Ted O'Brien

Answer from Anthony Albanese

The Prime Minister stated that the government takes its obligations and engagement with Japan seriously. He noted that the opposition had referred matters to the Australian Federal Police (AFP) in a political stunt. He affirmed that the AFP is independent and expressed confidence in their work.

Answer from Anthony Albanese

The Prime Minister reiterated that relations with Japan were stronger than ever and strategically aligned. He highlighted the procurement of Mogami-class frigates and enhanced defence cooperation. He mentioned the establishment of the Australia-Japan Leadership Dialogue to address key issues. He expressed confidence in the positive relationship with the Japanese Prime Minister and regional leaders.

Answer from Tony Burke

The minister expressed pride in Border Force for successfully intercepting drugs and handling aggressive situations, noting that no people smuggling operation has succeeded in over a decade. He refuted the claim of weakness by stating that all recent illegal arrivals were removed. He criticized the opposition leader for supporting the release of surveillance information, arguing this provides people smugglers with the intelligence they seek.

Answer from Jim Chalmers

The Treasurer stated that the government had reduced debt by $176 billion compared to when it took office, saving $60 billion in interest costs. He noted debt as a share of GDP had fallen from nearly 45 per cent to 37 per cent. He argued that the previous government's budget had projected debt crossing the trillion-dollar threshold two years prior, and that current surpluses had delayed that milestone.

Answer from Jim Chalmers

The Treasurer stated that the issue had been addressed in estimates and that the main drivers were lower receipts and provisions for a hospitals deal. He noted that the Treasury figure was $54 billion, not $57 billion. The Treasurer argued that the opposition's medium-term forecast was $142 billion weaker than the government's, implying their policies would cause a larger deterioration. He challenged the opposition to specify how much they would cut from hospital funding.

Answer from Jim Chalmers

The Treasurer stated that Reserve Bank forecasts indicated inflation would peak around the middle of the year before trailing away. He highlighted government actions to lower inflation, including tax cuts and cost-of-living assistance, which he claimed the opposition opposed. He criticised the opposition's economic record, citing their support for wage stagnation and policies that would increase taxes and debt, specifically blaming the members for Fairfax and Hume for undermining economic credibility.

Answer from Jim Chalmers

The Treasurer rejected the premise, arguing that the opposition's logic was inconsistent because they did not attribute falling inflation and rate cuts to government policy last year. He stated that the Reserve Bank governor identified private demand, not public spending, as the driver of recent inflationary pressure. He criticised the opposition for being divided and dishonest on economic matters.

Answer from Jim Chalmers

The Treasurer stated he took responsibility for his role in fighting inflation but maintained that his citation of the economist was accurate. He argued that the economist's comments reflected the fact that private demand growth had contributed more to economic growth than public demand in 2025. He cited the Reserve Bank governor and monetary policy statements to support the view that private demand was stronger than expected, while the contribution of public demand to GDP growth had eased.

Answer from Anthony Albanese

The Prime Minister pointed out that a Senate select committee, including Liberal and National senators, was already examining the capital gains tax discount. He highlighted government actions such as the Housing Australia Future Fund, which had helped 220,000 Australians into their first home, and partnerships with states to build 100,000 new homes. He also mentioned training more tradespeople through free TAFE and utilizing Defence land for housing supply.

Answer from Jim Chalmers

The Treasurer disputed the view that government spending is the primary driver of inflation, citing economists from AMP, Commonwealth Bank, and Westpac who noted that public sector demand growth is slowing or has peaked. He confirmed that savings would be included in the May budget, highlighting $114 billion in savings found so far and a $233 billion improvement in the budget. He criticized the opposition for running larger deficits during their term and for proposing higher deficits in the election.

Answer from Jim Chalmers

The Treasurer argued that the opposition's own policies of higher deficits would worsen inflation. He cited economists from AMP, Commonwealth Bank, Westpac, and Access Economics who noted that public sector demand growth is slowing or has peaked. He reiterated the Reserve Bank Governor's view that private demand was stronger than expected, driving the recent inflation uptick.

Answer from Jim Chalmers

The Treasurer stated that the Governor's primary point was that private demand recovered faster than anticipated. He quoted the Governor's response to a specific question about government spending, which emphasized the strength of private demand. He argued that the government is acting responsibly by rolling out cost-of-living help and improving the budget, contrasting this with the opposition's lack of support for such measures.

