Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

My question is to Senator Wong, the Minister representing the Treasurer. Can the minister confirm that over its first four budgets the government budgeted for deficits totalling $99 billion but actually delivered deficits totalling $174 billion?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I can confirm the figures which are set out in the government's budget papers and I can also confirm that over some five budgets we have experienced a revenue write-down of $150 billion. Notwithstanding that, the Treasurer has delivered a budget which will return the budget to surplus on time as promised. The difference between this side of politics and that is a number of things. One is our values. We are delivering for low-income and middle-income Australians. They are standing up for wealthy miners.

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Senator Wong, resume your seat. Order on both sides! Minister, continue.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

The other thing I can confirm is that yet again the coalition demonstrate that they keep forgetting about a thing called the global financial crisis—something that has plunged so many advanced economies into—

George Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. You should ask the minister to be directly relevant to the question. The question asked the minister to confirm whether certain figures were true. She has responded by saying that the figures in the budget papers are accurate. She has now gone on to engage in her usual ritualised abuse of the opposition. That cannot bear directly upon the question of whether a given figure is accurate or not.

John Hogg (President) Share this | Link to this | Hansard source

There is no point of order at this stage, but I do draw the minister's attention to the fact that there are 55 seconds remaining to answer the question that was asked by Senator Abetz.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I am not sure why pointing out the inconsistencies in the question is ritualised abuse, but I would say this—

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order on both sides! Minister, continue. You have 40 seconds remaining.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I can confirm there was a global financial crisis. I can confirm that the government put in place stimulus measures. I can confirm that, as a result of those measures and as a result of the resilience of the Australian economy and Australia's people, our economy is seven per cent larger now than prior to the global financial crisis—something that economies like those of the United Kingdom and the United States would give their right arm for. Those are the realities. I can confirm that 200,000 Australians stayed in work as a result of the actions of this government. I can confirm that we have handed down our budget surplus plans laid out fully transparent to the Australian people, unlike those opposite.

Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Last night's budget told us the government intends to legislate to increase by $50 billion the Commonwealth's debt ceiling from $250 to $300 billion. Can the minister explain why a government that claims to be delivering surpluses in each of the next four years needs to put another $50 billion on the national credit card limit, thereby potentially putting every Australian man, woman and child up to $13,000 in debt?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

It is unfortunate that the opposition are choosing to take such a position on this issue. I invite them to consider the position that the market economists have indicated and that commentators have indicated in relation—

John Hogg (President) Share this | Link to this | Hansard source

Senator Wong, please wait a minute. There are two senators between you and me who are having a conversation across the chamber which makes it very difficult.

Honourable senators interjecting—

I am not looking at anyone in particular, but it makes it very difficult to hear the answer when those two people are having a conversation. Senator Abetz is entitled to hear the answer.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

Thank you, Mr President. I would suggest, if the senator wants more information, he should read the advice of the Australian Office of Financial Management. That makes clear the basis of—

Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

So you can't answer it.

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

No, you can't understand what you read.

John Hogg (President) Share this | Link to this | Hansard source

Order! Senator Wong, continue.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I can summarise that advice in this way. As the opposition would be aware, the budget papers show that government debt remains under the existing cap at the conclusion of each financial year. However, as the advice outlines, there is a significant amount of fluctuation within the year. There are two key reasons for this. First, a timing mismatch—

Opposition senators interjecting—

If you do not want to know the answer, why ask the question? (Time expired)

Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

The fluctuation only seems to be in one direction. Mr President, I have a supplementary question. Isn't it a fact that this budget simply continues the government's reckless spending as though there is no tomorrow and puts more and more on the government's credit card in a manner that would make even Craig Thomson blush?

John Hogg (President) Share this | Link to this | Hansard source

The minister need only answer those parts that pertain to her portfolio.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

Thank you, Mr President. I will return to the answer I was giving. The first reason for the change to the debt cap is the timing mismatch and the second is the rollover of maturing bond lines. Senator Bushby may be one of the few senators on that side who would understand this, because he has made the effort to ask the Australian Office of Financial Management questions during Senate estimates—and I give him credit for that—certainly more than Senator Cormann or Senator Abetz ever has. If they had they might not come into this place and behave so recklessly on such an important issue.

Trish Crossin (NT, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Families, Community Services and Indigenous Affairs and the Leader of the Government in the Senate, Senator Evans. Can the minister advise the Senate how the government's 2012-13 budget will deliver a strong economy and more benefits for Australians?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

I thank Senator Crossin for her question. In difficult times, this government is delivering a project that will continue to strengthen our economy, grow jobs and deliver for working Australians and their families. As a result of Labor's management, our economy is the envy of the developed world. Our economic fundamentals are strong, unemployment is low and we will return to surplus ahead of nearly all the other advanced economies.

However, the government does understand that many Australians feel like they are not sharing in the benefits that are flowing from the strong economy and the current mining boom. Many Australians are finding it tough in the patchwork economy and feel that their budgets are being stretched. The government is determined to ensure that the benefits of our strong economy and the mining boom flow through to Australian families to assist them in their budgets. That is why the budget includes new measures that are good news for low- and middle-income families, single parents, unemployed people and students.

By delivering much needed cost-of-living relief, the government is allowing all Australians to feel the real benefits and relief from the pressures on those weekly budgets. The new 'spreading the benefits of the boom' package is $3.6 billion that will be targeted to help Australian families with the costs of everyday expenses and to assist them to plan for and to support their families. These payments are in addition to those that are associated with the introduction of the carbon price. From 1 July next year, 1.5 million Australian families will receive an increase in the family tax benefit part A. Unemployed and single parents and students will receive the new supplementary allowance. These are measures that will deliver real help to those in Australia who need that assistance to make ends meet. (Time expired)

Trish Crossin (NT, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I thank the minister for that answer and I ask a supplementary question. I am interested in how the budget is going to assist families, particularly with the costs associated with sending their children to school.

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

In a proudly Labor budget, we are very much directing support to families to meet their costs. One of the major costs to families is that associated with supporting children in education: meeting the costs of excursions, uniforms, food and sports. As part of the budget, the government will abolish the education tax refund which we brought in to meet those very needs and replace it with the schoolkids bonus scheme, which is worth $2.1 billion.

Currently 80 per cent of eligible families are not getting their full entitlement to the education tax refund, and 20 per cent of families are not getting any at all because they are not making the claims. To address this, we are changing it to make sure that all eligible families will be able to access these benefits to support them in supporting their kids in going to school and meeting the costs associated with that. (Time expired)

Trish Crossin (NT, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I have a further supplementary question. It relates to the much needed schoolkids bonus payments. Following on from that answer, is the minister aware of any problems or risks associated with the implementation of this new initiative?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

There is a risk, and that is that the govern­ment will not be able to get the legislation through the parliament this week. Liberal senators have been saying, 'They won't spend it on education.' What an insult to Australian families. The Liberal Party have now decided they want to tell Australian families how to spend this money. Where have the Liberal Party got to?

What this government is trying to do this week is to enable legislation which will allow us to pay the Schoolkids Bonus scheme. It seems the Liberal Party are going to block that. They are going to block us from providing assistance to families. They have for the last year complained that families are under pressure, that families are not managing as well as they should be. Yet when this government moves to assist families with the cost of sending their kids to school, the Liberal Party are going to oppose it. They ought to wake up to themselves. Australian families want to know why they do not support these payments being made. (Time expired)