Senate

Answer from Penny Wong

The minister acknowledged the pressure on households from global shocks, including the pandemic, conflicts in Europe and the Middle East, and energy market disruptions. She highlighted government actions such as free doctor visits, cheaper medicines, support for first-home buyers, and free TAFE. Regarding wages, she noted that annual wage growth had exceeded three per cent for 16 consecutive quarters, unemployment was at a half-century low, and 1.3 million jobs had been created. She emphasized that the national minimum wage had increased by more than $12,000 annually, a rise of over 30 per cent, and that pay rises were delivered for early educators and aged care workers. On housing, she stated the government was implementing tax cuts and ensuring fair conditions for investors and first-home buyers to ensure equity.

Answer from Penny Wong

The minister explained that tech companies would have a legally enforceable duty to prevent harm, protecting children from harmful content and features across all online services. She noted that users would gain choice over their feeds, including the ability to opt out of algorithms. She cited examples of online harms, such as AI-generated nude images of children, chatbots promoting disordered eating, and grooming on platforms like Roblox. She stated that community groups, including Equality Australia and the Executive Council of Australian Jewry, welcomed the duty of care and wanted parliament to go further. She emphasized that the government was consulting on the standards to ensure they were robust and would work with parliament to implement them.

Answer from Penny Wong

The minister acknowledged productivity as a long-standing challenge for governments of both persuasions since the Hawke-Keating era. She noted that productivity had fallen for seven quarters before the pandemic. She stated that the budget included 15 productivity reforms aimed at attracting investment and cutting regulatory costs by $10.2 billion annually. These measures included reducing red tape, building a single national market, modernizing energy markets, and unlocking data and AI opportunities. She confirmed that the long-run assumption for productivity growth was 1.2 per cent, which had been revised down in the first term based on Treasury advice. She did not provide a specific figure for the rate required to make up for lost productivity, instead focusing on the government's reform agenda.

Answer from Tim Ayres

The minister described the gas reservation plan as the most significant reform in Australian gas history, designed to ensure sovereign resilience, industrial competitiveness, and lower prices for households and industry. He argued that the reservation would secure sufficient gas for Australian manufacturing and heavy industry, supporting blue-collar jobs. He characterized the gas tax as merely a revenue measure, whereas the reservation was a structural reform to ensure future competitiveness. He stated that the reform placed a heavy obligation on gas producers in the national interest and would be brought to parliament.

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 Penny Wong

The minister stated that AI had enormous potential benefits and risks, requiring agreed guidelines for deployment. She confirmed that the government would legislate Australian standards for AI, ensuring large data centres met minimum requirements for energy, water, and location. She emphasized the need to keep Australians safe while spreading the benefits of the technology. She did not commit to a moratorium or retrospective legislation, instead focusing on the development of standards and guardrails to ensure safe rollout.

Answer from Penny Wong

The minister countered that loan approvals had risen by 8.9 per cent compared with the previous year, reaching their peak since 2021, while commencements grew by 15.2 per cent. She stated that more first-home buyers were entering the market under the government, with over 490,000 accessing it and 260,000 using a five per cent deposit. Regarding rents, she affirmed that Treasury modelling indicated weekly increases of less than $2, noting transitional arrangements for negative gearing. She did not directly answer who benefited from the taxes, instead focusing on the increase in supply and first-home buyer activity.

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 Jenny McAllister

The minister stated that the government's priority was directing tax dollars to aged care services, which required bringing older Australians' private health insurance rebate back to the same rate as everyone else's. She acknowledged the decision was difficult and unwelcome but necessary to fund aged care beds and packages. She criticized the Coalition for having no costed aged care policies. Regarding cochlear implants, she noted that implants were funded through public hospitals, and processor upgrades were available through the NDIS and Veterans' Affairs. She confirmed that over-65s would still receive up to 24 per cent subsidy on premiums, the same as the rest of the population, based on income rather than age.

Answer from Jess Walsh

The minister stated that the fund was investing $1 billion to build and expand early education centres in disadvantaged areas. The final agreement with the Northern Territory included $8.7 million for a new 60-place centre in Karama and another in Tennant Creek. Across Australia, 42 projects were delivering more than 2,500 additional places, with two-thirds in regional and rural communities. Many centres were co-located with schools to facilitate smooth transitions for children and convenience for parents. She criticized the Coalition for cutting disadvantaged children off from childcare and One Nation for opposing qualified educators and pay rises.