Jess Walsh (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance, Senator Gallagher. The Albanese Labor government is doing all it can to provide cost-of-living relief to Australians. From tax cuts to power bill relief, our policies are providing relief whilst putting downward pressure on inflation. Since we last met, the government has continued its work to get a fair deal for Australians at the supermarket, supporting the ACCC to crack down on misleading and deceptive pricing practices. Minister, how is the government continuing to provide relief to Australians, and how are Labor's back-to-back surpluses enabling the government to support Australians?

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

I thank Senator Walsh for the question and for focusing on the cost of living and the impact it's having on Australian households. We acknowledge that people are under pressure, but they would be under even more pressure if those opposite had had their way.

Our economic plan is all about helping Australians earn more and keep more of what they earn, and our policies are making a difference. We've delivered a tax cut for every taxpayer, and that relief is seen in every fortnight's pay cheque. We've delivered energy bill relief with $300 for every household and $325 for small business. We've increased rent assistance. We've made medicines cheaper by freezing co-payments and including support for concessional payments. We're reducing student loans and providing prac placements for students for the first time ever. Thousands of Australians are now attending TAFE thanks to our fee-free TAFE policy, with an additional 20,000 places from 1 January.

Of course, since we last met, we've had the final budget outcome, and the Albanese Labor government have delivered the first back-to-back budget surpluses in more than two decades. We don't do this as an end in itself, although the ability to deliver a surplus was something that, of course, eluded those opposite. Despite the 'Back in black' mugs that were commissioned, the i's were never dotted and the t's were never crossed. The fact that we have done that is not an end in itself. It's a responsible way for the government to make sure that we are showing spending restraint, getting the budget in much better shape, lowering debt at a time when inflation is higher than we would like, lowering our interest payments and making sure that we do have and can have the budget flexibility to respond should we need to in the future.

These surpluses are about fighting inflation and making room for that cost-of-living relief. (Time expired)

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

Senator Walsh, first supplementary?

Jess Walsh (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Without the Albanese Labor government, it's clear that a coalition government would've forced Australia into recession. There would be fewer jobs, lower wages and higher taxes. Minister, how has the government struck the balance of maintaining jobs while putting downward pressure on inflation?

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

I thank Senator Walsh for that question too because this has been the approach of the government, trying to make sure that we're able to maintain as many people in jobs as possible. We've seen such resilience and strength in the labour market, and that's a great outcome.

But, at the same time, we're making sure that we don't add to the inflation challenge. Again, in other countries as inflation has moderated, we've seen the unemployment rate tick up quite considerably. We haven't seen that to that degree in Australia, and that should be something that this chamber welcomes universally—more people holding onto those jobs, getting paid better in those jobs and having the tax cuts come through their pay cheques.

We have been working, and our whole fiscal plan has been about making sure we do balance those competing priorities but also making sure we provide that cost-of-living relief which we see flowing through to households right now.

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

Senator Walsh, a second supplementary?

Jess Walsh (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

The cost of living is the No. 1 issue that people raise with me across my state of Victoria, and so it's good to hear that the Albanese Labor government continues to provide relief whilst getting the economy back in order. What economic challenges have you and the Treasurer confronted since coming to government? What policy changes have you implemented to improve the economy?

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

When you've finished, Senator Hume.

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

I'm very tempted to take that interjection because our balance sheet is a lot stronger than it was when we came to government. We have lowered debt, we have lowered interest payments on the debt, we have delivered two surpluses and we are putting investments where we can to grow the economy in a productive way. That is through some of those initiatives like the Future Made in Australia, like the National Reconstruction Fund and like all of our policies targeted to increase productivity, to make sure the budget's in much better shape. And we work hand in hand with the Reserve Bank as inflation remains higher than we would like.

But we have also managed to ensure that we reshape the tax cuts. We've been getting wages moving again. We've got women taking up more hours at work and returning to the workforce, with some of the support around our childcare subsidies. The gender pay gap is closing in a faster way than we've seen in some time. These are all policies that are measured to support the economy. (Time expired)