Ralph Babet (Victoria, United Australia Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer. Minister, the Australian Financial Review recently reported:

The federal and state government spending splurge has hit the highest level since the end of World War II …

…   …   …

More than half of voters now rely on governments for most of their income, through public-sector wages, welfare benefits or subsidies …

…   …   …

Four in five jobs created in the past two years have been in the non-market sector …

My question is: is our economy just one giant taxpayer funded vote-buying rort?

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

Well, the answer to that is no. In relation to the creation of jobs, I've heard this used quite a lot by members of parliament and senators about non-market jobs and that, for some reason, they're less valuable than any other job.

Michaelia Cash (WA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source

No, that's not what's being said.

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

That's the insinuation I've heard from your colleagues, Senator Cash, and I've just heard it from Senator Babet. They are jobs in aged care. They are jobs in early education and care. They are jobs in disability services. They are non-market jobs, and I think we should have an honest discussion about the fact that we need those jobs. They are good jobs. They probably haven't been paid enough in the past, and we are trying to address that through the work of ministers and my colleagues on this side of the chamber. We've supported wage increases for aged-care workers, and we're seeing increases for early childhood educators as well. We, on this side, do not dismiss non-market jobs. They are good jobs. The services sector is an important part of our economy, and we need to make sure that we are investing in it so that, when you, Senator Babet, are 75 or 80 or 85 or 90, you will get the care that you deserve. That is what we are trying to do in that part of the economy. In relation to the other parts of your question, the answer is no.

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

Senator Babet, first supplementary?

Ralph Babet (Victoria, United Australia Party) Share this | Link to this | Hansard source

The same article mentioned:

Federal Treasury warned in a post-election briefing to Treasurer Jim Chalmers that government spending must be cut and taxes increased to put the federal budget on a sustainable footing.

What meaningful budget cuts will the government undertake to ensure that taxes don't have to be increased?

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

Incoming government briefs raise a lot of issues and draw a lot of issues to ministers' attention. In relation to spending, we are always looking at how we can find savings across the budget. We've found $100 billion in savings over our last budget since we came to government—$100 billion! Contrast that with those opposite—none, zero, zilch. Zilch versus $100 billion that we have found. And it is important because it does a number of things. It repairs the budget, but it also allows us to invest in those areas of the economy where we need to make investments, whether it be in housing, whether it be in defence, whether it be in disability services or early childhood education. You have a budget for a reason, and that's so that you can invest in these areas that are important national priorities. We will continue to look for savings. We went to the election with another $6.4 billion in savings to find from the public service. And we'll continue to do that.

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

Senator Babet, second supplementary?

Ralph Babet (Victoria, United Australia Party) Share this | Link to this | Hansard source

We've projected expenditure growth, especially in areas like disability. It is likely that you will eventually run out of other people's money, and you'll probably consider other taxes. Minister, can you please confirm that under this government there will be no increases in superannuation or the GST?

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

():  The tax policies we took to the election were around standard deductions—making it easier for people to put their tax returns in and to lower income tax. They were the taxes that we took to the election and they remain the government's policy. We consider all of these matters through the annual budget process.