Katy Gallagher

Answer from Katy Gallagher

The minister attributed the improvement to policies implemented over time, including wages policy in feminized industries, extended paid parental leave with superannuation, superannuation reforms, free TAFE, and publishing gender pay gaps for large companies. In response to supplementary questions, she highlighted investments in women's health, such as listing a new breast cancer drug on the PBS to reduce costs from $1,300 to $25 per script. She also noted the introduction of laws to stop financial abuse within the child support framework, addressing nearly $2 billion in unpaid support.

Answer from Katy Gallagher

The minister noted inflation had peaked at nearly 8 per cent in December 2022 and had since decreased to the three per cent range. She stated the government was taking responsibility for economic decisions while acknowledging global challenges. She defended cost-of-living support as targeted and non-inflationary, and accused the opposition of voting against tax cuts and wage increases while criticising the government's economic management.

Answer from Katy Gallagher

The minister reported that global headline inflation had increased by 4.7 per cent, but Australian inflation had decreased considerably. She highlighted that Australia's economic growth, employment growth, and participation rates outperformed those of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. The minister stated that the budget exceeded the mid-year update by $44.9 billion and was over $250 billion stronger than when the government took office, citing fiscal discipline and debt reduction as key strategies.

Answer from Katy Gallagher

The minister reported that the IMF downgraded global growth to 3.1 per cent and revised up inflation to 4.4 per cent, driven by energy prices and supply chain disruptions from the Middle East conflict. She stated that the Australian economy had grown 0.4 per cent over the June quarter and 2.1 per cent over the year, matching or exceeding other advanced economies. She highlighted strong employment growth, low debt-to-GDP ratios, and historically low unemployment at 4.5 per cent. Regarding the AAA rating, she noted that Standard and Poor's reaffirmed it, endorsing the government's tax and saving reforms and modest debt levels. She emphasized that responsible budget management, including returning revenue windfalls to the budget, was key to maintaining fiscal discipline while delivering targeted relief such as cheaper medicines and tax cuts.

Answer from Katy Gallagher

The minister rejected the claim that migration caused productivity issues, stating that productivity challenges were common across advanced economies. She noted that the government had cut net overseas migration by roughly 45 per cent from the post-COVID peak. She emphasized that the budget included 15 measures to drive productivity, including approvals reform and technology adoption. She stated that the government would not support One Nation's plan, citing feedback from business groups, farmers, and healthcare providers that such a policy would have a detrimental impact on economic growth and essential services.

Answer from Katy Gallagher

The minister stated that unemployment was at historically low levels, though she misspoke by saying 412 per cent before correcting the context. She highlighted that 1.3 million jobs had been created, with three out of five being full-time and five out of six in the private sector. She noted that the participation rate had risen from 66.3 per cent to 66.9 per cent, near record highs, and that the gender pay gap was at a record low. She argued that the labour market was resilient despite global uncertainty. Regarding migration, she stated that Australia had always relied on overseas workers to supplement the domestic workforce and that One Nation's policy would damage businesses and services.

Answer from Katy Gallagher

The minister stated that over one million women had accessed cheaper medicines for contraception, endometriosis, and menopause since the $800 million package was introduced. She noted that more than four million cheaper prescriptions had been filled, saving over $150 million. She highlighted the capping of PBS costs at $25, the listing of new contraceptive and menopause treatments, and the expansion of bulk-billing. She also mentioned the opening of 33 endo and pelvic pain clinics and a national menopause awareness campaign.

Answer from Katy Gallagher

The minister stated that the government is undertaking a whole-of-government effort, including consulting on the second action plan for the National Plan to End Violence against Women and Children. She noted that Minister Rowland has been implementing recommendations through the Standing Council of Attorneys-General. Regarding the consent education review, she said the government is keen to see outcomes that ensure support is relevant and useful for young people, which will feed into the second action plan. She highlighted that over $4 billion has been invested in women's safety and the national legal access partnership.

Answer from Katy Gallagher

The minister outlined investments of $4.4 billion in frontline services and preventive programs, the permanent leaving violence payment of over $5,000, and 10 days of paid domestic violence leave. She noted that National Cabinet agreed to a new risk assessment framework. Regarding online safety, she explained that the digital duty of care will require providers to protect under-18s from harmful content. She stated that the 'My Feed, My Way' initiative allows Australians to switch off algorithms and see only content they choose to follow, giving control back to users.

Answer from Katy Gallagher

The minister stated that the funds were delivered election commitments, not pork-barrelling. She explained that the grants were administered through a closed, non-competitive round, which is permitted under the Commonwealth Grants Rules and Principles. She asserted that the government had been clear about this process beforehand and that commitments were made across various seat types, not just marginal ones.

