Richard Dowling (Tasmania, 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 worked hard over the first term to strengthen the economy, delivering back-to-back surpluses, slashing billions in debt and interest-free payments, and bringing inflation to a four-year low. This has seen the RBA given the room to cut interest rates three times in six months. Mortgage interest costs have fallen collectively by $800 million since the end of last year. With low unemployment and rising wages, the government is supporting Australians to earn more and keep more of what they earn. As we enter our second term, what is the government doing to further strengthen the economy and deliver for the Australian people?

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

I thank Senator Dowling for the question and for his interest in the economy. I think it's the first question I've had all week, maybe all fortnight, on the performance of the Australian economy, so I thank you for your interest because it is an important area and a priority of the Albanese government. When it comes to our budget, we have delivered the biggest nominal budget turnaround in a parliamentary term on record, and at the same time we've invested in responsible cost-of-living support. The opposition has no economic credibility. The Liberals went to the last election promising higher income tax, more savage cuts and bigger deficits over the forward estimates. Labor's election commitments were fully offset. They improved the UCB in every year and cumulatively by more than $1 billion compared to the 2022 Pre-election Economic and Fiscal Outlook. We've delivered two surpluses and lowered debt and deficits, placing downward pressure on inflation. We turned two Liberal deficits into two large Labor surpluses—the first back-to-back surpluses in almost 20 years. The 2024-25 deficit is almost half what we inherited, and it is better in every year over the forwards compared to the 2022 PEFO. Debt is $177 billion lower in 2024-25, and no wonder they aren't interjecting—because this is their record. They broke the budget. They like to think of themselves as the party of good budgeting, but we know we have beaten them on every single measure.

The government has demonstrated significant budget restraint. We've got the budget more than $207 billion better off than what we inherited. We've banked 70 per cent of revenue upgrades coming into government. We've identified more than $100 billion in responsible savings and in reprioritising. (Time expired)

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

Senator Dowling, first supplementary?

Richard Dowling (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

The national accounts released yesterday showed that the economy grew in the June quarter both as a whole and, importantly, on a per capita basis. These results, in fact, were better than just about all economists expected. Minister, what does the data tell us about the economy?

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

I thank Senator Dowling for that question too. As he said, the Australian economy grew in that quarter—0.6 per cent in the June quarter—to be 1.8 per cent higher through the year. This is the fastest annual growth rate in almost two years and shows gathering momentum, which is positive news for all Australians. Last financial year, we achieved what no major advanced economy could: continuous economic growth, low unemployment and inflation below 2½ per cent. Australia is one of only six advanced economies that have grown every quarter for the last three years. Thirty-two out of 38 OECD nations have gone backwards for at least one quarter in the last three years, but Australia is not one of them. We have the fastest annual growth when compared to other major advanced economies. Our employment growth has been much stronger than other countries, and that means more Australians in jobs earning more and keeping more of what they earn.

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

Senator Dowling, second supplementary?

Richard Dowling (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Whether it's cheaper medicines, energy bill relief, cutting HECS debts or increased bulk-billing, the Albanese Labor government continues to focus on cost-of-living relief for all Australians. Despite an improving economy, the government knows that cost-of-living stress weighs heavily on the lives of many Australians. How have the government's policies continued to support the economy?

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

I thank Senator Dowling for the supplementary. The Albanese government has had a laserlike focus on cost-of-living relief for Australians. I'm sorry Senator Bragg isn't here. Give my best to Senator Bragg, but we've had a laserlike focus on cost-of-living relief. At the election, the Australian people endorsed this approach. They rejected the slash-and-burn approach of the coalition. Not only did the coalition reject most of our cost-of-living measures at every opportunity; the numbers show that their economic record is abysmal. They delivered zero surpluses, after promising them in every year. Their deficits would have been almost $8 billion bigger had they won the election. We inherited a trillion dollars of debt from the Liberals. Inflation had a six in front of it. It's now got a two in front of it. The numbers speak for themselves. These were an important set of numbers, and the Albanese government remain focused on ensuring that we help Australians with the cost of living. (Time expired)

Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Link to this | Hansard source

I ask that further questions be placed on the Notice Paper.