Marielle Smith (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. The Albanese Labor government's economic plan is all about helping people with their cost of living whilst fighting inflation. We're working hard to bring costs down for households, push wages up and get inflation back where it should be. The minister and the Treasurer have been taking measures to repair and reform the economy to achieve these objectives for all Australians. What steps has the government taken to support the economy after a decade of neglect under the Liberals and Nationals?

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

I thank Senator Smith for that excellent question. I can update the chamber on all of the steps we've been taking to get the budget in much better shape to make sure that we can invest in those key essential services that Australians value, like Medicare, aged care and the NDIS. We wanted to make sure, when we came to government, that we were dealing with all of the problems we'd inherited. We had falling living standards. Interest rates were increasing. Inflation was going through the roof—

Let's just remember your record: 10 years of failing to deal with any of the big policy challenges, like energy—remember that, Senator Birmingham? How many policies were there? Twenty-two, from memory, and you didn't land one of them. There could be 23. We could be dealing with 23, now that they've all gone quiet on their nuclear policy. We have found $80 billion in savings. We've delivered two surpluses, which I know is particularly important for Senator Hume—two surpluses, to the former government's zero surpluses. We've delivered bigger tax cuts, cheaper child care, energy bill rebates, student debt relief—now there's something that you never, ever dealt with in government—and fee-free TAFE. Who, possibly, could vote against people getting access to training without having to pay for it? Who possibly could? Someone in this room does—you! You oppose it, unbelievably. More bulk-billed GP appointments, cheaper medicines—again, who in this place could vote against cheaper medicines? Have a look around, and, yes, it's you, again! Cheaper medicines—

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

Senator Gallagher, please resume your seat. Senator Henderson.

Sarah Henderson (Victoria, Liberal Party, Shadow Minister for Education) Share this | Link to this | Hansard source

A point of order. I am just asking if the minister could direct her comments through the chair.

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

I think the minister is directing her comments through the chair, Senator Henderson.

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

The largest increase to rent assistance in 30 years and the largest investment in social and affordable housing in more than a decade, because those opposite don't believe in social housing. (Time expired)

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

Senator Smith, first supplementary?

Marielle Smith (SA, Australian Labor Party) Share this | Link to this | Hansard source

The Albanese Labor government will deliver the Mid-Year Economic and Fiscal Outlook towards the end of the year, outlining the state of the budget. What has the government done to respond to spending pressures and deliver cost-of-living relief in the budget?

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

I thank Senator Smith for the supplementary. The Treasurer and I have made no secret, since coming to government, that pressure is building on the budget in a number of areas, primarily in areas like the NDIS, aged care, defence and servicing the debt that we inherited—almost a trillion dollars in debt. These are the big areas of pressure in the budget. We're dealing with some of them. We've got some reforms done with NDIS. We got the big Aged Care Bill through last week. We are managing a couple of those big areas of pressure, but there's still more work to do.

I would say to those opposite that always complain about spending in the budget: the biggest movement in the budget this year—$6½ billion—was an increase in veterans compensation payments. Why was that? It was because we actually staffed the Department of Veterans' Affairs so they could process the veterans entitlements and deal with the backlog we inherited from those opposite. And were you seriously talking about cutting that? (Time expired)

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

Senator Marielle Smith, second supplementary?

Marielle Smith (SA, Australian Labor Party) Share this | Link to this | Hansard source

Budgets are about choices, and the Albanese Labor government has delivered for all Australians whilst also taking decisions to improve the budget bottom line. How does the government's approach to economic and fiscal management compare to previous approaches?

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

I thank Senator Smith for that question because it is relevant to have a look at what happened between us and what happened when they were last in power. They always measure our performance. Let's have a little look at theirs: inflation was up, wages were down, jobs were sluggish, productivity was the worst in 40 years, business investment declined, and the budget was in deficit to the tune of $78 billion.

What have we done? Inflation is almost halved. It had a '6' in front of it; it now has a '2' in front of it. Annual real wages are growing. More than a million jobs have been created—a million more people in jobs than when we came to government. We've reversed the decline in productivity. Business investment has grown. Two back-to-back surpluses—something you were unable to do. And this: the trillion dollars of debt we inherited is now $149 billion less because of the way we have managed the budget.