My question is to the Minister for Finance, Senator Gallagher. Despite challenging global economic circumstances, last week Fitch reaffirmed Australia's AAA credit rating. That means Australia is one of only nine countries in the world to continue to hold a AAA rating from all three major ratings agencies. Why is retaining our AAA credit rating important, and how is the Albanese Labor government's responsible economic management strengthening our economy, repairing the budget and supporting Australians with the cost of living?

I thank Senator Dowling for that important question. He is correct that, last week, Fitch reaffirmed Australia's AAA credit rating, Australia continues to hold the AAA credit rating from all three major ratings agencies, and we are one of only nine countries in the world to do so. In the report—the assessment—Fitch praised the government's efforts to reduce the budget deficit and noted Australia's growth outlook exceeds the growth outlook for AAA rated peers. It's independent recognition of the work that we have done to repair the budget, and it matters more in times of heightened global uncertainty.

The global economy is in the most uncertain phase since the pandemic, and the ongoing war in the Middle East is driving up fuel and transport costs, which are being felt here at home, but the final budget outcome released last month was stronger than both the position we inherited and what we forecast in the budget. The deficit was $6 billion better than forecast at budget and around half of what was forecast by those opposite when we came to government. Overall, the budget is $230 billion stronger than when we came to office, and every single one of our budget updates has delivered savings. We've strengthened the budget bottom line, and, at the same time, we've been able to provide cost-of-living relief to Australians without adding to inflation. We've seen nearly 13 million Australians receive $700 million in tax cuts in the first quarter since 1 July. We're also cutting income taxes for workers and investing in services Australians deserve, like Medicare, NDIS and defence, and we have been repairing the budget over time, since coming to government, to get it in better shape.

Senator Dowling, first supplementary?

Thank you for that investment-grade answer, Minister. The International Monetary Fund has warned—

Look, if you're worried about debt, ask Josh Frydenberg. The International Monetary Fund has warned that the global outlook is fragile and that conflict in the Middle East is pushing up inflation around the world. How has the Albanese Labor government positioned Australia's economy and budget to withstand global pressures while supporting Australians with cost-of-living pressures?

I thank Senator Dowling for that supplementary as well. As Senator Dowling outlines in his question, the IMF's World Economic Outlook is clear that global outlook is fragile, and the conflict in the Middle East is pushing up inflation right around the world. We are not immune from those pressures, but we are in a good position to meet those challenges. Annual growth in Australia was strong or stronger than every major advanced economy—equal to the US and stronger than the rest: Canada, France, Germany, Italy, Japan and the UK. Australia's gross debt is a fraction of that carried by other major advanced economies. We've delivered the lowest average unemployment of any Australian government in 50 years, and in an uncertain global environment, responsible economic management remains the best way to support Australians. We're doing that through tax cuts, more medicines on the PBS and cheaper medicines with your scripts each month, the Medicare urgent care clinics, the bulk-billing investment and a pay rise for care workers. There is more to do. (Time expired)

Senator Dowling, second supplementary?

We know a strong budget gives Australia the buffers it needs to respond to global economic shocks. Minister, why is it important to keep improving the budget, and are there any risks to the Albanese Labor government's responsible economic management?

I thank Senator Dowling for that supplementary. We are committed to responsible economic management. And, looking at how we provide cost-of-living relief for Australians, we've taken a stable, consistent, responsible approach to budget management, and that will continue in every budget and every MYEFO. We do know that, whilst we're finding savings, repairing the budget over time and looking at every part of government, how we provide services and whether we can find savings—and we're doing that in the lead-up to MYEFO—we face obstructions and barriers, including in this chamber. And I note this afternoon the Senate will vote on whether to discharge a bill that seeks to provide additional funding into aged care from the private health insurance rebate. And so, when those opposite call for savings and call for reductions in government expenditure, they need to look at the decisions that they are taking, including in this place, which are to spend more, to promise to spend more and to complain at the same time. (Time expired)