Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Australians needed a budget that addressed the causes and not the symptoms of Labor's homegrown inflation by increasing the supply of energy and housing. Instead, Australians got a budget that, in the words of independent economists, was 'extremely expansionary', 'smoke and mirrors' and 'a political trick'. Minister, isn't your budget simply a political sugar hit, rather than addressing inflation at the source—a bandaid on a bullet wound?

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

I thank Senator Hume for the question. I think yesterday I used the word 'audacious' for one of the questions I got asked by the opposition. But, really, honestly, to come in here and ask that after everything this government, in two years, has done on stabilising the energy system in this country, driving renewable energies after decades and—how many policies was it; 22 policies? You had 22 policies and not one of them landed. You wasted a decade fighting amongst yourselves rather than putting the nation's interest at heart and front of mind. That is what we have done, since the moment we came to government.

If there are two stark areas where we have been the opposite of how you behaved in government, wasting a decade, it is energy and housing. In two years, what we have done in terms of energy policy, in terms of energy bill relief, in terms of the caps—all of that you voted against. On the Housing Australia Future Fund, how did you vote on that? You opposed it. Everything we have done to increase housing supply in this country after a decade of no interest from the Commonwealth other than a suggestion—which we might see again tonight—to ransack super so that young people don't leave with any retirement savings and so that you inflate housing prices across Australia. We'll see that rejigged tonight, no doubt.

This budget puts the Australian people and the national interest right at the centre of our decision-making, whether it be cost-of-living relief without adding to inflation or dealing with the many challenges that we inherited, including in energy policy and housing policy, which had been abandoned by you when you were in government.

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

Senator Hume, first supplementary?

Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

Paul Bloxham, the chief economist at HSBC, said of this government's budget:

We expect some of this additional income will be spent, supporting consumer demand and adding to inflation.

Stephen Halmarick, of CBA, said:

The risk is now more real the first interest rate cut could be delayed …

Do you disagree, Minister, with independent economists of every stripe that have said that your budget is simply going to mean that interest rates stay higher for longer?

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

We stand by the inflation forecasts that are outlined in our budget. They incorporate the decisions that we have taken in this budget, Again, we'll hear from the Leader of the Opposition tonight about whether there are any decisions that he supports or whether he's going to continue with his negativity and no plan for the country by voting no to everything, including the $300 energy bill relief. That energy bill relief will put downward pressure on inflation, as will the assistance we're providing through Commonwealth rent assistance, which was overlooked by those opposite. You didn't really care about the people who rely on Commonwealth rent assistance when you were in government. We have increased it twice in two years, the first time that that's been done in 30 years. That provides much-needed assistance to those households and puts downward pressure on inflation. We're also capping the price of medicines so those who rely on medicines won't have any increased costs there. We're focused on the people, focused on the economic challenges that we face and focused on the future.

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

Senator Hume, second supplementary?

Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

This government has had three budgets now to address the causes, not the symptoms, of inflation—getting energy prices down by injecting more supply, streamlining approvals to deliver more houses and lowering aggregate spending to put real downward pressure on inflation. This budget is propped up by the hard decisions of Australian families, who are paying more for everything. Minister, when will you make the hard decisions so that Australian families don't have to?

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

I would like to remind those opposite that inflation was over six per cent when we came to government. Interest rates had begun increasing, and inflation now has a three in front of it and is projected to have a two in front of it. So all this rubbish that they go over about how we are exacerbating inflation—we have halved it! The quarter with the highest inflation was under your government. We have been dealing with this every single day since we came to government. We have found savings in the budget. We have delivered two surpluses—well, one and we have another one in sight. The first government to do that—

Opposition Member:

An opposition member interjecting

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

If it was so easy, why didn't you do it? If it was so easy, why did it elude you? You had a decade with no surpluses. We have made savings, lowered debt, lowered interest on that debt, delivered surpluses, and inflation is half what it was when we came to government.

Raff Ciccone (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. I note the Treasurer's comments on Tuesday night that one of the most important things about Australia is the way we look after each other. Could the minister please inform the Senate how the Albanese Labor government's budget will ease cost-of-living pressures for millions of Australians and in particular what the government is doing to build on its impressive record of supporting these Australians by strengthening Medicare?

