Senator the Hon Katy Gallagher

BRIDGET BRENNAN, HOST: Well, the Reserve Bank is tipped to cut interest rates when it meets today, and Finance Minister Katy Gallagher joins us now from Canberra. Good morning to you.

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

BRENNAN: I know it's not for you to predict, but certainly many economists believe we'll be getting a rate cut today. That's certainly something you'd like to see, I'm sure, for those Australians out there who are struggling?

GALLAGHER: Well, thanks Bridget. But yes, your prediction is right. This is a matter for the Reserve Bank and they'll make their decision based on a whole range of information. I guess from our point of view, the job we've had to do is to make sure that we've been getting inflation back down to band and it has been returned to band now for some months, but I know that there'll be loads of homeowners and those with mortgages that are watching this decision very closely. I note the market is pricing a cut, but it really is a matter for the Reserve Bank.

BRENNAN: But you'd be surprised if they didn't put this cut in line today?

GALLAGHER: Well, I'll let them make their decision and then explain their decision. As I said, the market is predicting a rate cut. We know that inflation has come back into band in all measures, and that's really welcome progress that's been made over the last two years. And we know that that's been hard for households. So, the Reserve Bank will look at all the data, they'll look at all the employment data, they'll look at what's happening on the inflation front, and then they'll make their decision. But we have quite an extraordinary story here as we've got inflation back to band. The fact that we've got such low unemployment is something that we should be really thankful for, because it's meant we've been able to get inflation down whilst keeping people in jobs and that isn't something that's happened all around the world.

BRENNAN: Australians have had a really tough time, as you've mentioned there due to many different factors, of course, global factors playing into it in the last three years or so. Would you expect in this term of government things are going to start to feel a bit better for everyday Australians?

GALLAGHER: Well, I would certainly hope so. I think some of those really high peaks in inflation really hit household budgets and people felt it when they went to the supermarket, when they paid their bills. And I think that really, we know that impacted households, which is why we looked at what ways we could ease some of those pressures, whether it be through energy bill rebates or investments in Medicare or cheaper medicines, those types of support that we provided. But we get the job isn't done either, and that we've got to continue our focus not only on inflation, but also on productivity on that side of the economy over the next couple of years. So, this is something that will – it's Jim Chalmers’ and my day job to keep an eye on what's happening and then respond as we need to based on the economic circumstances of the time.

BRENNAN: What are we likely to see going forward with energy bill rebates? Because some economists and people in social services say that money could be better spent elsewhere into more sustainable investment into getting low-income households onto solar, for example.

GALLAGHER: Yeah, so I mean, we have to do a range of things is the reality, Bridget. I mean, we've got the energy bill rebates, which have really provided some help whilst bills have been high and we've extended that for six months. But it hasn't only been that. We've also been looking at what we can do for those on low and fixed incomes, whether it be in our rent assistance, but also in some of those other programs I talk about. Health costs is a huge cost on fixed and low-income households. So is medicines, all of these areas that we want to continue invest in to make sure we are supporting fixed and low-income households as well. And I think the PM said repeatedly, every budget we look at what we can do for people on payments, and we do that each budget update and we'll continue to do so.

BRENNAN: If we can just turn to Gaza, there is a looming famine now in Gaza. The UN says the situation is catastrophic. Britain, France, and Canada have said the situation is deteriorating. They're foreshadowing potentially some tougher action towards Israel, potentially targeted sanctions. Does Australia join that call?

GALLAGHER: Well, we are absolutely deeply and gravely concerned about the situation in Gaza. You know, for anyone who's watching the images or reading about what's happening there, and we've been calling to ensure that aid is getting through and this is something that the Australian government keeps a watching brief on. I'll leave it for the Foreign Minister to make any further updates, but we're certainly seeking support for the people of Gaza and for Israel to allow that support to be provided.

BRENNAN: Alright, Katy Gallagher, thanks for your time this morning.

GALLAGHER: Thank you.