Senator the Hon Katy Gallagher

KARL STEFANOVIC, HOST: Well, millions of Australians will this morning benefit from cost-of-living relief from tax cuts to energy rebates and even pay rises. The Minister for Finance and Women, Katy Gallagher joins us now. Katy, good morning to you.

SENATOR THE HON KATY GALLAGHER, MINISTER FOR FINANCE: Good morning.

STEFANOVIC: Look, we learned this morning 130,000 Australians are on hardship payment plans for their power. $300 just ain’t gonna cut it for them.

GALLAGHER: Well, it’ll make a difference, Karl. It’s an important measure. It’s going to go to every household, and I think it will make a difference and you know, that’s what the Government’s been focused on. How can we provide some help at the moment without adding to the inflation challenge in the economy, and the energy bill relief will do that. But so will people working on the minimum wage, will get a wage rise, that’s over 2 million workers. And of course the tax cuts will start flowing too. So it’s an important day today.

STEFANOVIC: I read in the Tele this morning that people are using water bottles, heat packs and putting more clothes on just to keep warm at night. Breaks your heart. $75 a quarter is just sandbagging a dam of high prices, isn’t it?

GALLAGHER: Well, that’s – this is the energy bill rebate. I note that the Commonwealth’s providing to every household, I note that States and Territories are also leaning in in this area, because we recognise energy bills are one of those areas that you know, particularly when you go through a cold spell like we’ve been going through on the east coast, really hits household budgets. But you know, we see it in conjunction with some of the other measures that we’re putting in place, including those tax cuts, wage increases, and some of the other areas like cheaper medicines and the support we’re providing Medicare. It’s all focused on making sure we can do what we can to take some pressure off household budgets.

STEFANOVIC: It’s a horrible thought, people are choosing food over power this winter. It’s just shocking. Let’s move on. Jim Chalmers said yesterday you are confident but not complacent on inflation. What if Treasury modelling is flat-out wrong?

GALLAGHER: Well, Treasury provide us with forecasts and that helps us make our decisions in our budget. Those inflation forecasts are quite similar to the Bank’s, the Reserve Bank’s forecasts. So it is important information that helps us make those decision. We’re seeing inflation moderate. We want it to be lower, of course. And we’ve seen other countries, it doesn’t necessarily go down in a straight line. And so you know, it remains a challenge. We’re focused on it but also how we can provide cost-of-living help, when we are seeing inflation higher than we’d like.

STEFANOVIC: We shall see. Senator Fatima Payman has been officially suspended from the Labor caucus, why on earth did it take the PM so long to act on a breach of this magnitude?

GALLAGHER: Well, I think the Prime Minister acted very quickly. I mean after –

STEFANOVIC: It’s a week.

GALLAGHER: Well, Senator Payman crossed the floor last week. The Prime Minister met with her the following day, I believe, and suspended her for a week from the party room. You know then there was an interview yesterday where she indicated she would cross the floor again and there was a further meeting yesterday afternoon. Really, the decisions now are in Senator Payman’s hands.

STEFANOVIC: Do you think she’ll go today? I mean it’s the obvious thing for her to become an Independent now.

GALLAGHER: Well, I hope not but you know, the decisions she’s made in the last week have been of her own making. She’s made those decisions. It’s a privilege to serve in the Labor caucus, Karl. And when you serve in the Labor caucus – not many people get the opportunity to do so – you sign up to making decisions together and standing together. And when somebody doesn’t stand with you, there has to be consequences. But I hope not. Really, the Prime Minister has said, until she can commit to you know that solidarity that we expect in the Labor caucus, she’ll have to sit outside. But the decision now is over to her.

STEFANOVIC: She’s ticked you off, hasn’t she?

GALLAGHER: Well, you know I mean I think it’s always – in a Caucus, we rely on each other. All of us. And so when one of us chooses to step out there is frustration, there’s no doubt about that.

STEFANOVIC: Good to talk to you Katy, thank you so much.

GALLAGHER: Thanks a lot for having me on, Karl.