Deputy Speaker. He was not here. Mr Deputy Speaker, I made a point of order several moments ago. There was no member of the executive present. He was outside. The House should have been shut down at that moment—at that very moment. You can't buy time to allow the member to wander back into the House. You were not here, Assistant Minister. You were outside. Everybody saw it. You were not present. You wandered away.

Kevin Hogan (Page, National Party) Share this | Link to this | Hansard source

The member for McMahon will be seated for a second. I've referred to the clerk. The clerk has advised me to continue with proceedings.

Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

A point of order: there was no member of the executive present. It was very clear. We all saw him outside. He was not in the chamber. He cannot now claim he was magically here the whole time.

Kevin Hogan (Page, National Party) Share this | Link to this | Hansard source

The member for McMahon will be seated again. I've referred to the clerk. The clerk has advised me to continue with proceedings.

Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

I raised a point of order. I have great respect for the clerk. I did not make the point of order to the clerk; I made it to you. You should have ruled on my point of order at that moment. You did not.

Kevin Hogan (Page, National Party) Share this | Link to this | Hansard source

The member for McMahon will be seated.

Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

You gave the honourable member time to wander back into the chamber when he was not physically present.

Kevin Hogan (Page, National Party) Share this | Link to this | Hansard source

The member for McMahon will be seated. I did seek advice and I have made my ruling.

Mr Tony Burke (Watson, Australian Labor Party, Manager of Opposition Business (House)) Share this | Link to this | Hansard source

Mr Deputy Speaker, a point of order: one of the most serious parts of the entire system of how this House operates is that we have representative government. That means that, unlike the systems in many other countries, the executive must be present when the House is sitting. The last thing we want to do is not have an MPI, but the reality is if there was a moment here when there was no member of the executive present in the House then it is your obligation to collapse the chamber, because the government did not turn up. Government backbenchers are not technically part of the government as far as the standing orders are concerned. Only members of the executive form the government. If we had a moment today when the House sat when no member of the executive of the Australian government was present then it is your personal responsibility in that chair to collapse the House, because we do not have a parliament if we don't have a government willing to show.

Kevin Hogan (Page, National Party) Share this | Link to this | Hansard source

Manager of Opposition Business, I take your point of order. I referred to the Clerk and I've made my ruling. Manager of Opposition Business, I refer you to page 262 of House of Representatives Practice, 'Absence of a minister', which states:

It is of course desirable from the Government's point of view, and expected by Members, that there should be a Member present able to react with authority on behalf of the Government to any unexpected development.

While it's desirable, I have referred to the Clerk and I've made my ruling.

Mr Tony Burke (Watson, Australian Labor Party, Manager of Opposition Business (House)) Share this | Link to this | Hansard source

Mr Deputy Speaker, on the point of order, I'd simply ask you to read to the end of the paragraph which you quoted, which refers to your predecessors on occasion—this happens very rarely—ringing the bells to secure a minister's attendance, which means stopping the parliament. You chose to allow the parliament to continue without someone present. That ought not to have happened.

Kevin Hogan (Page, National Party) Share this | Link to this | Hansard source

I also refer the Manager of Opposition Business to the statement there:

A short absence of a Minister may go unremarked …

I call the Assistant Minister to the Treasurer

Michael Sukkar (Deakin, Liberal Party, Assistant Minister to the Treasurer) Share this | Link to this | Hansard source

Thanks very much, Mr Deputy Speaker. You've clearly made a ruling. Unless the Manager of Opposition Business wants to continue to argue the point at the dispatch box, I think the MPI must continue.

Kevin Hogan (Page, National Party) Share this | Link to this | Hansard source

I call the Manager of Opposition Business.

Mr Tony Burke (Watson, Australian Labor Party, Manager of Opposition Business (House)) Share this | Link to this | Hansard source

I simply ask what that was. He didn't raise a point of order. He didn't seek indulgence. You simply gave him the call during someone else's time. If you're not willing to chair the House—

Kevin Hogan (Page, National Party) Share this | Link to this | Hansard source

I will repeat my ruling that I referred to the Clerk. I've called it, and I call the member for McMahon if he wants to continue with the MPI.

Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

What an incompetent government! House duty is not that complicated. You sit in a chair and, when you're not here, you admit you weren't here. This is a minister who couldn't even admit he wasn't here. He couldn't even admit it. He couldn't even have the decency and the honour to say: 'Sorry, I got it wrong. I forgot to sit in the chair. That was such a complicated task I had at hand, I didn't know what to do.' That says it all about this government. One-job Michael over here is one of the economic team. No wonder the economic plan of the government is failing! One of the government's economic team—one of the so-called brains trust—can't even get House duty right! That's what we see more and more: the fact that this government is incompetent at every level. No wonder Pauline Hanson's running the show!

