SENATOR THE HON KATY GALLAGHER
MINISTER FOR FINANCE
MINISTER FOR WOMEN
MINISTER FOR THE PUBLIC SERVICE
MINISTER FOR GOVERNMENT SERVICES
E&OE TRANSCRIPT
DOORSTOP INTERVIEW
UNSW CANBERRA
WEDNESDAY, 22 OCTOBER 2025
KATY GALLAGHER, MINISTER FOR FINANCE: Thanks everyone for coming out this morning for this really important announcement today.
Since we came to government, we’ve been looking at how we can maximise the opportunities for Australian businesses that come with being a big purchaser of products or services across Australia.
We know that each year we spend, on average, more than $70 billion going out from the Commonwealth Government into procuring different types of services, projects, infrastructure, and we wanted to maximise the opportunities for Australian businesses and for small and medium enterprises to drive better bang for our buck.
We’ve already made some changes, in terms of thresholds for small and medium enterprises, and by defining an Australian business for procurement purposes, which hadn’t been done before. We did that in the last term.
This is the next logical step, updating our thresholds, where we want to provide preferential procurement opportunities to Australian businesses up to a certain level. We’re lifting it from $80,000 to $125,000 for non-construction, and for construction services up to $7.5 million.
We think this will make a difference. It sends a message that the government wants to engage with Australian businesses, and with small and medium enterprises. We want to be a good purchaser across the ecosystem, but also allow businesses to really promote what they can provide to the Commonwealth Government.
We’ve also made some changes through the supplier portal. Suppliers will now be able to identify if they’re an Australian business, an Indigenous-led business, or a women-owned business. That will give us, and the departments doing procurement, the opportunity to see who these suppliers are as they go through their normal processes.
We think this will make a big change. We expect to see increased purchasing from Australian businesses, we’ll be watching that closely through the work we’re doing with AusTender.
This is really about a level playing field for Australian businesses. It’s been raised with me constantly since I became Minister for Finance. This is one of those changes we can make, and we think it will make a difference. SMEs, Australian SMEs, will get more work from government, and that drives better outcomes for our procurement dollar.
I’ll hand to Andrew now from UNSW to make some comments.
PROFESSOR ANDREW NEELY, UNSW CANBERRA: Thanks, Minister. I think it’s great that the government’s come to UNSW Canberra to announce this really important change in policy. This is really important for the ecosystem of startups and SMEs that we work with at UNSW.
We’re here at the new Canberra City campus that UNSW is building in the nation’s capital. A key part of what we’re doing here is working with our ecosystem of UNSW Canberra Launch industry partners, you’ll meet one in a moment.
These opportunities around government procurement will really help our industry partners get a leg up on their journey, helping them grow their businesses as we build out this new campus, in addition to our existing campus at ADFA here in Canberra.
We’re embedding SMEs and startups into the university ecosystem, getting them to work closely with our academics, offering opportunities and internships with students as well.
One of the key things is access to our infrastructure. As startups develop their products and pursue first contracts, they often can’t afford facilities like these. In this ecosystem, we bring them together, support them, and now, with these developments, they’ll be able to access government contracts more easily and continue growing.
So I’d like to hand across to the founder of one of our ecosystem partners, Charles, from Cognitive Advantage.
CHARLES WINSOR, COGNATIVE ADVANTAGE: Thanks, Andrew. Thanks, Minister.
As an Australian small business owner, I really welcome this important reform from the Australian Government.
We started small here in Canberra and have grown a lot. We have world-leading products that we’re selling successfully to the Australian Government, and we aspire to export our products globally as part of growing the Australian economy.
That growth journey really has to start somewhere, and this is a fantastic show of confidence from the Australian Government in Australian industry, that we can be world leaders in technology and many other fields. So thank you again.
JOURNALIST: Minister, can I ask you about the threshold increases? By indexing that threshold, you’ve effectively maintained the status quo of procurement. The Buy Australia plan is about Australian companies, not necessarily Australian SME companies. How will you create that cultural change, how will you get procurement officers on the ground to stick by what government is trying to do?
MINISTER: Yes, so we’ve lifted the threshold, and that essentially goes to the maximum we can do while still adhering to our international trade obligations. It hasn’t been done in 20 years, so we think this increase will make a real difference on the ground.
