Katy Gallagher (ACT, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Cormann. Can the minister confirm that the national accounts released today have revealed that economic growth actually went backwards compared to the last quarter and that annual growth is currently sitting at just 1.7 per cent, well below your government's budget forecast of 2.75 per cent?

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

I thank the shadow minister for finance for her question on the economy. Today's national accounts confirm that the Australian economy continues to grow. It remains remarkably resilient in the face of significant global and domestic economic headwinds. Economic growth has increased to 1.7 per cent through the year, with the economy growing by 0.4 per cent in the September quarter, within the range of market expectations. While other major developed economies like Germany, the UK, Korea and Singapore experienced negative quarters of economic growth this year, Australia's economy continues to grow and has now entered its 29th consecutive year of economic growth, a record not matched by any other developed nation.

I might also just say that household disposable income grew by 2.5 per cent in the quarter and is up 5.1 per cent over the year. This is the strongest quarterly rise in a decade, with the personal income tax cuts flowing through. The average compensation to employees rose 0.7 per cent in the quarter, to be 2.9 per cent higher over the year, and is now back above the decade average. Just imagine for one second, Mr President, what would have happened if the Australian people had chosen to vote for the alternative government, and $387 billion in higher taxes had hit our economy for six. Our economy today would be weaker—

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

Point of order, Mr President: you brought the Leader of the Opposition in the Senate to address comments through the chair earlier in debate today. I ask that you to be consistent and bring the Leader of the Government in the Senate to that standing order.

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

Quite right. All comments should be addressed through the chair.

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

The point I was making is that our economy continues to grow. Our economy is stronger than it would have been if the Australian people had chosen a different government at the last election. On the back of $387 billion in higher taxes, our economy would have been weaker, employment growth would have been weaker, unemployment would have been higher and wages would have been lower. Instead we have 1.7 per cent growth through the year, which is higher than what we had through the year to the end of the June quarter. Indeed, household disposable income grew by 2.5 per cent— (Time expired)

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

Senator Gallagher, a supplementary question?

Katy Gallagher (ACT, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

I'm sure we'll get the rest of that script, Mr President. The ABS also said today:

The reduction to tax payable did not translate to a rise in discretionary spending …

Can the minister confirm that household final consumption growing at just 0.1 per cent is the lowest quarterly increase since the height of the GFC?

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

What I can confirm is that consumption is stronger than it would have been if we had not delivered personal income tax cuts. I make this point: maybe the socialists on the other side want to tell the Australian people what to do with their money. We actually trust the Australian people to decide what they do with their money. The reason we delivered personal income tax cuts is that we trust individual Australians and businesses around Australia to be able to make the best possible decisions on how they use their money. That is precisely what we are doing. Let me tell you, the Australian economy—

Murray Watt (Queensland, Australian Labor Party, Shadow Minister for Northern Australia) Share this | Link to this | Hansard source

It hasn't worked, though!

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

Senator Watt says it hasn't worked! The Labor Party, when they were last in government, left behind a weakening economy, rising unemployment and a rapidly deteriorating budget position. Economic growth has of course strengthened through the year to 1.7 per cent— (Time expired)

Senator Watt interjecting—

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

Senator Watt, I remind you to count for a little while before you interject following me calling your name again. Senator Gallagher.

Katy Gallagher (ACT, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

In dismissing the June quarter results, which have actually turned out to be stronger than those released today, the minister said:

What will matter is what comes out at the end of the day when the September quarter results are released in early December.

Given annual economic growth continues to have a '1' in front of it, does the minister now accept that not having an economic plan is hurting working Australians?

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

I completely reject the premise of the question. I will just remind Senator Gallagher again that economic growth has increased. I reject the conclusion she's reaching. Economic growth has increased to 1.7 per cent through the year. She's quite rightly quoting that part of my previous statement—that what matters is what comes out at the end of the September quarter. What that shows is that economic growth has increased to 1.7 per cent through the year; that our economy continues to grow where other economies are shrinking; that real GDP grew by 1.7 per cent through the year; that household disposable income grew by 2.5 per cent in the quarter and is up 5.1 per cent over the year—the strongest quarterly rise in a decade—with the personal income tax cuts clearly flowing through; and that average compensation per employee rose by 0.7 per cent in the quarter to be 2.9 per cent higher over the year, which is also now back above the decade average. So things are heading in the right direction. (Time expired)