Terry Young (Longman, Liberal National Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer update the House on how the Morrison government's responsible budget management is providing tax relief to families in my electorate of Longman, while ensuring the economy remains resilient in the face of future challenges? Is the Treasurer aware of any threats to this approach?

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

I thank the member for Longman for his question and also for his extensive experience in small business. He understands that small business is the backbone of the Australian economy. He was talking to small businesses across his electorate, including in Caboolture, and they were saying that in the lead-up to last year's election fear of a Labor Party victory saw the phones go silent, but after the coalition's victory they have been as busy as ever in Caboolture, including the removal business that has bought a $120,000 truck, and including the garage and shed business that has employed a new crew. Those businesses are getting the benefit of the coalition's tax cuts for small businesses—legislated tax cuts to reduce the tax rate down to 25 per cent—and the instant asset write-off to companies with a turnover under $50 million, and up to $30,000, has been extended. The tax cuts we are providing, including the income tax cuts, have seen more than eight million Australians receive more than $6 billion in the first six months of those legislated tax cuts. This has helped with creating 1.5 million new jobs since we came to government, and in bringing the unemployment rate down from 5.7 per cent to the 5.1 per cent it is today.

We're on the side of lower taxes, but not everyone in this place believes in lower taxes! At the last election, those opposite promised $387 billion of higher taxes and to whack the so-called top end of town, the retirees, the mums and dads and the families businesses. So, you can imagine my surprise when I saw that the Leader of the Opposition being interviewed by Andrew Clennell on Sky News. He was asked a very direct question: 'Would you envisage no new taxes?' Here was his big chance to learn the lesson of the last election. This is what he said, 'We will consider them in terms of what revenue is required.'

Opposition Members:

Opposition members interjecting—

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

The member for Barton!

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

But, for Labor, there is never enough revenue! Andrew Clennell asked, 'Would you envisage no increase in taxes?' Here was the Leader of the Opposition with his big opportunity to rule them out and he said, 'I'm not about to make those sorts of announcements.' The Leader of the Opposition knows that the Labor Party can't manage money, and when they can't manage money they come after the Australian people's money. The Labor Party took $387 billion of higher taxes to the last election; it's still on their books. The Labor Party will always be the party of higher taxes.

Opposition members interjecting—

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

The member for Sydney! I call the member for Rankin.

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

My question is to the Treasurer. Last week the Reserve Bank said that 'very low levels of investment' are a very significant issue for the Australian economy. Given that business investment is down 20 per cent under this Liberal government, and is now at its lowest levels since the last recession, three decades ago, why doesn't the government have a plan to lift business investment and get the economy going again?

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

Under the coalition, investment outside the mining sector has increased by 34 per cent since we came to government. Under Labor, investment outside the mining sector fell by 10 per cent during their time in office. The member for Rankin refers to the governor of the Reserve Bank. The governor of the Reserve Bank made a very interesting speech last week. He said that the fundamentals of the Australian economy were, in his words, 'very strong'. He further said:

The strong fundamentals include: world class endowments of natural resources; a highly skilled and innovative workforce; an established and predictable regulatory system; sound public finances; a diverse and growing population; and being well placed to benefit from the strong growth in Asia, not just in China, but also in the populous countries of Indonesia and India.

This is what the governor of the Reserve Bank of Australia said. So, we have a lot to feel fortunate about. We enjoy a set of fundamentals and a standard of living that few other countries enjoy. It's important that we do not lose sight of this.

Why is it only the Labor Party that is constantly talking down the Australian economy, when the governor of the Reserve Bank is saying how strong the fundamentals are? It's because the Labor Party is interested only in the politics of the economy, not the jobs that the economy creates, not in boosting the livelihoods of hardworking Australians.

The reality is that when we came to government we inherited a budget that was in a mess: $48½ billion, or around three per cent of GDP, was the deficit the Labor Party bequeathed the Australian people and the coalition. Well, we have seen, over the past six years, a turnaround. We have now delivered the first balanced budget in 11 years. When we came to government, unemployment was 5.7 per cent; today it's 5.1 per cent. As the Prime Minister has said many times, including yesterday, when we came to government two free trade agreements covered two-way trading relationships—

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

The member for Rankin on a point of order?

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

Yes, on relevance. If he doesn't have a plan for business investment he should just say so.

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

No. The member for Rankin will resume his seat. That was not a point of order. The Treasurer has the call.

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

Our plan for business is creating more jobs, including through free trade agreements—and yesterday was a historic day—through lower taxes for small businesses and income earners and from a 10-year $100-billion rolling infrastructure program. Only those on this side of the House will reduce people's taxes and create more jobs.

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

Before I call the next question, I'm just going to say—and I've made the point before—that I'm not going to allow frivolous points of order. If that practice continues—it's happened a couple of times—what I'll do is take the approach that former Speaker Jenkins did, and that is to simply rule on the point of order without hearing from the member. It's not a great path to go down, but, if you leave me with no alternative, that's what I'll do. If you want to know how that works, you can ask the Minister for Home Affairs, who was the subject of it in opposition.