QUESTIONS WITHOUT NOTICE

Senator GALLAGHER (Australian Capital Territory—Minister for Finance, Minister for the Public Service, Minister for Women, Minister for Government Services and Manager of Government Business in the Senate) (14:25): I thank Senator Darmanin for the question. The question outlines some of the uncertainty that exists across the global economy now. The war in the Middle East is reshaping the global outlook, and the IMF's World economic outlook downgraded global growth to 3.1 per cent this year, down 0.2 percentage points, and revised up global inflation to 4.4 per cent this year and three per cent next year.

There's no doubt that those global impacts are having impacts here in Australia on our economy and, importantly, on Australian households, which are under real pressure. That conflict overseas is pushing up prices and inflation here at home. Energy prices and supply chains are the main channels, which is why it often shows up first or early at the bowser and at the supermarket checkout.

Against that backdrop, Australia's economy is strong. The economy grew by 0.4 per cent in the June quarter to be 2.1 per cent through the year and 2.4 per cent across 2025-26. Annual growth in Australia was as strong as or stronger than every other major advanced economy—equal to the United States and stronger than the rest.

So our economy is resilient. When it comes to annual growth, we have stronger employment growth than almost every major advanced economy and lower gross debt to GDP than every major advanced economy. But despite that and despite the fact that real household disposable incomes grew in the quarter, that the household savings ratio lifted in the quarter, that the compensation of employees was up six per cent through the year and that unemployment was still historically low at 4.5 per cent, we recognise that people are doing it tough and are really concerned about all of the uncertainty that exists around them right now.

The PRESIDENT: Senator Darmanin, first supplementary?