You mentioned cultural change, we’re investing in building capability across the APS. Procurement is a profession, and we’re making that clear. The government is sending very strong signals, through our Buy Australia commitments, defining Australian business, the supplier portal changes, and these new thresholds, that we expect preferential treatment to be given to Australian businesses where possible within the rules.
It’s a clear signal from government that this is being watched. Finance looks closely at what agencies are doing under the Procurement Rules. You don’t change things overnight, but we’re making the structural changes and providing the support procurement staff need across government.
JOURNALIST: Can I ask one more question on procurement? The Digital Transformation Agency has done a review of single-vendor contracts, there are seven or eight multinationals that hold those whole-of-government contracts. No Australian companies do. How do you level that playing field?
MINISTER: A couple of things, we’ll release that work shortly. What it’s found is that, in some cases, those arrangements provide savings and efficiencies for government through negotiated terms. But you’re right, the DTA has done a review, and we’ll release it soon.
From where I sit, things are changing. We’re looking closely at how the DTA’s digital marketplace operates, there are still improvements to be made. But we know much of the work going out the door there is going to small and medium enterprises that are defined as Australian businesses.
The days of entering long-term single-provider contracts that tie you to one system are changing, particularly with new technology like AI. Procurement needs to evolve alongside that, and Finance is working on it.
There’ll always be some place for single-seller arrangements where they deliver value, but we’re also making sure Australian businesses get a fair crack.
JOURNALIST: On today’s announcement about rental applications, can you walk us through how it will work and how it helps renters?
MINISTER: This is really about making it safer and easier for renters to apply for a property without handing over piles of personal information. Renters often have to provide income details, bills, proof of address, even passports, sometimes for multiple applications.
With this pilot, renters will be able to use a digital ID or the Consumer Data Right to verify who they are and share financial details securely, without physically handing everything over.
It won’t necessarily speed up approval times, but it will make the process safer and easier. We know rental applications are a risk area for privacy, sometimes files are still paper-based, sitting in offices, and this will help protect people’s information.
If you have a myID, for example, you can simply verify your identity, and that provides certainty without you handing over documents.
This is a pilot, and we’ll see how it goes. Anything that reduces the amount of personal data people share, and lose control over, is a good thing.
JOURNALIST: Realistically, Minister, how long might it be before renters currently in the market can use their myID to cut through that process?
MINISTER: The pilot’s underway now, so we’ll see how it operates.
Victor Dominello has been a big supporter of this type of approach, actually making a real-world use for digital ID. We’ve got over 14 million people with a myID now in Australia, so we know people are signing up.
We’ve got to make sure there are uses for it that make sense to people. Obviously, people use it a lot to engage with government, but how can we make it useful in their private lives too, helping them control their information, rather than handing it over to a real estate agent?
We’ll look at how this pilot goes. If it goes well, there’s broader application we can explore. The legislation also sets out a pathway for engaging the private sector in the use of myID more widely, and we need to learn and understand more about that.
JOURNALIST: Minister, during the last term of government, you were deeply critical of the Coalition for putting in place billions of dollars worth of funding measures in the Budget that were not ongoing, that expired.
After this recent election, it’s become clear that you, as Finance Minister, have done the same thing, with billions of dollars and hundreds of measures that expire this financial year and next.
How do you justify engaging in the same behaviour you criticised last term?
MINISTER: A couple of things there, yes, I was critical of using terminating measures as a way of disguising ongoing funding responsibilities.
When we inherited the Budget, we had hundreds of measures that everyone would have accepted were ongoing funding responsibilities but had no ongoing funding.
Take community legal services across Australia, for example, that was one case. There was $4 billion we had to find to fund those services because their funding stopped on 30 June last year.
Now, is anyone suggesting community legal centres shouldn’t operate on 1 July? I don’t think so. But that was a way of dressing up the Budget to make it look better.
Where we’ve provided one-, two-, or three-year funding, it’s because there’s a reason for it, for example, Services Australia. That’s one of the big ones, where we’ve provided two years of additional resourcing to deal with a backlog of work and to determine the appropriate baseline for Services Australia going forward.
So that’s the reason. I’ve never said you shouldn’t have terminating measures. I’ve said you shouldn’t use terminating measures to disguise ongoing responsibilities.
There’s a place in the Budget for one-to-three-year funding, sometimes programs genuinely end after that period. In other cases, we need time to review resourcing or make further decisions, and we do that in an orderly, transparent way.