As I was saying before I was interrupted by the absence of a government minister, I confess I was surprised when the government allegedly got a deal with Pauline Hanson's One Nation party to pass the big business tax cuts for the price of a small apprenticeship program. It turns out I should have been surprised, because it wasn't the case. They had billions of dollars worth of deals; they just won't tell us what they are. (Time expired)

Michael Sukkar (Deakin, Liberal Party, Assistant Minister to the Treasurer) Share this | Link to this | Hansard source

The shadow Treasurer has just wasted his opportunity to talk about the wonderful economic news this country faces. He wasted 10 minutes. Instead of talking about the interests of Australians, he thought he would make a shabby point here in this parliament. This is the hallmark of this shadow Treasurer, a hallmark of the disaster that was his time as the Treasurer of this country, with his $16 billion black hole. He doesn't want to talk about the million jobs created by the government in 4½ years. You had 10 minutes where you could have spoken about those one million jobs, but instead you chose to make shabby little points here in this parliament. This defines this disgraceful shadow Treasurer. Here we've got a government that's encouraged Australians to create one million new jobs in 4½ years, six months ahead of schedule, and, instead of talking about that, this failed shadow Treasurer, the worst immigration minister in this country's history, chose to waste 10 minutes making shabby tactical points here in this parliament.

Last year we saw 415,000 jobs created in this country. Do you think you can get a smile or anything out of the Labor Party? No, that 415,000 jobs created last year is bad news. You don't hear a word about it. When we took office in 2013, we had a slowing economy, a deteriorating budget position and increasing unemployment. Under whose watch was that? It was the shadow Treasurer's. That is his legacy for this country. We've done the hard yards in 4½ years to rescue that.

What did we see on budget night last week? We saw a government with immediate personal tax relief for 10 million Australians. For 4.4 million Australians, there will be a tax offset of $530 a year. For a double-income household, that's $1,000 a year. Members opposite scoffed at $1,000 a year for households. But that is very important for every single Australian managing a tight budget. We don't just have a plan to provide immediate income tax relief for low- and middle-income taxpayers; we have a medium- and longer-term plan to enshrine tax relief for Australians each year for the next seven years. Step 1 of our tax plan provides, as I said, $530 a year for taxpayers—over $1,000 for a double-income household. Step 2 of the tax plan addresses bracket creep by ensuring that that middle tax bracket rises from $90,000 to $120,000 a year, while lower income tax brackets move from $37,000 to $41,000 a year. Step 3 of the tax plan makes our entire tax system fairer and flatter by ensuring that we abolish entirely the 37 per cent tax threshold, which means that 94 per cent of Australians will never face a higher marginal tax rate than 32½ per cent.

That has been welcomed across this country, because Australians know that they can spend every single dollar better than the government can. As the Treasurer said in question time today, unlike the Labor Party's view, government is not some benevolent society that thinks they own everything and every dollar that they allow you to keep is somehow a gift from them. No, it's taxpayers' money, and we shouldn't take anything more from them than we need to. But we know the Labor Party has a very different view. We know that the Labor Party, with its $220 billion of additional taxes, is the absolute antithesis of the view that taxpayers can spend their money better than government. The Labor Party want to take your money. They think they've got a better way of spending it.

The shadow Treasurer is hairy-chested talking about corporates and the big end of town, but who is the shadow Treasurer attacking to fund his tax plans?

Who is the shadow Treasurer attacking to fund his pork barrel around the country? He's going after retirees and self-managed superannuants. That's who he's going after. Not the big, bad, scary corporates or the millionaires or the billionaires that he talks about. No. He's funding his pork barrel through the hard work and hard savings of self-funded retirees and low-income retirees. What a contemptible policy to run around this country running this faux class war campaign. Who's he going after? Low-income retirees. I was out last week at a number of forums, and there are a million Australians who are not going to allow the Labor Party to forget that. They're not going to allow the Labor Party to forget that they're the people the party is attacking to fund their tax plans.

In addition to the personal income tax relief which we are providing—over seven years Australians will know that each and every year they will enjoy tax relief of some form—we're also backing businesses. We're backing businesses in the same way we backed businesses when we reduced taxes through the enterprise tax plan for businesses with a turnover up to $50 million. The Labor Party want to talk about small retail stores or small manufacturers with three or four or half a dozen employees that turn over $2.1 million as though they're Apple or Google or some sort of multinational who doesn't deserve tax relief. Well, we know small and medium enterprises are the backbone of this economy. They have been the backbone of the million jobs that we've seen created in record time. They're the backbone of the 415,000 jobs—the record jobs in a 12-month period—that we saw up to 31 December last year. They are the people that we are backing this year.

We announced it in the budget, and it's very popular: the extension to accelerated depreciation of up to $20,000. That is a practical way of the government saying: 'We want to help you get ahead. We want to help you invest in your business. We know small businesses often operate more like families than businesses. We know that for every dollar they save they reinvest it into the business. We know that they use that to employ more people. We know that they give more young people opportunities than almost any other sector of the economy.' That's why it was very interesting to see the shadow Treasurer's line of questioning last week asking for costings on the enterprise tax plan. That seems to indicate that the shadow Treasurer has a secret plan of increase taxes for businesses with turnover above $2 million. It seems like the shadow Treasurer, who's been running around all hairy-chested and who's been trying to be like a modern-day Robin Hood going after the big, bad multinationals, is going after low-income retirees and small family businesses.

