The federal government has descended into “chaos” after a Liberal MP quit the party, hours after the PM announced he would hand down a budget surplus.

Liberal MP Julia Banks quit the party and, just hours after her departure, took her new seat on the crossbench.

Shadow assistant treasurer Dr Andrew Leigh tells Ross Greenwood “rarely have I seen such chaos and dysfunction as what we’re seeing today”.

“[The] Julia Bank’s defection was just another episode in a government that’s been just lurching from crisis to crisis.”

As for Scott Morrison’s declaration that he will return the budget to surplus, for the first time in a decade, Dr Leigh says “the rivers of gold are running”.

“But despite that, we have net debt more than doubling since the Liberals came to office… it’s just hit a record high.

“We’re confident, Ross, that we will be able to not only deliver bigger surplus… but also provide average Australians with more generous personal income tax cuts.”

Click PLAY below to hear the full interview

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