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. Australians are facing growing uncertainty in the global economy—particularly, the impact of conflict in the Middle East on fuel prices—with the Treasurer noting that the conflict and its consequences will be a defining influence on the upcoming budget. Can the minister update the Senate on how these global economic impacts, especially on fuel, are shaping the broader economic outlook ahead of the May budget?

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 question, particularly on this really important question that I think is concerning so many Australians. This conflict is a defining influence on global growth and inflation this year, and that's why it'll be a defining influence on our budget in May. As the Treasurer has said, this budget will be focused on resilience and reform. The war in the Middle East is the most pressing problem confronting the global economy, but it reinforces the three core challenges shaping this budget. Before the war, inflation was too high, productivity growth had been too weak for two decades and, while Australia and the Australian economy had held up remarkably well, the global environment was already highly volatile.

The government is responding to all of these challenges now, but we will also do that in the upcoming budget. As I've said in previous answers, it's adding to the inflation challenge, which we acknowledge was too high before the conflict. It's intensifying uncertainty when it's already elevated and straining our productive capacity when it's already close to the limit.

As the Treasurer has said, we're approaching these challenges from a position of relative strength. Unemployment remains historically low. We've created 1.2 million jobs, and we have seen consistent wages growth above three per cent for many quarters now. That is good news, but there is more work to do. The savings that we've found in the budget and the work that we are doing around continuing to look at every dollar we spend to make sure it's going to where it needs to go, to look at how we return revenue, to lower debt, to lower those deficits and to find savings over time will be a continued focus for us over the next month.

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

Thank you, Minister. Senator O'Neill, first supplementary?

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

Today the Treasurer announced that the Albanese Labor government is working with business and finance sectors to help ease the pressure on Australian families and small businesses. Can the minister outlined today's announcement, and how it provides both support and flexibility for Australians at this difficult time?

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. Today we have announced new measures to give Australian families and businesses more flexibility during this time. It's about making systems more flexible, supply chains more responsive and business more supported. The ATO will provide temporary relief for businesses unable to meet their tax obligations due to fuel supply issues, where appropriate. This will include more generous payment plans, remission in interest and penalties, and support in varying PAYG instalments where there has been a downturn in taxable income.

In relation to small business, we'll help small business access easier and faster credit by extending the small business responsible lending obligation exemption for a further 10 years. This will ensure small businesses aren't slugged with additional regulatory burdens and delays when accessing loans. We welcome the commitments from the banks. Indeed, former senator Birmingham was in the blue room today, saying how they are working across their members to ensure customers, suppliers and employees are supported. (Time expired)

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

Thank you very much for that response to Australian families and small businesses. The Australian Labor government has already taken steps to ease some of the pressure Australians are feeling. Can the minister detail what actions the government has already implemented to assist households and businesses and how these actions work alongside today's announcement?

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

I thank Senator O'Neill. She's right to ask that question about how what we've announced today works alongside those other measures. It's essentially ensuring that the government is responding wherever we can to support industry, support households, support businesses and work with stakeholders about how we coordinate our response to this fuel crisis.

In addition to all that was announced today, there are all the measures we have taken, including: increased penalties to the ACCC to make sure companies are doing the right thing; releasing 20 per cent of our fuel reserves, targeted to ease pressure in regional markets; temporarily adjusting the petrol and diesel standards to increase available supply and ensure fuel keeps moving through the system; continued engagement with international partners and suppliers to support continued shipments and strengthen supply chain resilience; and, of course, the legislation that passed the parliament yesterday to strengthen our response.