Dave Sharma (NSW, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Minister Gallagher. In his statement on Tuesday, Minister, the Treasurer defended the government's economic policies by noting that real wages are growing. Minister, given the RBA's updated forecast released this week, for how much longer will that be the case?

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

I thank Senator Sharma for the question. This government is determined to ensure that people's wages keep growing. That is why we have done a number of things, including amendments to the Fair Work Act but also supporting minimum wage increases. We remember the times when those opposite had a special section in their application to the Fair Work Commission on the minimum wage review. It was a special chapter that said 'The importance of low wages'—

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

Minister Gallagher, please resume your seat. Senator Paterson?

James Paterson (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

On direct relevance: I'm not sure what the Fair Work Commission under the previous government has to do with Senator Sharma's question.

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

Senator Paterson, the minister is being relevant to the question. The question went to wages, among other things.

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

We know what those opposite stood for and that a deliberate design feature of their economic policy was to keep wages down. We know they had that chapter in their submission. We know that, on this side, since coming to government, we have actively sought to ensure that wages get moving again. Real wages grew 1.3 per cent through the year to the June quarter, the strongest annual growth in five years.

I know Senator Ruston won't like this. They've grown for seven consecutive quarters under this government—and what were they under you, Senator Ruston, when you were at the decision-making table? They were going backwards by 3.4 per cent.

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

Senator Sharma, first supplementary?

Dave Sharma (NSW, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

Minister, the RBA now expects headline inflation to soar to 3.7 per cent and remain high across 2026. At the same time, the RBA is predicting wage growth of 3 per cent by mid-2026. With inflation rising to 3.7 per cent and wage growth rising only 3 per cent, what do you say to the millions of Australians whose purchasing power will fall next year?

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

What I would say, Senator Sharma, to those people is that they have a government who cares about working people in this country, who cares about wages, who cares about the role that service workers play in our economy, for example. We care about it so much that we've increased the wages for early childhood educators and carers. We've increased the wages for aged-care workers, and we will continue that approach. We want working people to earn more and keep more of what they earn. We want the economy to grow, and we want people to benefit from that. So our approach will be of a mature party of government that takes our role seriously, that remains united and that delivers on the commitments we took to the election. We'll continue to manage the budget in a responsible way so that the working people of this country get a fair deal, get paid appropriately for the work they do and understand that they have a government that cares about that.

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

Senator Sharma, second supplementary?

Dave Sharma (NSW, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

Due to the inflation fuelled by out-of-control government spending, inflation is higher and projected to stay high, interest rates are staying high, power prices are rising exponentially, and, next year, Australians will have lower real wages to pay for it all. Minister, isn't it very clear now that Australians are worse off under Labor?

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

The Australian people had their say in May, so I'll just draw that to your attention. I think the dissembling of those opposite in the months since May shows that the Australian people have got it right again, because you are not fit for government. But, when you talk about spending, you are talking about age pension increases, energy bill relief, cheaper child care, cheaper medicines, urgent care clinics, bulk-billing, paid parental leave—

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

Senator Henderson?

Sarah Henderson (Victoria, Liberal Party) Share this | Link to this | Hansard source

On a point of order, the minister made a number of references to you, could she direct her comments through the chair, please.

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

I think the minister is directing her comments through me, but I'll continue to look. Thank you for drawing me to that.

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

When they complain about government spending, that is what they are talking about—PPL, free TAFE, new affordable housing, the Leaving Violence Program, the investments in the NDIS and our aged-care workforce, and in veterans compensation, which we talked about earlier today. These are investments that this government has made, but they are important investments in the health of our country, not only the health of our people but also the economic future of this country as well.