Anthony Albanese (Grayndler, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is addressed to the Prime Minister. Why has the IMF slashed Australia's economic growth forecast to just 1.7 per cent this calendar year?

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

I thank the member for his question. The revision by the IMF overnight reflects the uncertainty of the times in which we live. That uncertainty extends to the global environment, of course—which I'd hope the Leader of the Opposition would be familiar with. I certainly am; I have been for some time. We've been fashioning budgets for years now to deal with the increasing uncertainty there is in the global economic climate. He would also be familiar with the real impacts on the economy of the terrible drought that is now impacting on the Australian economy.

That is why, over successive budgets now, we have been putting in place the types of resilience measures that support our economy in times like this. The uncertainty of the times is reflected in what we have seen in the IMF's forecast revisions overnight, which obviously didn't just apply to Australia; they applied to a whole host of economies around the world. That is just a fact. But the truth remains that, while things are tough, Australia's economy is growing, second only to the United States, of all G7 nations.

There's a lot of work to do, but I can tell you what this time of uncertainty calls for. It calls for lower taxes, which is what we are doing. It calls for reducing the cost of doing business in this country by busting through regulations that hold projects back and by simplifying procedures in the industrial relations area to ensure that people can get employed. It requires us, as we are doing, to engage in reforms in our skills sector and to ensure that we are expanding our trade borders all around the world, as we have been doing over the last six years. It calls for us to invest $100 billion in infrastructure, as we are doing—and that's just on transport infrastructure, with almost $10 billion being invested just this year alone. And it calls on us to invest $200 billion out into the future on recapitalising our defence industries, as we heard yesterday out at Quickstep in south-western Sydney. Quickstep, an Australian company, is providing $250,000 worth of value-added into every Joint Strike Fighter that will be flown by every country around the world that purchases them.

They're the investment decisions that our government has taken to address these uncertain times. Those opposite think the answer is higher taxes, and they think higher taxes will have no impact on the economy. The Leader of the Opposition was asked today whether he thought Labor's $387 billion in higher taxes wouldn't have had an impact on the economy, and he said no. He said. 'No, I don't think they would.'

Opposition Members:

Opposition members interjecting—

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

The answer was no in response to, specifically, the tax increases they had proposed when it comes to the housing tax and things of that nature. We're for lower taxes. We're for a stronger economy and a strong budget. (Time expired)

Jim Chalmers (Rankin, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Prime Minister. The Prime Minister just stated that the downgrades in the IMF release apply to everyone. Why is the IMF's downgrade for Australia's growth four times worse than for other advanced economies?

Josh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Link to this | Hansard source

Mr Speaker, as you know—

Mr Rob Mitchell interjecting—

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

Treasurer, just pause for a second. The member for McEwen will withdraw that term.

Rob Mitchell (McEwen, Australian Labor Party) Share this | Link to this | Hansard source

I withdraw.

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

I remind the member for McEwen—we've been through this—that members should be referred to by their correct titles. Both sides of the House agree that that has made a difference. We're not going to slip back into that. The Treasurer has the call.

Josh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Link to this | Hansard source

The IMF today, in its global economic outlook report, has Australia's economic growth in 2019 at 1.7 per cent and in 2020 at 2.3 per cent. As the House knows, Australia is in its 29th consecutive year of economic growth. Employment growth in Australia is at 2.5 per cent. Do you know what it was when we came to government, when we inherited the fiscal mess from the Labor Party? It was at 0.7 per cent, less than one-third of what we have today. Economic participation—the number of people who are in work—is at a record high at over 66 per cent. Welfare dependency today is at a 30-year low. We now have—

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

The Treasurer will resume his seat. The member for Rankin on a point of order?

Jim Chalmers (Rankin, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

Mr Speaker, it is on relevance. The question was: why is the IMF's downgrade for Australia four times worse than for other advanced economies?

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

I'm listening to the Treasurer. He's still being relevant to the question. The Treasurer has the call.

Josh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Link to this | Hansard source

As I said, the IMF has Australia's economic growth at 1.7 per cent in 2019 and at 2.3 per cent in 2020. The Australian economy continues to grow. As the Prime Minister said, the Leader of the Opposition was asked today if his taxes would have hurt the Australian economy. I remind the House that his retiree tax—$57 billion; his family business tax—$27 billion; and his taxes on superannuation—$34 billion—

Anthony Albanese (Grayndler, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

Mr Speaker—

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

The Treasurer will resume his seat. Leader of the Opposition, this cannot, under the standing orders, be a point of order on relevance.

