SENATOR THE HON KATY GALLAGHER
MINISTER FOR FINANCE
MINISTER FOR WOMEN
MINISTER FOR THE PUBLIC SERVICE
MINISTER FOR GOVERNMENT SERVICES
SENATOR FOR THE AUSTRALIAN CAPITAL TERRITORY
TRANSCRIPT
RADIO INTERVIEW
ABC AM
MONDAY, 20 APRIL 2026
SUBJECTS: Economy and the Budget, calls for regulatory reform from business, fast tracked National Reconstruction Fund interest free loans
MELISSA CLARKE, HOST: As the future of the Strait of Hormuz remains uncertain, the impact on the global economy continues to mount. The federal government is trying to settle its budget, not knowing how long global shortages of fuel, fertiliser and other goods will last. Katy Gallagher is the Minister for Finance. Senator, thanks for speaking with AM this morning.
KATY GALLAGHER, MINISTER FOR FINANCE: Good morning, Mel.
CLARKE: We've seen over the weekend, the Strait of Hormuz open and then pretty quickly close again. What's the best estimate of the impact on the Australian economy of this extended closure of the strait?
GALLAGHER: So one of the things we've been dealing with is we've been working through the budget over the last few months, is this global uncertainty then, and particularly the economic uncertainty that's flowing from the conflict in the Middle East. Australia, like many other countries, is wanting to see an end to this conflict and for those peace talks, which are going to resume, to be successful. Obviously, we're not immune from the impact on the global economy. We already had an inflation challenge across our economy. This war is making it harder. And we're working through all of that uncertainty as we finalise the budget over the next few weeks.
CLARKE: I mean, that must be pretty difficult. The budget's only three weeks away. How are you going trying to nail down those forecasts when the situation seems to change almost every day.
GALLAGHER: Yeah, so budgets are always difficult to put together. I mean, this one has additional challenges, but I mean our focus has been on what can we do to protect the Australian economy, how do we support businesses and households with some of the impacts that we've seen here, particularly around the price of fuel and distribution of diesel and petrol, and so that's been our focus, and it will continue to be, as we finalise the budget.
CLARKE: So a range of business and industry groups are pushing for a cut to the regulation they face. They say they want a 25% cut in the red tape they face, that would help them, particularly at difficult times at the moment, are they going to be happy on Budget Day?
GALLAGHER: Well I’ll leave that to them to assess the budget, but you know, they're right to point out about regulatory reform or better regulation, and we're always interested in hearing from stakeholders, business, industry, about their views on that, and so their input is really worthwhile. I mean, we've done a lot of work. We've had one bill pass the parliament this term on regulatory reform. We've made it clear we want to continue on that. And many of the areas that business are calling for, whether it be in R and D, major approvals, in supporting investment and regulatory reform. Are all things the government is working on, and we'll have more to say on regulatory reform in the budget when it's announced.
CLARKE: And are those decisions finalised yet, or are the suggestions being made by these business and industry groups of where they would like to see some more cuts to red tape? Is there still time in this budget process for more changes, or have you pretty much settled on what you'll be doing already?
GALLAGHER: Look what they're saying today are certainly views that they've put forward to the government already. So in that sense, that's not a surprise. I mean, I think one of the things about regulatory reform is the government's keen to do stuff where it makes sense, where it improves outcomes, where it delivers better regulation. It's not just a cut all regulation and see how it goes. So we're working with their ideas as well as ideas across government, and we'll certainly have a focus on that through the budget.
CLARKE: What about consideration of taxation reform. Has cabinet settled on changes to capital gains tax or other related areas, or is that still being worked on in these final weeks?
GALLAGHER: Well the budget will be released in that second week of May, and that will have all the decisions the government has made. I mean, I think the treasurer and PM have made it clear our tax policies haven't changed. They're focused on delivering tax cuts, which will come in. Looking at our instant deductions reform that will also be coming in the next financial year. And I think we've made it clear we want to focus on intergenerational equity, and so we've been clear about that, but the announcements around that will be made in the budget.
CLARKE: And the government has now opened up applications for zero interest loans for businesses that have been directly affected by the closure of the Strait of Hormuz. That was an initiative announced at the start of the month. How quickly can that now get moving for businesses that are struggling with fuel or fertiliser shortages, for example?
GALLAGHER: Look really quickly. I mean, it's been one of our responses to this Middle East conflict and the consequential impacts here, looking at how we shore up our supply chains and support business at a time when you know these consequences are real and happening. So this is a new process for us, but it's all up and running. People can go to the NRF website and have a look, but it's essentially providing cash flow support for businesses in the manufacturing sector that assist other businesses during this time. And we're really pleased that the that the banks have come on board and will help, but it's essentially a no interest loan, up to $5 million over a two-year period to make sure that we're doing what we can around supporting energy security resilience across the economy.
CLARKE: Katy Gallagher, thank you very much for speaking with AM this morning.
GALLAGHER: Thanks very much Mel.
ENDS
