Senate debates
Wednesday, 6 December 2023
Questions without Notice
Economy
3:01 pm
Susan McDonald (Queensland, National Party, Shadow Minister for Resources) Share this | Link to this | Hansard source
My question—
Sue Lines (President) Share this | Link to this | Hansard source
Senator McDonald, please resume your seat. I would expect Senator McDonald to be given the courtesy of all senators in this place and be allowed to ask her question in silence.
Susan McDonald (Queensland, National Party, Shadow Minister for Resources) Share this | Link to this | Hansard source
My question is to the Minister representing the Treasurer, Senator Gallagher. Today's national accounts have shown middle Australia is being crushed due to Labor's failure to manage the economy. Can you confirm today's national account showed that, over the past 18 months, mortgage interest payments have almost tripled, income taxes paid by household have risen by 27.3 per cent and, in the last year, real household disposable income has fallen by 6.6 per cent?
Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source
I thank Senator McDonald for the question. And what she fails to say also is that the economy grew by 0.2 per cent in the September quarter, to be 2.1 per cent higher throughout the year. I think that is worth acknowledging. But we accept that, as the economy slows and with the interest rate increases that we've been seeing, it is putting households under pressure, particularly for those with mortgages, which is why our fiscal strategy and our government's responsibility have been to ensure that we fix the budget, that we restrain spending, that we don't make the job of the Reserve Bank harder and that we help in the fight against inflation. That's been our fiscal strategy. It's a strategy that's being endorsed by a number of organisations as the right approach to take at the moment. One of the points that Senator McDonald raises in her question is that tax revenues are up. That is primarily a result of more people in work and wages growth, so more people in jobs, more people earning more. If you're earning more and you've got more people in work, you will see increases in tax receipts.
Sue Lines (President) Share this | Link to this | Hansard source
Senator McDonald, a first supplementary?
3:03 pm
Susan McDonald (Queensland, National Party, Shadow Minister for Resources) Share this | Link to this | Hansard source
Is it correct that today's national accounts show Australia is in a prolonged GDP per capita recession, meaning that Australians are poorer per person under the Albanese Labor government than they were last year?
Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source
We do see the per capita numbers jump around a bit. I think in the last 200 releases, 48 of them have seen a dip in those numbers, so I don't think that is surprising at all. I think the things that we should be focusing on for the economy overall are that the economy continues to grow—that is a good outcome—that we are seeing record low unemployment, that we're seeing the beginnings of wages growth, that we're seeing high participation rates, that we're seeing the gender pay gap close, that we have delivered a surplus against the deficit that we inherited and that inflation has peaked and is moderating.
Sue Lines (President) Share this | Link to this | Hansard source
Senator McDonald, a second supplementary?
3:04 pm
Susan McDonald (Queensland, National Party, Shadow Minister for Resources) Share this | Link to this | Hansard source
Given that today's national accounts show that productivity has fallen six per cent over the past 18 months while prices have risen by more than nine per cent, will the minister concede that Australians are paying the price for a government that is distracted and out of its depth in managing the economy?
Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source
The answer to that is no, and I find it a bit rich coming from those who oversaw the slowest productivity growth over a decade in 60 years.
Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source
I ask that further questions be placed on the Notice Paper.