When you boil it all down, the shadow Treasurer squibbed the fight that he's been talking about all these years—this faux class war that he's been trying to run—and in the end he's funding his tax plans and he's funding his pork barrel through a million low-income retirees. They're a million Australians who've worked their whole lives, who've paid taxes, who've been law abiding citizens and who've put money away to provide for themselves in their retirement. They're who he's going after. The second group he's going after is small, family-run businesses. What an absolute disgrace.

This faux class warfare campaign is over because we know the two groups he's going after are the most vulnerable. That's who he wants to shoulder the burden of his unrestrained spending. We saw it the last time he was the Treasurer. He was the worst immigration minister this country has ever seen, and then he was promoted to Treasurer, and what were we left with? We were left with a slowing economy, increasing unemployment and a deteriorating budget position. And this man wants to be promoted! He should hang his head in shame. We will ensure that our plans for personal tax relief, for backing businesses and for bringing the budget back into surplus a year early continue to strengthen the economy, because we know that this shadow Treasurer wants to strangle the economy and everything that goes with it.

Brian Mitchell (Lyons, Australian Labor Party) Share this | Link to this | Hansard source

What an extraordinary performance from the missing-in-action minister who is not even competent enough to sit at the dispatch box, where he's meant to be. What an absolutely extraordinary performance!

I'm proud to speak on today's MPI on the economic failures of this government. Can there be any bigger economic failure of a government than to get into bed with One Nation, one of the worst political parties in this country's history; a party that markets itself to the blue-collar worker but sells itself to the banks? That's what One Nation was prepared to do in bed with this government. This government entered a secret deal with One Nation that it refuses to tell this parliament about. What an absolute abject failure. I see the minister is leaving the House. He's made sure he's got his back-up team this time. Off you go, Minister. After last year's display, you'd think this government would have learned. Two ministers didn't turn up—they were on a plane back to Perth, the Minister for Human Services and the Attorney-General—and then we had Minister O'Dwyer, up or down. What an incompetent government on every level.

We hear ad nauseam from the Treasurer and others opposite about their supposedly superior fiscal skills. That's a bit like listening to a WWF wrestler: lumpy and loud. But, at the end of the day, this Treasurer is all bluster and wind. He's not in pink and grey today. The pink and grey galah is not in his pink and grey today, but he's still squawking down there.

Kevin Hogan (Page, National Party) Share this | Link to this | Hansard source

The member for Lyons will remark on people with their correct titles.

Brian Mitchell (Lyons, Australian Labor Party) Share this | Link to this | Hansard source

All right: the minister is squawking at the table. Do you remember, Deputy Speaker, when this country was headed to rack and ruin because of a debt and deficit emergency? That's what this government came to government with. After five years of Liberal government, the debt's doubled to more than half a trillion dollars, but apparently it's not an emergency anymore. It's worse than when it was an emergency, but it's not an emergency anymore. The Liberals love rolling out the debt truck under Labor, but now that the debt has more than doubled under their stewardship the debt truck is nowhere to be seen. Maybe the axle has broken under the extra weight.

The deficit for this year is more than six times that which the Liberals forecast in their 2014 budget and yet they want us to trust that their forecasts for the next four years of growth are bang on target. This government's economic failures are manifest, and nowhere are they worse than in Tasmania. After five years, this government has left Tasmania completely off the map. It's only discovered us again in recent weeks. There's a by-election on—fancy that! Last year's so-called infrastructure budget had nothing new for Tasmania. There were billions of dollars in projects for other states; nothing for Tasmania. This latest budget is not much better, but at least this time we crack a mention in the papers. There's money for the Tamar River in Launceston. It doesn't kick in for two years. There's money for a new Bridgewater Bridge, but nowhere near enough has been budgeted to complete it. That's going to take at least another election cycle. There's money for roads, but the Liberals don't know which roads, nor how much they'll need. It's all pie in the sky. They couldn't even get their 2016 election promise right. Both Labor and the Liberals pledged to build a new Hobart airport intersection on Tasman Highway. It's two years after that promise and work hasn't even begun, and now we're told it's unlikely to be completed until 2022. That is six years for an intersection. It does not fill me with hope that the Bridgewater Bridge will be completed within a decade.

The north-west is suffering too. This government cut $58 million from the University of Tasmania, which has a Cradle Coast campus in the city of Burnie. The last thing the people of Burnie need is less investment in their city. They need a government and a local member willing to stand up for Burnie's young people to ensure they have an opportunity at a great education, because when you cut funding to regional universities you close down pathways for young people who live in the regions. You can't help but be cynical. Two years ago, Labor backed the Cradle Mountain tourism project, but the Liberal MP Brett Whiteley didn't. Now, with a by-election on, the Liberals say they back the project. Hallelujah—they've found the light! But the Liberals are interested only in themselves, not the people of Braddon. The people of Braddon know that the only person who's fighting for them, day in and day out, and has been doing it for the past two years, is Justine Keay, and that's why she deserves to come back to this House.

