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

My question is to a minister who does care about cost of living, and that is the Minister for Finance and Minister for Women, Senator Gallagher. The focus of the Albanese government, as we know, for the past two years has been on fighting inflation, getting wages moving again and providing cost-of-living relief where we can. Providing support for annual wage reviews and addressing the gender pay gap have been a core plank of our wages and economic policy. Minister, can you please update the Senate on the data that was released by the ABS today?

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

I thank Senator Ciccone for the question and for being the big supporter he is of closing the gender pay gap and supporting women at work. We often see him playing that important role in here with his gorgeous son, who he brings in here from time to time.

President, the data today is clear. It's really important data, which we've seen released from the ABS today, that shows we have a record all-time low in the gender pay gap of 10.8 per cent. When we came to government it was 14.1 per cent. We know the important reforms that we have put in place to keep driving that gender pay gap lower and lower. In the May when we came to government it was 14.1 per cent. It dropped by 2.6 per cent. Today it's 11.5 per cent, a record low.

The Albanese government continues to work to close the gender pay gap through valuing female dominated sectors and supporting wage increases to those on the minimum wage. We remember that those opposite, when they provided a submission to the Fair Work Commission, had that little chapter that said 'The importance of low-paid work'. It was a pretty important chapter, because that supported the wage stagnation policy that they ran for a decade—'The importance of low-paid work'. We have introduced reforms to the Fair Work Act to make sure that gender equality is considered as part of the Fair Work Commission's work, but also, importantly, we're providing those significant wage increases to highly feminised industries like aged care and, in the announcement we did last week, early childhood educators.

Opposition Senators:

Opposition senators interjecting—

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

I don't know what those opposite are muttering about. I would have thought driving the gender pay gap lower and lower and lower, something they weren't able to do, is something we would all welcome.

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

Senator Ciccone, first supplementary question?

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

Thanks, Minister. That's great news for many working women. It's also great news for many men, our children and the community. With cost-of-living relief being a key priority of this government, it's not just wages that the government is focused on—even though those across the aisle laugh. Can the minister please outline other measures the Albanese government is taking to support the cost-of-living pressures that are facing many Australians in our community?

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

I can. Importantly, the new data released by the ABS today shows that the national gender pay gap is the lowest on record—today falling to 11½ per cent from 12 per cent in November 2023 and 14.1 per cent in May 2022. Under the Albanese government, women's average weekly earnings—and this number is really important—have increased by $173.80 a week since May 2022.

For those opposite that pretend they care about cost of living, this is a significant increase to women's average weekly earnings and should help—we know women are often in charge of budgets across their households; we know women feel the pinch when cost of living is high. Our work has directly led to an increase of $173.80 per week over the last two years. (Time expired)

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

It's fair to say there's more to do, but it's also very clear that this government is fighting inflation and delivering vital cost-of-living relief. This is in stark contrast to those opposite, who are all talk and no action on this issue. Minister, can you please outline what policies, like keeping wages low and the slash-and-burn approach, would be disastrous for the economy and Australian workers?

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

I thank Senator Ciccone for the supplementary. This week in the Senate, Senator Hume confirmed that a Dutton coalition government would cut billions of dollars in services that Australians rely on.

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

No, I didn't!

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

Yes, you did. You say it every time you complain about the additional spending in our budgets.

That is what you're saying. It's doublespeak.

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

Order!

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

You're trying to have it both ways. We're not going to let you have it. Every time you complain about the extra spending, you've got to explain what that means—

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

Senator Hume!

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

about pensions, what that means about JobSeeker, what that means about rent assistance, what that means about energy bill relief. Asked a number of times this morning—

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

Minister Gallagher, please resume your seat. Senator Hume?

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

Point of order, Madam President. I feel I'm being misrepresented.

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

Senator Hume, resume your seat.

I will remind you, Senator Hume, when the minister is answering, I expect silence. I called order—

You are not in an argument with me! I called order and you continued to ignore me. Minister, please continue.

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

Thank you. As our economic plan is working, we are driving down inflation, we are providing cost-of-living relief where we can, we are getting wages moving again. Women of Australia should listen to what those opposite say because they're not interested in what you earn. We have put in place measures that have ensured women get the pay they deserve and it's driving down the gender pay gap. (Time expired)

Susan McDonald (Queensland, National Party, Shadow Minister for Resources) Share this | Link to this | Hansard source

My question is the Minister representing the Treasurer, Senator Gallagher. Minister, this week you've continued to insist that the RBA finds Labor's policies to be so helpful, stating that the bank does acknowledge that energy bill price relief will put downward pressure on headline inflation. However, the RBA's chief economist stated: 'Those particular policies are only legislated for one year. By their nature, they are time-limited and temporary.' The RBA governor even talked about inflation popping back up after these temporary policies end. Does the Albanese government accept the clear advice from RBA that these short-term policies will do little to change Australia's persistent, homegrown inflation?

