Mr REPACHOLI (Hunter) (17:00):
We've heard a lot of noise today from those opposite about fiscal responsibility, but let's be real. One side of this place talks about fiscal responsibility and the other side actually delivers on it.
When those opposite were in charge, they set fiscal rules and broke every single one of them. They said they would balance the budget. They said they would offset new spending. They said they would bank revenue upgrades. They said they would reduce debt. And they failed on every count. They racked up deficit after deficit, piled on debt and left behind a budget riddled with waste and rorts. They even printed mugs that said 'back in black' but never printed a surplus.
Under this Labor government, we have done what they never could. We have delivered the largest nominal improvement to the budget in a parliamentary term, a $209 billion turnaround in our first term. We have delivered the first back-to-back surplus in almost two decades. And, in our third year, the deficit is around one-fifth of what we inherited. Those opposite like to talk about spending caps, but, under them, real spending grew by 4.1 per cent on average. Under us, it's at 1.7 per cent. That is discipline and extremely good management.
They did not deliver a saving in their last budget. We have found more than $100 billion since coming into government. They spent most of their revenue upgrades; we have banked almost 70 per cent. That's why the budget is stronger, not weaker. And let's remember that those opposite went to the last election with bigger deficits, bigger debt and a $600 billion nuclear fantasy. They would have driven up power prices, through the roof. Then they promoted the mastermind of that meltdown to now be the shadow treasurer. So forgive us if we do not take fiscal lectures from the mob who doubled the debt before the pandemic and left the country with nothing to show for it.
We have turned Liberal deficits into Labor surpluses, driven down debt and shown spending restraint that would be unrecognisable to those opposite. We have done it all while investing in things that matter, like Medicare, aged care, clean jobs—jobs!—and cost-of-living relief for thousands and thousands of Australians doing it tough. That is what good, responsible Labor economic management looks like—delivering for working people, not just talking about it, like those opposite.
Standard Poor's has reaffirmed Australia's AAA credit rating, a vote of confidence in Labor's responsible budget management and the stability in this government. Their so-called fiscal rules were not worth the paper they were written on. They promised us surpluses but went zero from nine. They promised to offset spending but made negative net decisions four out of five times. They promised to bank receipts upgrades but only kept 40 per cent of that. They promised to reduce payments as a share of GDP, but it all went up. They promised to stabilise debt but almost doubled it. We have a clear fiscal strategy, and we are delivering on that. Our rules are in our budget: improve the budget position, reduce debt, limit real spending and bank revenue upgrades. We have improved the budget by $209 billion, reduced gross debt to a peak around 37 per cent of GDP compared to 45 per cent that was left to us by those opposite, and cut interest costs by $60 billion.
When we came to office, inflation was higher and rising, real wages were falling and deficits stretched as far as the eye could see. Now inflation is at a four-year low, real wages have been growing for seven quarters, more than 1.1 million jobs have been created, unemployment is at record lows, and we are delivering cost-of-living relief for people that really need it—child care, cheaper medicines, energy bill relief and three rounds of tax cuts for every Australian worker.