David Coleman (Banks, Liberal Party, Assistant Minister for Finance) Share this | Link to this | Hansard source

In 2017, more jobs were created in Australia than in any other year in our history. A very strong economic record, and there is so much more to do to grow the economy. I want to talk about those things, but those opposite have one plan and one plan only, and that is a massive tax increase on the Australian people. They propose to put more than $200 billion of additional taxes onto the Australian economy. Their basic argument is that you can increase taxes by $200 billion and it has no impact on the economy. According to those opposite, everyone will just invest the same amount and do all of the same things that they would have done anyway, even though they now have to pay the government an additional $200 billion.

We know, Deputy Speaker Hogan, that the biggest single hit from those opposite is on retirees—older Australians. This is a tax on grandmas, grandfathers and on people who have saved for retirement. What you want to do is make them the No. 1 payer of tax to the Labor Party. That is what you want to do. It is an extraordinary proposal, that the biggest single hit across all of Labor's tax plans is actually on those who can afford it least, people who are retired.

Those opposite also voted against tax reductions for businesses with turnover of $2 million. They say that that's some huge multinational business, and so they went into the parliament and they voted against that. When they say that they're opposed to tax relief, what they're saying—and we know it, because they've already done it; they've already voted for it—is that they're against tax relief for a business that might be in the suburbs employing seven or eight people. They voted against a tax cut for that business. That remains their policy to this day, and that is the reality of their position, despite the fact that they mislead the parliament by stating it's all about multinationals—which it's not, because they voted against tax reductions for small businesses.

We know that the small businesses that have already received tax relief through the legislation in this parliament employ 6.8 million workers in Australia. We're seeing this tremendous uptake in investment, which is leading to record-breaking job growth, the biggest jobs growth in Australian history. Those opposite say to repeal that legislation; increase tax by $25 billion on small- and medium-sized business. It would be devastating for the economy. That is not this government's plan; that is what those opposite want to do. We also want to extend that tax relief more broadly to another 4½ thousand businesses, that employ four million people.

The UK corporate tax rate is 19 per cent; the US is 21 per cent. Oxford University says Australia has the 27th-highest corporate tax rate out of the 33 OECD nations. Now, those opposite say: 'None of that matters. It doesn't matter what the tax rate is.' Of course, we know that the shadow treasurer and the member for Fenner have written books about the importance of corporate tax relief, but now they say it doesn't matter at all what the tax rate is; it's completely irrelevant. 'Businesses will just invest the same amount and the same number of jobs will be created regardless of what the cost to those businesses is in the form of tax.' That, to anyone who has ever operated a business or had any involvement in the private sector at all, is obviously ridiculous, but that is their premise and one that we obviously very strongly reject.

We have a wide range of initiatives in the budget to help to continue to grow the very strong job creation we've seen: extending the instant asset write-off so that businesses with turnover of up to $10 million can get an immediate tax deduction on capital purchases of up to $20,000; a $200 billion investment in defence industry, leading to job creation across the country; and a huge investment in medical research, such an important industry for our country, as the Treasurer was discussing today. Those opposite want tax to be the biggest proportion of the economy in Australian history. That is their policy. That would be a devastating blow for this economy, and it's something that must not be allowed to happen.

Anne Stanley (Werriwa, Australian Labor Party) Share this | Link to this | Hansard source

When it comes to the budget and the economy the government has a one-point plan. The problem with a one-point plan is that there is a real world that exists outside of this chamber. The real world can be unpredictable and it can be a victim to unexpected events. So when point 1 of your one-point plan falls over, what happens next? Well, here's another fact in the real world. In the real world, trickle-down economics is a fringe discredited theory. It doesn't work. Whenever and wherever it's been tried, it hasn't worked. But the real worth isn't a place this government seems very good at inhabiting. They steadfastly are hanging on to a tax cut for the big end of town. How much will it cost? Is it $80 billion or is it more? How much will the big banks get? Is it $17 billion or is it more? Banks' behaviour uncovered at the royal commission over the last month shows that they don't deserve a handout from the Australian people; they deserve other things.

The Turnbull government's $80 billion company tax cut is the single biggest hit to the budget that either party is putting forward. And now we hear that One Nation will no longer support these tax cuts. We hear that the Treasurer and Senator Cormann's secret deal with Pauline Hanson's One Nation is in tatters. So what's the plan now? Why has Senator Hanson pulled her support? We heard the senator on Sydney radio yesterday arguing that we've got to rein in this spiralling out-of-control debt—not something we've heard for the last five years. Obviously no-one from the government has bothered to tell her that we're also supposed to forget the debt and deficit disaster. Apparently this wasn't one of the conditions of her secret deal with the government. Remember, the debt and deficit disaster, that budget emergency? It's been abandoned, completely forgotten. But obviously no-one thought to tell Senator Hanson and One Nation.

