Sam Dastyari (NSW, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Brandis. I refer to the Deloitte Budget Monitor report released on Monday, which projects that the budget deficit will blow out by a further $24 billion over the forward estimates. Given that this comes after the government delivered a budget deficit for 2015-16 eight times bigger than they inherited, isn't it clear that when it comes to economic management the government are, in Senator Brandis's own words, very, very mediocre?

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

The government will update the budget, as Senator Dastyari may be aware, in the MYEFO on 19 December, after receiving the September quarter national accounts.

Senator, you refer to a report from Deloitte Access Economics. What that report does is echo the comments the government has been making for months by rightly drawing attention to the impact of lower growth in wages and profits growth on government revenues. We have been saying that before Deloitte Access Economics said it. The report also correctly puts in perspective the impact of recent commodity price movements on budget revenues. That said, Senator Dastyari, recent commodity price increases have contributed to national income growth in recent quarters, and the government notes that iron ore prices are consistent with the levels incorporated into the 2016-17 budget that Labor criticised as being unrealistic. The report contradicts that criticism that the Labor Party made of the government's figures, Senator Dastyari.

The government will be adopting a cautious approach to commodity price assumptions in the MYEFO and it agrees with Deloitte that commodity price impacts are being offset by wages and inflation outcomes. Senator, the goal of the government's national economic plan outlined in the budget is to lift what Australians are earning from their wages and their businesses, not to tax them more, as Labor wants to do. That is why our enterprise tax plan is so important. That is why you cannot expect businesses to earn and invest in providing jobs when you are demanding that they keep paying higher taxes. Senator Dastyari, as the Deloitte Access Economics report notes: what we need in Australia for there to be healthy wages growth is prosperous businesses. (Time expired)

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

Senator Dastyari, a supplementary question.

Sam Dastyari (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Can the minister confirm that the deficit for this year has tripled since this government's first budget, and net debt for this year has blown out by more than $100 billion since the government took office in 2013? Isn't it the case that when it comes to managing the budget this government is, in Senator Brandis's own words, not very good?

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

Senator Dastyari, if you are so concerned about the state of the budget, why does the Australian Labor Party here in this Senate continue to block savings measures? Because that is what you are doing, Senator Dastyari. The budget would be $16.5 billion in better shape if the Australian Labor Party did not consistently block savings measures in the Senate—including, by the way, Senator Dastyari, savings measures that in advance of this year's election you said, were there to be a Labor government, you yourselves would introduce. So, Senator Dastyari, the one thing we will always know about the budget deficit is this: it is much lower than it ever would have been under a Labor government, and it would be a lot better if the Labor Party got out of the way and passed the savings measures.

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

Senator Dastyari, a final supplementary question.

Sam Dastyari (NSW, Australian Labor Party) Share this | Link to this | Hansard source

I refer to Standard & Poor's warning that the Turnbull government is at risk of losing the AAA credit rating. Given that Mr Turnbull promised to deliver economic leadership but has delivered growing deficit and more debt, isn't it a fatal attack on the Prime Minister's, in Senator Brandis's words—and I will apologise here: English is my second language and French is not my third—raison d'etre?

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

Sam, stick to your day job. Comedy, at least deliberate comedy, is not your strength. Senator Dastyari, as a monolingual person might I say I admire your linguistic skill, but let me speak to you in plain English. Australia is one of only 10 countries in the world with a AAA credit rating from all three major credit-rating agencies. Since the election, that AAA credit rating has been reaffirmed by all three major credit-rating agencies, and that can only reflect the strength of the Australian economy under this government.