New data showing capital expenditure has collapsed again absolutely destroys Josh Frydenberg’s claim that the economy was performing strongly before the Coronavirus outbreak hit.

In a week when the Prime Minister said that Australia will need to “depend a lot more on its domestic elements” it is absurd that the Morrison Government still lacks a plan to address falling business investment in the floundering economy.

Private new capital expenditure plunged by 2.8 per cent in the December quarter, well below market expectations, to be 5.8 per cent lower over the past year.

Capital expenditure is more than 30 per cent lower than when the Liberals first came to office and business investment is around its lowest levels since the 1990s recession.

This result follows yesterday’s news that construction work collapsed in the December quarter, when the economy was already struggling from weak consumption, stagnant wages, declining productivity and record high household and government debt.

Scott Morrison and Josh Frydenberg didn’t have a plan for the floundering economy last year and they don’t have a plan now.

Today’s data is more evidence that the Australian economy was deteriorating long before the Coronavirus outbreak.

It’s long past time for the Prime Minister and Treasurer to join with Labor, the Reserve Bank and the business community and bring forward a plan to address our long-standing domestic economic challenges and get businesses investing again.

Because of the Morrison Government’s inaction, Australia meets the serious challenges and uncertainties of the fire season and the Coronavirus outbreak from a position of weakness, not strength.