While those opposite appear to have suffered collective amnesia about what debt and deficit is, here are some facts for you. Gross debt has crashed through the half a trillion dollar mark for the first time in Australia's history and remains above that mark every year for the next decade. Net debt for the coming year is double what it was when the Liberals came to office. The deficit for this year is over six times larger compared to what they forecast in the 2014 budget.

If Senator Hanson and One Nation want to grow the economy, they should have a look at the plan from this side of the House—a plan that passes the fairness test, unlike the government's one-point plan; a plan that doesn't spend $80 billion on the top end of town while everybody else is hurting; a plan that restores $17 billion to schools, commits to fund TAFE, looks after our young and addresses waiting lists in public hospitals. Contrast this to the government's plan. It makes cuts to the pensioner energy supplement and forces people to work until they're 70. People who have worked with their hands, such as builders labourers, can't do that until they're 70. It hits workers in the retail, food and accommodation industries for $77 a week in lost penalty rates. It fails to deal with cost-of-living pressures, which means families and pensioners are paying $20 more for private health insurance and young families in my electorate are paying up to $40 a week more in childcare fees. That is something they can't afford, with electricity prices going up and the cost of transport just to get to their jobs. It is a plan that continues the Medicare freeze, so people in my electorate are $9 out of pocket every time they visit a doctor. Put simply, this is a failure of an economic plan and Australia deserves better.

John Alexander (Bennelong, Liberal Party) Share this | Link to this | Hansard source

Thank you to the opposition for raising this very important matter. Providing economic management is one of the most important roles that a government has to play in running a country, a key component of being a responsible government. The Turnbull government is sticking to its plan for a stronger economy which will create more jobs and opportunities for Australians. We've already succeeded in creating one million jobs since we came in. Let me say that again: one million jobs. That's one million more people across the country who can provide for their families, save towards their dreams and live better and more fulfilling lives.

Having created more working Australians, we're now seeking to cut their taxes. Tax cuts will reduce taxes for 70,000 people in Bennelong, the vast majority of local families, and at the same time we're backing businesses to invest and create more jobs for Australians, building a smarter economy to allow Australians to plan their future with confidence. The government is guaranteeing the essential services that Australians rely on now and into the future. A stronger economy has enabled the government to deliver record investment in Medicare, hospitals, schools and disability services.

We have invested a record amount into our schools. In Bennelong I'm proud to say that we have some of the most impressive schools in the country. They are dedicated to their students, preparing them to thrive in an ever-changing world, but at the same time they're fantastic members of our wider community, responsible for some of the fantastic cohesion that can be found in our suburbs. Our teachers deserve the tools to excel in their jobs, and this government will provide them. Just last month I was proud to welcome the Prime Minister, the Minister for Education and Training and David Gonski to the wonderful Ermington West Public School to show them the incredible work done by our students and by the dedicated principal, Shannan Judge, and her team. At this time, the government committed to support the recommendations of the David Gonski Review to Achieve Educational Excellence in Australian Schools, and I'm very pleased to note that we are working with states and territories to ensure student outcomes are lifted. Also in the budget was the new childcare package, which will ease the cost-of-living pressures for nearly one million Australian families in child care from 2 July this year. This will make a real difference to the bottom lines of families across my electorate and across Australia.

Health funding matters to everyone. Through this budget, we have guaranteed that Australians have access to high-quality hospitals, a strong Medicare system and vital services for those with permanent and significant disability. It matters even more in my electorate for the employees of Pill Hill, the home of Australian pharmaceutical industry. Pharma and med tech is the largest employer in my electorate, and it is excellent to see that these industries continue to be supported by this government. Commonwealth health funding will reach a record $78.8 billion in 2018-19. This is a $12.4 billion increase over the next four years. Record levels of funding will be provided for public hospital services, while funding for the Medicare Benefits Schedule and the Pharmaceutical Benefits Scheme is guaranteed through the Medicare Guarantee Fund announced in last year's budget. There is exciting news in the National Health and Medical Industry Growth Plan, which includes $1.3 billion invested into conditions like rare cancers, chronic diseases and the cutting-edge Genomics Health Futures Mission.

Through the hard work of my good friend the member for Hasluck, the government is providing more choice for older Australians to live healthier, more independent and safer lives so they can take advantage of the opportunities that a longer life brings. Australians living with permanent and significant disability will have certainty, and they can exercise choice and control over the services they need through a fully funded National Disability Insurance Scheme. On this I would like to reiterate my thanks to the member for Ryan, who has personally overseen some cases in my electorate, including her life-saving intervention to keep open the RASAID home in Ryde.

This government has created a far stronger economy than when we came into office, and this stronger economy supports a stronger budget which guarantees funding for essential services, supports lower taxes and allows the government to back new infrastructure investments across Australia. PS: I would be delighted to work here at least until I'm 70.

