Senator GEORGE CAMPBELL (2:19 PM) —My question is to Senator Coonan, the Assistant Treasurer. Can the minister explain the slide in the household savings ratio from six per cent to 3.6 per cent under the coalition government? What is the impact on Commonwealth revenue?

Senator COONAN (Minister for Revenue and Assistant Treasurer) —Thank you, Senator Campbell, for that question. I do not accept for a minute that that is a correct figure.

Senator Schacht —What is it? Tell us.

The PRESIDENT —Order! Senator George Campbell has asked a question. Senator Schacht, cease shouting.

Senator COONAN —We all know that, following the introduction of the GST, the pull forward of demand had a big impact on housing. But, since that time, housing has recovered, and the impact on the revenue is something that will be factored into the budget. Obviously it is very difficult to establish a revenue impact when there are price sensitive factors such as housing because, when you have housing and construction, obviously—

Senator Schacht —What is the figure? You have the wrong brief, Helen.

Opposition senators interjecting—

The PRESIDENT —Order! Senator Schacht. Senators on my left should not be shouting. There is an opportunity for Senator Campbell to ask a supplementary question, if he wishes.

Senator COONAN —What I am endeavouring to say is that it is a totally meaningless figure because, with housing, which is subject to very price sensitive factors—

Senator George Campbell —Madam Speaker, I raise a point of order on the question of relevance. The question I addressed to Senator Coonan had to do with household savings ratio; it had nothing to do with housing or construction of housing or demand for housing. I ask you to point that out to Senator Coonan and ask her to address the question she was asked.

The PRESIDENT —There is no point of order. Senator Coonon.

Opposition senators interjecting—

The PRESIDENT —I have called Senator Coonan, and it is not surprising that she did not hear me, given the amount of noise in the chamber.

Senator COONAN —I am sorry, I did misunderstand the question. I thought he was talking about household construction. I do apologise to the Senate that I did not hear the question properly. I thought what was said was construction. As far as household savings go, overall tax revenue will be published in the budget on 14 May—so you do not have very long to wait. It is influenced by the strengthening of the economy, which we have seen, particularly employment and wages and prices and final demand and company profits. The overall tax revenue is also affected by tax policy measures, as we know.

The level of household saving is strong. Our superannuation measures are encouraging both the affordability and the attraction of saving so the issue relating to household saving will be reflected in the stronger economy. The government has policies to encourage greater savings, particularly in relation to the superannuation policies—of course, a lot of that is compulsory saving. We hope that those policies will not only encourage further savings but lead to greater saving from households, which we are interested in. It is a far cry from Labor's view and Labor's policies, because household saving under the Labor party was certainly nothing to run home about.

Senator Carr —We halved it!

Senator COONAN —You have not halved it. The policies we took to the election which encourage greater savings—

Honourable senators interjecting—

The PRESIDENT —Order! Interjections are disorderly, and persistent interjecting has certain consequences which may flow.

The PRESIDENT —Order! Senator Bolkus, I have already warned the Senate about the behaviour.

Senator COONAN —The superannuation measures will have a significant impact on increasing household savings from the splitting of contributions between spouses through to the very significant effect of decoupling—and I know that the Labor Party probably does not like this—work and superannuation to encourage further contributions.(Time expired)

Senator GEORGE CAMPBELL — Madam President, I ask a supplementary question. I again ask the minister to explain the slide in household savings ratio from six per cent to 3.6 per cent under the coalition government. Can the minister outline how coalition revenue measures such as the superannuation surcharge, the deeming of superannuation assets and the axing of the company-contribution have contributed to this decline in savings?

Senator COONAN (Minister for Revenue and Assistant Treasurer) —The household savings ratio increased in the December quarter. In fact, the recent figures show stronger growth in household disposable income than in household consumption. The household savings ratio is derived, as you would know, as a residual item and is subject to significant revision. I already said it is subject to a number of sensitivities. It is the almost impossible to estimate any forward figure, but the policies the government has taken forward, including the phase-down of the surcharge, are all factors that are calculated to encourage a healthy climate for household savings.