Senator the Hon Katy Gallagher

SENATOR THE HON KATY GALLAGHER, MINISTER FOR FINANCE: Today, the Treasurer and I will be releasing the Final Budget Outcome for 24-25. That shows continued improvement in the state of the Budget. So, what we'll see is a deficit just under $10 billion. That's considerably lower than what was forecast at election time, and very significantly lower than what we inherited when we came to government, almost a quarter of what we inherited. So, this is good news. It means the Budget’s getting in – continuing to recover, getting it in better shape. Meaning that we're able to provide those really important investments in in Medicare, in aged care, in defence funding. All of those areas where we know there's pressure on the Budget. It means we're able to lower the debt. We've lowered the interest bill on that debt. Again, very important from our future fiscal strategy to make sure that we are continuing to improve the Budget, get it in better shape so that we can invest where we need to, and make sure that we're helping households with cost-of-living pressure. This really continues the approach we've taken since we came to government about responsible economic management. It's a combination of making sure we're banking the windfalls, that we're actually finding savings across government, and we'll continue to do that and find room for all of those important things like investing in Medicare.

JOURNALIST: Minister, you've improved on every budget, between the budget and the budget outcomes. So, two larger surpluses, now a smaller deficit. When you look at the forecasts ahead, of growing deficits above what you've got in this financial year, do you believe it will be harder to get those improvements over the years ahead? That going from larger budget deficit forecasts to smaller ones will be harder than the progress you've had on the three budgets so far?

GALLAGHER: Well, I think, you know, repairing a budget is hard work, and it has been hard over the last three years. It's about the decisions you take, whether it be about banking the upward revision to revenue. You know, it sounds easy, it's not. There's a lot of calls on the Budget, and these are decisions that we have to take that are all connected to each other. You know, finding savings is hard, and it has been hard over the last three years. It will continue to be, but we need to do it. We've got a $6.4 billion savings that we took to the last election, we'll be implementing that. Finding those savings will be hard, but we're determined to do it, because it has to be part of our story. We must make room to make sure the Budget's in better shape and that we've got the capability and resources to invest in the things that matter to people. So, it's an ongoing piece of work. It's never easy, but we'll continue to focus on it.

JOURNALIST: One of the big pressures on the Budget has been cost-of-living, and the cost-of-living support the Government's rolled out with. With interest rates starting to come down, can you find some more savings by not having to provide as much stimulus to the population?

GALLAGHER: Well, some of the measures that we've put in place have been targeted and temporary. So, if you look at energy bill relief, where we've done that, we've done that for a period of time. We've lowered it but continued it. So, you see those. And others that are ongoing. So, our tax cuts, for example, they will have a flow on effect across the budget years. Some of the investments, with big investments we've made in Medicare to make sure that that helps in the long term. You know, that's a structural spend on the Budget, but it'll help with cost-of-living over the longer term, regardless of what happens with interest rates. So, I think it's a bit of a mix. Some support needs to be temporary, others are ongoing. And it's all part of making sure, I think that, you know, people who work in the jobs they want to work, get good pay, and are supported by those important social programs like Medicare, which have been such a proud part of Australian history and ones that we will continue to protect. 

JOURNALIST: You've talked this morning about some of the many things that have been thrown at the Budget. In particular, things like global uncertainty, for example, the looming impact of tariffs. Does this result today, though, give you confidence in the resilience of the budget, that many of the underlying elements of it can be pretty durable, even if there's global headwinds?

GALLAGHER: Well, I think that's exactly right. We've got one of the strongest budgets in the G20. You know, if you look at our debt burden, it's much lower than most – almost every advanced economy. And so that matters, having the Budget that's strong, that's resilient. Our labour market has been one of the most outstanding features of the last two years, really. Where we've seen high inflation and we've seen the Reserve Bank act against that, usually you see a rise in unemployment. We've been able to keep unemployment at just over four per cent. That's amazing, really. And you see that flowing onto the Budget. So, it really does show that when you're getting some of these broader economic decisions right, that that helps the Budget. But you've got to have those strong rules about how you manage the Budget in place as well.

JOURNALIST: On another topic, the Duke and Duchess of Wales seem likely they may come out here next July, August. Would you hope they stop in in Canberra, like we saw with King Charles? Maybe get the alpacas out again to welcome them?

GALLAGHER: Well, I mean, Canberra has a very proud history of welcoming royal guests, In fact, as well we're welcoming international dignitaries. So, it's part of our role as the nation's capital. But I know as Canberrans we're very proud, as well, of the place that Canberra had in the Queen's heart. She often stayed here when she visited and used it as kind of her home away from home. I've welcomed the Prince and Princess of Wales to Canberra previously, as well. I took them to the Arboretum. It's a lovely way to showcase Australia to the world. And, of course, if there was a royal visit, I imagine most Canberrans and would be thrilled with that. Thank you.