Cathy O'Toole (Herbert, Australian Labor Party) Share this | Link to this | Hansard source

The Turnbull budget clearly outlines his priorities, and that is giving $80 billion in tax cuts to big business and the banks while delivering absolutely nothing for Townsville. The Turnbull government are putting big business before regional Queenslanders, because that's all they care about. Under the Abbott-Turnbull governments Townsville has suffered through the highest unemployment rates in recent history. Under the Abbott-Turnbull governments, unemployment in Townsville has almost doubled. You would think that the Turnbull government would actually deliver something in the budget for Townsville given that they are responsible for the worst unemployment that we have seen but, no, not one cent. There is nothing for Townsville's long-term water security, nothing for energy infrastructure for Townsville and nothing for our port expansion development.

The Turnbull government don't have an economic plan. In fact, they haven't got a clue. This is a government whose fundamental economic plan revolves around the myth of trickle-down economics. Australia is not fooled, regional Queensland is not fooled and Townsville is not fooled by this absolute myth of trickle-down economics. There is definitely something trickling down on Townsville from this government but it certainly isn't funding or jobs.

Just last week Treasurer Scott Morrison was in Townsville to spruik his nothing budget and to try and convince workers, families and veterans that there was nothing in the budget for them to be fearful of. He did not mention the cuts to schools, hospitals, dental services and allied health services for our veterans. He actually told the people of Townsville the budget was very good for them, but Townsville was not fooled. It is reported that the real reason the Treasurer was in Townsville was for a $500 lunch. He tried to come to the Townsville community, tried to spruik his nothing budget, all under the guise of a reported LNP fundraiser—how typical of LNP priorities.

The only thing that the Turnbull government has delivered in this budget, as I said, is an $80 billion tax cut to big business and the banks. That's the Turnbull plan. Unlike those across the floor from me, who love sitting in their ivory towers in Canberra and Sydney, I have been out door knocking and speaking to real people on the ground. Of the hundreds that I have spoken to, not one person has supported this budget. Not one person is happy with the fact that Townsville received no funding for water, nothing to relieve the energy costs and nothing for the port. Not one person is happy with the cuts to our schools, hospitals or universities. We have suffered around $9 million in cuts to the Townsville health and hospital service, $14.8 million in cuts to Townsville schools, $36 million in cuts to JCU, $38 million in cuts to Central Queensland University, $1.5 billion in cuts to the National Partnership on Remote Housing—including seven apprenticeships on Palm Island—and $40.7 in million cuts to allied and dental health services on top of the repatriation medical fees schedule freeze for our veterans—which has already seen a reduction medical services for veterans.

These cuts will mean further job losses in Herbert. Then there is the absolute sham of decentralisation, with only a few jobs moving, which includes the Office of the National Rural Health Commissioner to the established 'very regional' city of Adelaide. I want to see the 110 ATO jobs this government cut restored back to Townsville along with the Airforce's 38 Squadron King Air fleet, the 19 CSIRO jobs, the 50 Defence staff and the 30 regional Queensland customer staff. But instead, this government slashed the Public Service even more by cutting a further 1,280 jobs.

Only Labor will deliver a budget for Townsville. Under a Labor federal government, we would benefit from $200 million for hydro power on the Burdekin Falls, $100 million for long-term water security, $75 million for the port redevelopment and $120 million for veterans' transitioning employment program—a very important program for my community. On top of that, we will deliver tax cuts for people, not for big businesses and banks. We will ensure that big businesses pay their fair share of tax and provide relief to the people who need it the most. That is the Labor way, that is a fair go for every citizen in our country and that's what a fair Labor budget would look like.

Lucy Wicks (Robertson, Liberal Party) Share this | Link to this | Hansard source

I'm pleased to speak on this matter of public importance because it's an opportunity to emphasise once again just how this government's plan which was outlined in the budget will deliver a strong economy for our nation. We have heard speakers on the government side say this but it would appear that those opposite still need some reminding that, under the government's economic plan, jobs are being created, investment is rising and the budget is strengthening, which means we can guarantee the essential services that Australians and their families rely upon. It's a plan that will provide tax relief to encourage and reward hardworking people, back business to invest and create more jobs, all while ensuring the government lives within its means.

The plan outlined in the budget is also about keeping Australians safe. This means stopping the boats and keeping them stopped, protecting Australians from the threat of terrorism and giving our defence forces what they need to do their job as they protect our values and our freedom. We're doing this right across Australia, from our major international hubs to busy domestic interchanges, and all the way across our local community neighbourhoods. In each of these places where people gather and connect, we're working to stop those who seek to do us harm by equipping the Home Affairs portfolio and security agencies with the tools they need in a complex, fast-paced security environment.

I'd like to commend the Minister for Home Affairs, who is a great friend to the Central Coast, for his strong suite of measures in the budget, including directly investing $294 million to boost security at our airports. This includes enhanced screening capability for inbound air cargo in international mail, plus more police and Border Force presence at our busy domestic and international airports. For example, Newcastle Airport is just north of my electorate and used by many local travellers on the Central Coast. Newcastle is just one of the many regional airports receiving a boost in the 2018 budget to upgrade their security screening equipment. It means that travellers to the airport remain safe, along with the airport staff, infrastructure and cargo, and that our aviation sector remains protected from the evolving threat of terrorism.

