Paul Scarr (Queensland, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Birmingham. Can the minister please outline how the Liberal and National government's budget delivers an economic plan to secure a stronger economy and create a stronger future for all Australians?

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

I thank Senator Scarr for his interest. I know it's the interest of every single Liberal and National and Country Liberal in this place, who are dedicated to creating opportunities for Australians in a stronger economy.

Last night our government handed down a budget that delivers a plan for a stronger future; that delivers a long-term economic plan to continue the growth in jobs and our economy, which is world leading; and that delivers record investments in essential services and necessary and essential investment in our defence and national security. It creates a stronger, more secure Australia. It's a budget that recognises the challenges we've come through from COVID-19 and those we now face in a more uncertain and contested world. It's a budget that recognises the pressures households are feeling right now, which is why we are taking the dividends of a stronger economy to reduce debt and to reduce deficits, compared with what was previously forecast. It's why we're also taking some of those dividends to help ease the pressures on Australian households—to ensure the 22c-per-litre cut in the petrol excise, which will save around 15 bucks every time an Australian goes to fill up their car and, of course, provides additional benefits to hardworking parents, who have to run around to work, to school and to sport. It provides additional benefits for those in regional Australia, who have further distances to drive and for whom the impacts are greater. It provides additional support to low-, middle- and fixed-income Australians by lifting the tax offset provisions by providing one-off payments to help people get through the temporary spikes that we are seeing in relation to the cost of living.

But, of course, it does much more in terms of our plans for the future. It helps first home owners, getting more first home buyers into the market. It provides additional support for the provision of housing across the board. This is a plan that shows we continue to support Australians in every aspect of their lives. (Time expired)

Slade Brockman (President) Share this | Link to this | Hansard source

Order, Senator Watt! Senator Scarr, a supplementary question?

Paul Scarr (Queensland, Liberal Party) Share this | Link to this | Hansard source

I thank the minister for that outstanding answer. What steps is the government taking to address labour shortages to ensure Australia's strong economic recovery continues into the future?

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

This is a budget that backs Australians, their enterprise and their aspirations. The past two years have been tough, but our recovery is world leading.

Opposition Senators:

Opposition senators interjecting—

Slade Brockman (President) Share this | Link to this | Hansard source

Order!

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

It's ahead of the US. It's ahead of the UK. It's ahead of Canada and much of Europe or Japan. Labor themselves—I hear lots of interjections—held jobs up as being the big test for the government in terms of how we managed the crisis. That's what Mr Chalmers said and what nearly everybody else over there said. We have delivered in spades. Unemployment is headed to a 50-year low—at four per cent, headed to 3.75 per cent—creating opportunities to get young Australians into skilled, secure jobs. During the pandemic, we invested some $13 billion in skills and training. The results speak for themselves. A record 220,000 Australians are now in trade apprenticeships, the highest number since records began, and last night laid the foundations for even more young Australians to get an opportunity in an apprenticeship and in training. (Time expired)

Slade Brockman (President) Share this | Link to this | Hansard source

Senator Scarr, a second supplementary?

Paul Scarr (Queensland, Liberal Party) Share this | Link to this | Hansard source

I thank the minister for another outstanding answer. I'll give him another opportunity. How will the government's long-term plan for a stronger future help businesses and manufacturers and ensure Australians have the services and the supports they need and deserve?

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

Small businesses are at the heart of our economy. Nearly eight million Australians are employed in small businesses. That's why our government delivered lower tax rates for small businesses—the lowest tax rates in 50 years for Australian small businesses—and this budget builds on that support, providing more tax incentives for small businesses to invest in skilling their workforce and more tax incentives for small business to invest in the digital technologies to uplift their productivity and their capabilities.

It's a budget that also invests in securing our supply chains as a nation, in manufacturing. We will see the first mRNA vaccine manufacturing facility in the Southern Hemisphere built in Australia. There's additional support for our universities, for CSIRO and industry to ensure the rapid commercialisation of different products innovated in Australia, and an extension of our patent box tax reforms to make sure that innovations that happen in Australia can be commercialised in Australia and manufactured in Australia, creating more job opportunities for more Australians into the future.

