James McGrath (Queensland, Liberal National 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 how much expenditure on health, education, child care, aged care, the NDIS and many other essential services has increased over the past five years without the need to increase taxes?

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

I thank Senator McGrath for that very important question. Indeed, in the five years we've been in government, we have been able to increase the level of investment in most of the essential services that Australians expect without the need to make decisions to increase the tax burden on the economy. Our expenditure on hospitals went from about $16 billion in 2012-13 to about $23 billion in 2018. That is an increase of about 42 per cent. Indeed, over the period of the current forward estimates, it will go up about 63 per cent all up. Schools went from $14 billion to $20 billion. Child care went from $4.6 billion to $8 billion and will increase by more than 100 per cent in the period to 2021-22. Indeed, for the NDIS, there was no expenditure on the NDIS in 2013. Today we are spending $17 billion, and that is projected to increase to about $24 billion by 2021-22—and all of that without having to make decisions to increase the overall tax burden in the economy. In fact, we got rid of Labor's mining tax, we got rid of Labor's carbon tax and we reduced taxes for small and medium-sized businesses across the economy. We have delivered income tax relief to the tune of about $144 billion for hardworking families right across Australia while increasing government investment in the important services that Australians rely on.

How have we done it? Our lower-taxing agenda helped to deliver stronger economic growth, with more Australians employed, more Australians paying personal income tax and fewer Australians claiming as much in welfare, because they've got a job. That is how you put the budget on a strong and sustainable foundation for the future. That is how you pay for the important services in hospitals, schools, child care, NDIS, aged care—you name it. (Time expired)

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

Senator McGrath, a supplementary question.

James McGrath (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Given the importance of a strong economy to fund essential public services and a strong social safety net, can the minister compare the government's record of delivery with alternative approaches?

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

Yes, I can. Our approach is to build a stronger economy with a stronger budget to ensure that we can afford to pay for the essential government services that Australians rely on over the medium to long term. Labor, on the other hand, when last in government lost complete control of the budget. When Labor lost government the economy was weakening, unemployment was rising and the budget position was rapidly deteriorating, to the point where they couldn't even pay for the listing of new medicines on the PBS.

Opposition Senators:

Opposition senators interjecting—

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

I'm told that this is not true. Well, I'm referring to the announcement by the health minister at the time, Ms Roxon, who announced that seven important medicines, for things like preventing the formation of blood clots and treating deep vein thrombosis, treating severe asthma and chronic obstructive pulmonary disease, and treating various other diseases, would be deferred until such time as fiscal circumstances would permit. (Time expired)

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

Senator McGrath, a final supplementary question.

James McGrath (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Can the minister outline the impact of an economic plan based on higher taxes to try to fund a higher spend?

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

Again, under our government, we work to deliver stronger growth, more jobs and a stronger budget position to ensure that we can afford to pay for the very important and essential services that Australians expect. Labor, on the other hand, lost complete control of the budget. And do you know what happened? This is our message to the Australian people, and it will be our message to the Australian people every single day between now and the next election, in May next year: whenever Labor run out of money here in Canberra, they'll come after your money, with $200 billion in higher taxes, which will hurt the economy and which will lead to lower growth, fewer jobs, higher unemployment and less revenue for government. The message to the Australian people is that under Labor you will earn less and you will pay more, and the government will be in a mess again.