SENATOR THE HON KATY GALLAGHER
MINISTER FINANCE
MINISTER FOR WOMEN
MINISTER FOR THE PUBLIC SERVICE
MINISTER FOR GOVERNMENT SERVICES

E&OE TRANSCRIPT
TELEVISION INTERVIEW
TODAY SHOW
TUESDAY, 29 APRIL 2025

SUBJECTS: Credit Rating; Costings; Housing; Welcome to Country.

SARAH ABO, HOST: Well, Labor's election spendathon is alive and well this morning as we count down the final days of polling the Albanese government promising state governments $2 billion over the next four years to boost housing supply. It comes as ratings agency Standard & Poor’s warns Australia could lose its AAA credit rating for more. We are joined now by Finance Minister Katy Gallagher live in Canberra. Senator, I know we held you up there, but those boys, aren't they amazing? We need more of them in this world.
 
KATY GALLAGHER, MINISTER FOR FINANCE, WOMEN, THE PUBLIC SERVICE AND GOVERNMENT SERVICES: Absolutely. I was going to cede my spot to them. I mean we need more of those stories.
 
ABO: We sure do, we sure do. Alright, let's get onto your portfolio now. Now you finally revealed your costings. Aussies know how you're going to pay for everything, but could these billions of dollars you've pledged in the past few weeks indeed still catch up with you?
 
GALLAGHER: Look, well we released our costings yesterday, Sarah, and they show that all of the commitments we've made in the election campaign have been fully offset. They've either been in the Budget or we are offsetting them with some savings across government over the next four years.
 
ABO: Not quite all though, right?
 
GALLAGHER: Yeah no, that's right. I mean, from the Budget numbers we released back on 25 March to the numbers we are today, we're slightly improving that bottom line despite the commitments we've made and that's an important part of responsible budgeting. We've done that and I think now it's time for the Opposition to come clean on their costs and their cuts that they need to make to pay for nuclear.
 
ABO: A lot of people out there, voters, will see this really as just political bluster and you're trying to do the hard sell here. When a ratings agency like Standard & Poor’s weighs in, that's when we stand up and listen. And if our AAA credit rating is at risk, that will concern a lot of people. It's something we should be taking seriously, isn't it?
 
GALLAGHER: Well, that's why we've offset the spending, Sarah. I mean the point that S&P raised, and this was released before our costings were released, were if you're putting more pressure on the Budget and our approach shows that we are offsetting our spending so that we are not putting more pressure on the Budget. And we do acknowledge – I mean, it was Labor that got the AAA credit rating in the first place and we want to protect it. That's why we've been trying to find all that, the savings over this term in government and together with the costings we did yesterday, we've found $100 billion in savings and that puts downward pressure on those issues S&P raise
 
ABO: And a big chunk of that's going to come from your unrealised capital gains tax, $7 billion a year within 10 years. It's not exactly what business groups want to hear.
 
GALLAGHER: Well, we think that's a modest change to superannuation tax concessions. It still provides a very concessionary tax rate, but for those with superannuation above $3 million –
 
ABO: But you're taxing them before they even sell their assets.
 
GALLAGHER: Well we believe that this is a very modest change –
 
ABO: Not over the long term.
 
GALLAGHER: It's modest change that will raise important revenue for the Budget that we can then use to invest in services that people really depend on and care about, like Medicare, like housing, like cheaper medicines, like all of that energy bill relief. I mean, we go through it. We have to look at ways that we can manage the Budget responsibly. I think it's a very modest change and it still provides a very concessionary tax arrangement for those with high balance super accounts.
 
ABO: Alright, today you've announced more spending. This time, well again, on housing. $2 billion this time. Labor has previously failed to reach those housing targets. You're giving it to the States to sort out, I mean, does that not exacerbate the spendathon, let alone mention all that red tape we're going to see?
 
GALLAGHER: So, I think I saw the reports in the paper too. This is the announcement we made a couple of weeks ago at our election launch. But it's an important part of essentially trying to produce a product that first home buyers can buy and be restricted to them. And we do need to work with the States and Territories. They manage a lot of the approvals, they manage a lot of the social and affordable housing, so it makes sense to continue to work with them to deliver this product. And this would be solely for first home buyers who, as you know, have been frustrated I think at the lack of housing supply. So, this goes particularly to that end of the housing market.
 
ABO: Alright, and just quickly on the other issue that is during the rounds this week, Peter Dutton has doubled down on his claim Welcome to Country ceremonies are overused. Qantas, his latest target. The PM did seem to be a bit half-hearted in his response to this. What is your stance?
 
GALLAGHER: Well, I mean I don't agree around the PM because I think he made it clear, we see it as a sign of respect. We certainly use them across government. I think organisations make their own decisions.
 
ABO: Is it overused?
 
GALLAGHER: Well look, certainly not from my point of view, I think they're used appropriately and I think Peter Dutton always tries to pick an issue like this and throw it around when he is under other pressure and that's really relates to the diabolical campaign they've had --
 
ABO: So, in meetings and then as the Qantas planes land, it's fair use?
 
GALLAGHER: Well, I think it's just, I mean, organisations make their own decisions, right? Qantas has made a decision. Many other businesses make a decision that's up for them and that's a matter for their business. I think in government we use it appropriately when we have events that we are responsible for and it simply is respectful and acknowledges that rich history we have.
 
ABO: Alright, Katy Gallagher, thank you so much for joining us this morning. Appreciate it.
 
GALLAGHER: Thanks.

ENDS