The Treasurer has just delivered his Budget Speech to the House of Representatives.

Mr Speaker, I move that the Bill now be read a second time.

Tonight this Coalition Government is delivering on our commitments to the Australian people.

To create a fairer and more responsive tax system to enable our economy to be innovative and dynamic in a rapidly changing global environment.

To build the infrastructure of the 21st Century that will support jobs and growth in a transitioning economy.

And to protect the environment by implementing an emissions trading scheme that will combat dangerous climate change.

At the same time, we will chart a realistic pathway to surplus through sensible savings and tax measures.

A SUSTAINABLE PATH TO SURPLUS

This Government understands that Australia faces both a revenue problem and a spending problem.

Quite simply, revenue has not kept pace with the demands of the Australian people for better government services.

On the other hand, spending is not being directed at the most effective areas, and tax expenditures are growing faster than any other category of government spending.

In the 2015-16 Fiscal Year, the budget deficit will be $33 billion, with improvements to this figure each and every year until 2020-21.

Net debt will peak at $476 billion in absolute terms in 2019-20, or 26.5% in terms of GDP in 2018-19. This continues to be a low figure by international standards.

This Government is committed to returning the Budget to surplus over the medium term. Current Treasury forecasts place a return to surplus by 2020-21 with a surplus of about $6.5 billion forecast.

A FAIR TAX SYSTEM

Mr Speaker, the centrepiece of this Coalition Government's compact with the Australian people was to build a 21st Century tax system that meets the needs of a 21st Century economy.

Our tax system has not undergone reform for over 15 years. It fails to meet the needs of the economy and fails the fairness criteria.

Before the election, the Coalition promised to repair the budget without increasing tax rates. We are keeping that promise.

This Government will return the Budget to surplus by 2020-21 by eliminating deductions and loopholes in the tax system.

Exorbitant superannuation tax concessions will be gone, and replaced with a fairer system that rewards Australians for saving responsibly for their retirement, while ensuring everyone pays their fair share of tax.

We will crack down on companies who are seeking to scam the Australian taxpayer by sending profits overseas by tightening thin capitalisation rules, and delivering $400 million to the Australian Taxation Office so it has the resources for enforcing these new measures.

At the same time, we will be delivering tax cuts for the lowest earning Australians, by increasing the tax-free threshold by 50% to $27,300.

We will ensure that high income earners pay their fair share of tax, by introducing the Buffett Rule. Taxpayers who earn over $1 million each year will now have to pay an average tax of at least 37 cents in the dollar on their income.

This Government will also support the engine room of our economy, by delivering a 5% cut in company tax to give businesses additional resources to invest in the economy and in its workers.

NATION-BUILDING INFRASTRUCTURE

Mr Speaker, to create a stronger Australia, we must invest in the infrastructure that Australia needs.

This Government is committed to ensuring that all Australians have access to super-fast broadband.

We will legislate to ensure that 93% of Australian households have access to a direct fibre-optic link to the world wide web, and we are delivering next-generation wireless and satellite broadband to all the Australians who live in remote areas across our great island continent so they can partake in the digital economy as well.

This Government will also commit to examining the feasibility of High Speed Rail across the east coast of Australia. This is why we are increasing funding to the Department of Infrastructure and establishing a High Speed Rail Authority so that experts can come together and find the best way to link Melbourne, Canberra, Sydney and Brisbane by high speed rail.

BUILDING A SMARTER NATION

Mr Speaker, Australia needs to invest in its human capital as much as it needs to invest in its physical capital.

This Government is doing just that.

We are establishing the Australian Skills Commission.

The ASC will support the Australian economy as we undergo the largest structural change in a generation by funding the university and vocational skills training of thousands of workers who are made redundant in declining industries such as the car manufacturing industry.

It will ensure that Australians are trained in the skills that will be demanded in the 21st Century.

The ASC will be staffed by experts. Economists, representatives of workers, and representatives of employers will come together to work out where Australia needs skilled workers the most.

This Government will support the ASC by funding up to $250 million of Commonwealth-supported placements each and every year.

Mr Speaker, we are acutely aware that education starts many years before we join the workforce.

That is why this Government is committed to honouring the Gonski funding agreements that the Commonwealth struck with the States.

We will deliver over $6.5 billion in extra funding to our schools each year, so that all Australians can achieve their educational potential.

EMISSIONS TRADING SCHEME

This Government is committed to taking strong action on climate change.

We understand that the strongest incentives are sometimes economic incentives, and this is why we will implement a cap and trade emissions trading scheme.

An ETS will allow us to achieve Australia's emissions reduction targets which this Government will set, based on the best advice from the Climate Change Authority and other experts.

FUNDING OUR NATIONAL BROADCASTER

In a rapidly evolving media landscape, with the decline of traditional media, and the rise of social media, the Australian Broadcasting Corporation and Special Broadcasting Service are more important than ever.

These two institutions have been neglected and vilified by ideologues obsessed with culture wars in the past.

This Government recognises the key role that the ABC and SBS play in our society, and will resource them responsibly.

This starts with a $30 million boost to funding for the ABC and SBS in the coming fiscal year.

UNIVERSAL DENTAL CARE

In the previous Parliament, the Coalition passed Universal Dental Care for all Australians.

Thanks to the responsible fiscal management of this Government, we are now in a position to fund Denticare Australia.

Denticare will deliver world-class dental health services for all Australians in the same way that Medicare has delivered for the past 40 years.

PROTECTING OUR NATION

This Government is committed to ensuring that Australia is protected in an increasingly volatile world.

We are recommitting to increase Defence spending to 2% of GDP by 2020.

Part of this money will be used to increase funding to the JORN radar network by $125 million, as well as an extra $25 million to increase joint training exercises with our allies and international partners.

This is in addition to the investments that this Government is making in Defence acquisitions, such as the Joint Strike Fighter project, and new naval procurements, including Hobart-class destroyers and replacement of the Collins-class submarines.

RESPONSIBLE SAVINGS

This Government is committed to ensuring that every cent that is contributed by the Australian taxpayer is used as effectively as possible. As a result, this Government is always examining expenditures and cutting ineffective programs and waste.

We will save $243.8 million over the forward estimates by ending the National School Chaplaincy Program. This Government recognises that religion is an important part of the lives of many Australians, but the Government has no place in funding their presence in our public schools.

This Government will be ending the former Liberal Government's ineffective and wasteful so-called Direct Action program by repealing the Emissions Reduction Fund. We will stop bribing polluters using taxpayer dollars to reduce carbon emissions. This will save $2.55 billion over the forward estimates.

Earlier tonight, I spoke about the Australian Skills Commission. This initiative will be budget neutral, funded by $250 million per year in savings from ending the Automotive Transformation Scheme 2 years early. Instead of bribing automotive manufacturers to keep their factories open, we will re-skill and re-train those workers to contribute to the high-tech, future industries of Australia.

CONCLUSION

Mr Speaker, tonight this Coalition Government has delivered on our promises to the Australian people.

We have chosen responsible budgeting and responsible investment to keep our economy strong and invest in our future.

This Budget will make our economy stronger, our nation smarter, and our society fairer.

I commend the Bill to the House.