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

My question is to the Minister for Finance, Senator Birmingham. The budget contains $3 billion worth of secret cuts. What are they?

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

I'm sorry that Senator Gallagher has asked that question. I thought it was just the foolishness of Mr Chalmers in relation to pursuing this claim of secret cuts somehow. As I've already addressed publicly, Mr President, this budget—

I'm happy, Senator Wong, to repeat it here: clearly, there are failings on your side in the ability to read the budget paper. There is a reduction—Senator Watt's holding it up. Go and have a look at his screen. It says a reduction in decisions taken but not yet announced. Guess why, Mr President? Because we've announced them. There's your answer, Senator Gallagher, that in important areas, like women's safety, we had made a provision in MYEFO for women's safety. We made the provision and now we've announced the spending on women's safety—a very important provision that we put in place in this budget.

We did the same in areas of apprenticeship reform. We made a provision in MYEFO and now we've announced the spending on apprenticeship reform. Do you know what this is, Mr President? It's careful, prudent budgeting. It's recognising there may be expenses that come forward in the future, and you put some away to meet those expenses. That, of course, is why our government is able to maintain a AAA credit rating. It's why our government is able to hand down budgets where the deficits are lower than expected. Those opposite, when in government, when they announced budgets, they ordinarily had deficits far greater than what they had forecast. We've come through a pandemic and what we have done in every year since facing that pandemic at budgets, budget updates and this budget is reduce the size of the forecast deficits, thanks to our careful management. (Time expired)

Honourable senators interjecting—

Slade Brockman (President) Share this | Link to this | Hansard source

Order! We are not going to go to the question until there is silence.

Senator Wong, you're not assisting the chamber. I have called both sides during this answer. I have called both sides, Senator Wong, in this exchange. I was going to make a comment about how much clearer the chamber was without the barriers, but I'm not so sure anymore. Senator Gallagher, a supplementary question?

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

I look forward to pursuing this at estimates. Minister, in the MYEFO, you had $16 billion worth of decisions taken but not yet announced. In this budget, in the final forward estimates years, you have $3 billion worth of cuts to expenditure. Why won't you just be upfront and explain what those cuts are, or are you just trying to get through to the next election?

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

The thing about the budget is that all of the lines of expenditure are there and transparent for the opposition to see. Yes, we have taken decisions to reverse out some decisions taken but not yet announced and to realise some of those decisions to announce them, to publish them in the budget papers to make them transparent.

Those opposite seem to think that, of course, government shouldn't put away for potentially foreseen expenditure. We think it's prudent to put away for that. It's a bit like what those opposite used to do on commodity prices. Does anybody remember when Mr Swan, who of course is the mentor of Mr Chalmers, the now shadow Treasurer, used to take high commodity prices and assume they'd continue into the future? It is little wonder his budgets blew out. We assume commodity prices will come down—another act of careful, cautious, conservative budgeting. (Time expired)

Slade Brockman (President) Share this | Link to this | Hansard source

Senator Gallagher, a second supplementary question?

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

Minister, wasn't last night's budget nothing more than a pre-election cash splash only to be followed by secret cuts afterwards?

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

No, it is not. This budget represents the economic plan for the future for Australia—an economic plan that has delivered record jobs for Australians and an economic plan that has been built on lower taxes for Australians. Under the coalition, income taxes are lower than they were under Labor Party. Under the coalition, taxes on Australian small businesses are lower than they were under the Labor Party. Under the coalition, taxes on Australian industry, energy and electricity are lower than they were under the Labor Party. Taxes on housing, retirees and investments are lower than they would have been under the Labor Party. Could we imagine the disaster that would have befallen Australia during COVID-19 if their $386 billion of higher taxes had been applied just at the time when the economy needed opportunities and room for business to grow? Thank God we won the last election.

Slade Brockman (President) Share this | Link to this | Hansard source

Minister.

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

We will paint a clear choice to Australians at the next election.

Slade Brockman (President) Share this | Link to this | Hansard source

Minister! Senator Wong.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

I don't think he can hear you.

Slade Brockman (President) Share this | Link to this | Hansard source

I called the minister when his time expired, Senator Wong. Senator Thorpe.