Answer from Katy Gallagher

The minister defended the Treasurer's comments, noting that 1.3 million jobs had been created since May 2022, including growth in the care economy. She listed 15 areas of productivity improvement from the budget, including investment, innovation, and regulatory reform. She argued that employment, participation rates, and real wage growth were up, contradicting the member's portrayal of the economy.

Answer from Katy Gallagher

The minister stated the government would not support the policy, arguing it weakened the superannuation system built by Labor. She emphasized that superannuation was a long-term investment for dignified retirement. The minister noted that debt was forecast to be $977 billion when the government took office. She criticized One Nation for not supporting wage increases, tax cuts, or housing affordability measures. The minister acknowledged that allowing seven million Australians to withdraw funds could be inflationary, a point raised in a press conference.

Answer from Katy Gallagher

The minister stated that over a million jobs had been created and unemployment remained low, with participation rates at record highs. She noted that net overseas migration had fallen by roughly 45 per cent from the post-COVID high. The minister defended jobs in the non-market economy, such as health, aged care, and education, as legitimate and valuable. She criticized One Nation for opposing wage increases and argued that the government supported better wages and conditions for workers.

Answer from Katy Gallagher

The minister argued that the current debt burden is lower than it would have been under the previous government, which had doubled debt before the pandemic. She stated that the government had delivered two budget surpluses and that interest payments were lower than projected. She did not provide the specific per-minute or total interest figures requested. Instead, she questioned how the opposition would fund its proposed tax cuts, defence spending, and infrastructure projects, suggesting their policies would lead to higher debt.

Answer from Katy Gallagher

The minister outlined reforms including banning unlicensed real-time communications, tightening anti-hawking laws, and strengthening penalties for data harvesting. She noted that ASIC would be empowered to direct trustees to remediate failures, while APRA would ensure trustees offering high-risk products meet their responsibilities. She also mentioned progress on financial advice reforms and the introduction of a new class of adviser for super funds.

Answer from Katy Gallagher

The minister stated that the government has increased the superannuation guarantee to 12 per cent and implemented payday super to close loopholes where workers missed out on contributions. She noted that approximately 1.3 million Australians, including 750,000 women and 550,000 young people, will benefit from an enhanced low-income super tax offset, providing up to $810 annually and a potential retirement benefit of $15,000. The minister explained that payday super prevents an average 35-year-old from losing approximately $32,000 in retirement savings due to delayed payments. She identified opposition parties and One Nation as threats to the system, citing their proposals to freeze the guarantee or allow early access.

Answer from Katy Gallagher

The minister stated that 18 million Australians have superannuation accounts, with the pool valued at approximately $412 trillion, making it the fourth largest globally. She outlined government reforms including legislating the objective of super, increasing the superannuation guarantee to 12 per cent, and introducing payday super, which adds around $6,000 to the retirement savings of an average 25-year-old. To address the 26 per cent gender gap, the government pays super on paid parental leave, with over 200,000 parents benefiting and $285 million paid into accounts. Additionally, reforms to the low-income super tax offset will benefit over 1.3 million Australians, of whom 750,000 are women.

Answer from Katy Gallagher

The minister stated that the Minister for Infrastructure was the responsible minister for infrastructure agreements and that the Attorney-General typically responds to royal commission requests. She confirmed that the federal financial agreement with states sought transparency and accountability, requiring delivery milestones and reporting of suspected criminal behavior. The minister highlighted that the government had appointed an administrator for the CFMEU and taken concrete action to clean up the industry, contrasting this with the previous government's inaction. She noted that the infrastructure minister had written to state ministers reinforcing their obligations to report corruption.

Answer from Katy Gallagher

The minister reported that over 160 roundtables had been held with more than 1,100 people, and nearly 2,000 online submissions received. Key themes included the need for evidence-based prevention, early intervention, and addressing tech-facilitated abuse. She noted that consultations highlighted system abuse by perpetrators, leading to budget investments in child support reforms to reduce weaponization of the system.

Answer from Katy Gallagher

The minister attributed the ability to provide relief to budget savings that repair the budget and lower debt interest. She noted that the Reserve Bank held interest rates steady at 4.35 per cent as headline inflation fell for the third consecutive month. She listed measures including tax cuts, cheaper medicines, record hospital and education funding, and support for first home buyers. Regarding wages, she highlighted a 4.75 per cent increase in the national minimum wage, resulting in full-time minimum wage earners receiving over $1,000 per week. She also detailed the expansion of paid parental leave to 26 weeks at a rate of more than $1,000 per week, with superannuation contributions and higher income eligibility limits.

