Tony Sheldon (NSW, Australian Labor Party) Share this | Link to this | Hansard source

My question is for the Minister representing the Treasurer, Senator Cormann. In an embarrassing leak of the Prime Minister's speaking instructions for government members, it was revealed the Prime Minister's office is boasting that the government has 'a plan for an even stronger economy'. Why then has Deloitte Access Economics today—

Government Senators:

Government senators interjecting—

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

Order on my right! I have a sense that I may need to hear the exact nature of this question. Senator Sheldon, please continue from 'why'.

Tony Sheldon (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Why then has Deloitte Access Economics today pointed out they expect economic growth to be below trend this year, much less than what the government forecast, and that wages growth has stalled?

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

I'm very pleased that Senator Sheldon read that very important information. I commend him and I hope he will distribute it to his constituents in the great state of New South Wales.

The point I would make is that the Australian economy continues to grow. It is one of just 10 AAA-rated economies around the world. It is AAA rated by all three major credit rating agencies. Under our government, we've created more than 1.4 million new jobs. Employment growth in 2018-19 was running at 2.6 per cent compared to a budget forecast of 1.5 per cent—significantly stronger. Of course, that has underpinned our stronger budget performance against forecasts over the last three financial years. Indeed, real wages growth in the last financial year was the strongest it's been since Labor lost government—the 2.3 per cent real wages growth and the 1.6 per cent CPI.

Of course, we're facing global economic headwinds. I mean, economies around the world are going backwards. The UK economy in the June quarter was shrinking. The German economy in the June quarter was shrinking. The Singapore economy in the June quarter was shrinking. The Australian economy, even with all of the challenges we are facing—internationally, with the drought, still dealing with the impact of the floods in North Queensland earlier in the year—is continuing to grow. Our government has a plan, as that information the senator has just read out said, to make our economy even stronger because that is, of course, our mission. Let me tell you: the economy is much stronger that it would have been if Labor had been able to impose more than $387 billion in higher taxes, which would have absolutely crushed confidence, harmed the economy and harmed working families all around Australia.

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

Senator Sheldon, a supplementary question?

Tony Sheldon (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Treasurer Frydenberg has claimed that 'fundamentals of the economy are strong' and that his government has 'the right policy settings'. Is Deloitte Access Economics correct when it says, 'The pain in our economy has been homegrown'?

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

As I've already indicated, we are dealing with the impact on our economy of the drought, which is quite devastating across large parts of Australia; we are dealing with the impact of floods; and, indeed, we are dealing with significant global economic headwinds. Let me say it again very slowly: you went to the last election promising to increase taxes by $387 billion. What do you think that would have done to the economy, to wages, to jobs, to job security? It would have hit the economy. It would have absolutely harmed the economy. It would have harmed working Australians.

Our plan is designed to ensure that Australians today and into the future have the best possible opportunity to get ahead. I would refer you to the RBA governor, who made very clear that he expects gradual strengthening in the economy on the back of lower interest rates, lower taxes, strong investment in infrastructure and a pick-up in the resources sector— (Time expired)

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

Senator Sheldon, a final supplementary question?

Tony Sheldon (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Deloitte Access Economics has said that we're unlikely 'to see wages accelerate or to see unemployment fall much over this coming year'. Is this the stability and predictability in the economy referred to in the government's talking points?

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

Let me assure Senator Sheldon that if he has a very good look through the information that was supplied to him he will see how our plan will deliver a stronger economy, with more jobs and stronger wages growth into the future, certainly stronger wages growth than would have been achieved on the back of Labor's higher taxes. We have legislated—and we were opposed by Labor every step of the way—$300 billion in additional increases in take-home pay through our income tax relief that you opposed. That's $300 billion that will end up in the pockets of individual Australians, that you opposed.