Richard Colbeck (Tasmania, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Minister, yesterday you claimed that the Albanese government had slashed spending growth. What was the rate of projected spending growth prior to the 2022 election, and what is the projected rate now after three Labor budgets?

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

I thank Senator Colbeck for the question. Whilst those opposite raise concerns about the level of inflation and spending that are occurring now in the economy, I would like to remind them that in the March budget before the election in 2022 the coalition spent $40 billion when inflation was about to reach a peak of 6.1 per cent.

Whilst we've seen inflation moderate, we've found savings, we've got the budget in better shape, we've reduced debt so that we've saved the Australian taxpayers $80 billion in interest payments and we've turned significant Liberal differences into Labor surpluses. When we have supported additional spending, it's been very modest as inflation moderates. In fact, in this last budget, I think the net spend was in the order of just over $11 billion, when inflation is half of what we inherited.

We've been finding savings, paying down debt, turning deficits into surpluses, finding savings and reprioritising across the budget—

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

Minister, please resume your seat. Senator Colbeck on a point of order.

Richard Colbeck (Tasmania, Liberal Party) Share this | Link to this | Hansard source

On direct relevance, the question was 'what was the projected spending rate growth prior to the 2022 election, and what is the projected spending rate now after three Labor budgets'. We've had—

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

Thank you, Senator Colbeck. There's no need for debate. I will remind the senator of that part of your question.

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

I was putting the context around it, which is that those opposite seem very concerned about spending now. They didn't have the same concern when inflation was much higher and they were trying to win an election, where they tried to shovel out $40 billion worth of additional spending at a time when they knew inflation was a massive problem. That is what happened. When I look at the statistics of the spending, if we look at the percentage of GDP, it is much lower. In 2022-23, you were spending at 27.2 per cent. In Labor's 2024-25 budget, it was 24.5 per cent. (Time expired)

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

Spending growth.

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

Senator Colbeck, first supplementary?

Richard Colbeck (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Is the projected level of spending in the 2024-25 financial year now higher or lower than was forecast in Labor's first budget?

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

The shadow finance minister interjects, so I'll just give the real spending growth. The average under the Liberal government was 4.1 per cent. Under our government, over six years to 2027-28, it's 1.4 per cent. What that shows is the numbers don't support the argument that you are putting. The numbers do not support the argument. You talk out of both sides of your mouth all the time. You want to spend more and spend less. You want to argue that wages spirals will cause inflation and then you complain that wages aren't growing fast enough. People see the inconsistency in your argument.

We have shown restraint. We have repaired the budget. At the same time, we've found room to support people with cost-of-living help, whether it be tax cuts, whether it be energy bill rebates, whether it be support for early education and care—both for parents and for the workers—whether it be reforming aged care. So, yes, we are tackling those important investment areas at the same time. (Time expired)

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

Senator Colbeck, second supplementary?

Richard Colbeck (Tasmania, Liberal Party) Share this | Link to this | Hansard source

On what basis do you claim to have slashed spending growth, when your government's own budget shows spending has increased by $64 billion in 2024-25?

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

There are the numbers that I just read out, Senator Colbeck—the difference between 4.1 and 1.7—for example. There's also the fact that we have found $77 billion in savings. In your last budget, I'll tell you how many savings you found: zero. We didn't have to look very hard, because there were none. There were no savings. You went on a spending spree at a time when inflation was at its highest. That is what was occurring. We came into government. We found savings. We returned money to the budget. We've lowered the debt. We've turned deficits into surpluses. We've done all of that at the same time that we've shown restraint in spending, and we've been able to meet some of the urgent pressures there were across government services and, indeed, to help people with some of the cost-of-living issues that we've been seeing over the last year or so.