Carol Brown (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary for Families and Payments) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Brandis. Does the minister agree with Michael O'Neill, Chief Executive of National Seniors Australia, who says the government's cuts to pensions are poorly thought through and unfair for middle Australia?

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

Senator Brown, I actually have not read that gentleman's comments, but I can tell you that since the election—

Senator Wong interjecting—

Thank you, Senator Wong—the single pension has increased by $52 a fortnight and the married pension has increased by $78 a fortnight. The Leader of the Opposition, your leader, announced last week that he would vote against increasing the pension by an average of $780 a year or $30 a fortnight—

Stephen Parry (President) Share this | Link to this | Hansard source

Pause the clock.

Carol Brown (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary for Families and Payments) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. My question was in relation to the comments from chief executive Michael O'Neill from National Seniors Australia about whether the minister's cuts to the pensions are poorly thought through and unfair for middle Australia. If he has not read the comments, because he has not had even time because the committee inquiry was truncated, then he should sit down; I do not need a lesson from him.

Stephen Parry (President) Share this | Link to this | Hansard source

Thank you, Senator Brown. The minister did answer the question directly up-front and the minister is entitled to enhance his answer, as has always been the practice, and he is doing so.

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

Senator Brown, I will address your question because your question asserts that the pension has been reduced, when in fact the pension has been increased. Your question is based on a false premise. In fact, the Leader of the Opposition last week, only last week, announced that he will vote against increasing the pension by an average of $780 a year for more than 170,000 pensioners with modest assets.

Now, Senator Brown, that is what your party proposes to do, so please do not come into this chamber and ask questions based on false assertions that the pension has fallen when the pension has risen, when you yourself, Senator Brown, sit in a caucus that has recently decided to vote against a decision to increase the pension.

Carol Brown (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary for Families and Payments) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Does the minister agree with the Prime Minister's hand-picked Commission of Audit head, Mr Tony Shepherd, who says that superannuation tax concessions definitely have to be reviewed?

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

I am not sure how that is a supplementary to the primary question. Nevertheless—

Senator Wong interjecting—

I suppose if we define it broadly; I thought it was about the pension, Senator Wong. Nevertheless, no, I do not, Senator Brown. I have a very high regard for Mr Tony Shepherd. The Commission of Audit process was made necessary, by the way, so that the government could identify savings from the fiscal train wreck it inherited from our predecessors, and in particular from Australia's worst ever finance minister. Mr Shepherd was tasked with a very difficult job to go through the expenditure of the government to try to find economies. There are many, many considerations that Mr Shepherd took into account. He made many, many recommendations. Some of them the government accepted; some of the recommendations the government did not accept. That is one recommendation that the government has specifically ruled out.

Carol Brown (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary for Families and Payments) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister confirm that as a result of the coalition's deal with the Greens, more than 330,000 pensioners will have their pensions cut, with some on incomes as low as $25,000?

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

I can confirm, as I was trying to convey to you in my answer to your primary question, that as a result of the measures the government proposes to introduce, 170,000 pensioners, pensioners with modest assets, by the way, will be better off. Senator Brown, why your party would stand in the way of a pension increase and improving the circumstances of 170,000 Australian pensioners with modest assets is beyond me.

Cory Bernardi (SA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance and the Minister representing the Treasurer, Senator Cormann. Can the minister update the Senate on how the budget is supporting business confidence and growth?

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

I thank Senator Bernardi for that question, and for his strong interest and support for policies that are strengthening growth and opportunity across Australia. When we came into government we inherited a weakening economy, rising unemployment and a budget position that was rapidly deteriorating on the back of an unsustainable spending growth trajectory held by the previous government. I was listening to the worst finance minister in the history of the Commonwealth just before question time, when she was telling us that economic growth had slowed under this government. That is objectively wrong.

Opposition Senators:

Opposition senators interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Conroy.

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

Growth last year was stronger than in the year before, the last year of Labor government. Growth last year was 2.4 per cent compared to 1.9 per cent in the last year of Labor, and this year we had one of the strongest starts, when it comes to economic growth, of any country in the developed world.

Today we have got some further good news. Senator Wong does not like good news, but today the Commonwealth Bank released its monthly business sales indicator, and what does it show? It shows the biggest lift in business spending in three years, and that is directly attributed to the growth-promoting budget of the coalition government. We came into government with a strong plan to strengthen growth, to create more jobs and to repair the budget, and we are making progress in that. The Commonwealth Bank business sales indicator shows that economy-wide spending grew at a solid pace of 0.8 per cent in May after similar gains in March and April, the strongest three-month gains in 15 months. It is notable that spending by business services rose by 1.9 per cent in trend terms in May, the biggest monthly lift in three years, and it is directly attributed to our budget. In annual terms the business sales index grew by 7.5 per cent in May, up from 7.2 per cent annual growth in the year to April. Labor does not like the good news. (Time expired)

Cory Bernardi (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister explain to the Senate why further budget repair is essential to improving future business conditions?

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

It is self-evident that business confidence will be improved if the parliament continues to support the government's plan for stronger growth and to repair the budget. Over this past fortnight the government has been able to make progress when it comes to budget repair. We have been able to reach agreement in relation to budget repair measures to the value of about $10 billion, which have gone, or I expect will go, through the parliament during this fortnight. All of that is an important part of strengthening growth, creating better opportunities for people to get ahead and improving business confidence.

I will provide some further information about what has been happening in the economy. The seasonally adjusted measure of sales has been rising for the third straight month—up one per cent in May. It was the strongest three-month gain in two years, and annual growth went to the six-month high of 8.4 per cent. This is all good news, and the Labor Party does not like to hear good news.

Cory Bernardi (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Would the minister advise the Senate of any risks to Australia's medium-term economic outlook?

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

The major risk that we face as a country is that the parliament does not continue to support the government's plan for stronger growth, more jobs and to repair the budget. I am pleased to note that in recent weeks there has been an increased level of bipartisanship supporting some of the very important measures that the government has been seeking to pursue for some time. I welcome that. Long may it continue. We have made significant progress, but there is still more work to be done. What I would say to the Senate is that all of us are in this together; the country needs us to continue to focus on the job that needs to be done. The country needs us to continue to focus on implementing our plan for stronger growth, for more jobs and to repair the budget. I understand that the worst finance minister in the history of the Commonwealth wants to detract from the very important work that is being done in this space, but we are just getting on with the job.