Senate debates

Monday, 22 June 2026

Questions without Notice

Economy, Migration

2:45 pm

Photo of Malcolm RobertsMalcolm Roberts (Queensland, Pauline Hanson's One Nation Party) | | Hansard source

My question is to the Minister for Finance, Senator Gallagher, and relates to productivity. The measure of productivity I'm using is from the Australian Bureau of Statistics: GDP per hours worked. Under your government, the index measure of productivity has fallen from 100 per cent to 99.6 per cent. Net overseas migration in the year to December 2025 was 301,000 people. What change will these 301,000 new permanent arrivals make to our productivity—GDP per hours worked—across the forward estimates?

2:46 pm

Photo of Katy GallagherKaty Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | | Hansard source

I welcome the question on productivity because this budget had productivity right at the centre of the decision-making that we took. As Senator Roberts would know from attending estimates, as he does and has as a representative of his party—he knows, from all the advice that Treasury has provided, that productivity growth in the decade to 2020 was the slowest in 60 years. Get your heads around that as everyone points the finger: the slowest in 60 years was in the decade to 2020. We recognised, when we came to government—

Photo of Malcolm RobertsMalcolm Roberts (Queensland, Pauline Hanson's One Nation Party) | | Hansard source

On a point of order, I asked about productivity falling under your government.

Photo of Sue LinesSue Lines (President) | | Hansard source

I believe the minister is answering your question, but I will continue to listen carefully, and, if she isn't, I'll direct her to your question.

Photo of Katy GallagherKaty Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | | Hansard source

I was explaining the evidence that Treasury has provided, through various committee proceedings that I've been at and that Senator Roberts has been at, that the productivity challenge that Australia has right now is similar to many advanced economies and that we had seen slowing productivity growth in the decade to 2020. We revised back the productivity growth assumptions in our budget on the advice of Treasury. Those had been hiding behind the myth of their numbers in their budget. We adjusted it based on advice from Treasury, and this budget has a range of measures that go right to the heart of driving productivity improvements, which, I would think, all of us in this chamber could agree is a good thing. Whether it be some of the regulatory reform work that I'm doing; removing some of the barriers to trade, which Senator Farrell's at the heart of; building a single national market; accelerating approvals with the work that Minister Watt's leading in the environment and the work that Minister O'Neil is doing in housing; the work with the states and territories looking at how we use data and AI—all of these big challenges that economies like Australia are grappling with, we are dealing with in this budget. I'm not sure—the clock ran out.

Photo of Sue LinesSue Lines (President) | | Hansard source

Sorry, Minister. Senator Roberts, first supplementary?

2:48 pm

Photo of Malcolm RobertsMalcolm Roberts (Queensland, Pauline Hanson's One Nation Party) | | Hansard source

OEC data shows productivity improvement only occurs if the migrants have a higher skill level than Australia has as a whole—in other words, quality, not quantity—otherwise, productivity falls. Minister, does the low rate of skilled migration—less than 20 per cent of your 301,000 migrants—mean that productivity in Australia across the forward estimates will continue to fall?

2:49 pm

Photo of Katy GallagherKaty Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | | Hansard source

I know that One Nation and those parties on the right would like to blame every challenge to this country on migrants. We don't. On this side, we don't take that view. The productivity challenge is real. It's real in our economy. It's real in many, many economies around the world. The measures needed to improve productivity involve governments tackling serious challenges that have been ignored for too long, like—and I know you disagree with this, Senator Roberts—the transition to net zero. I know you don't like it, but energy is a big part of seizing the—

Photo of Malcolm RobertsMalcolm Roberts (Queensland, Pauline Hanson's One Nation Party) | | Hansard source

I don't want to know about the globe. This is a point of order on relevance.

Photo of Sue LinesSue Lines (President) | | Hansard source

Senator Roberts, why are you on your feet?

Photo of Malcolm RobertsMalcolm Roberts (Queensland, Pauline Hanson's One Nation Party) | | Hansard source

A point of order on relevance.

Photo of Sue LinesSue Lines (President) | | Hansard source

Thank you. The minister is being relevant to your question, and I'll continue to listen carefully.

Photo of Katy GallagherKaty Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | | Hansard source

Migrants have made a very significant investment into our economy and have brought additional benefits. We value them and the contribution they make. We're dealing with the migration challenges. The net overseas migration has come down 45 per cent, and we've got a range of productivity measures in place. (Time expired)

Photo of Sue LinesSue Lines (President) | | Hansard source

Senator Roberts, second supplementary?

2:50 pm

Photo of Malcolm RobertsMalcolm Roberts (Queensland, Pauline Hanson's One Nation Party) | | Hansard source

International data shows that, the more short-term migrants a country has, the less the productivity growth. Under your government, Australia has 2.59 million short-term visa holders—excluding tourists, of course. Minister, have you modelled the effect on gross domestic product per capita productivity from having so many short-term visa holders in your visa mix?

2:51 pm

Photo of Katy GallagherKaty Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | | Hansard source

Treasury does a range of modelling and a range of analysis that feeds into our budget papers. Obviously, the numbers through net overseas migration inform other numbers that run throughout the budget papers. Again, we value the work and contribution of migrants and what they bring to this country.

The productivity challenge is a substantial one. Senator Roberts, I would think that, on the issues that we've focused on in this budget, you would agree with many of them and you would agree that these are areas that governments and parliaments should be focusing on to drive productivity, because we know that, when we're improving productivity, we're improving the life of every single citizen, and we are focused on that.

Photo of Malcolm RobertsMalcolm Roberts (Queensland, Pauline Hanson's One Nation Party) | | Hansard source

A point of order on relevance again, President. I asked about per capita GDP productivity from so many short-term visa holders. That's all I asked about.

Photo of Sue LinesSue Lines (President) | | Hansard source

Thank you, and the minister is being relevant, Senator Roberts.