Nick Sherry (Tasmania, Australian Labor Party, Minister for Superannuation and Corporate Law) Share this | Hansard source

I think at least in part the answer to your question, Senator Joyce, is illustrated by why revenue estimates have declined so significantly—the $115 billion. That is because of the world economic downturn, or recession in many cases. As we have indicated, there will be recovery in the Australian economy and there will be recovery in the world economy, which has been so seriously hit by the financial crisis. We have indicated because it is an issue of focus for this government that, as the economy recovers and grows above trend, the government will be taking action to return the budget to surplus. That can mean allowing the level of tax receipts to recover naturally as the economy improves. I have mentioned the significant drop in estimated revenue because of the economic fall-off in this country and the recession in a number of other countries. So revenue will grow when the economy improves, and the economy will improve.

We have maintained our commitment to keep taxation as a share of GDP below the 2007-08 level. Further to that, not just on the income tax receipts, we have given a commitment to holding real growth in spending to two per cent a year until the budget returns to surplus. We have provided over the period through to 2011-12 various estimates and projections, as occurred when the Liberal-National Party were in government—and you were a part of that government. Treasury have provided as accurate estimates as they can make of the various economic indicators—unemployment, employment, economic growth, a range of other domestic economic forecasts on demand and output, and other selected economic measures—through to 2009-10 and, in the case of the budget deficit, through to 2011-12, of both the cash balance and the fiscal balance.