A strong Australian economy underpins future growth

Australian Federal Treasurer, Hon Scott Morrison MP stressed the importance of a maintaining a strong Australian economy, fundamental to growing business and consumer confidence, when addressing industry leaders at the 2018 Enterprise Victoria Annual Federal Post Budget Breakfast at Crown Palladium this morning.

The Treasurer also referenced the Federal Government’s focus on building an economy of “opportunity and aspiration,” when outlining their plan to return the budget to surplus in the 2019/20 financial year. In referencing certainty of policy direction in order to build such confidence, Mr Morrison noted the commitment the government has made to cap the tax to gross domestic product (GDP) ratio at no more than 23.9 per cent and referenced proposed tax cuts that would flatten the structure of Australia’s tax system providing tax relief, in particular, to low and middle income earners.

Mr Morrison reinforced the need for “fiscal consolidation” to balance the nation’s budget, with a focus on reducing government spending by “controlling tax fundamentals” and continuing to grow employment, lessening individual’s dependence on the welfare network.

The Treasurer noted key milestones the Coalition had achieved during their time in office, including:

  1. For the first time in a decade, not borrowing money to meet the nation’s welfare payment commitments.
  2. Arresting historic debt growth of 30 per cent, per year (5 years ago), to reduce net debt by $30b over the past four years. This outcome has been achieved without accessing the Australian Government Future Fund.
  3. Keeping spending levels under control, with the lowest spending growth of any government over the past 50 years.
  4. Stimulating economic growth with activity generating an additional 1,000 jobs per day for the Australian economy.

Mr Morrison was joined at the event by other guest speakers, including Minister for Revenue and Financial Services, Hon Kelly O’Dwyer MP, former Federal Treasurer, Peter Costello and ABC financial journalist, Alan Kohler.

Related paper:Member Bulletin – 2018-19 Commonwealth Budget

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