Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Minister, you told the Senate last week that the Albanese government was 'pleased' with the national accounts data released on Wednesday of last week. Will you explain how the government can be pleased that Australia is experiencing a per capita recession?

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

We were pleased with the result and, as I said at the time, I think, the results were better than many commentators had expected—stronger—

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

Senator Scarr, I have called you on numerous occasions. I am asking you to listen in respectful silence.

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

that the economy's growing, and it's growing faster than the economies of many of the countries that we often compare ourselves with. So, overall that is good news.

We have never, ever pretended that there aren't challenges facing the economy. There are. From day one, since I started answering questions in this place, from the beginning of this government, we had inherited an economy with rising inflation, high inflation and rising interest rates, and we had to deal with that. We also had the effects of the borders opening after COVID and the faster return of international students than I think most expected. This has set a challenge for the economy, but we are dealing with it. The fact that the economy is growing is good news—a view that I would have thought everyone in this place would share. I would have thought it is something that those opposite would also accept is a good result. In light of the challenges facing the economy—some of them domestic, some of them related to the global situation—I would have thought that that is something all of us in this place would think is a reasonable result.

I'm not saying there aren't challenges, because there are, and we should have our eyes open on those. We're seeing inflation moderate. That is a good outcome; that is a good result. We're seeing wages starting to get moving. Again, that is a good result. We've got the opportunity that will come with the transition to a cleaner and greener economy. There's no doubt that there are challenges, but those national accounts last week spoke to the strength of our economy and its performance overall.

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

Senator Smith, a first supplementary?

Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

Again noting the Albanese government's positive view of the national accounts, can you confirm that the household savings ratio is the lowest level since July 2008? And can you tell the Senate what is pleasing about the household savings ratio declining to the lowest level since Labor was last in power, 15 years ago?

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

Well, I think you're selectively interpreting my comments. I have said that we were pleased with the results but that there were challenges, and there are challenges going forward. So don't stand up here and pretend I have said otherwise. Household savings are reducing, and that shows the impact of higher interest rates than we've had for some time. People are dipping into their savings. We've acknowledged that, which is the reason for our cost-of-living package—which I would remind those opposite, who are very quiet, that they have opposed every step along the way, whether it be cheaper medicines, cheaper energy or our investment in housing. Every which way that we have gone, you have opposed those cost-of-living measures. They're to make sure that households can deal with the higher inflation environment and the impact that high interest rates have had on household budgets. So it is not surprising that we're seeing a dip in household savings based on the economic circumstances right now.

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

Senator Smith, a second supplementary?

Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

The national accounts confirm that Australia experienced its largest fall in terms of trade since the June quarter of 2009 and that households across the country have been forced to cut discretionary spending and pay more for essential goods as a result of inflation and interest rate rises under the Albanese government's watch. Minister, what can be pleasing about any of this?

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

Those comments were relating to the fact that the economy is growing overall. Again, I would say—and those opposite know this, because they handed government over in this state—that the quarter with the highest inflation happened under your watch.

That's what happened. Let's not just pretend—the way the question was placed was that this happened under Labor. The highest inflation started under your government. The interest rate increases started under your government. The interest rate increases to deal with the high inflation started under you. That is the truth, okay? And we are dealing with it, just like we're dealing with every other area of government that you left in disarray through your disinterest and your disunity. You neglected your role as the government in charge, and we are fixing up every single area of government we inherited.