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

My question is to the Minister for Finance, Senator Gallagher. Given the Albanese Labor government's recent May budget was another significant step in laying the foundation for a stronger economy into the future, after a wasted decade, can the minister please provide an update to the Senate on how the measures outlined in the budget are supporting the Albanese Labor government's economic plan? How is our plan and the recent budget helping to deliver record employment growth, lift incomes, build a more prosperous and resilient economy and cleaning up the mess left behind by those opposite?

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 and for her excellent chairing of the Senate Economics Committee.

The Albanese Labor government's recent May budget was, indeed, a significant step in laying the foundation for a stronger economy into the future. It was a budget that targeted cost-of-living relief. It targeted Medicare and the care economy. It looked at inclusion and equality. It focused on growth in energy, technology, small business and, of course, and importantly, under my portfolio as the Minister for Finance, responsible budget management and, more broadly, responsible economic management. It's a budget that was about jobs, about growth and about fairness.

We've seen record employment growth, with wages growing faster and more people getting wage rises since we came to office. Our plan and the recent budget have helped to deliver record employment growth, lifting incomes and building a more prosperous and resilient economy. We have seen wages grow by 3.7 per cent over the year to March quarter, the fastest growth in over a decade. It's unsurprising, considering it was a deliberate design feature of the former government's economic architecture to keep wages low. We've also seen 60 per cent of jobs record a higher wage rise than the year before—the highest proportion on record and around double the pre-pandemic average. This is not by accident but by design, because our policy isn't to keep wages low like those opposite. It's a testament to our commitment to not only create jobs but also ensure that these jobs are well paying and secure. You can see that the single biggest investment in the budget was in our aged-care workforce to ensure that they receive the wage increases that they deserve for the work that they do, caring for elderly Australians. We also had our $14.6 billion cost-of-living package, with support around energy bills, reducing out-of-pocket health costs, income support payments and the single biggest increase in Commonwealth rent assistance. (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

Thank you, Minister, for that comprehensive response. It's clear that the Albanese Labor government's economic plan and the recent budget are delivering significant benefits for all Australians. Can the minister further elaborate on how the government is supporting businesses and industries to grow and innovate, particularly in sectors like energy and technology, and how these initiatives are contributing to job creation and to economic growth?

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

I thank Senator Walsh for that supplementary. As I said in my earlier answer, our growth agenda was a key part of the May budget. And those opportunities are there, of course, in the energy transition, securing cleaner and cheaper energy, a cleaner energy future, and the jobs that will drive that transition in technology and, of course, in our support for small business.

Our economic plan includes a range of measures designed to foster innovation, boost productivity and create well-paid secure jobs. We are investing billions in the National Reconstruction Fund, targeting industries of the future, such as hydrogen, to drive economic growth and create new jobs. Furthermore, we're investing in the skills and capacities of our people, with policies like fee-free TAFE and vocational training, to ensure that our workforce is equipped with the skills needed for the jobs of the future. These investments, amongst others, are part of our commitment to supporting business and industry. (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

Thank you again, Minister, for another comprehensive response. The measures you've outlined are indeed making a significant difference in the lives of Australians. Can the minister further elaborate on the government's actions to alleviate cost-of-living pressures for Australians, and could you also shed light on alternative approaches to these crucial measures and the impact those approaches are having on Australian households?

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

I thank Senator Walsh for the supplementary. We are acutely aware of those cost-of-living pressures facing many Australians, which is why finding ways to ease cost-of-living pressures without adding to inflation was one of the key priority areas of focus in the May budget. In addition to those areas I've already mentioned, the government has acted decisively in the area of housing, bringing together states and territories through national cabinet to look at what we can do to make sure that we are making a difference where we can, where the Commonwealth has responsibilities, to ease a real area of pressure for many Australians, and that is around housing supply and making sure we're working with states and territories to get as much affordable housing supply and affordable rental housing supply in place as soon as possible. As we come to the end of this sitting fortnight, I again urge those standing in the way of the Housing Australia Future Fund to get behind it and support it.