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

While she's on a roll, my question is to the Minister representing the Treasurer, Senator Gallagher. Today's release of the national accounts provides an update on the economy, at a time of increasing global uncertainty. The data shows that the Australian economy remains strong, as a result of the Albanese Labor government's approach to responsible economic management. Can the minister outline today's national accounts and what they tell us about growth in the Australian economy during 2025?

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 on the national accounts and the question around what the accounts tell us about growth across the Australian economy during 2025. Today's national accounts show strong, broad based growth, and an ongoing recovery in the private sector. The Australian economy grew 0.8 per cent in the December quarter, to be 2.6 per cent higher through the year. These are really encouraging numbers, and they're a very robust foundation from which we confront some of this intense global economic volatility, made worse by the dramatic escalation of hostilities in Iran and across the Middle East.

The accounts show that we've seen the strongest pace of annual growth in almost three years. They confirm that the Australian economy outperformed in 2025, with faster growth than every major advanced economy. This is in addition to Australia's record of stronger jobs growth and higher labour-force participation than any major advanced economy since we came to office.

We also acknowledge: there are challenges facing us, but advantages as well. We're not immune from the extreme global volatility, but our unique combination of economic strengths means we are well placed to manage the challenges coming at us.

The pace of annual growth in private demand picked up in 2025. Private demand grew faster, and contributed over three times more to economic growth, than public demand, in annual terms. Within a year, annual private demand growth more than tripled, but annual public demand growth more than halved.

Real GDP per capita increased by 0.4 per cent in the quarter, to be up 0.9 over the year. That's, again, the strongest that we've seen in more than three years.

Whilst we do acknowledge that quarterly movements can be volatile and the job is far from over, productivity was also up over the past year. It was flat in the quarter but up one per cent higher, in annual terms, above the 20-year average. These are results that we should welcome. (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

Today's national accounts show the Australian economy performed strongly in 2025, with the private sector continuing to recover. Can the minister outline what other insights the data provides about the performance of the economy, including trends in dwelling and business investment?

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. The defining story of the Australian economy in 2025, as the Treasurer has outlined today, was the pick-up in private sector activity, which the national account figures confirm. It's really encouraging to see more growth in business investment, dwelling investment, market-sector productivity and household consumption, even though household consumption was slightly weaker than expected. New private final demand grew by 0.4 per cent, to be 3.2 per cent higher through the year. There were contributions from all those three components of private demand in the quarter, including household consumption, dwelling investment and business investment.

Really, because of the government's housing agenda, it's great to see that, for the first time in a decade, dwelling investment has now grown for eight consecutive quarters. It rose 0.6 per cent in the quarter to be 5½ per cent higher through the year. This is a substantial turnaround from what we inherited—

Andrew Bragg (NSW, Liberal Party, Shadow Minister for Housing and Homelessness) Share this | Link to this | Hansard source

What matters is completions.

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

before you get going, Senator Bragg—with annual dwelling investment going backwards by 3.6 per cent, when the— (Time expired)

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

The national accounts data reflect a deliberate strategy of budget discipline, at a time when economic leadership matters.

Andrew Bragg (NSW, Liberal Party, Shadow Minister for Housing and Homelessness) Share this | Link to this | Hansard source

Budget discipline?

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

Yes. Can the minister outline why the Albanese Labor government's approach to responsible economic management—

Honourable senators interjecting—

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

Order!

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

It's not the Bernie Madoff school of economics over there! Can the minister outline Labor's approach to economic management and why it's so important during a period of increasing uncertainty around the world?

Honourable senators interjecting—

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

I'm waiting for silence before I call the minister. Sorry, Minister. I haven't called you, because there's not silence across the chamber. Minister Gallagher.

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

We will continue our measured and responsible approach to managing the budget, which has seen significant improvement in the underlying cash balance, which has seen debt lower and which has seen interest payments on that debt lower. All of those are areas where we inherited a mess from those opposite. We know, from their own election costings documents, that deficits would be higher and debt would be higher. They were the architects of the economic team of the worst election defeat in the coalition's history, and now are the new leaders of the team. It's unbelievable. We have those architects of higher debt, higher taxes and higher deficits—we know that that was all that was published. What do you do when you have a failure like that? You elect the architects as leaders of your party. Well, good luck to all of you.

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

Senator Henderson, you are one of the first to stand and call for order. You were well and truly disrespectful—pointing, shouting and carrying on. I'm asking you to sit and listen in silence.