Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

I thank Senator Paterson for that question. I'm pleased to advise the chamber that this year's budget shows that we, as a nation, are turning the corner on Labor's legacy of deficit and debt. Our economy is strengthening, more jobs are being created, our budget is getting back into surplus and we can now start to pay down the debt that was accumulated on the back of unsustainable spending growth locked in by the previous Labor government—in particular by the previous Labor finance minister, Senator Wong.

Funding for essential services is guaranteed within the budget through increased revenue on the back of stronger growth—rather than through higher taxes—and more jobs, and by ensuring that the government lives within its means. The budget is the sixth consecutive update that charts a course to surplus by 2020-21. As a country, we are no longer borrowing to fund recurrent expenditure. Real expenditure growth has been limited to 1.6 per cent over the forward estimates per year, the lowest of any government in the last 50 years. Under Senator Wong, it cost four per cent per year on average above inflation.

We are projected to pay down more than $232 billion of government net debt over the next decade, taking government net debt down to 3.8 per cent as a share of GDP over the medium term. The budget is projected to return to balance in 2019-20, one year earlier than previously expected, and with surpluses growing to more than one per cent of GDP from 2026-27.

Don't take my word for it—Innes Willox, the CEO of the Australian Industry Group, has said that our budget:

… will give business and the community confidence for the future and is cause for optimism.

Mr Willox went on to say:

The Government has moved to take advantage of the economic improvement now underway by proposing tax relief to business and households, as well as a significant boost to infrastructure spending. This strategy is anticipated to drive further growth in activity, real incomes and job creation.

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