Answer from Jim Chalmers

The Treasurer stated he took responsibility for his role in fighting inflation and managing the budget, which he claimed was stronger than when inherited. He highlighted cost-of-living measures such as tax cuts, cheaper medicines, and free TAFE. He argued that the opposition had left the government with higher inflation and larger deficits, and had campaigned on policies for higher taxes and debt. He noted that real wages had grown for two years and inflation had decreased.

Answer from Jim Chalmers

The Treasurer repeated that the Reserve Bank and other economists attributed inflation pressure to private demand, not public spending. He cited specific economists to support this view. He stated he took responsibility for his role in fighting inflation and cleaning up the previous government's economic mess, which included higher inflation and larger deficits. He argued the opposition was not credible on economic management.

Answer from Jim Chalmers

The Treasurer stated that the Reserve Bank makes independent decisions and the government does not set interest rates. He reiterated that the Reserve Bank's statement attributed inflation pressure to private demand, not government spending. He emphasized the government's role in managing the budget and providing cost-of-living relief, while the Reserve Bank managed monetary policy. He argued the opposition's campaign blaming government spending was dishonest.

Answer from Anthony Albanese

The Prime Minister rejected the characterization of economic failure, noting that interest rates had decreased three times that year and inflation was half of what it was when the government took office. He highlighted that 1.2 million additional Australians were in jobs and wages had risen for eight consecutive quarters. He listed cost-of-living measures including free TAFE, cheaper medicines, and student debt relief, stating these were opposed by the opposition.

Answer from Anthony Albanese

The Prime Minister noted that three interest rate cuts had occurred in 2025, providing relief to borrowers. He criticized the Coalition's rhetoric regarding a 'culture of dependency,' arguing that it attacked pensioners, public sector workers, and those receiving support. He stated that the Coalition had previously proposed cutting public sector jobs and opposing work-from-home arrangements. He challenged the opposition to specify which spending they considered wasteful, asserting that the government's focus was on helping people earn and keep more of their income.

Answer from Jim Chalmers

The Treasurer stated that the Reserve Bank had explicitly clarified that government spending was not a factor in its recent decisions, having downgraded expectations for public spending in its forecasts. He emphasized that the private sector had resumed its role as the primary driver of economic growth, with public demand making no contribution to growth in the last two quarters. He noted that three interest rate cuts had occurred this year, including two after the March budget, and highlighted the delivery of two budget surpluses and a reduced deficit. He criticized the shadow Treasurer's proposal for nuclear power as economically irresponsible.

Answer from Jim Chalmers

The Treasurer denied that the Reserve Bank linked its decision to government spending, stating the Governor did not mention it in the statement. He contrasted the current government's two budget surpluses and 1.7 per cent real spending growth with the previous government's nine deficits and 4.1 per cent spending growth. He noted that national debt was $188 billion lower than the previous trajectory, saving tens of billions in interest.

Answer from Jim Chalmers

The Treasurer stated that the government took responsibility for addressing economic challenges but highlighted that it had inherited high inflation and large deficits. He noted that inflation had been halved, two budget surpluses had been delivered, and debt had been reduced by $188 billion. He argued that the opposition had opposed tax cuts and cost-of-living relief measures.

Answer from Jim Chalmers

The Treasurer stated that the Reserve Bank had revised down the contribution of public spending to inflation. He noted that the RBA expected a moderation in inflation in December and that the government's fiscal position was strong, with low debt-to-GDP ratios. He argued that the opposition's claim that government spending drove inflation was contradicted by recent rate cuts.

Answer from Anthony Albanese

The Prime Minister dismissed the question by referencing the Shadow Treasurer's previous promotion and the opposition's $600 billion nuclear power plan. He argued that the opposition would cut cost-of-living measures if elected. He defended the government's superannuation reforms, stating they affect only 0.5 per cent of people and make the system more progressive, similar to stage 3 tax cuts. He listed measures including paid parental leave super, payday super, and lifting the low-income super tax offset to $810 with an eligibility threshold increase to $45,000, asserting that Labor strengthens superannuation while the opposition opposes these changes.

