Josh Dolega (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Since coming to government, the Albanese Labor government has focused on dealing with the inflation challenge across the economy and getting the budget into better shape. How has the government approached this task while maintaining low unemployment and growth across the economy?

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

I thank Senator Dolega for the question. It's an important question about how this government has managed the budget over the last three years and the approach we will take going forward.

Responsible economic management has been a defining feature of the Albanese government. December's MYEFO was the only one on record that delivered a better bottom line in every year of the forward estimates, less debt in every year of the forward estimates and net policy decisions that improve the bottom line. On this combination of measures, it's the most responsible mid-year update on record. Since we've come to government, we've delivered the biggest nominal turnaround in the budget in history—$233.5 billion improvement across the budget on our watch. We've found $114 billion in savings since coming to government. Gross debt this year is $176 billion lower than what we inherited when those opposite lost government in 2022.

The progress we've made on the budget means that we've been able to avoid more than $60 billion in interest payments alone. We've been able to do that whilst at the same time making sure that we have seen stronger jobs growth across the economy. Getting the budget in better shape has been important to that. Getting wages moving again has been important to that. Making sure women get a better deal across the economy has also been a key priority for this government. We will continue with this approach.

It's in stark contrast to what we saw when those opposite were in government. We saw deficits and promises of surpluses never delivered. We have delivered two surpluses, we have lessened the deficit in every year from what we inherited in 2022, we have been finding savings and we have been able to manage and progress through more in important areas. (Time expired)

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

Senator Dolega, first supplementary?

Josh Dolega (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Job creation and getting wages moving again has been an essential part of the Albanese Labor government's economic plan. How has strengthening the budget supported these objectives while keeping the focus on lowering inflation and supporting households with the cost of living?

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

I thank the senator for his question because it is an important one, again, about jobs. We on this side of the chamber understand the importance of having a job and being able to create jobs in new areas but also support good wage outcomes, something that again those opposite ignored during their entire time in government.

It is important to recognise that we've been able to manage in this high-inflation time that we've had over the last three years an unemployment rate at 4.1 per cent—that is what it was in December—and a labour force participation rate rising to 66.7 per cent. In December, 65,000 more people were in work, which takes the number of Australians employed to a record high of 14,684,000. This shows that we've got a labour market that continues to grow, creating opportunities for all Australians, with full-time jobs accounting for the vast majority of the increase in employment over that month. (Time expired)

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

Senator Dolega, a second supplementary?

Josh Dolega (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

How will the Albanese Labor government continue strengthening the budget and delivering meaningful reform while also supporting Australians with cost-of-living pressures?

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

Thanks, Senator Dolega, for that question as well. The government, as we enter all of the intense work periods over the next few months in the lead-up to the budget, will of course be looking at how we can support Australians with cost-of-living pressures, how we manage the budget and how we find savings not only to return to budget to lower the debt and deficit that we inherited from those opposite but also to make sure that we have room for important priorities, whether they be in defence, health, dealing with the pressures in the NDIS, which Minister McAllister is leading on, or aged care. All of these are areas where we are seeing continued demand. We're managing that and providing cost-of-living assistance with the tax cuts that will come in. We have a load of measures that we've already introduced, including increasing PPL and issues like that, that we will continue to roll out to support households across Australia.