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

I thank Senator Ciccone for his question. He, like every senator on our side, understands the importance of Medicare. We are the party of Medicare, and Labor is the party of stronger Medicare. That is who we are. Tuesday's budget only reinforces that fact. We on this side understand that Medicare goes to the heart of who we are as Australians. We understand that everyone deserves access to affordable health care, to accessible health care, to quality health care. This is why we have announced we will be funding 29 more Medicare urgent care clinics across the country.

Earlier this year, in South Australia, I visited the Marion urgent care clinic with the fantastic member for Boothby from the other place. I saw firsthand the role of these clinics in taking pressure off our emergency departments and in making care more affordable and more accessible to more Australians. This is a good thing. This is another good policy those opposite don't support. Not only have we established more than 50 of these clinics; there are more on the way. In this budget and in previous budgets you've seen Labor's commitment to stronger Medicare, tripling the bulk-billing incentive. We've made medicines cheaper, also opposed by those opposite, and we are freezing the cost of PBS medicines.

Those opposite might remember that Tuesday's budget was 10 years on from the infamous 2014 budget—10 years on from what might have been Mr Dutton's only real idea when it comes to health care. His one idea as health minister? Make Australians pay more, tax medicines, tax patients going to hospitals and impose a GP tax. That's what Mr Dutton really thinks about Medicare. No surprise that this bloke was voted by Australia's doctors as the worst health minister in a decade. (Time expired)

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

Senator Ciccone, first supplementary?

Raff Ciccone (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Thank you, Minister. Along with health costs, people in my home state of Victoria tell me that energy prices are a major driver of the cost-of-living pressures they are currently facing. Can the minister please update the Senate on the effect the government's energy price relief has had on inflation and how the 2024-25 budget adds to this relief?

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

From 1 July this year everyone who has an electricity bill will receive an energy bill rebate under the Albanese Labor government. We're building on our 2022 energy bill relief by delivering all households a $300 credit to be automatically applied to their electricity bills. Over 10 million Australian households will benefit.

Opposition Senators:

Opposition senators interjecting—

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

I hear the complaint from those opposite. I hear them yet again not wanting to support cost-of-living relief for Australians. They are true to form; they keep opposing it, just as they have always opposed higher wages for working people. They always want to make people work longer for less. We actually want people to have good wages, and we also want to help people with cost-of-living relief—something those opposite have never been prepared to support in this place. Tonight we will see what they're really about.

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

Senator Ciccone, second supplementary?

Raff Ciccone (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Thank you again, Minister. Noting the Albanese government's No. 1 priority is taking pressure off Australians, can the minister please explain how the government's responsible economic management is helping to do just that while at the same time building a much more secure future for all Australians?

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

The budget the Treasurer handed down on Tuesday night is a responsible budget. It's a budget that helps Australians under pressure today and invests in our future. We are projected to produce another surplus. We are continuing to fight inflation, we are continuing to help Australians with the cost of living, and we are investing in a future made in Australia to grasp the opportunities of the future. We will build more homes, and we will continue to support Medicare.

And what do we hear from those opposite? They seem to think that 'no' is a plan. 'No' is not a plan—I hate to break it to you. We've already heard them, including today, saying there's too much spending. Well, you know what? It's time to front up and to fess up. It's time for you to tell Australians what you're going to cut. What are you going to cut? What are you going to oppose? It's time for you to be upfront with Australians. Are you going to front up? What are you going to oppose? What are you going to— (Time expired)

Andrew Bragg (NSW, Liberal Party, Shadow Assistant Minister for Home Ownership) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Aspiring homeowners were the biggest losers in Tuesday night's budget. There is no support for first home buyers or any initiatives to address the drain on supply. Labor remains blind to the impact of record levels of migration and booming construction costs, which are locking Australians out of the housing market. IFM Investors's chief economist, Alex Joiner, says 'the overwhelming consensus' of economists is that the budget drives inflation, which will hurt aspiring and current homebuyers by keeping interest rates higher for longer. Why did Labor have no policies at all that support homeownership in this budget?