Answer from Katy Gallagher

The minister declined to engage with the premise of the question, stating she was proud to work for a leader who prioritises women's economic security and respects women. She highlighted that the government has achieved a 50 per cent female cabinet and caucus, and has invested in women's safety, housing, and health issues such as endometriosis and menopause. She asserted that the Prime Minister's comments had been misinterpreted and weaponised by opponents, and reiterated that the government's record on women's policy was unprecedented.

Answer from Katy Gallagher

The minister stated that the government had adopted more realistic Treasury advice on productivity assumptions, rejecting the previous government's higher assumptions. She highlighted regulatory reform bills aimed at reducing red tape and improving productivity, which she claimed the opposition had voted against. She listed budget measures including building homes, modernising energy markets, and unlocking data and AI. She rejected the proposition that tax increases were lowering productivity, citing Treasury advice that budget decisions supported productivity assumptions, and criticised the opposition for constraining wages in the past.

Answer from Katy Gallagher

The minister noted that S&P Global endorsed the government's fiscal management, citing sound fiscal performance and modest public debt. She stated that the government had found savings to meet unmet needs in health, aged care, and defence. She announced an expansion of the Commonwealth Prac Payment to 10 additional frontline health professions to support students. Regarding Medicare, she reported that the bulk-billing rate rose to 84.1 per cent in the June 2026 quarter, an increase of nearly five percentage points, with Tasmania seeing a rise to 80.8 per cent.

Answer from Katy Gallagher

The minister declined to answer, stating the question was better directed to the Minister for Trade and Tourism, Senator Farrell.

Answer from Katy Gallagher

The minister stated that the average worker would save up to $2,800 a year through tax cuts, including a $1,000 instant tax deduction and the working Australian tax offset. She noted that three million workers benefited from minimum wage increases. For small businesses, she cited $312 billion in tax support measures and $25 million for the Digital Solutions program, which had assisted over 1,512 thousand small businesses with coaching and workshops. She emphasized that cost-of-living support was the government's top priority.

Answer from Katy Gallagher

The minister argued that the government had inherited challenges and was cleaning up the budget, delivering surpluses, and reducing debt. She claimed the opposition had campaigned for tax increases and higher debt, including funding for nuclear power stations, which would have raised costs. She stated that the Australian people rejected the opposition's plan. She asserted that the government was addressing cost-of-living pressures through tax cuts, energy bill relief, and healthcare investments, while the opposition focused on internal conflicts.

Answer from Katy Gallagher

The minister outlined that the government was delivering five tax cuts, with two already delivered and more coming in 2026, including the Working Australians Tax Offset. She noted that Paid Parental Leave had been expanded to six months, providing nearly $30,000 to families, double the previous entitlement. The minister highlighted that the national minimum wage had increased by six per cent to over $1,000 per week, and modern award wages by 4.75 per cent, benefiting 2.7 million workers. She stated that full-time women were earning an average of $300 more per week, and that Australia's gender equality ranking had improved from 43rd to 13th, with 650,000 new jobs created for women.

Answer from Katy Gallagher

The minister stated that the government had not changed its view on the diesel fuel tax credit scheme, which had operated for a long time. She argued that the government was focused on delivering a transformation to a renewable energy future, reducing reliance on fossil fuels, and investing in storage and batteries. Regarding the NDIS, she stated that changes were necessary to slow the growth of the scheme, which had risen from $13 billion to over $50 billion annually and was projected to exceed $70 billion, making it unsustainable without intervention.

Answer from Katy Gallagher

The minister stated that the government was delivering five income tax cuts, which the opposition had voted against. She argued that the opposition was not genuinely concerned about tax burdens given their voting record against wage increases and cost-of-living relief. The minister highlighted that the government was returning bracket creep through fairer tax cuts and the Working Australians Tax Offset. She stated that the government was focused on easing the cost-of-living burden through a better tax system, wage growth, and budget repair, contrasting this with the opposition's consistent rejection of reforms.

Answer from Katy Gallagher

The minister outlined that from 1 July, the 16 per cent tax rate would reduce to 15 per cent, and the Working Australian Tax Offset of up to $250 would become permanent. She noted the $1,000 instant deduction, a six per cent increase in the national minimum wage, and indexation of social security payments for 2.6 million Australians. She highlighted that paid parental leave would extend to six months with superannuation paid on it, helping families share care and protecting retirement savings. She stated that once fully implemented, the five tax cuts would make the average worker $2,800 better off annually from 2028.

