James Paterson (Victoria, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Cormann. Can the minister please update the Senate on the government's plan for a stronger economy to create more jobs and to guarantee essential services?

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

(Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Paterson, a supplementary question.

James Paterson (Victoria, Liberal Party) Share this | Link to this | Hansard source

How will the budget provide tax relief to working Australians and small businesses?

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

As a result of our sound economic and fiscal management, we are now able to provide tax relief to reward and encourage working Australians: to help them deal with cost-of-living pressures; to address bracket creep, which is a drag on economic growth; and to simplify the tax system. Our seven-year personal income tax plan prioritises low- and middle-income earners, who will be provided with tax relief of up to $530 per year. Our plan also delivers a tax system that encourages aspirational Australians to get ahead, to take on additional work and to seek advancement knowing they can keep more of their extra income. We're extending for a further year the $20,000 instant asset write-off for small businesses with a turnover of up to $10 million, and, of course, we have legislated tax cuts for small and medium-sized businesses. Denita Wawn, CEO of Master Builders Australia, said:

Reducing the tax burden on households and small business is good for the economy and good for builders. People may decide to renovate their kitchen sooner or buy their first home faster.

(Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Paterson, a final supplementary question.

James Paterson (Victoria, Liberal Party) Share this | Link to this | Hansard source

What are the key risks to job creation, economic growth and returning the budget to surplus?

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

The biggest risk to our economy, to jobs and to getting the budget in a stronger position into the future is Mr Bill Shorten. We have to remember that when Mr Bill Shorten and Mr Chris Bowen lost government in 2013 they left behind a weakening economy, rising unemployment and a rapidly deteriorating budget position that was deteriorating by $3 billion a week. They haven't learnt from their past mistakes. Bill Shorten's anti-growth, anti-jobs agenda would take Australia back to where we were in 2013: a weakening economy, rising unemployment and a rapidly deteriorating budget position, because lower growth means less revenue for government and higher expenditure on people on unemployment benefits, and that is precisely what Labor caused when they last were in government. That is not where Australia needs to go.

Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance, Senator Cormann. In question time yesterday, the Prime Minister and the Treasurer both refused to tell the parliament the separate cost of each of the three steps of the Turnbull government's personal income tax plan. Will the minister now tell the Senate the separate cost of each step of the government's seven-year personal income tax plan?

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

We have provided information to the parliament and to the Australian people in relation to the cost of our measure on the same basis that that sort of information has been provided by governments of both political persuasions over a very long time. Indeed, it is entirely consistent with the Charter of Budget Honesty. The cost over the forward estimates is $13.4 billion, and in an abundance of openness and transparency we've also let the Australian community know that the cost of our income tax relief package for hardworking Australians is $140 billion over the medium term.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Marshall, a supplementary question.

Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

In question time yesterday the Treasurer twice refused to provide the parliament with the year-by-year cost of the government's personal income tax plan over its seven years. Will the minister now tell the Senate the year-by-year cost of the government's personal income tax scheme over those seven years?

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

We've done better than that. Instead of providing the information over seven years, we've provided it over the medium term, which is budget year plus 10. Over the budget year plus 10 the cost is $140 billion. This is the latest shifty political strategy by the Labor leader, a Labor leader who wants to increase taxes on every Australian, a Labor leader who wants to increase taxes by more than $220 billion on electricity, driving up the cost of electricity; on small and family business; on investments; on income; on housing; on savings; and on retirees. There is nobody in the Australian community who would be safe from Labor's high-taxing agenda, which would hurt the economy, hurt families and cost jobs. This is all just a great Labor diversion. Labor yesterday was found out. Bill Shorten personally was found out yesterday. The people across Australia know they can't trust him. They know they can't trust a single word he's got to say tonight.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Marshall, a final supplementary question.

Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Why is the government refusing to tell the parliament and Australians how much its enterprise tax plan will cost, how much each element of its personal income tax plan will cost and how much it's personal income tax plan will cost each year? Does the Turnbull government think that the parliament and the Australian public don't deserve to know how much its policies will cost?

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

Repeating the same wrong assertion doesn't make it true. We've provided the information about the cost of our measures in the usual way, consistent with the requirements of the Charter of Budget Honesty.

What the Australian people want to know is whether or not the Labor Party is going to stand in the way of income tax relief to reward and encourage hardworking Australian families. Is the Labor Party going to support our plan for lower taxes for hardworking Australians, or are you going to push higher taxes, again, on every Australian? That is what the Australian people want to know. They're not interested in your political games. We have a leader of the Labor Party who every Australian now knows cannot be trusted. He once gave a rolled gold guarantee to Kevin Rudd: I'm 100 per cent with you—

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Collins on a point of order.

Senator Ian Macdonald interjecting—

Order! Senator Macdonald.

Jacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

I am not touchy at all. Time and time again the minister is referring to either the opposition leader or the opposition. The truth of the matter is that these are simple questions in relation to your budget—answer them!

Scott Ryan (President) Share this | Link to this | Hansard source

Senator, on the point of order, the minister was being directly relevant.

Senator Jacinta Collins interjecting—

Let me finish before you interject on me, Senator Collins. The minister was being directly relevant. I accept that ministers occasionally stray in their answers for a sentence or two. Most ministers have done that, but the minister was at the commencement of the question—

Senator Jacinta Collins interjecting—

Can I please finish the ruling, and then make another point of order if you want. The minister was directly addressing the question—not in the term that all senators may like—at the commencement of his answer. He has 14 seconds to return to that.

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

Mr Shorten once gave a rolled gold guarantee that he supported company tax cuts, 100—

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Wong on a point of order. We got to two seconds at that point. I can't rule on two seconds. Senator Wong, I can't rule on two seconds. I will be honest, I didn't even hear the words.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

The point of order is relevance. Mr President, you gave quite courteously an—

Government senators interjecting—

I'm being nice. This is nice Penny. It might be hard to recognise, I know—

Government senators interjecting—

Scott Ryan (President) Share this | Link to this | Hansard source

I will let the chamber come back to order. Order on my right. Senator Wong, on a point of order.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, you gave a courteous indication requesting that the leader of the government return to the question, and the leader of the government commences his answer then with 'Mr Shorten'—really?

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Wong, I do need to hear completion of a sentence to be able to rule on relevance.

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

In relation to a question on company tax cuts, Mr Shorten once gave a rolled gold guarantee that he supported company tax cuts, because they lead to more investment, more jobs and higher wages. The Australian people know they can't trust a single word he's got to say. This is all just part of the distraction.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

What are you so frightened of?

Scott Ryan (President) Share this | Link to this | Hansard source

Order, Senator Wong.