Jane Hume (Victoria, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance, representing the Treasurer, Senator Cormann. Can the minister outline to the Senate what the June quarter national accounts, released last week, say about Australia's economy?

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

I thank Senator Hume for that question. The June quarter national accounts show that the Australian economy is growing at more than three per cent—3.3 per cent in fact—which is stronger growth than that achieved by any of the G7 economies. It is of course much stronger growth than that which we inherited from the previous Labor government. In fact, when we came into government in September 2013—about three years ago—the economy was weakening, unemployment was rising and the budget position was rapidly deteriorating. Indeed, in the previous 12-month period, the economy had grown at about two per cent—it is 3.3 per cent now—employment growth was very subdued and we were on track to reach unemployment levels of about six per cent and above. Now, growth is strong, at 3.3 per cent, and new jobs are being created.

Around 200,000 new jobs have been created over the past 12 months, with over 60 per cent of those jobs going to women. To put jobs growth in perspective, over 2½ times as many jobs were created in the last 12 months than in Labor's last 12 months in office. Business conditions remain elevated, above their long-run average. Consumer confidence is above average. The ANZ's weekly measure of consumer confidence remains elevated, at 114.3 points. Indeed, consumer confidence has been above average for 19 consecutive weeks—the longest stretch since late 2013. Exports are also very strong, at about 10 per cent above the level a year ago. International education is playing a large part in our services exports. So far this year over 217,000 international students commenced study in Australia—about 11 per cent higher than 12 months ago. (Time expired)

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

Senator Hume, a supplementary question.

Jane Hume (Victoria, Liberal Party) Share this | Link to this | Hansard source

Can the minister further update the Senate on what the government is doing to ensure that Australia continues to experience strong economic growth?

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

I thank Senator Hume for that supplementary question. What we need to do is to continue to implement our national economic plan—our plan for jobs and growth—which was reflected, of course, in our 2016-17 budget.

Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

What's the plan? What plan?

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

Senator Cameron asks, 'What is the plan?' Well, it is: our plan to implement our ambitious innovation agenda to support start-up businesses and to encourage them to employ more Australians; our defence industry plan, which is designed to support local high-end manufacturing and shipbuilding; of course, our $840 million youth employment package; our export trade deals; our efforts to make our tax system more growth friendly, including a proposal to make our business tax rates, in particular, more competitive internationally. There are many other parts of this plan—our plan to better target superannuation tax concessions, tax cuts for families and, of course, our response to the financial systems inquiry, our response to the Harper competition policy review— (Time expired)

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

Senator Hume, a final supplementary question.

Jane Hume (Victoria, Liberal Party) Share this | Link to this | Hansard source

Is the minister aware of any alternative plans that could put Australia's future economic growth at risk?

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

Sadly, Senator Hume, yes, I am. The Labor Party, the alternative party of government in this parliament, went to the last election promoting higher taxes on investment, which, of course, would be bad for investment, bad for jobs and bad for growth. They also promoted policies which would have worsened our budget deficit by at least $16.5 billion over the forward estimates. Respected economists said it would threaten our triple-A credit rating, which, of course, would be bad for economic growth moving forward.

What Australia needs right now is a government that continues to focus on making Australia more competitive internationally not less. We need a government that focuses on attracting more investment not less. We need a government that is committed to ensure that businesses across Australia who are employing Australians have the best possible opportunity to be successful so that individual Australians have the best possible future and are successful. (Time expired)