Eric Abetz (Tasmania, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Birmingham. Can the minister advise on how the Liberal-National government's economic recovery plan is working to support families, households, businesses and jobs as our economy recovers from the COVID-19 pandemic?

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

I thank Senator Abetz for his question. I know he's championed endlessly for the opportunities for job creation for Australians in Tasmania and right across our land. Indeed, as Australia continues to recover from the biggest economic shock since the Great Depression, we can be buoyed by the continuing progress that is being made, particularly by the strength of consumer and business confidence. The NAB's measure of business confidence in February remained well above its long-run average level. All elements of Westpac's Consumer Sentiment Index have improved over the last year, and consumer confidence is up some 21.6 per cent over the year, close to a 10-year high. The latest OECD Economic Outlook suggests that the Australian economy declined by only 2½ per cent in 2020, a significant improvement on the IMF's October forecast and a vastly better outcome than, for example, the US, at a 3½ per cent decline, the euro area, at a 6½ per cent decline, or the UK, at effectively a 10 per cent decline.

In our recovery we were showing great strength through the final two quarters of last year and in the December quarter real GDP increased by 3.1 per cent, leading the OECD to upgrade its forecast for Australia's economic growth in 2021 to 4½ per cent, a significant lift from their forecast back in December. Australia is one of just nine countries to have a AAA credit rating from all three of the ratings agencies, and all of this strength in our recovery is translating most crucially into jobs. These jobs for Australians are seeing employment growth, unemployment decreasing to 6.4 per cent, 94 per cent of the jobs lost at the start of the pandemic having come back and more than half of the jobs created in the last eight months pleasingly going to women across Australia. (Time expired)

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

Senator Abetz, a supplementary question?

Eric Abetz (Tasmania, Liberal Party) Share this | Link to this | Hansard source

I thank the minister for that good news, especially on the jobs front, and I ask: can the minister also update the Senate on how the government's plan for lower taxes is putting money back into the pockets of our fellow Australians and helping to boost the nation's economic recovery?

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

Indeed, our income tax reforms as a government are a crucial part of the economic recovery that is occurring and the ongoing support that will be there for Australian households, not just this month or next month but ongoing into the future. Our income tax cuts have already put some $9 billion back into the pockets of around 8.8 million Australians, supporting economic recovery and driving consumer and business confidence. The stage 2 tax cuts brought forward in last year's budget will deliver a further $12 billion boost to hardworking Australian taxpayers over the period from now through to September 2021. This means that someone earning around $60,000 will be paying more than $2,100 less tax compared to 2017-18. That's more money in their household to support spending, to support investment and to continue to drive the economic recovery forward. (Time expired)

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

Senator Abetz, a final supplementary question?

Eric Abetz (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Can the minister outline how the government's other measures will further support the transition to the next phase of our economic recovery and any risks that Australia faces on our road to recovery?

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

Our direct economic and health support since the start of the pandemic now stands at some $267 billion. We've outlined the next targeted steps of investment to support parts of Australia, regional parts of Australia, industries in Australia, that continue to face difficulties in relation to the pandemic. We have ongoing measures in place, but we are shifting in terms of the temporary and targeted nature to make sure we stick to those principles of proportionality outlined at the beginning.

Can I welcome, in fact, the statement of the Leader of the Opposition today, where he said:

We obviously do need to shift away. These mechanisms won't be in place forever.

That, indeed, is very correct.

The Leader of the Opposition's comments stand in contrast to those of the member for Maribyrnong, who happened to be out in the media this morning. The former Leader of the Opposition said, 'What's the point of tax cuts?' What's the point of tax cuts! Those on this side understand very clearly that tax cuts put more money into the pockets of Australians, give them more capability to support, to invest— (Time expired)