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

I'm not entirely sure whether those opposite are for the energy bill relief or against it. I think they were against it, and now they seem to be arguing to extend it. That's what I took from the question, so I think you're arguing to extend it. I noticed there wasn't an answer from the shadow finance minister when asked two or three times this morning about whether or not they would move to abolish the energy bill rebates. There wasn't an answer at all. They come in here and vote against it and complain about the extra spending, but then aren't able to answer the simple question of do they support it or do they not?

The reality is that when we came to government inflation had a six in front of it. It now has a three in front of it. Inflation is moderating, as the RBA has confirmed and as our Treasury forecasts confirm. The RBA has made a number of statements, including that running surplus budgets—something those opposite were unable to do despite the mugs being sent out as a fundraiser—are actually supporting the bank's work when they are using monetary policy.

In addition to that, I think the governor has pointed out that we are doing the job that we needed to do.

Well, the forecasts show, Senator Birmingham, that inflation continues to moderate.

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

Minister, please resume your seat. Minister Wong, on a point of order?

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

I ask the Leader of the Opposition in the Senate perhaps to cease his interjection against the Minister for Finance for a second—

and maybe don't call me—

Senator Birmingham interjecting—

You are going to call me that? Really? We've let it go. They are very keen to complain if others interject on them. I remember then senator Brandis threatening to throw me out.

No, I've never said that.

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

Senator Wong, I will address the point of order. I have called Senator Birmingham in particular to order and I have called the Senate in particular to order. I would remind senators that question time is a time to listen and to respond if your name is against a question. Other than that, there should be silence. Minister, please continue.

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

In the time left, it is probably appropriate that I repeat the governor's statement from 8 August, where she acknowledges that the government's job is to get inflation down but also to provide services and infrastructure that the Australian people need, like energy bill rebates, for example. Here we go, I will finish on this: 'My personal view is that they are doing what they can.'

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

Senator McDonald, first supplementary?

Susan McDonald (Queensland, National Party, Shadow Minister for Resources) Share this | Link to this | Hansard source

Minister, why are the central banks of Brazil, Canada, Chile, the United Kingdom, China, Mexico and the EU cutting interest rates when Australia is not? What is it that the rest of the world is getting right that the Albanese Labor government seems to be getting so wrong?

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

Just a moment, Senator Gallagher, I haven't called you. The minute that Senator McDonald finished her question, Senator McKenzie, you immediately interjected.

Order! That goes for you too, Senator Ayres. I expect there to be silence. Minister Gallagher.

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

Thank you very much. Senator McDonald asked about international rates comparison. Facts do matter and the facts are that inflation peaked here later than most other countries. Rates started rising here later than most other countries and they rose less here than most other countries. Facts do matter and they are the facts. We've seen around the world—and the governor herself has acknowledged this—that inflation doesn't always come down in a linear way. It zigs and zags and sometimes can be more sticky, and it is in other countries as well. We saw inflation tick up in the most recent data in the euro area and earlier in the year in North America. The important thing for Australians to understand is that inflation is moderating. Government policies are supporting that, and, at the same time, we are providing important cost-of-living relief to help through these times. (Time expired)

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

Senator McDonald, a second supplementary?

Susan McDonald (Queensland, National Party, Shadow Minister for Resources) Share this | Link to this | Hansard source

You often cite the only reason Australia's central bank is taking longer to cut rates is because, unlike many of the countries listed previously, inflation peaked later and lower than in other parts of the world. Even this logic suggests Australia should now have had at least one rate cut. How is it that Australia is still experiencing a worsening inflation crisis with no rate cut in sight?

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

It's not right to say that, Senator McDonald.

Well, it's not right! The way that she ended that question is not correct. Inflation is moderating. It is moderating in line with the forecasts. In fact, it was spot on in terms of the RBA forecast, who continue to say that they expect inflation to moderate. Those opposite might like to manufacture this crisis for their own political purposes. They were the only ones last week out there trying, hoping desperately, for an interest rate increase, hoping desperately for one.

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

Order! Minister, please resume your seat. Senator McGrath, I have called you out personally a number of times. Minister, please continue.

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

But the reality is inflation continues to moderate. Our policies are supporting that. We are providing cost-of-living relief that puts downward pressure on inflation but helps family budgets at the same time. Our policies are working. They will continue to work, and we will continue to support Australians.