Answer from Katy Gallagher

The minister stated that the reforms restored concession arrangements indexed for inflation rather than the previous 50 per cent discount. She noted that the legislation passed last week aimed to balance tax on wages and assets and assist first-home buyers. Regarding income averaging, she explained it was removed in 1999 for integrity reasons following a business tax review. She cited Treasury analysis indicating capital gains are predominantly realised by high-income earners. She confirmed that tax cuts for low-income earners, including those under $45,000, commence on 1 July.

Answer from Katy Gallagher

The minister confirmed that tax cuts commence on 1 July, lowering the 16 per cent rate to 15 per cent for those earning under $45,000, with a further reduction to 14 per cent from 1 July 2027. She highlighted the Working Australians Tax Offset of up to $250 annually and a $1,000 instant deduction from 2026-27. She noted that the national minimum wage will rise by six per cent and modern award wages by 4.75 per cent. Paid parental leave will extend to 26 weeks, and social security payments will be indexed for 2.6 million Australians. She stated these measures are funded by reforms to negative gearing and capital gains tax.

Answer from Katy Gallagher

The minister stated that existing contracts were entered into prior to the current concerns and that there is no evidence of unethical behaviour in current government contracts. She noted that ministers cannot cancel contracts as it would be unlawful. She confirmed a pause on new KPMG contracts until a review led by Dr Ian Watt is completed. Regarding the TPB chair, she stated she expected the board to manage any conflicts of interest appropriately. She noted that the Assistant Treasurer is releasing a discussion paper on regulating these firms.

Answer from Katy Gallagher

The minister rejected the claim, stating the government has done more for productivity than any recent administration. She explained that tax reforms aim to create neutral tax settings so investment decisions are based on productivity rather than tax concessions. She noted that $3.8 billion is invested in business through R&D incentives and venture capital arrangements. She stated that the reforms ensure wage earners are not taxed more than asset owners, creating a fairer system across all industries.

Answer from Katy Gallagher

The minister stated the government is cutting taxes five times in three ways, including the instant tax deduction and Working Australians Tax Offset. She noted that real wages have grown for the first time in a decade since the government took office. Regarding the fuel excise, she explained that the temporary halving was extended at a lower level to help households adjust as petrol prices fell. She emphasised that the government continues to roll out cost-of-living help, including Medicare investments and cheaper medicines.

Answer from Katy Gallagher

The minister stated she was not aware of the specific issue or the status of the response. She undertook to take the matter on notice, consult the Treasurer's office, and return to the senator directly with further information. She repeated this commitment in response to subsequent questions.

Answer from Katy Gallagher

The minister detailed that the bill included a $250 working Australian tax offset and a $1,000 instant deduction for over 13 million workers. She noted that negative gearing would be restricted to new constructions starting 1 July 2027, and cost-base indexation would be reintroduced for capital gains tax. She stated that the reforms would help 75,000 more people enter the housing market and that Treasury analysis showed more than 90 per cent of Australians would have fared better by age 30 if reforms had been in place since 2000. She also mentioned concessions for small businesses, including raising the threshold to $10 million.

Answer from Katy Gallagher

The minister noted that from 1 July, eligible families would access 26 weeks of leave, receiving nearly $30,000 including superannuation. She stated that parents would be approximately $15,692 better off than under previous arrangements. She highlighted improvements in women's health, including PBS listings for contraceptives and menopause treatments, and the opening of endometriosis clinics. She dismissed criticisms of the scheme as incorrect analysis.

Answer from Katy Gallagher

The minister stated that the changes aimed to make the tax system fairer and simpler, aligning asset tax with income tax. She explained that grandfathering applied to assets owned at budget night, while new acquisitions followed new rules. She noted that the Women's Budget Statement addressed gender impacts and that the government sought to protect existing investments.

Answer from Katy Gallagher

The minister stated that comparing tax arrangements internationally was difficult due to differences in laws. She argued that the reforms aimed to better align tax on assets with tax on income, noting that working people pay tax on real income. She cited an example where, assuming a 5.1 per cent return on the S&P/ASX 200, the tax rate was around 21.4 per cent. She claimed this was lower than rates in the UK (24 per cent), Germany (26 to 28 per cent), France (34 to 35 per cent), Ireland (33 per cent), the Netherlands (36 per cent), Denmark (42 per cent), and California. In response to supplementary questions, she defended the reforms as fairer for working people and noted that the opposition had promised higher taxes in the previous election.

Answer from Katy Gallagher

The minister stated that the project cost had been reset to approximately $12 billion after the government inherited it, as the initial $2 billion estimate lacked proper scoping and geological surveys. She noted that the Snowy board was undertaking a cost reassessment due to the government in late July. She emphasised that the project was more than half built and crucial for energy grid security. In response to supplementary questions, she refused to cancel the project, citing its importance for energy stability. She noted that the ANAO report found project management partially effective and that Snowy Hydro had accepted most recommendations. She argued that the market was not investing in new coal-fired power stations, whereas renewables were delivering cheaper and more reliable energy.

