Economic revamp hopes

Industry banking on Morrison and Cormann continuing policy change

THE finance industry hopes Malcolm Turnbull’s new economic team will hit the ground running on a reform agenda.

Liberal Party colleague Scott Morrison was sworn in as Treasurer yesterday along with Assistant Treasurer Kelly O’Dwyer.

Mathias Cormann held on to his position as Finance Minister in Mr Turnbull’s ministry.

The Australian Banking As- sociation believes a key priority for the Turnbull Government must include progressing the important work of David Murray’s financial system inquiry.

“The industry looks forward to continuing its constructive relationship with Government to maintain the resilience and stability of the banking system and contribute to Australia’s economic growth,” its acting chief executive Tony Pearson said.

The Financial Services Council claims tax and federation reform must also be high on the agenda.

Home loan broker Mortgage Choice hopes housing affordability will be given the focus it deserves.

Christian Porter, who takes over as Social Services Minister from Mr Morrison, is considering ideas for savings proposed in a departmental briefing.

“I don’t want to specify at this earliest stage what they might be,” Mr Porter said.

In one of his last acts as outgoing treasurer, Joe Hockey released the final budget outcome for the 2014/15 financial year – the results of his first budget that got him into strife with voters and a position he never really recovered from.

In a joint statement with Senator Cormann, they said the budget recorded a deficit of $37.9 billion, which was a $3.3 billion improvement compared with the estimate at the time of the 2015/16 budget released in May.

“The Government is continuing to reduce the deficit and debt and is lowering the spending growth trajectory of the previous government,” they said.

The improvement in the bottom line was driven by Government spending being $2.9 billion lower than expected, while total receipts were $1 billion higher than estimated and net Government sector debt at $238.7 billion, $11.5 billion lower than forecast.

Mr Hockey had given a broad outline of the result last week during the final day of the parliamentary sitting week, anticipating he was about to be dumped as treasurer under the new Prime Minister.

He has decided to leave politics, but has declined to comment on reports he will be Australia’s next ambassador to the United States.