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

Oh my goodness!

Government Senators:

Government senators interjecting—

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

Order! Order on my right!

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

I welcome the question. I thank Senator Bragg for giving me the opportunity to talk about the Homes for Australia Plan. It may have passed him by as he was developing, hand in hand with the Leader of the Opposition, a rehash of the super raid that he'd like to see young people forced to do to get into homeownership, which we expect we will see tonight—a rehash of an old idea that will do nothing to enable younger Australians to get into homeownership. I can talk to you about all of the initiatives.

Over the next six years, we will be investing around $32 billion in a range of programs, including programs that support people into homeownership, like the shared equity Help to Buy scheme, like the regional homeownership scheme—which I think has been so successful. In addition to that, we're driving supply of new housing across the country, working with states and territories. Maybe Senator Bragg didn't see that we put more money in to get more homes built sooner, working with states and territories. I know it's something that those opposite never did in government. They always liked to divide and have fights with states and territories, but we find that it's much more productive for the Australian people if we are able to work with those that make decisions about planning to build more houses.

There is no government in the history of the Federation that has done more and is doing more to drive housing supply in this country. We have our eye on this—this is a major challenge, one that we inherited after a decade of absolutely no action from those opposite—whether it be supportive accommodation, whether it be accommodation for women, whether it be looking at ways to support the provision of rental accommodation, whether it be assistance through Commonwealth Rent Assistance and more. (Time expired)

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

Senator Bragg, first supplementary?

Andrew Bragg (NSW, Liberal Party, Shadow Assistant Minister for Home Ownership) Share this | Link to this | Hansard source

While more Australians sleep in tents and cars, the Labor government has continued the big lie that it will achieve its 1.2 million—

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

Senator Bragg, you will need to withdraw that.

Andrew Bragg (NSW, Liberal Party, Shadow Assistant Minister for Home Ownership) Share this | Link to this | Hansard source

I withdraw—continued the mistruth that it will achieve the 1.2 million homes target by mid-2029. Why is the government ignoring its own Labor premiers, such as New South Wales Premier Minns, who have repeatedly told them that this target is totally unachievable under Labor's current policies?

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

I will essentially start where I finished around working with states and territories. We remain committed to our target for 1.2 million homes. We have the Housing Australia Future Fund, which is going to build 30,000 homes. Where the states and territories raise issues with us we respond, and you've seen it in this budget. We've put more money in to get more homes built sooner. We've finalised the national agreement on social housing and homelessness. We're directing more money towards crisis and transitional accommodation. These are all issues that have been raised by the states and territories and dealt with in this budget. We are also dealing with skills development to make sure that we are getting the workers into the jobs that we need in the construction workforce, including 20,000 new fee-free TAFE places.

Tonight, when that Leader of the Opposition stands up, he should outline his plan, and it should go beyond raiding your superannuation. What are you going to do about jobs? How are you going to find the skills and how are you going to deal with the challenges in the housing market? (Time expired)

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

Senator Bragg, a second supplementary?

Andrew Bragg (NSW, Liberal Party, Shadow Assistant Minister for Home Ownership) Share this | Link to this | Hansard source

It's not only the Labor state premiers who agree that Labor's housing policy is a shambles. In fact, the National Housing Supply and Affordability Council—your own committee—recently reported that Labor's target 'will not be achieved'. Minister, when will the Labor government be honest about the housing crisis and the failure of your own policies?

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

We are certainly very honest about the challenges in the housing market. I don't think anyone pretends they aren't there. We will also be honest about what we inherited when we came to government, which is absolutely zero attention to this for a long period of time. State and territory leaders told us that. They told us that the Commonwealth, under your government, did nothing—wasn't interested, didn't deal with them, didn't provide them any support in order to deal with this.

