Karen Grogan (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. Can the minister update the Senate on Labor's responsible approach to budgeting and how tonight's budget will start the job of budget repair?

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

I thank Senator Grogan for her question. Tonight we will see a Labor Treasurer hand down a Labor budget, putting down the foundations of what this government looks to achieve for the Australian people over this term. It will be a responsible budget. It will be a budget that is right for the times and it will be a budget which seeks to ready the country for the future.

Those opposite were the most wasteful government since Federation, overseeing successive budgeting riddled with rorts and slush funds and weighed down with waste. They left us with a trillion dollars of debt but with nothing to show for it. It hurts them, doesn't it? They like to pretend they're the party of sound economic management. They left Australians with a trillion dollars of debt and so little to show for it.

Hon. Senators:

Honourable senators interjecting—

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

Order on both sides of the chamber. Calling out across the chamber is disorderly. Senator Wong has the right to be heard in silence. Minister.

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

They spent $5½ billion on submarines we will never see, $19.7 billion in JobKeeper payments to companies with rising revenues, and billions buying votes from slush funds targeting coalition or marginal seats.

I see the 'Minister for Colour Coded Spreadsheets' is interjecting. Why don't you tell us about that?

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

Senator Wong! Resume your seat, Senator McKenzie. When I call the chamber to order and then ask the minister to continue with her answer, I do not expect everyone in the chamber to start shouting and yelling out across the chamber. It is disorderly. The minister needs respect, and I certainly need respect when I call you to order. Minister, do you wish—resume your seat, Senator McKenzie, please.

Senator McGrath, I have just finished asking for respect.

Senator McGrath interjecting—

I beg your pardon? Seriously! Senator McKenzie.

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

I draw your attention to the standing orders that ministers need to—instead of screaming at shadow ministers across the chamber in answering questions—go through the chair.

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

Senator McKenzie, you would be well aware that I have called the chamber, both sides, to order twice. Minister, please continue.

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

Thank you, President. The Albanese government's first budget will begin the difficult task of budget repair after inheriting a budget in structural deficit and weighed down with record levels of debt, debt which is becoming even more expensive to service. The interest payments on the coalition's debt are one of the fastest growing pressures on the budget. We have spent our first months in office delivering on our promise to undertake an audit of spending, going through the budget to identify where money could be returned or redirected to more quality spending, and you will see the results of that tonight.

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

Senator Grogan, first supplementary?

Karen Grogan (SA, Australian Labor Party) Share this | Link to this | Hansard source

Can the minister update the Senate on the state of the budget that this government inherited?

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

As we know, those opposite doubled the debt before the pandemic and have left the Australian people with a trillion dollars in debt, with so little to show for it. But, most importantly, and Australians came to understand this, they treated taxpayers' money like it was Liberal Party or National Party money, trying to buy votes instead of building value for the country.

Since coming into government, what we know is that the global economic environment is significantly more volatile than it was just a few months ago, whether it's global challenges weighing on household budgets and the economy or cost-of-living pressures which have resulted as a consequence. We have also seen, as I said before, the cost of servicing government debt increase. In fact, revisions in the cost of interest payments on your debt as well as the NDIS are also placing pressure on the budget, unrelated to any policy decision of the government. (Time expired)

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

Senator Grogan, second supplementary?

Karen Grogan (SA, Australian Labor Party) Share this | Link to this | Hansard source

Can the minister outline to the Senate how Labor's approach of responsible budgeting contrasts with the Liberals' and Nationals' budget mismanagement?

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

tor WONG (—) (): Thank you, Senator Grogan. The fact is, in a time of extreme global volatility and uncertainty, in a time of rising inflation, one of the best defences the nation can deploy is a responsible budget, and that is what you will see tonight from Treasurer Chalmers and Finance Minister Gallagher.

Our response to revenue upgrades will mean that debt will be lower than previously forecast. There will be less debt than under the Liberals but more to show for it. Despite what those opposite might say, they did not leave the budget in a 'strong or improving position'. They did not. So tonight's budget—the government has had to work to find room for billions of dollars of pressures left in the budget and legacy spending that you failed to provision for. We have engaged in responsible decision-making, required to make room for the things that matter. (Time expired)