Bridget Archer (Bass, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer outline to the House how the Morrison government's responsible economic management and recovery plan will strengthen Australia's economy and get Australians back into work in the wake of the coronavirus?

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

I thank the member for Bass for her question and acknowledge that before coming to this place she was a farmer and a mayor of George Town, and she is making a great contribution on behalf of her constituents in this place. The member for Bass, like members on this side of the House, know that we have entered into this economic crisis from a position of economic strength. We delivered the first current account surplus in 40 years, we saw welfare dependency at its lowest level in 30 years, we delivered the biggest tax cuts this country has seen in more than 20 years, and the budget was in balance for the first time in 11 years.

That economic strength allowed us, in the words of the OECD just earlier this week, to provide massive macroeconomic support to the Australian people through the COVID crisis—support through the cash flow boost, the extension and the expansion of the instant asset write-off, the effective doubling of the safety net with the jobseeker coronavirus supplement, and of course the JobKeeper program. The JobKeeper program is providing employers around the country and employees with support through this crisis—like Flinders Island Aviation, where Peter has been able to keep his four staff on the JobKeeper program and to continue to provide essential passenger and also freight logistics support to those isolated communities. In the words of Peter, at this particular business, JobKeeper has not only enabled him to keep his staff on but will enable his business to bounce back after the restrictions are lifted.

The strength of our support through this crisis has seen Australia perform very well, not just on the health front but also on the economic front, compared to many other nations, and, as the OECD yesterday said, the Australian economy is expected to contract by five per cent this calendar year and to strengthen by four per cent next calendar year. That compares to the United States, which is expected to contract by 7.3 per cent this year; or New Zealand, at 8.9 per cent; or indeed the United Kingdom, at 11.5 per cent.

The OECD also pointed out the risk of a second wave of cases. On their numbers, if we have a second wave of cases this could hurt the Australian economy and cost the Australian economy $80 billion this year and next. That's why the Australian people have to follow the health advice. That's why we have to be vigilant. That's why we have to be patient and considerate of our fellow Australians, to ensure that we don't throw away the gains that have been hard fought and that Australians have made great sacrifices for, to ensure that we flatten the curve.