There is also additional investment in this budget to improve scrutiny of visa processing and passenger screening and clearance of visitors and goods at our borders. This level of investment is welcome, but it is also important to help people feel safe in their own backyards and in places like our local parks, cafes or skate parks where their children play. This budget addresses this need by funding initiatives such as the Safer Communities Fund, an outstanding program which has been extended in this budget. The Safer Communities Fund is backed by the Proceeds of Crime Act, which means that the funding comes from the pockets of criminals confiscated by police and reinvested back into the community. Because of the significant demand, an additional $30 million was announced recently in this budget to expand the Safer Communities program for a third round. It's all about providing grants for local security infrastructure, such as fixed and mobile CCTV, lighting and other projects. These needs are ones that are identified by the police, local community groups and the local council.

Just last week, I was joined by the Assistant Minister for Home Affairs at the Peninsula Recreation Precinct to announce funding for more than 20 cameras on the Central Coast and associated surveillance systems—a major breakthrough that I've already spoken about in this place. This will provide CCTV infrastructure at important places, like the San Remo BMX facility, McEvoy Oval at Umina Beach, the new Banjo's Skate Park at Terrigal as well as the peninsula precinct. We met at the nearby Jasmine Greens Park Kiosk at Umina Beach to announce this funding, and I'd love to share some of the reactions I've had since.

Mr Hill interjecting—

Kevin Hogan (Page, National Party) Share this | Link to this | Hansard source

The member for Bruce is warned!

Lucy Wicks (Robertson, Liberal Party) Share this | Link to this | Hansard source

Gabby Greyem from Jasmine Greens posted on Facebook:

What a delight to receive federal funding and real engagement in building a safer and thriving community on our Peninsula.

The Umina Community Group also posted, saying:

We'd like to share some exciting news with our community that was announced today with unanimous support from all in attendance. Some of the added benefits will be the installation of better lighting to make sure they are capturing clear images.

Hearing these local stories, coupled with the strong national security focus, highlights that this is not the sort of budget described by members opposite in this debate today but, in fact, the sort of budget that is all about keeping Australians safe. It's all about strengthening safeguards against persistent and evolving terrorist, national security and criminal threats, and that is only possible because of a strong budget and a strong plan for our economy.

Julian Hill (Bruce, Australian Labor Party) Share this | Link to this | Hansard source

It's always a pleasure to follow the department of sanctimonious reasonableness. I start with a confession: I'm pleased that the shadow Treasurer is not in the chamber, because I failed to stand up in support of the discussion for this topic, although I was listed as a speaker, because I do have a problem with the proposal—and that is that it presupposes the fact that there is a plan. There's no real evidence that there is a plan. Indeed, a plan, as commonly understood, would be a list of steps with details, timing and resources to achieve an objective. Saying 'Plan, plan, plan, plan, plan, plan, plan—plan, plan,' however reasonably, does not make it a plan. Indeed, to quote the Prime Minister in question time, saying it over and over again does not turn a lie into a fact. Saying it's better, fairer, simpler doesn't make it true. It must be a secret, cunning plan.

To be fair, there is a one-point plan we have spoken of and seen: the $80 billion tax cut for big business. That is the start of the plan. There was jobs and growth, which was not actually a plan; it was a slogan and a website and that lovely yellow and blue logo that appeared behind the Prime Minister. Jobs and growth—we don't hear much about that any more. 'We have a plan,' they say, the $80 billion tax cut plan, including $17 billion for his mates at the big banks. As the member for Herbert said, something's trickling down on Townsville. I'd raise you one and say something's trickling out of the Prime Minister's trousers—a little bit of cash from his wallet for the rest of the country.

The other aspect of the plan we hear about is the trade deals to open market access. In a desperate rush since being elected, for any passing trade they can get, they will just sign any trade deal with no independent scrutiny. All of them, to a tee, let more temporary workers into this country. That's their economic plan, apparently—a secret, cunning plan. We've heard about the secret deal with Senator Hanson, who is now writing their economic policy. Maybe that is the key to the mystery of the secret $3 billion of revenue to be revealed in the budget. They still haven't told us. Whatever the economic plan, it's not really going very well.

The government has been desperately spruiking the jobs figures. We keep hearing this figure cobbled together that since they got elected A plus B plus C equals a million jobs. There's an inconvenient fact, isn't there? Only last week, unemployment went up. The unemployment rate in the country went up to 5.6 per cent. There are 741,000 unemployed Australians, which is 46,300 more than when they came to office. That's not going very well. There are 1.1 million underemployed Australians who want more work. Inconvenient fact: the level of employment increase over the last five years is actually comparable to when Labor was in office from 2007 to 2013, during the global financial crisis.

