Claire Chandler (Tasmania, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Can the minister confirm that their own budget shows young Australians today face a diabolical combination of higher inflation, higher interest rates, higher taxes, lower real wages, lower living standards and fewer homes thanks to this government's reckless spending?

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

The answer to that is no. I would say to those opposite that this budget is about making sure that generations of the future get a fair go. That's what it's about. We've already noticed them saying no to that. We have taken responsible decisions in this budget in a whole range of areas, whether it be in tax reform, spending restraint, our fiscal strategy, our investments in housing or relief to make a difference for people.

I will take the interjection on housing because I think it's important to let everyone know that those opposite didn't even have a housing policy. They didn't even have a housing minister. The issues we are dealing with on the supply side are a combination of factors, but a big part of that is the fact that those opposite did nothing for more than a decade when it came to housing.

The housing package in this budget delivers more housing. It works in partnership with the states and territories to deliver more housing. There is more housing delivered in this budget. It deals, for the first time, with the significant challenge of the intersection of tax policy or tax arrangements and the housing industry and how that's working for young people. We on this side of the chamber want to ensure that younger generations are not locked out and forever destined to life in the rental market if they want to own their own home. That's what we're about—making sure that younger generations have that opportunity, that they are not locked out forever. This budget delivers on that. We look forward to your support.

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

Senator Chandler, first supplementary?

Claire Chandler (Tasmania, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

Minister, can you confirm that your own budget shows, after four years of Labor government, debt will soon hit $1 trillion and climb to $1.25 trillion, leaving a debt bomb for young Australians?

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

I thank Senator Chandler for the question. If she is concerned about the projections for the debt in this budget, she must have been extremely concerned when they forecast hitting $1.2 trillion in their final budget. When they were last in government, they forecast an increasing debt burden. They doubled the debt before the pandemic hit. They did nothing to pay down the debt. I know they like to pretend that everything is someone else's problem. We've seen that. That's the way they operate. We inherited $1 trillion of debt from those opposite. We have consistently lowered it. Again in this budget, debt is lower in every year of the forward estimates compared to what we inherited and, as a share of the economy, growth of net debt is and will remain lower than we inherited. (Time expired)

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

Senator Chandler, second supplementary?

Claire Chandler (Tasmania, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

Minister, can you confirm that your own budget shows the yearly interest bill on your debt bomb will hit more than $42 billion, or more than $80,000 per minute, and that this bill will be passed on to young Australians through higher taxes?

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

I don't want to continue the history lesson, but if we look at when you were in government and what we saw when we came to government we inherited $1 trillion of debt forecast from you in 2023. We have managed to lower debt, to pay down debt. Debt is $173 billion lower under this budget, and we save in the order of $70 billion in interest payments. That's because of the responsible decisions we've taken in this budget, and that is the approach we will continue to take in future budgets: paying down debt, lowering it from what we inherited and making sure the interest payments are lower.

Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance, Senator Gallagher. Last night the Treasurer handed down the Albanese Labor government's most responsible budget yet, while also delivering significant reforms to make our tax system fairer and to support Australians with the cost of living. This has all been delivered at a time when the global oil shock is pushing up prices, putting pressure on growth and adding challenges for Australian households. How does the Albanese Labor government's responsible approach support people who are under pressure and deliver for all Australians?

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

I thank Senator Polley for that question and for the advocacy and work she does on behalf of the people of Tasmania. As the Treasurer said last night, this is the most important and ambitious budget in decades. It's a budget that responds to the pressures Australians are feeling right now, while putting in place the reforms needed for a stronger, fairer and more resilient economy.

The conflict in the Middle East is feeding inflation, slowing growth and putting Australians under more strain. At the core of the budget is an economic strategy with five main parts: fuel security and resilience, cost-of-living relief, productivity, tax reform, and responsible budget management. Under each of those five key areas there are important investments. In cost-of-living relief, a new $250 Working Australians Tax Offset will benefit 13.3 million workers from the second half of 2027, paid automatically through tax returns. This means that across the government's five tax cuts, including those that those opposite campaigned against, the average worker will be up to $2,816 better off in 2028.

We're also making investments in housing and in medicines and the ongoing funding in Medicare urgent care clinics—all areas where we know these measures are making a difference, where those opposite have argued and criticised us for the investments we've made. This budget continues the approach to support households with those important cost-of-living measures.

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

Senator Polley, first supplementary.

Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

The finance minister, our very fine Senator Gallagher, and the Treasurer have been clear that the Albanese Labor government's fifth budget saves more than it spends while still funding essential services and responding to major pressures across the economy. How does the budget build on the job of budget repair? And why is that continued task so important?

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

I thank Senator Polley for that question, and it's an important one. This budget does put enormous emphasis on fiscal repair and strong, responsible economic management alongside the budget. This means that the budget is $44.9 billion stronger than MYEFO and more than a quarter of a trillion dollars better off than what we inherited. Deficits are lower in every year than forecast when we came to government in 2022. Debt in 2026-27 is $173 billion better than what we inherited, avoiding more than $70 billion in interest costs over the decade. There are $63.8 billion worth of savings and reprioritisations, which takes our total savings since coming to government to almost $180 billion. And, for the first time on record, consecutive updates have returned every dollar of revenue upgrades to repair the bottom line.

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

Senator Polley, second supplementary.

Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

This budget responds to immediate pressures while pursuing the reforms Australia needs. How does the Albanese Labor government's responsible approach support people who are under pressure and deliver for all Australians?

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

I thank Senator Polley for that supplementary. This budget is about aspiration and fairness, helping with cost of living, boosting resilience in uncertain times and showing savings and reform can all work together. Against global uncertainty, the budget invests in Australia's resilience and economic sovereignty; delivers more cost-of-living help and new tax cuts for workers; backs small business aspiration and innovation; levels the playing field for first home buyers; and helps put homeownership back within the reach of younger Australians. It includes $64 billion in savings and reprioritisations, taking total savings since coming to government to $178 billion, and it sets out more responsible budget repair and more economic reform than any other budget this century.