Ellie Whiteaker (WA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer and Minister for Finance, Senator Wong. The conflict in the Middle East is disrupting global oil supplies and contributing to higher inflation, slower growth and economic uncertainty. While we'll have to wait until tonight for the budget detail, the Treasurer has talked about a budget focused on fuel security, the cost of living and housing, productivity, tax reform and a substantial savings package. Can the minister outline why the priorities of the Albanese Labor government are to strengthen fuel security, ease pressure and build a stronger, fairer and more productive economy?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I thank Senator Whiteaker for her question—and thank you for struggling on despite having a bit of a cold. I know that Senator Whiteaker is here because she cares deeply about what happens not only in this budget but for the generation that she represents, and that is something the government is very focused on.

Tonight's budget will be an ambitious budget. It will be a responsible budget. It's a budget focused on resilience, reform and a plan to help Australians through the worst of the global economic uncertainty and to come out even stronger. We are a government that want aspiration and opportunity for more people in this country.

Opposition Senators:

Opposition senators interjecting—

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Unlike you, we understand that the status quo in the housing market and the tax system is not working for many Australians. We understand that the conflict in the Middle East is making it harder; people are seeing this at the petrol pump, and business is seeing it in higher costs. Farmers, transport operators and regional communities know how important secure and reliable fuel supply is to the whole economy. That's why the major packages in tonight's budget will be on fuel security, the cost of living and housing, productivity, tax reform and savings. It will include additional investment in our fuel security and resilience, including stronger reserves and supports to strengthen our fuel security and our fertiliser supply. We will continue to strengthen Medicare.

Sarah Henderson (Victoria, Liberal Party, Shadow Minister for Communications and Digital Safety) Share this | Link to this | Hansard source

But you've got a list of broken promises!

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

You should listen about Medicare, Senator Henderson, because, as I recall, it's something that you were not hugely supportive of. We support Medicare. There will be commitments to strengthen Medicare in tonight's budget. I know you don't like it, Senator Henderson. New drugs on the PBS—I know you don't like it. An additional $25 billion for public hospitals—I know you don't like it. You don't like any of it, do you? You don't like investment— (Time expired)

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

Senator Henderson, I called you twice during the time the minister was answering. Please listen respectfully in silence or leave the chamber. Senator Whiteaker, first supplementary?

Ellie Whiteaker (WA, Australian Labor Party) Share this | Link to this | Hansard source

The Prime Minister, Treasurer and Minister for Finance have all been clear that tonight's budget will be responsible and sustainable and that the budget bottom line will be stronger because of the government's decisions. Can the minister outline how responsible budgeting—

Opposition Senators:

Opposition senators interjecting—

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

Senator Whiteaker, I'm very sorry. Senator Whiteaker has the right to ask her question in silence.

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

The comedy festival's next month!

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

After requesting silence, Senator McKenzie, you always have to have the last word. I invite you to listen in silence or leave the chamber.

Ellie Whiteaker (WA, Australian Labor Party) Share this | Link to this | Hansard source

Can the minister outline how responsible budgeting is helping fund the services Australians rely on while strengthening the budget?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Thank you, Senator Whiteaker. Australians will see that under this government debt is lower, deficits are small and the budget bottom line is stronger. The bottom line will be $44.9 billion stronger than forecast at MYEFO, more than a quarter of a trillion dollars better off than what we inherited in 2022 from those opposite. The senator speaks about why it is we need a stronger budget, and it is, of course, to secure our future and to be able to fund the services Australians rely on today and beyond.

As I was saying before, this budget will also ensure we see strengthened Medicare, new drugs on the PBS, an additional $25 billion in funding for public hospitals and $3 billion for better aged care as well as additional funding to deliver a further defence capability. So it is a budget that is about making sure we are stronger today and, as importantly, strong in the future.

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

Senator Whiteaker, second supplementary.

Ellie Whiteaker (WA, Australian Labor Party) Share this | Link to this | Hansard source

Tonight's budget will be a responsible Labor budget which delivers relief, reform and stronger fuel security in a period of global uncertainty. Why are these priorities so important, and how do they deliver for the Australian people?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

This is a budget with aspiration and fairness at its core, a budget which focuses on helping with the cost of living and a budget which recognises that we have a responsibility to strengthen Australia's resilience for these times. We can do this whilst placing a premium on responsible savings, on reprioritisation and on restraint. The budget will include a larger-than-usual gross savings figure, with $64 billion in savings and reprioritisations. These savings are helping to pay down the trillion dollars of Liberal debt the government has inherited. Let's remind those—I know Senator Henderson is very chatty today in an attempt to try to perhaps distract attention from the dreadful result that they had on Saturday. She might be interested in knowing that your last budget in government did not include a single expenditure savings measure. Of course, the reality is that what we know is those opposite— (Time expired)

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

My question is for the Minister representing the Prime Minister, Senator Wong. Last week Reserve Bank governor Michele Bullock stated, 'The extent to which government makes up the shortfalls for households by giving them more money makes it harder to dampen demand.' Now Labor's leaked cheat sheet for broken promises says the government wants to use every lever it can. Minister, why is government using every lever to make the Reserve Bank governor's job harder with reckless spending and increased taxes?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

We will do all we can to support Australians with the cost of living. I know you, your party and the other party that's part of the coalition—that is the Liberal Party at this stage—

Honourable Senator:

An honourable senator interjecting

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

'currently' part of the coalition—thank you for the interjection.

