Fatima Payman (WA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance, Senator Gallaher. Today, the Australia Bureau of Statistics released the national accounts for the June quarter. These accounts provide the most comprehensive snapshot of the Australian economy at the moment, what's impacting the economy both here and abroad, and how Australians are responding to those impacts. Can the minister update the Senate on what the national accounts showed, and outline how the Albanese government is already implementing policies which will support Australians who are feeling the cost-of-living pressures the most, without making inflation worse.

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

I thank Senator Payman for her excellent question on the national accounts. As senators will have seen with the release of this data at 11.30 this morning, in the face of global and domestic pressure, Australia's economy has remained resilient. The national accounts for the June quarter show that the Australian economy grew 0.4 per cent in the quarter and 2.1 per cent through the year. In the 2022-23 financial year, the economy grew by 3.4 per cent. Economic growth held up relatively well despite the impacts of high interest rates, high but moderating inflation and continuing global uncertainty, including the slowdown in China. Capital investment and services export were the main drivers of economic growth in the quarter.

The national accounts also showed that household saving is moderating in expected ways. Australians have continued to pull back on discretionary spending to make room for essentials and to cover mortgage repayments and are saving less out of their incomes. The housing-saving ratio declined to 3.2 per cent. People are also spending less on renovating their homes, which contributed to a decline in dwelling investment in the quarter.

I know those opposite don't like to talk about the economy, and I can hear their interjections. They're not interested in that; their focus is elsewhere. But, in light of some of those pressures that we're seeing across global headwinds, but also some of those domestic challenges around inflation, these results today are pleasing. We have been honest with the Australian community about some of these economic challenges, and that's why it is important to talk about these results when they come out.

Opposition Senators:

Opposition senators interjecting—

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

I'm just going to drown you out. The louder you shout, the louder I shout, and it becomes quite unpleasant, including for those listening along at home, I would say. But these are important results today. They show that our economic plan is— (Time expired)

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

Order! Order! Senator McGrath, I heard your interjection. It is not 'game on', it's question time. I have asked you to listen in respectful silence, and that is what I expect. Senator Payman, first supplementary.

Fatima Payman (WA, Australian Labor Party) Share this | Link to this | Hansard source

The national accounts paint a picture of a softening economy and show that more challenges lie ahead. Minister, yesterday, the independent Reserve Bank board made the decision to keep interest rates on hold at 4.1 per cent, which I am sure would be welcome news to millions of mortgage holders. How is the government responding to the challenges that you have outlined, and what further support can Australians expect in coming weeks to build on the targeted cost-of-living relief that has flowed over the October and May budgets?

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

Thank you, Senator Payman, for that question. We do, of course, acknowledge the decision taken by the Reserve Bank yesterday to keep interest rates on hold. But we understand that people still remain under pressure with the impact of interest rate increases that started under your watch, I would say, in the quarter where we saw inflation at the highest level. Remember that? You guys have a very, very bad case of selective memory loss.

Opposition Senators:

Opposition senators interjecting—

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

Minister Gallagher, please resume your seat. Order!

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

I'm just reminding them, President, that the highest inflation quarter was under their watch, and that is when interest rates started increasing. This selective memory loss problem that you all suffer from—this cognitive deficit that you have—

Opposition senators interjecting—

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

Minister, please resume your seat. I'm waiting for silence. I've asked for you to be respectful when people are answering the question, and yet there are persistent interjections from a handful of you. I'm asking you to listen in silence.

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

That's why the government's cost-of-living package, our economic plan, does focus on providing assistance for those cost-of-living pressures. Whether it be rent, energy bills, cheaper child care, cheaper medicines or fee-free TAFE, these are carefully calibrated to meet the challenges of the time. (Time expired)

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

Senator Payman, second supplementary.

Fatima Payman (WA, Australian Labor Party) Share this | Link to this | Hansard source

The minister yesterday said that the government was projecting a strong surplus position in the final budget outcome, which will be released later this month. Why is it crucial that we have a solid budget footing so that the government can invest in targeted cost-of-living relief measures that support Australians at a time when they need it most?

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

Thank you, Senator Payman, and thank you for your interest in the fact that the government will be delivering the first budget surplus in 15 years. This will be delivered at a time when we have provided targeted cost-of-living relief to Australians. It is important to get the budget back on track. Those opposite never really cared about that; they cared a lot about the headline, not about the delivery. We saw that with the budget. We are addressing the problems with the budget. We are fixing up terminating measures. We are making investments where we can. We are finding savings where we can. We are getting rid of the waste and rorts and putting the budget in a much better shape so that when we do need to use it, when we do need to provide additional investments that Australian people rely on, the budget is there to support those investments. We look forward to delivering that first budget surplus because it is important that our budget is in better nick for the challenges that are coming towards us. We know that it is more than just printing a set of mugs to fundraise from.