Nita Green (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance and the Minister for Women, Senator Gallagher. We know that many Australians are doing it tough right now, and that is why our budget focused on providing cost-of-living relief to all Australians, whilst putting downward pressure on inflation. Can the minister please outline the cost-of-living relief that was in the budget? What further cost-of-living measures has the government taken to support Australians since 1 July?

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

I thank Senator Green for that question and for the opportunity to update the Senate about the measures the government is taking to ensure that we're providing as much cost-of-living relief as we can, whilst also tackling the inflation challenge in the economy.

In the budget we had tax cuts for every taxpayer, not just some. We had energy bill relief for households and small businesses, which will start rolling out now. We're backing a third consecutive pay rise for Australia's 2.6 million low-paid workers, those that rely on the minimum wage. We've invested more into Medicare and into cheaper medicines, making it cheaper for people to buy those medicines, particularly people on long-term medications. We're waiving $3 billion in university debt for more than three million Australians; increasing rent assistance for nearly one million households; legislating, importantly—and this is something that many on this side of the chamber have lobbied for—for super to be paid on paid parental leave so that workers, predominantly women, when they take the PPL, are not penalised further for time out of the paid workforce; extending the deeming rate freeze for 876,000 income support recipients; and getting a fairer deal for consumers at the supermarket checkout.

The numbers also show that we are managing the economy better than the coalition ever did. We have delivered back-to-back surpluses. Gross debt will peak 9.7 percentage points lower than what the opposition forecast. Because we worked hard to reduce that debt, Australians will pay $80 billion less in interest costs. We've slashed the coalition's spending growth. Inflation remains a challenge, but it is less than half its peak and is much lower than the 6.1 per cent rate we inherited at the election. Wage growth is almost double, and Australians now have a government that supports wage growth through the Fair Work Commission processes. And we've created nearly 930,000 jobs since the election. (Time expired)

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

Senator Green, first supplementary?

Nita Green (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Thank you very much, Minister. The Albanese government respects and values the work of our early childhood educators in caring for our children and making sure they get the best start in life. Under Labor's pay rise, childcare workers will, on average, have $107 more in their pay packet each week. Can the minister please outline how this initiative will also save money for parents who have kids in child care?

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

I thank Senator Green, and there may be a little bit of self-interest there for someone with real-life experience of having a little one in early childhood education and care! But last week we were very pleased to announce our investment in early childhood educators and in ensuring that they are paid properly but also that, importantly, those increased wage costs that come with that aren't going be footed by parents around this country. They're already paying a significant amount for their children to be in these centres, so it was important that government provide further assistance.

This ensures that that highly feminised workforce—over 90 per cent of the workers in that workforce are women, and it's no surprise that it's been underpaid and undervalued for too long. This addresses that but also puts a cap on the increases that centres can charge parents, because we don't want parents footing the bill for these additional investments.

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

Senator Green, second supplementary?

Nita Green (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Thanks, Minister. Like you and others on this side, I am so proud to be a part of a government that's so focused on early childhood education and care. Can the minister please outline why the government has been so focused on cost-of-living relief? And what would have been the impact on Australians if the government had taken a slash-and-burn approach to the budget?

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

I thank Senator Green for that question and for the opportunity to imagine what it could have been like if we didn't have a government that was serious about tackling inflation and, at the same time, ensuring that it was providing the services and investments that our community needs. That's why the tax cuts for every taxpayer were important. It's why our jobs growth has been such an important part—more people in work, earning good money. That's why we pushed so hard for improvements in wages growth, particularly in aged care and child care, those highly feminised industries which have been underpaid for too long. We are addressing that.

Based on what those opposite have told us, we would have had lower pensions; pensioners would have had to pay. We would have definitely had higher power prices, and we know that because they didn't support energy bill relief. We would have had people paying higher taxes. In particular, those on middle and lower incomes would have been paying higher taxes, and there would have been lower wages. So it's those three things together: higher power prices, lower wages and higher taxes. (Time expired)