Michaelia Cash (WA, Liberal Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

We've got the broken promises right here.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Yes, I'll take that interjection from Senator Cash as well. Those opposite are opposed to cost-of-living measures. We on this side listen to the Australians who we engage with, talk to and work with, and we know that families are doing it tough. So, Senator, if you have an issue with a government making sure that we address cost-of-living pressures for Australian families, I suggest you go and talk to voters because—let me tell you—I think most Australians recognise that things are difficult, that cost-of-living pressures are hard and that the government have a responsibility to do all that we can responsibly to ensure that we deal with cost-of-living pressures that families are facing.

We have a difference of political view, a difference of philosophy. We think that we should ensure that the cost of living is front and centre in our budget. We will do that responsibly.

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

On a point of order of direct relevance, Madam President, I was asking the minister to respond to the Reserve Bank governor's—

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

Thank you, Senator McKenzie. I've asked you before to simply make your point about a point of order without giving a statement. The minister is being relevant, and I would suggest that, if you want relevancy, you ask all of the senators around you to listen in silence, because, as you know, the minister is entitled to take interjections, be they yours or someone else's.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I make this point: (1) we make no apology for dealing with the cost of living as best as we are able, and (2), as I have already outlined and as the Treasurer will outline in much more detail tonight, this is a responsible budget, a budget which contains many more savings than were ever demonstrated by you in government.

Lidia Thorpe (Victoria, Independent) Share this | Link to this | Hansard source

 It's stolen wealth. It's all stolen.

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

Senator Thorpe, come to order! Minister Wong, did you wish to continue? Okay. Senator McKenzie, first supplementary?

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

Last week, the Reserve Bank governor, Michele Bullock, stated:

… it doesn't take much additional spending to make the job of returning inflation to target more challenging.

Why is this government spending at a 40-year high, outside of a recession, while preparing even more interventions that risk keeping inflation and therefore interest rates higher for longer?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Senator, I again say to you that we will make responsible decisions in this budget. It's a budget framed by difficult global circumstances, and we know that the inflation challenge that is being driven by what is occurring in the Middle East and its impact on global energy markets and, consequently, on supply chains is substantial. We understand that. So what you will have—

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

Senator McKenzie?

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

On direct relevance and the Reserve Bank governor's comments.

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

Thank you, Senator McKenzie. The minister is being relevant.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

That interjection just demonstrates the lack of any understanding on that side about the circumstances that the government and the country face. My discussion about how inflation is being driven by the global circumstances—this shadow minister pretends that's not relevant! How do you even deal with something when you are in denial about what is driving it? It's a bit like what is happening on your party's side. You are in denial about the fact that voters have walked away from you in droves, and you refuse to look in the mirror— (Time expired)

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

Senator McKenzie, second supplementary?

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

Let's see if we can get the minister to respond to the Reserve Bank governor's concerns. Minister, last week, the Reserve Bank governor stated:

Fiscal policy has many more things that it can do. But it has to be careful… It can't… just go out there and just add to demand.

Why is your government ignoring that warning and using every lever to add more pressure to our economy?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

The senator refers to the RBA governor. This is what the RBA governor said in March:

…if you look at what's happened to interest rate expectations for those other central banks, they're on holds. They were cuts.

She went on to say:

… the whole Middle Eastern situation has resulted in obviously concerns about inflation and as a result a lift in expectations for central bank interest rates.

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

Senator McKenzie, on a point of order?

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

On direct relevance, that is a March comment. There have been two interest rates increases since then.

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

Senator McKenzie, resume your seat. You are not in a debate with the minister, and when I call you to order I expect you to sit down.

Senator Watt, come to order. Minister Wong, please continue.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I am simply trying to explain to you that it is entirely relevant to talk about the Middle East and its consequence for inflation in our country and in the global economy. That is entirely relevant. I know you might not think it is relevant but that is what we are seized of. We understand what is driving the inflation challenge. We understand the need to be responsible in our budget—and we have been, and we will be. We understand the need to responsibly provide cost-of-living support and assistance to Australians, and this budget will. (Time expired)