Andrew McLachlan (SA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Birmingham. Can the minister update the Senate on how the Morrison government's economic recovery plan is working in 2021 to rebuild our economy, create jobs and secure Australia's future in the wake of the global pandemic?

Simon Birmingham (SA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I thank Senator McLachlan for his question. I know of his very strong advocacy on behalf of so many businesses and people across South Australia—as my coalition colleagues do universally across Australia—in terms of support for jobs growth and economic success across the country.

Relative to the rest of the world, Australia starts 2021 in a very strong economic position. There is much we can be thankful for as a nation. Our economic strength relative to other countries, particularly advanced economies, is something to be incredibly thankful for. More than 90 per cent of the 1.3 million Australians who either lost their jobs or had their work hours reduced to zero during the peak of the pandemic are now back at work. Almost 800,000 jobs have been created in the past seven months, and pleasingly women have taken up the majority of these new jobs that have been created.

As I referenced before, the participation rate in the Australian workforce has reached a record 66.2 per cent. My colleague Senator Cash has highlighted this strength in the employment market—such a strong show of confidence. Quarterly growth has had its biggest increase since 1976 and consumer and business confidence are back to pre-pandemic levels.

In the face of the biggest global economic shock of our lifetimes Australia's economic comeback is strong. Our economic recovery plan is working. It has been supported by $251 billion in direct economic support to date. Treasury analysis has demonstrated that this support is expected to result in economic activity being five per cent higher in 2020-21 than would otherwise have been the case and 4½ per cent higher in 2021-22. This shows the ongoing effect, and that ongoing effect comes, indeed, through our tax reform changes as well as the ongoing support of the JobMaker hiring credit. These give continued support to recovery right across the Australian economy.

Andrew McLachlan (SA, Liberal Party) Share this | Link to this | Hansard source

Can the minister outline to the Senate the Morrison government's priorities for the year ahead?

Simon Birmingham (SA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

The No. 1 priority remains to suppress the virus and to successfully deliver the vaccine across Australia. Our government has outlined a $1.9 billion vaccine rollout strategy, which is on top of the $4.4 billion we have spent on vaccine purchases, medical research and support for our neighbouring countries. We are working closely with the states and territories, the Royal Australian College of General Practitioners, the Australian Medical Association, large logistical companies, general practices and community pharmacies to make sure we have a highly effective and safe vaccine rollout. Vaccinations of Australians will commence in late February, pending approval from the Therapeutic Goods Administration, to ensure an orderly rollout across priority groups first and foremost and then working through the rest of the country. This is central to our ongoing support of the economic recovery, to the delivery of essential services for Australians and to continuing to make sure we protect Australia's interests here and around the world.

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

Order, Senator Birmingham! Senator McLachlan, a final supplementary question?

Andrew McLachlan (SA, Liberal Party) Share this | Link to this | Hansard source

Can the minister outline how Australia's economic recovery compares to our international counterparts?

Simon Birmingham (SA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

The Australian economy is forecast to outperform all major advanced economies in 2020. Real GDP in 2020 is expected to fall by 2½ per cent, before growing by 4½ per cent in 2021. This compares to, in 2020, a fall of 7½ per cent across the Euro area, 5¼ per cent in Japan and 3¼ per cent in the United States. In the June quarter last year our GDP fell by seven per cent. This compares to falls of around 12 per cent in New Zealand, 14 per cent in France and 20 per cent in the United Kingdom. These stark figures are a reminder of the enormous challenges many other countries are facing as they deal with the health and economic crises that have been caused by the COVID-19 global pandemic. But in Australia our AAA credit rating has been reaffirmed, we are seeing people getting back to work and we are seeing a recovery that bodes well for Australia's continued strength into the future.