Anthony Albanese (Grayndler, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

Well, it's a bad one then, Mr Speaker.

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

A bad standing order? Well, you introduced it. The Leader of the Opposition can resume his seat. I'm listening to the Treasurer, and he might listen to me for a second. He does need to relate his material to the question.

Josh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Link to this | Hansard source

The fact of the matter is the Australian economy continues to grow. As the Prime Minister has indicated, of the G7 countries, the IMF's projections of Australia's growth are second only to those of the United States.

Fiona Martin (Reid, Liberal Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. Will the Prime Minister outline to the House why it is important for the Morrison government to maintain a strong budget discipline and deliver a balanced economic plan in the face of global uncertainty?

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

A strong budget can never be taken for granted and the economy that supports that strong budget can never be taken for granted. It's a critical asset at the time of economic uncertainty that we see around the world today. You need the strong anchor of a strong budget not only to deal with the challenges of today but also to ensure that we have resilience for the challenges that will undoubtedly come in the years ahead as a result of the global economic outlook that we see.

As I remarked in response to an earlier question, the IMF revisions overnight just demonstrate that global uncertainty. They highlight again the need for policies that bring stability and certainty in our financial and economic management. Now is the time for our economic and financial management, which is about having cool and clear heads. It's not a time for Labor's policies, panic and crisis. When it comes to managing our fiscal environment in these times, we know what the consequences would be of Labor's policies. Recklessness, chaos, panic and crisis—

Mr Brian Mitchell interjecting—

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

The member for Lyons is warned.

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

Our government was re-elected on the basis of being clear-headed, being calm and being stable, and for introducing certain policies that support growth in our economy. Our policies understand these are very important challenges that we're facing globally, and are backed by the strong fiscal discipline which means we can invest in the policies that build that resilience—the tax cuts that we have delivered, the investments in infrastructure. Not only that, but we are bringing the budget back into balance this very year while at the same time delivering record spending on hospitals, on schools, on moving forward with disabilities and on addressing the challenges in aged care and mental health. That strong economic support that comes from a budget that enables us to face today's challenges is also needed there for the future.

I know that those opposite would engage again in Labor panic-spending to throw away the last six years, if they'd had the opportunity after the last election, and plunge the nation back and remove the certainty that comes with the discipline that a coalition government always brings. Our policy is to maintain the discipline, to keep our heads and to be cool and calm in the face of the uncertainty that is now presented to Australians in their own budgets, in the budget of the nation and in their own jobs. They can rely on us to keep our heads and remain calm and stable. Labor's policies are policies of panic and chaos.

Anthony Albanese (Grayndler, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is again addressed to the Prime Minister. Will the Prime Minister admit that since May the Reserve Bank has downgraded its growth forecast for Australia, the OECD has downgraded its growth forecast for Australia by twice as much as the G20 and the IMF has downgraded its growth forecast for Australia by four times more than other advanced economies? Why doesn't the government have a plan to turn the economy around?

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

Our plan is very clear. We took it to the last election, and it was endorsed by the Australian people. That plan is anchored, first and foremost, not in the panicked and crisis policies of the Labor Party. If they had the opportunity, if they'd won the last election, they would be now taking a wrecking ball to the Australian economy with their higher taxes and their reckless spending. No, the Australian people chose stability and the certainty of keeping more of what they earn and ensuring that tax cuts would be delivered. That's exactly what we delivered as soon as we got back into this place. Labor resisted it and resisted it and resisted it, and then they folded as usual. They can't even keep their consistency in their opposition to good economic policy.

On top of that, we've invested in infrastructure and we continue to invest in infrastructure. We are investing in programs to cut the costs of doing business in this country by reducing the regulatory burden, whether it's on getting projects up and running or on making sure we can employ more people in small businesses and medium-sized businesses around the country. We're investing in and expanding our trade, we're investing in developing new industries and we're investing in ensuring that we're capturing the opportunity of rebuilding the capability of our defence forces. Those opposite, when they were faced with economic crisis, plundered the national security of our nation, taking defence spending to its lowest level since prior to the Second World War. So not only have we rebuilt the nation's finances but we are rebuilding the nation's defence capability.

We are rebuilding the confidence of Australians, because more Australians, as a proportion of our population, are in work today than at any other time in Australia's history. They voted for an economic plan that they know can prevail in the face of economic adversity. They rejected the higher taxes, the reckless higher spending and the reckless targets in the policies of the Labor Party on emissions reductions, and the jobs emergency that that would create, and they chose a coalition that knows how to manage our economy and our nation's finances.