Lisa Darmanin (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. The Albanese Labor government's first-term economic agenda focused on budget repair, providing targeted cost-of-living relief to support Australians while reducing inflation and getting wages moving again. The Treasurer has spoken about the decades-long productivity challenge facing Australia and other developed countries around the world. What are the priorities for this government in its second term, and how will it continue to use the budget to support Australians?

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

I thank Senator Darmanin for the question. It is an important question. As outlined in that question, our focus was on budget repair in the last term, providing cost-of-living help in targeted ways that didn't add to the inflation challenge and getting wages moving again. It was all part of our economic plan. I am really pleased to update the Senate that for the final budget outcome for the 2024-25 year we are forecasting a deficit in the low double digits, which is around half of what we expected at budget time and about a quarter of what we inherited from those opposite when we came to government, showing our significant budget repair work is continuing to pay dividends. That means that we have been able to find room to help families and households with those cost-of-living pressures. As the Treasurer has also said, productivity growth is well known to be a challenge facing Australia and indeed other economies. Our productivity problem hasn't been with us for a couple of years; it's been with us for a couple of decades.

Opposition Senators:

Opposition senators interjecting—

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

I can hear those opposite interjecting, so I'll take that. It's important that they accept that the coalition oversaw the worst decade of productivity growth in more than 60 years. We are having to deal with that challenge that they didn't deal with when they were in government.

The 2022 election coincided with the largest quarterly fall in productivity growth in almost half a century, another feature of the Morrison government at that time. Over the decade to 2020, our average annual labour productivity growth in Australia was the slowest in 60 years, falling to just 1.1 per cent compared to 1.8 per cent over the 60 years to 2019-20. We have— (Time expired)

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

Senator Darmanin, first supplementary?

Lisa Darmanin (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Thank you for that answer and for your hard work in the significant budget repair that you've just started to outline for us. The Treasurer has made clear that driving productivity is a clear focus of the second term of the Albanese Labor government. This will be a collective effort across the economy, between government, business, the community sector and worker representatives. What is the government's plan to bring these groups together and lead an effort to boost productivity in our economy?

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

I thank Senator Darmanin for the supplementary. We have a five-pillar productivity agenda, which is also being reported on by the Productivity Commission, around creating a more dynamic and resilient economy; investing in the net zero transformation—something that those opposite still don't accept—building a skilled and adaptable workforce; harnessing data and digital technology; and delivering quality care more efficiently.

The Economic Reform Roundtable will take place from 19 to 21 August here in Parliament House. It will bring all parties together to build a consensus approach to improving productivity, enhancing economic resilience and strengthening budget sustainability. We on this side of the chamber do want and welcome a frank conversation about the future of our economy. We want real talk about real reforms that will deliver real improvements to living standards and to the budget. We're looking for cooperation and consensus over conflict, and ideas over ideology. (Time expired)

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

Senator Darmanin, second supplementary?

Lisa Darmanin (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Thank you, Minister. Could you explain a bit further why it is important for the government to lead this discussion, and how are the many interested voices in this discussion being heard?

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

I think Senator Darmanin for the supplementary. The government accept that we can't solve this problem alone; this will require a collective effort across the economy between government, business, the community sector and unions. In a show of good faith, we've also invited the coalition to attend because we are making a genuine attempt to find common ground and not to reprosecute the policy differences and arguments of the past. I've seen some being optimistic about their attendance. Others are ridiculing it and calling it a talkfest. I really do hope that their representative from the other place does attend and take the opportunity to engage cooperatively in those discussions. The government is looking forward to those discussions. There is much more to do, and we want to work with all of those: unions, community sector, government and business.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I ask that further questions be placed on notice.