The agreement between the Turnbull Government and the Opposition to pass more than $6 billion in budget savings over the forward estimates marks a positive start to the new Parliament.

“This deal demonstrates that the two major parties can work together constructively to repair Australia’s budget position,” Business Council Chief Executive Jennifer Westacott said.

“The agreed savings measures are an essential step towards improving the budget bottom line.

“The Prime Minister and the Leader of the Opposition have shown the collaboration that is essential to protect and advance our national interest.

“But this is just the first step. The Parliament will need to continue to work collaboratively to address the more substantial challenges that lie ahead, particularly as the population ages and spending pressures increase. This will require all parties to engage constructively on significant re-design of major expenditure programs.

“It is also imperative that the Parliament works together to pass further policy measures, including tax reform, to improve Australia’s business competitiveness and future growth prospects. We know that the best way to achieve social progress and prosperity is through economic opportunity.