Finance Minister Dismisses Opposition's Economic Vision as "Same Old Liberal Party"
Gallagher defends government's fiscal approach while rejecting calls for broader spending cuts
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Finance Minister Katy Gallagher dismissed Opposition Leader Sussan Ley's economic speech as recycled Liberal Party themes Wednesday, defending the government's budget management approach during an ABC Afternoon Briefing interview.
Speaking hours after Ley delivered her first major economic address calling for stricter fiscal discipline and reduced government dependency, Gallagher characterized the opposition's vision as unchanged from their election defeat.
"I think what it said to me was it's the same old Liberal Party, very similar themes to what they took to the election, sort of hunching down on people who rely on public services," Gallagher told ABC Afternoon Briefing
Gallagher argued the Coalition had failed to learn lessons from their 2022 election loss, suggesting their approach remained focused on cutting support for vulnerable Australians.
"If you hadn't learned the lessons of the last election, that's a bit of a concern," she said.
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Fiscal Management Defense
The Finance Minister defended the government's budget record, citing efforts to eliminate waste and improve the fiscal position inherited from the previous Coalition government.
"We've done a lot of cleaning up of the budget, getting rid of a lot of the waste and rorts that we inherited, paying down debt, getting the budget bottom line in better shape," Gallagher said.
She emphasized the government's systematic approach to budget management, noting savings and reprioritization occur at every budget update.
"At every budget update, we've found savings, we've re-prioritised, we've found room for those areas that were underfunded or just had funding stopped," Gallagher said.
The minister cited community legal centers as an example of Coalition budget practices that created artificial savings by ending funding without proper transitions.
Defense Spending Discipline
When pressed about the Coalition's proposal to exempt defense and national security spending from fiscal constraints, Gallagher rejected the idea of special treatment for any government department.
"No area of government just gets a get-out-of-jail-free card. We have to make sure that the rules that apply consistently across the government apply to defence as well," she said.
However, she acknowledged defense spending would likely continue growing due to strategic circumstances.
"We're living in pretty uncertain times. The demands on defence are very high and they're continuing to grow as well," Gallagher said.
The minister confirmed the government funds necessary defense capabilities while maintaining fiscal discipline across all departments.
"Where a capability is required in order to keep Australians safe, then we will fund that. And that's what we've done with all of our decisions," she said.
Tax-to-GDP Ratio Discussion
Addressing Coalition criticism about the tax-to-GDP ratio, Gallagher noted the current ratio remains below historical peaks under previous governments.
"What they don't say is the highest tax to GDP ratio is under the Howard government, and it has been consistently under that since those days," she said.
She described budget preparation as involving multiple considerations requiring balanced decision-making.
"The budget, at the end of the day, is a series of different decisions to make sure that you get, you know, you fund the things you need to fund, you're doing it in a responsible way," Gallagher said.
Welfare and Intergenerational Equity
Gallagher pushed back against Ley's suggestions to tighten eligibility criteria for government payments, describing them as "a very polite way of saying crack down on welfare."
She highlighted government initiatives supporting younger Australians as evidence of addressing intergenerational equity concerns.
"If there's a concern around intergenerational equity, I would wonder why they didn't support the HECS debt reductions and why they've voted against our housing policies," Gallagher said.
The minister noted constant pressure to increase rather than decrease payment levels across various programs.
"Usually the pressure is on to increase those payments, whether it be job seeker, pensions, you name it. There's a lot of feedback the government gets about the fact around the adequacy of those payments," she said.
Early Childhood Education
Gallagher defended early childhood education spending against potential Coalition cuts, framing it as economic policy rather than welfare.
"We may have a different view to Susan and her colleagues where they see early education and care as some sort of welfare support as opposed to something that drives women's economic equality," she said.
She emphasized the policy's role in supporting workforce participation.
"Women tend to have the burden of care, of unpaid care. If you're able to access paid care, then maybe you have more choices available to you," Gallagher said.
Superannuation Tax Changes
When asked about timing for superannuation tax concession changes affecting accounts over $3 million, Gallagher declined to provide a specific timeline.
"Our priority in the last couple of sitting weeks has been a whole range of other pieces of legislation. Obviously, our HECS debt reduction is there now through," she said.
She noted the challenges of managing a large legislative agenda through the Senate.
"It takes a lot, as I know, from bitter experience to get legislation through the Senate, so we have to phase our program accordingly," Gallagher said.
Albanese's US Visit
Regarding Prime Minister Anthony Albanese's upcoming United States visit and potential meeting with President Donald Trump, Gallagher said she wasn't privy to specific diary details.
"I'm not across the PM's diary. I'm sure you talk about it at the cabinet table," she told Karvelas.
She noted the Prime Minister's UN General Assembly attendance and broader engagement opportunities with world leaders during the visit.
"It's a busy period of the year and a great opportunity to engage with a number of world leaders," Gallagher said.
The minister identified several potential discussion topics including climate policy, social media regulation, and defense alliance matters.
"Our close alliance, you know, our relationship in a defence sense, I'm sure all of that will be front and centre of our leaders' mind," she said.
The interview highlighted the stark policy differences emerging between the government and opposition as both parties prepare for the next federal election campaign.
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