PRIME MINISTER:
Well good morning.
The Budget is fair, it’s responsible, it returns the budget to surplus in 20/21 with a surplus of $7.4 billion. Its ensures that we’re not throwing a mountain of debt onto the shoulders of our children and grandchildren, at the same time as we’re investing $75 billion dollars in road and rail infrastructure across Australia. That also ensures the future of our children and grandchildren. That infrastructure, that is the sinews of the nation as it grows, the economic sinews of the nation. It ensures that we’re guaranteeing the National Disability Insurance Scheme so parents with a disabled child will know that the money is there. Left unfunded by the Labor Party, we are ensuring it’s being funded.
We are delivering school funding, which for the first time, will realise David Gonski’s vision of funding that is national, fair, needs-based, transparent, right across the nation, consistent. We’re delivering that, vitally important, again, for our future. And we are guaranteeing Medicare.
We are establishing a Medicare Guarantee Fund, which the money to fund Medicare and the Pharmaceutical Benefits Scheme, will be placed every year, transparently, assuredly, responsibly. Australians will see that those vital services are funded.
So this Budget delivers fairness, opportunity and security. Providing the security for those essential services that Australians need. The opportunity and the incentives to invest and get ahead. Opportunity for young people to save for a deposit. The incentives to provide affordable housing. The collaboration with states and local government to ensure that more housing is built. So right across the board, fairness, opportunity and security. This is the message from our Budget.
JOURNALIST:
Prime Minister the banks have already signaled that they’ll pass on, they’ll have no option but to pass on the tax to customers. Can they afford it and should they?
PRIME MINISTER:
The big banks in Australia are the most profitable banks in the world and they certainly do not need to pass this on to their customers. The ACCC will be monitoring them very closely. Of course it is a competitive market for mortgages and there are many financial institutions that are not covered by the levy. That will be the smaller banks which will be providing competitive offerings. But the banks, what they do and what they say is being very closely watched by the ACCC as it protects consumers, homeowners and customers.
JOURNALIST:
What was the reaction last night to the Budget in the Party Room and how did Tony Abbott respond to you ditching so many of his measures from his 2014 Budget?
PRIME MINISTER:
The Party Room was, as indeed, has received the Budget very well. Indeed, there has been generally a very good reception of the Budget. I was just with Chris Richardson the leading economist, who told me it was a very good budget. He’d seen the ratings agency Moody’s gave it a big tick last night. It is exactly what we’ve said it is. It is fair, it is responsible and it supports opportunity and provides security.
JOURNALIST:
And Tony Abbott’s response to you ditching those zombie measures?
PRIME MINISTER:
You’ll have to make enquiries with him.
JOURNALIST:
Are you proud of this Budget Prime Minister?
PRIME MINISTER:
Yes, I’m very proud of this Budget. This is a Budget that really sets us up for the better days ahead.
JOURNALIST:
Prime Minister are we to believe the return to surplus in 2020/2021?
PRIME MINISTER:
Yes, Chris thank you for that. Look the assumptions on which it is based are conservative. The assumptions on economic growth, commodities, are more conservative than for example, those of the IMF or the Reserve Bank. So yes look of course we live in uncertain times, but it is a much more substantial surplus than we forecast in MYEFO just before Christmas, or indeed in last year’s budget. That’s why Moody’s gave the budget a tick last night.
JOUNALIST:
Why is it necessary for Medicare to become L.A.W law?
PRIME MINISTER:
It is absolutely vital that Australians are left in no doubt that Medicare is guaranteed and that is what we are doing. There will be a Medicare Guarantee Fund, every year the proceeds of the 1.5 per cent of the Medicare levy that is dedicated to Medicare will go into that fund and an amount of money from personal income tax receipts calculated to meet the expected cost of Medicare and the Pharmaceutical Benefit Scheme. And another element in our budget apart from restoring indexation to the Medicare Medical Benefit Schedule is we’re also adding another $1.2 billion to bring new life saving drugs onto the Pharmaceutical Benefits Scheme. You have to remember that Labor had a track record of not listing new drugs on PBS and we’re doing so all the time. Now all of that will be fully funded, guaranteed in the Medicare Guarantee Fund.
JOUNALIST:
Prime Minister, this is the Treasurer’s second budget, what would you say is his greatest flaw when it comes to preparing the budget and how can he improve for number three?
PRIME MINISTER:
This is a great budget and I’m sure he’s got many great budgets ahead of him. But above all this is about 24 million Australians, this isn’t about personalities.
JOUNALIST:
But when it comes to his performance?
PRIME MINISTER:
This is a budget that is fair, it guarantees, delivers, secures those essential services on which Australians rely. And it provides real incentives for investment and growth. It provides the infrastructure that are so vital for our future. It is responsible. This is a very responsible and a very fair budget. It is a budget that delivers security for Australians today and for generations to come. Thank very much.
[ENDS]