Answer from Jim Chalmers

The minister withdrew the question before answering. The Treasurer then responded by stating that the average unemployment rate under the current government was 3.9 per cent, compared to 5.6 per cent under the previous government. He noted that inflation was 6.1 per cent and rising when the current government took office, and that the government had delivered two surpluses and one smaller deficit compared to nine consecutive deficits under the previous administration.

Answer from Jim Chalmers

The treasurer stated he did not take advice from the opposition, criticising their past policies on income tax and superannuation. He asserted the government worked through issues collegiately to deliver outcomes for working people, including real wage growth and tax cuts. He dismissed the question as political scuttlebutt and emphasised the government's focus on delivering better retirement outcomes for workers.

Answer from Jim Chalmers

The Treasurer denied the premise, stating that Treasury modelling does not assume an economy-wide carbon price is in place, as it is not government policy. He argued that the government's orderly transition is the best way to grow the economy, contrasting it with the opposition's disorderly approach which he claimed would cost jobs and investment.

Answer from Jim Chalmers

The Treasurer criticized the opposition's previous fiscal rules, claiming they led to higher taxes and deficits. He stated the government had improved the budget position, reduced debt as a share of the economy, and banked upward revenue revisions. He cited turning deficits into surpluses, finding $100 billion in savings, limiting real spending growth to 1.7 per cent, and reducing debt by $177 billion. He noted debt-to-GDP had fallen from 45 per cent to 37 per cent.

Answer from Anthony Albanese; Jim Chalmers

The Prime Minister defended the Treasurer's record, criticizing the opposition's past failures to deliver surpluses and their election promises of higher taxes. The Treasurer added that the government had banked about 70 per cent of upward revenue revisions, compared to 40 per cent under the opposition and 30 per cent under the Howard government. He reiterated that the government had turned deficits into surpluses and reduced debt, contrasting this with the opposition's record of deficits and increased debt.

Answer from Jim Chalmers

The Treasurer contrasted the government's tax cuts for all workers with the opposition's focus on protecting those with over $3 million in super. He acknowledged his respect for Paul Keating but stated they had different views on this issue. He emphasized the government's commitment to increasing the superannuation guarantee to 12 per cent and ensuring the sustainability of super concessions. He criticized the opposition for historically undermining superannuation.

Answer from Jim Chalmers

The Treasurer stated that unemployment was lower on average than under any government in the last 50 years. He argued that inflation had decreased from the 6 per cent range to the 2 per cent range since the government took office. He claimed real wages had grown for 18 consecutive months and that living standards were recovering. He highlighted budget surpluses and reduced debt compared to the previous term.

Answer from Jim Chalmers

The Treasurer did not identify the colleague but defended the superannuation system, noting the increase of the super guarantee to 12 per cent. He stated that concessional treatments for super would remain generous and that the changes were necessary to ensure the sustainability of the system and the budget.

Answer from Daniel Mulino

The Assistant Treasurer stated that the policy applies to around half a per cent of member funds, specifically those larger than $3 million. He argued that tax thresholds are not always indexed, citing the Coalition's previous failure to index the Division 293 threshold, and maintained that the measure is fair and modest.

Answer from Jim Chalmers

The Treasurer stated that the government's priority was cutting taxes for 14 million Australians, with cuts already delivered and more scheduled. He noted that the Shadow Treasurer had previously said not to rule anything out. He mentioned an upcoming economic reform roundtable where various ideas would be considered, but reaffirmed the government's commitment to tax cuts within a responsible budget.

Answer from Anthony Albanese

The Prime Minister dismissed the question as a pre-election scare campaign. He reiterated that the government's policy was focused on tax cuts for 14 million Australians, contrasting this with the opposition's election platform of tax increases. He invited the Shadow Treasurer to contribute to the upcoming economic roundtable.

Answer from Anthony Albanese

The Prime Minister stated that inflation had fallen to 2.4 per cent and wages were rising, leading to growing pay packets. He highlighted cost-of-living measures, including a $300 energy rebate, cheaper medicines, and child care relief, all of which were opposed by the opposition. He criticized the opposition's policies, including a $600 billion nuclear plan and unspecified cuts, as harmful to Australians.

Answer from Anthony Albanese

The Prime Minister stated that all Australian households, including the member's, had received $300 in relief as a direct result of the government's policy.