Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

PRATT (—) (): My question is to the Minister for Finance and Minister representing the Treasurer, Senator Gallagher. Can the minister detail the global economic headwinds the Australian economy is facing?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Pratt for the question. Last night the OECD revealed analysis outlining the significant downturn they are anticipating, with downgrades to the growth outlook for almost all of the world's major economies and almost all of our major trading partners. The OECD analysis has wiped 0.6 percentage points off the global growth projection for 2023 and is predicting no growth at all for the UK next year, negligible growth in the United States and slower growth in China than previously predicted. The factors contributing to this are growing inflationary pressures, increasing energy security shocks, the continued illegal war advanced by Russia against Ukraine and extreme uncertainty over the future.

This analysis from the OECD is confronting reading, but I want to assure Australians that we are working all day and every day to put the Australian economy in the best position it can be placed in to tackle these global challenges head on. In a few weeks the Treasurer, Dr Chalmers, will be going to Washington for a short trip to meet with our international counterparts about some of the current challenges, to discuss some of these difficult issues and challenges that lie ahead, not just here in Australia but globally. The reality, certainly from my point of view, is that the budget could have been in a better and stronger position if it wasn't for the years of mismanagement from those opposite. We are doing what we can to put that budget back on track. But there's no doubt that there are some difficult days ahead which will require a lot of work as well as cooperation and collaboration with our international counterparts. But I can assure Australians that the Treasurer and I, and our colleagues, are working day and night to make sure that the budget we put together in October assists with meeting some of these challenges.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Pratt, a first supplementary question?

Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

Can the minister outline how the Australian economy is placed to deal with some of these global challenges?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Pratt for the supplementary question. Here in Australia we do have some advantages that will position the economy well to withstand the worst of these challenges, but, as the OECD report identifies, some of these are intensifying, not disappearing, and the Australian economy will not be immune from these impacts.

We are a government that from day one have been upfront with Australians about the situation now and what we forecast to be the challenges we will collectively face in the future. This is a stark difference to the kind of government we saw when those opposite were in office. As I said, this is not aided by the state of the books we inherited, which aren't in good shape. We are making some—

Sarah Henderson (Victoria, Liberal Party, Shadow Minister for Communications) Share this | Link to this | Hansard source

Woops—just got a $50 billion turnaround!

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I'm happy to debate that with you, Senator Henderson, if you want to bring that on. But we entered this period of uncertainty after a wasted decade, the consequences of which can be seen in wages growth, flatlining productivity and a trillion dollars of debt. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Pratt, a second supplementary question.

Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

nator PRATT (—) (): Can the minister outline why the Albanese Labor government is best placed to guide the Australian economy through these challenging times?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I can. It is critical for Australia's economy that we deal with some of the challenges, as we have been doing with climate, after ten wasted years on energy policy—22 failed policies, and not one of them landed. We are looking at policies like cheaper childcare, investing in TAFE, cleaner and cheaper energy, skills reform and a future made in Australia. We need to make sure that we are dealing with the waste and rorts that defined the period of the previous government. But this is just the beginning, not the end, of our work. Our work will last beyond this budget and into the next. It will take multiple budgets to fix the mess we got left with, and it will involve some hard choices. But, despite everything that's been thrown at us, Australian's have every reason to be optimistic about the long-term prospects of our economy and our country, and, certainly, the budget that we are putting together right now.