Deborah O'Neill (NSW, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. The International Monetary Fund has endorsed the Albanese Labor government's economic and budget strategy, praising Australia's soft landing, strong foundations and ambitious reform agenda. This is a significant vote of confidence in Australia's economic approach during this period of global uncertainty. Can the minister outline what the IMF said about Australia's performance? How is the government's responsible economic management helping deliver stability, growth and resilience for Australians?

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

I thank Senator O'Neill for a question on the economy because those on this side of the chamber understand how important a strong economy is for delivering services and improving living standards for all Australians. I take this opportunity to remind those opposite that, when we came to office, we inherited huge deficits, $1 trillion of Liberal debt, high inflation, falling real wages and falling living standards. That is the situation that we inherited.

Senator O'Neill is right to draw our attention to the International Monetary Fund's report on Australia's economy, including on our budget and fiscal strategy. It is a powerful endorsement of the approach that we have taken. Inflation is around a third of its peak. Debt is down. Real wages are growing. Unemployment is low. We've seen the creation of more than 1.2 million jobs.

Anne Ruston (SA, Liberal Party, Shadow Minister for Health and Aged Care) Share this | Link to this | Hansard source

In the public sector.

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

That is not correct, and I know you're a bit of a public sector jobs snob. I hear it all the time, so I take that interjection. We know you wanted to sack 41,000 public servants, and we saw how that went down. Also, when you demean jobs in the non-market economy—which is what you're doing—you're demeaning everyone who works in the care economy. All of those who work in aged care work in those jobs. They're no good. All those who work in disability, in early education and care or anywhere the government provides support for a program—those are the jobs that you are demeaning every single time you say that. We hear it, and those workers hear it.

We won't let them forget. Every time you stand up here and pretend you care about aged care, health and disability—they're the workers that you're attacking when you say those jobs aren't good enough. The IMF acknowledges the government's—oh, luckily I get two more cracks. (Time expired)

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

Senator O'Neill, first supplementary?

Deborah O'Neill (NSW, Australian Labor Party) Share this | Link to this | Hansard source

It's such a big story to tell, Minister. New ABS data shows annual real wages have grown for eight consecutive quarters, the longest run in almost a decade. Labour force data also shows that more Australians are in work than ever before. How is the Albanese Labor government ensuring this momentum continues so that workers share in the benefits of our stronger economy?

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

I thank Senator O'Neill for that question and for acknowledging the working people across our economy, whether it be in market or non-market jobs. New data released by the ABS shows that annual real wages have now grown for eight consecutive quarters. This is now the longest period of consecutive annual real wage growth in almost a decade. The wage price index grew 0.8 per cent in the September quarter to be 3.4 per cent higher through the year. We're delivering more jobs and better-paid jobs, and we support wage increases across the economy, whether, again, you work in the market or non-market economy. We support wage rises. We support good jobs, secure jobs and well-paid jobs. We're absolutely dealing with the feminised inequality that we've seen across our wage system as well, and that's why we've supported those substantial wage increases for those sectors.

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

Senator O'Neill, second supplementary?

Deborah O'Neill (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Australia's economy is stronger and more stable than many advanced nations, with the IMF praising our fiscal strategy and reform agenda. How important is it to maintain this responsible approach so we never return to the days of sliding global ranks and missed opportunities for jobs, for wages and for growth?

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

I thank Senator O'Neill for the supplementary. When we came to office, real wages were going backwards by 3.5 per cent, and they'd fallen for the five quarters leading up to the 2022 election. We knew that because that was a deliberate design feature of their economic policy. Since we came to government, average annualised nominal wages have been growing at 3.7 per cent, much higher than the 2.2 per cent under our predecessors. Inflation was up 2.1 per cent in the March quarter 2022. We've got inflation back under control. Under those opposite—

Well, have a look at your record, Senator Paterson. Go back and have a little look about what happened in the dying days of the Morrison government. Inflation was roaring. We've got it back under band. We've also seen that business investment fell, and we're seeing business investment come back. Under Labor, inflation is lower. Interest rates have been cut three times. Unemployment is low— (Time expired)