Jonathon Duniam (Tasmania, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Cormann. Can the minister update the Senate on independent assessments of the strength of the Australian economy?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

I thank Senator Duniam for that question and yes, I can. Over the past week, both the International Monetary Fund and the OECD have released important fresh assessments of the Australian economy and the economic growth outlook for Australia. Both those independent international organisations gave a ringing endorsement of the strength of the Australian economy and our economic growth outlook. The International Monetary Fund pointed out that our economy's strong growth momentum would continue and that private consumption growth would remain buoyant, supported by strong employment gains. The OECD pointed to a robust outlook for the Australian economy, noting that 'rising employment is boosting incomes and consumption' and 'growth of wages will rise gradually while the unemployment rate will edge lower'.

It is worth remembering what the IMF was saying about the Australian economy back in 2013, when Labor was in office. Back then, the IMF was warning about the prospect of below-trend growth. The IMF said then that there was a real likelihood that demand for labour would fall, that wages and employment growth would slow, that consumption growth would decline and that government finances would weaken. That is exactly what we found when we came into government in September 2013. Labor left behind a weakening economy, rising unemployment and a rapidly deteriorating budget position. We had to fix Labor's fiscal and economic mess. What we have delivered through our plan for a stronger economy and more jobs and to repair the budget is what the IMF and the OECD today reflect on as a stronger economy, more jobs and a stronger and better economic growth outlook: 3.4 per cent growth—twice as fast as the French economy, nearly three times as fast as the UK economy and well above the OECD average of 2.5 per cent. That does not happen by accident; it's happened because we turned the situation left by— (Time expired)

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

Senator Duniam, a supplementary question.

Jonathon Duniam (Tasmania, Liberal Party) Share this | Link to this | Hansard source

I thank the minister for that answer. Given the success of the government's economic plan, can the minister outline the consequences for Australian families of changing economic policy direction?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

I thank Senator Duniam for that supplementary question. Changing direction and going back to Labor's discredited economic and fiscal policies of the past would make Australia weaker and would make Australians poorer; $200 billion in higher taxes, which is what Labor has announced so far, would lead to less investment, lower growth, fewer jobs and higher unemployment and, as a result of higher unemployment, lower wages and ultimately less government revenue to fund the important services provided by government: the social safety net, access to quality health care, funding for schools—you name it. Under Labor's discredited approach of the past, we inherited a weakening economy, rising unemployment and a rapidly deteriorating budget position. That was when Mr Shorten was a senior cabinet minister in that government and Mr Bowen was the shadow Treasurer. Not even Paul Keating has confidence in Labor's approach these days, and I'll get to that in the next supplementary. (Time expired)

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

Senator Duniam, a final supplementary question.

Jonathon Duniam (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Finally, on the issue of direction of policy, can the minister outline what the impact would be of an economic plan based on higher rather than lower taxes and on the politics of envy rather than policy supporting aspiration?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

Again, Labor's agenda of higher taxes rather than lower taxes and pursuing the politics of envy instead of policy supporting opportunity would make Australia weaker, would make our economy weaker and would make Australians poorer. Don't take my word for it. We know that even Labor's greatest heroes are alarmed by the policy direction of Mr Shorten. This is what former Prime Minister Paul Keating had to say about Bill Shorten:

Labor…has lost the ability to speak aspirationally to people and to fashion policies to meet those aspirations.

And we've had the Labor deputy leader, Tanya Plibersek, say, 'We don't really know what all this aspiration caper is all about.' Well, you know what? Our policies are all about encouraging people to stretch themselves to be the best they can be, because we know that— (Time expired)