Jess Walsh (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Can the minister outline how the Albanese government's second budget addresses the cost-of-living pressures facing Australian households, many of whom are struggling right now?

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

I thank Senator Walsh for the question. I can, and thank you for the question on the budget. We understand that the rising cost of living is hitting a lot of Australians hard. Australians with mortgages and Australians who rent are facing spiralling housing costs, as are groceries and prices for other services as well. Many Australians are struggling right now.

That's exactly why the budget was carefully calibrated to take pressure off the cost of living for average Australians, rather than adding to it. And the centrepiece of our second budget was the $14.6 billion cost-of-living package. This budget provides responsible relief to Australians that need it most and undertakes some long overdue structural reforms that will set this country up to be fairer and more equal. It strikes the right balance between restraint and targeted cost-of-living relief, sustainably funding the services Australians depend on now and into the future and positions Australia to make the most of new opportunities.

Our policies to ease cost-of-living pressures are expected to directly reduce inflation by three-quarters of a percentage point in 2023-24. In terms of those cost-of-living measures, there's the record investment in bulk billing, supporting 11.6 million eligible Australians to access a GP with no out-of-pocket costs; the cheaper medicines via changes to pharmacy maximum dispensing quantities, which will reduce the cost of medicines by up to half for at least six million Australians—you'll be hard pressed to find an Australian who wants to pay more for their medicine—and our energy price relief plan, which is up to $3 billion in electricity bill relief through the Energy Bill Relief Fund to take pressure off households and small businesses in partnership with state and territory governments. This will benefit more than five million eligible households and one million eligible small businesses. Plus, we are providing assistance to the most vulnerable Australians with increases to payments. (Time expired)

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

Senator Walsh, first supplementary?

Jess Walsh (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Can the minister explain how the government's economic plan is addressing cost-of-living pressures rather than adding to them due to the complex and ever-changing economic pressures and world events right now?

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

I thank Senator Walsh for her question. The Albanese government's economic plan is carefully calibrated to provide targeted relief to those that need it most whilst not aggravating inflation. The May budget was very carefully designed with this in mind and has successfully walked this line between giving a hand to Australians in need and not causing inflation. In fact, Danielle Wood, head of the Grattan Institute, told the Sydney Morning Herald on 10 May:

They've managed to walk that short-term line between giving some relief, particularly to the most disadvantaged households, and not substantially adding to inflationary pressures.

Inflation will still be higher than we'd like and more persistent than ideal but down from where it would have been. We're making a meaningful difference to families and individuals around the country. These cost-of-living pressures have been largely driven by Russia's illegal war in Ukraine, and they have been made worse by a decade of wasted opportunities from the previous government, with its energy policy chaos and failure to address the nation's skills shortages. (Time expired)

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

Senator Walsh, second supplementary?

Jess Walsh (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

or WALSH () (): Can the minister detail the work the government is doing to ensure it can continue to address cost-of-living pressures going forwards?

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

I thank Senator Walsh for her question. Yes, I can. We are putting a lot of work into improving the budget overall. As people will remember, we inherited a budget heaving with debt and with deficits as far as the eye could see. Now, we are improving the budget, we're returning revenue upgrades to pay down the debt we inherited, we're forecasting a surplus, we're investing in the services that are needed now and we're setting things up for the future. All of this is about providing the room to make sure that our budget can invest in programs which continue to support Australian households and easing their cost-of-living pressures.

This is responsible economic management. It's responsible budget management. I know it pains those opposite that we are managing the budget in an adult and responsible way, but that is what the people of Australia expect us to do and that is what we are doing. (Time expired)