Answer from Katy Gallagher

The minister described the budget as focused on relief, resilience, and reform, addressing cost-of-living pressures exacerbated by global conflicts. She outlined that tax reforms aimed to level the playing field, support homeownership, and improve productivity, lowering taxes for more than 13 million employees. The minister noted that the threshold for the 50 per cent small business capital gains tax discount was increased from $2 million to $10 million, making 2.7 million active small businesses eligible. She confirmed that consultation on the Innovative Business Capital Gains Tax Concession was open for three weeks. Additionally, she highlighted that over 14 million Australians would receive tax cuts of up to $268 from 1 July, with average wage earners paying up to $2,800 less tax than under the previous government.

Answer from Katy Gallagher

The minister stated that productivity growth had been slow for decades and that the budget included measures to drive improvements, such as regulatory reform and infrastructure investment. She noted that Treasury had revised productivity assumptions downward based on evidence. The minister rejected the link between migration and low productivity, emphasizing the value of migrant contributions and stating that net overseas migration had decreased by 45 per cent. She highlighted that the government was addressing productivity challenges through various economic reforms.

Answer from Katy Gallagher

The minister stated that the budget included $182.6 million for child support reforms to reduce weaponisation and protect women from financial abuse. She noted continued investment in the National Plan to End Violence against Women and Children, including the Our Ways--Strong Ways First Nations safety plan, bringing total investment to over $4.4 billion since 2022. Regarding economic security, she explained that a woman earning $81,000 could be nearly $3,000 better off annually from 2027-28 due to the Working Australians Tax Offset and Instant Tax Deduction Benefit. The minister also highlighted investments in aged care, Medicare, mental health, reproductive health, and menopause services, noting that women had saved over $647 million on medicines since January 2023.

Answer from Katy Gallagher

The minister stated that the budget prolonged the prohibition on overseas acquisitions of established residences until 2029. She noted that foreign buyer levels had dropped to 0.5 per cent of buyers after the ban started in 2025, compared to a peak of 1.8 per cent under the previous government. Regarding compliance, she referred to the Register of Foreign Ownership of Australian Assets and the ATO's role in monitoring acquisitions. The minister explained that the government supported investment in new housing construction to drive supply, which is why foreigners could still purchase new builds.

Answer from Katy Gallagher

The minister denied the premise, stating the budget ensured fairness for future generations through responsible fiscal management. She argued that the previous government had doubled the debt before the pandemic and left a $1 trillion debt burden. The minister highlighted that the current budget reduced debt by $173 billion compared to inherited levels and saved approximately $70 billion in interest payments. She emphasized that net debt growth remained lower than when the government took office.

Answer from Katy Gallagher

The minister outlined the budget's five-part economic strategy, including fuel security, assistance with living expenses, productivity, tax reform, and responsible management. She noted a new $250 Working Australians Tax Offset for 13.3 million workers from late 2027, bringing total tax cuts to up to $2,816 for the average worker by 2028. The minister stated the budget was $44.9 billion stronger than the mid-year economic and fiscal outlook and included $63.8 billion in savings, contributing to almost $180 billion in total savings since the government took office.

Answer from Katy Gallagher

The minister stated the reforms were necessary to ensure the long-term sustainability of the NDIS, which had grown beyond initial projections of $13 billion annually to over $50 billion. She explained that the budget aimed to manage scheme growth and return the NDIS to its original focus. The minister highlighted investments in rebuilding support systems outside the NDIS for those who do not qualify, ensuring that people without private funds could still access necessary care.

Answer from Katy Gallagher

The minister explained that the excise cut would flow through to prices as contracted supplies were purchased, which might take some time. She stated that the ACCC was monitoring prices to ensure reductions were realized at the pump. In response to supplementary questions about direct cost-of-living relief and AUKUS, she emphasized targeted assistance for businesses and households, noting that the budget would reflect current economic circumstances. She firmly rejected the suggestion that the government would withdraw from AUKUS.

Answer from Katy Gallagher

The minister stated that the conflict was intensifying inflation and uncertainty, reinforcing challenges of high inflation and weak productivity. She highlighted that the economy remained strong with low unemployment and consistent wage growth. The minister outlined new measures announced that day, including temporary tax relief for businesses affected by fuel issues and an extension of the small business responsible lending obligation exemption for 10 years. She emphasized that the budget would focus on resilience and reform.