Even if we take them at face value and say, 'Okay, we've had jobs', let's send a thank you note to Daniel Andrews. I'm sure he checks his letterbox every day. In the last two years to April, over one-third of total employment growth in the country was in Victoria, which has three per cent of the land mass, 25 per cent of the population and over a third of the jobs. When we have a look at permanent full-time jobs nationwide, the most recent two-year statistics show that 65.4 per cent of permanent full-time jobs in Australia were created in Victoria. Obviously, cutting wages through slashing penalty rates must be a secret, cunning part of the plan that we're not smart enough to understand.

We hear a lot from those opposite about their tax plans. That's part of the economic plan, but you have to wonder which one. Was it the raise the GST plan or the plan to expand the GST base and whack it on health and education? Maybe that's part of the cunning plan. My personal favourite is, 'Let's reintroduce state income taxes.' We got rid of them in 1942, it's about time they came back. It's a cunning plan. Or the latest tax plan, 'Let's give away $140 billion with no information to the parliament in a seven-year grandiose vision.' Surprise, surprise, overwhelmingly, yet again, the biggest benefit goes to high-income earners. Maybe that's part of the plan.

What are the fiscal outcomes of all these brilliant, secret, cunning economic plans? Net debt for the coming year is double what it was when they came to office. Gross debt is over half a trillion dollars for the first time in the country's history, and will remain so every year for the next decade. The government's secret economic plan does not even get the surplus to one per cent of the GDP until the end of the decade. Obviously, preparing the nation's future— (Time expired)

Andrew Gee (Calare, National Party) Share this | Link to this | Hansard source

The opposition is talking about economic planning. There is nothing like leading with your chin. They have an absolutely shambolic record on economic management and economic planning. The words 'sound economic management' and 'the Labor Party' are not words usually uttered in the same breath, and the Australian people know it. They're onto you; they've got it worked out.

Let's take a trip through recent history, shall we? On 21 April 2006, the then Treasurer Peter Costello declared 'debt-free day'. Australia had paid off its mortgage. It had paid off the credit cards after a huge debt left over from the Labor years in office. It was the coalition cleaning up the Labor mess; that was what was going on. Having paid off the nation's mortgage, along came the Rudd experience and Gillard and Rudd and more shambolic economic management. The Rudd money—who could forget that? It was money being thrown up against the wall. I say 'thrown up against the wall', but I could use language that is a little more unparliamentary. It was an absolute shocker. It was commodity prices that got Australia out of the global financial crisis; the low Australian dollar and commodity prices drove us and enabled us to avoid going into recession.

Who could forget the Building the Education Revolution and the overpriced school halls? Out in my neck of the woods, they wouldn't let local builders build them. It was a noble theory, and it would have been worthwhile, but they botched the management of it. You had horrifically overpriced buildings that weren't suitable for the needs of schools. In my neck of the woods, Nashdale Public School basically told the government to get stuffed. They managed the project themselves and actually got value for money. But they squandered taxpayers' money—Rudd money—with the BER. And who could forget the pink batt debacle, a debacle that cost lives? That was more poor management from the opposition. I was talking to morning radio host Kerry Peck on 2BS in Bathurst today and he was reminding everyone how bad the pink batt experience was for this nation—more taxpayers' money absolutely squandered.

So after Rudd-Gillard-Rudd it fell to us again to clean up their economic mess. This is exactly what we're doing. The Australian people can rest easy because it's on our watch at the moment and we're in safe hands. In the 2017-18 budget, the deficit will be $18.2 billion, less than half of what it was just two years ago. This will be the best budget outcome for a decade. It's about living within our means. If we don't live within our means, there is a cost. And the cost is borne not by politicians today but by our children and our grandchildren. A balance of $2.2 billion in 2019-20 is forecast, increasing to projected surpluses of $11 billion in 2020-21 and $16.6 billion in 2021-22.

We have stayed on track for a surplus in 2021 for six successive budget updates. The budget is projected to remain in surplus for the whole period of the medium term, with surpluses growing to more than one per cent of GDP from 2026-27 without breaching our tax cap and consistent with our sound fiscal plan and strategy. Average real expenditure growth has been reduced further—down to 1.6 per cent—the most restrained expenditure of any government in the last 50 years. Government spending is falling to 24.7 per cent of GDP, below the 30-year average of 24.8 per cent, over the forward estimates. We are also keeping taxes under our limit of 23.9 per cent of GDP. Net debt, something the opposition has had great problems with, is going to peak at 18.6 per cent of GDP in 2017-18 and will fall to 3.8 per cent of GDP by 2028-29. Gross debt will peak during 2019-20 at less than 30 per cent of GDP. Over the medium term, gross debt will be $126 billion lower in 2027-28 than was estimated in the midyear update in December.

The trend is clear: those opposite create the mess; they've always done so. They're creating it again with their big new taxes, especially the one on retirees that will cost about $60 billion over the long term. But it is the Liberals and Nationals who always have to clean it up—and that's exactly what we are doing with this budget.

Kevin Hogan (Page, National Party) Share this | Link to this | Hansard source

The discussion is now concluded.