We have more programs. We remain committed to the target. It is a challenge, but it's a challenge that we are going to have to meet, and we will work with the states and territories to meet it. Our programs are rolling out now. The Minister for Housing is doing an incredible job. There is housing being opened almost every week, across this country, thanks to some of the programs that the Commonwealth has supported, including that we're helping more than 110,000 people into their own homes through the expanded Home Guarantee Scheme. (Time expired )

Nick McKim (Tasmania, Australian Greens) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Minister, Labor's budget entrenches economic inequality and exacerbates the climate crisis. It does little to help people getting smashed by cost-of-living pressures but lines the pockets of Labor's corporate donors—property developers, banks, coal and gas corporations and supermarket giants. Why have you locked in obscene levels of expenditure on things like AUKUS, tax cuts for the rich and subsidies for burning fossil fuels, rather than raising the rate of JobSeeker and youth allowance, capping rents, wiping student debt or putting dental and mental health into Medicare? How can you justify a budget that so clearly prioritises corporate greed over people doing it tough and the health of our planet's climate and ecosystems?

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

I completely disagree with the question that Senator McKim asked. I think it's not an unexpected question from the Greens political party, who see things in such black-and-white ways.

We have, in this budget, focused our priority on cost-of-living relief. We have done, over three budgets, more than, I think, any government—certainly in recent times—around improving payments, responding on rent assistance, making child care cheaper and expanding Medicare so that more people can see a doctor without paying. Our urgent care clinics have been used, with around 400,000 presentations to those clinics, where people don't have to pay. The work we have done in medicines, to keep medicines low, and the work we're doing in housing, to generate crisis, affordable and social housing, is all aimed at people doing it tough.

In terms of the shift to renewable energy, I would have thought that there were things in this budget that would have got a bit of an applause from the Greens political party—the shifting of focus with the Future Made in Australia, under the 'renewable energy superpower', to try and promote new industries, new jobs and new opportunities in clean energy, with hydrogen and critical minerals. This is the first budget that puts a serious investment in those new energy sources, and we have not changed any arrangements. Listening to your question, it's like we've found new money to put into older industries or new areas. That's not true. There are areas under the tax system which remain in place. But, at the same time, we are trying to incentivise new jobs and seize the opportunities that come with a shift to a net zero economy. I would have thought that, even if you named all the other areas, you would support at least that area in this budget.

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

Senator McKim, first supplementary?

Nick McKim (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Minister, in the face of dire warnings about the health of our planet's climate and the need to move rapidly away from fossil fuels, how can you defend the budget's decision to increase gas production, which underpins so much of the budget? How can you continue to justify approving new coal and gas mines and destroying native forests? How can you look Australians in the eye and tell them that you are caring for their future?

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

I think any reasonable person who would look at this budget would see exactly what the government is trying to do: show leadership and incentivise and support communities on the shift to net zero, whether it's the planning that the Net Zero Economy Authority is going to do in areas of this country where workers and communities will be affected, to support them through the transition, or whether it's in promoting new opportunities for industry and business to get involved. I'm sure that those here would have to recognise that, in the two years that we have been here, we have done more not only to support the transition to net zero but to address climate change and to deal with some of the challenges that we've inherited in the environment department and in the environment policy space that had, again, been left unattended after a decade of wasted time; it was not addressing the issues that the Australian people face. We are doing this. Every single budget we tried to shift the dial— (Time expired)

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

Senator McKim, second supplementary?

Nick McKim (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Saying you're doing better than the previous government is clearing an extremely low bar. Minister, in the face a cost-of-living crisis pushing Australians to the brink, why are you failing to tackle rampant profiteering and price gouging by corporations? Will you work with the Greens to make price gouging illegal or introduce a corporate superprofits tax to rein in profiteering and put downward pressure on inflation? If not, why not?

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

Again, this is a question I think Senator McKim has asked me in various ways over the last two years, and my answer remains the same. We have outlined our plans in relation to tax reform. There are a number of those bills that currently sit before the Senate. That is our focus. Of course, the main priority was to get the tax cut legislation, with every Australian getting a tax cut on 1 July this year. That has been our focus. It remains our focus with the bills that are before the parliament. In relation to some of the work that has been happening on the supermarket front, which I think is the other part of Senator McKim's question, there are a number of pieces of work underway, including the work that the consumer group CHOICE is doing around providing transparency and comparison reports on a quarterly basis for the next three years. There's the work that Dr Craig Emerson has done, the work that the ACCC is doing and the work that the Senate is doing as well.