We’re doing a huge piece of work around terminating measures. We’re still uncovering some from the former government and dealing with others, like Services Australia, through the MYEFO process and future Budgets.
JOURNALIST: Minister, with Linda Reynolds having won her defamation case and Britany Higgins deciding against appealing, do you now concede there was no cover-up by the Morrison Government?
And secondly, do you regret “weaponising” the complaints in Parliament?
MINISTER: Well, look, I’ve really said everything that I want to say about this matter.
I’ve been questioned extensively in the Parliament, I’ve been questioned extensively by news outlets, and I have nothing further to say.
JOURNALIST: But it was incorrect, the judge found it was incorrect that there was not a cover-up by the Morrison Government. You alleged it. Surely that must merit some kind of comment?
MINISTER: Well I have already responded to all matters relating to this as far as I am able to so. I was questioned at length in Parliament, I was questioned for two weeks by the Opposition, of almost every question in Question Time on this, and I have nothing further to say.
JOURNALIST: Should you apologise to the women concerned? Should there be a parliamentary requirement to do so?
MINISTER: If you go back and look at the evidence when Linda Reynolds asked me that question, I have answered that question, and I have nothing further to add.
JOURNALIST: So do you stand by the point that?
MINISTER: All of my comments are on the record.
JOURNALIST: Just in relation to the Prime Minister’s trip to Washington, despite concerns from the Opposition Leader, there were no assurances around the Pharmaceutical Benefits Scheme. That wasn’t raised by the PM in official discussions.
Along with that, and securing lower tariffs for steel and aluminium, do you think there were missed opportunities on this trip?
MINISTER: Look, I think this was an incredibly successful trip. The Prime Minister has represented the country in our national interest.
There’ll be continued engagement with the US on many issues, but the outcomes of this meeting, an incredible deal on critical minerals and rare earths, and solid backing for AUKUS, these are very important achievements.
They’ve been delivered through this visit, and we’ll continue to engage with the US, our closest friend and ally, on all other matters.
JOURNALIST: On the trip, the Opposition now says Kevin Rudd should be removed from the Ambassador’s role, given what the President said during that press conference.
What’s your view on Kevin Rudd and his tenure in Washington?
MINISTER: The Prime Minister addressed this this morning, but I’ll say this, I can’t think of a better person to have done the work needed in Washington in the lead-up to that visit.
Kevin Rudd has built incredible relationships there that helped deliver the outcomes achieved. He’s an incredibly valuable representative to have in that role.
Frankly, I think the Opposition has egg on its face. They wanted a bad outcome from this meeting, they made that clear. They were talking the relationship down, talking the PM down.
Now that we’ve had such a successful outcome, they’re calling for another head. It’s time the Opposition acted in the national interest, not against it.
JOURNALIST: Just one more, what do you make of Linda Reynolds’ proposal for a parliamentary inquiry?
MINISTER: That’s a matter for the Parliament.
JOURNALIST: When Labor came to government, the cost of Snowy Hydro was reassessed to $12 billion. Snowy Hydro said it was confident that was within the revised budget and there’d be no further blowouts.
What went wrong? And how can you be sure they won’t get it wrong again?
MINISTER: So Snowy has announced that they’re doing a cost reassessment process. As shareholder ministers, both Chris Bowen and myself, we’ve been briefed on that, and we think it’s an appropriate process to go through.
We did that initial rebasing, or re-costing, of the project.
In short, this project was never properly scoped or costed at the beginning of the project under the former government. That work was done. If anyone’s been down to see what’s happening at Snowy Hydro 2.0, you’ll know it’s hard to get your head around the scale and scope of the project.
It's a 150-year project, and we need that project to ensure we've got back up supply for our energy grid over the next 100 or so years. So the project is important. We re-costed it, to that $12 billion figure. I think it's about two thirds complete. Now there's some continuing pressures, and you know, we're going around this in a responsible, mechanical way that you would expect on a project like this, to make sure that it's got the budget, it needs to be completed.
JOURNALIST: Minister, your answer earlier, you said, “It’s a matter for the Parliament.”
MINISTER: Yes, it is. It’s a matter for Parliament. We have 27 votes in the Senate. It’s a chamber of 76.
So it’s a matter for the Parliament, who establishes inquiries, the terms of reference for those inquiries, and the conduct of those inquiries.
It is a matter for the chamber itself, and I’m sure the Presiding Officer will be considering former Senator Reynolds’ letter.
ENDS
