Steve Irons (Swan, Liberal Party) Share this | Link to this | Hansard source

Yesterday's national accounts confirm the Australian economy continues its strong recovery. The outcomes for the Australian economy continue to compare favourably to international peers. It is because of the sacrifices Australians have made that the economy is in the strong position it is today. The Morrison government's economic plan is working. The national accounts announced by the Treasurer yesterday confirm Australia is leading the global economic recovery. In the Treasurer's press conference, we heard that in the March quarter employment surpassed prepandemic levels, a feat no other major advanced economy has yet achieved. He also confirmed the Australian economy is even bigger than it was going into the pandemic. Real GDP increased by 1.8 per cent in the quarter, to be 0.8 per cent higher than its prepandemic level. So in just over a year the economy has recovered faster than from any major downturn in recent history and nine months earlier than previously forecast. Coming out of the COVID-19 induced recession, GDP has grown by 8.7 per cent over the last three quarters. This is the strongest period of growth since 1968—that is, the strongest growth in more than half a century.

The Treasurer went on to advise that the strength of our economic recovery is an achievement all Australians have contributed to and all Australians can be proud of. In other economies we saw a contraction in the March quarter, whereas Australia grew by 1.8 per cent. At home there are still sectors and regions that are doing it tough, but our economic support will continue, and yesterday's national accounts confirmed that a strong, broad based recovery is underway.

Most encouragingly, the economic recovery is increasingly being driven by the private sector, with economic support more than halving over the quarter. Household consumption, dwelling investment and business investment all contributed strongly to the growth in the March quarter. The recovery has been driven by household spending supported by income support and tax relief. These measures have ensured that, despite the economic shock, household disposable income has remained above prepandemic levels. Household consumption grew by 1.2 per cent in the quarter and is now 14 per cent higher than in the June quarter 2020—the strongest period of growth on record. Consumption is up in 10 of the 17 categories, driven by higher levels of spending on consumer services as the economy continues to open up, with the largest spending increases in hotels, cafes and restaurants, and transport. Importantly, we are seeing the positive impacts flowing from our unprecedented investment incentives.

Our economic plan is working. The job is not yet done, but you wouldn't want to be in any other country but Australia. Investments are broad based across mining and non-mining industries, creating an economic recovery for the rest of Australia.