Jess Walsh (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Under the Albanese government, today's wage price index has recorded the highest quarterly increase in its 26 year history, along with an upward revision to wage growth in the previous quarter. Can the minister explain how the Albanese government has supported getting wages moving again?

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

I acknowledge Senator Walsh's long career in ensuring that particularly those on lower incomes get appropriate wage increases for the important work that they do. We said we'd get wages moving again, and we are. Under this government, wages are growing at their fastest rate in a decade. Today's data showed that the wage price index rose 1.3 per cent in the September quarter 2023 and four per cent for the year. This is the fastest quarterly growth in the 26-year history of the wage price index, and the fastest annual growth since 2009, when Labor was last in government. While quarterly figures can be volatile, we have also seen real wages growth for the last two quarters.

This government will always support Australian workers getting a pay rise, which is why we helped secure a pay rise for minimum-wage workers last year, despite the scare campaign of those opposite. It's why we supported a wage rise for aged-care workers. It's why we're supporting sustainable wages growth through our productivity-enhancing investments, including in skills and training. It's also why last year the government passed the secure jobs, better pay legislation—to improve job security and to get wages moving again.

As we know and as, I think, most Australians know, there's a big difference between the approach we have taken in government and the approach that was taken by those opposite when they were in government, who had low wage growth as a deliberate design feature of their economic architecture. We won't ever forget that. Keeping wages low was a deliberate decision of that former government. In our 18 months in office, we have made a number of changes, including legislation and policy changes, to make sure that we are doing what we can to ensure that Australian workers get a fair pay rise. (Time expired)

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

Senator Walsh, first supplementary?

Jess Walsh (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

We know the government's No. 1 priority is dealing with the inflation challenge and providing cost-of-living relief. Can the minister outline how the Albanese Labor government's policy to support strong wage growth helps provide cost-of-living relief? How does this strategy work alongside the government's broader strategy to assist with cost-of-living pressures?

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

I thank Senator Walsh for the question. The Albanese Labor government's commitment to getting wages moving again is designed to put more money in the pockets of Australian workers and help people deal with the price pressures across the economy. It's why getting wages moving again was a key part and remains a key element of our $23 billion cost-of-living relief plan that's been carefully calibrated and designed to take the edge off some of the pressures that people are under, while not adding to the inflation challenge. In fact, what the ABS CPI data shows is that it actually shaved half a percentage point off inflation in the September quarter.

Of course, in addition to our focus on wages, we also have important cost-of-living measures like tripling the bulk-billing incentive, which started on 1 November to support 11.6 million eligible Australians to access a GP without out-of-pocket costs. (Time expired)

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

Senator Walsh, second supplementary?

Jess Walsh (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Can the minister explain to the Senate how the Albanese government's commitment to strong wage growth is part of its approach to responsible economic management? How are the deliberate decisions taken by the government helping to take pressure off inflation?

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

I thank Senator Walsh for that supplementary. As a government we welcome solid wages growth after our predecessors spent the best part of a decade deliberately suppressing wages. Today's data further demonstrates that Labor is the party of strong economic management. We have delivered the first budget surplus in 15 years, taking the pressure off inflation and creating a more stable economic environment conducive to wages growth. We have returned an average of 87 per cent of revenue across our first two budgets, compared to 40 per cent under the former government, and the $40 billion in savings that we've identified across both budgets has allowed us to reprioritise spending to investments that deliver that cost-of-living relief, secure our essential services and boost the productivity of our economy—again in stark contrast to those opposite, who used robodebt as the way of generating savings for their budget bottom line, and we know the history attached to that.