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

E&OE TRANSCRIPT
RADIO INTERVIEW
ABC RADIO NATIONAL BREAKFAST
TUESDAY, 8 APRIL 2025

SUBJECTS: Trade relationships; share market; mental health; ACT campaign.

SALLY SARA, HOST: Well, as Australian shares experienced their largest one day drop since the COVID-19 pandemic, how soon could borrowers expect an interest rate cut in the wake of US President Donald Trump's tariffs? The Australian share market lost nearly 4.2 per cent in value on Monday, or more than $100 billion, following significant declines on Wall Street. The federal Treasurer, Jim Chalmers says markets are now expecting, quote, around four interest rate cuts in Australia this calendar year. The Finance Minister, Katy Gallagher, is my guest this morning. Minister, welcome back to Radio National Breakfast.

KATY GALLAGHER, MINISTER FOR FINANCE, WOMEN, THE PUBLIC SERVICE AND GOVERNMENT SERVICES: Thanks for having me on, Sally.

SARA: What would you say to Australian investors and those looking at their superannuation accounts this morning, who may be wondering how much further their investments are going to drop today?

GALLAGHER: I think we've been seeing a lot of uncertainty and volatility in the markets, particularly in the share markets, and I imagine people with investments, super, will be looking at that with some level of concern. This is obviously a response to what's been happening with the tariff decisions coming out of the US and the flow on from that. But I would say, I think we are in a very good position here in Australia. We released some Treasury modelling yesterday, the Treasurer did, about the expectation from Treasury about the impacts here in Australia, and we've done a lot of work over the last three years to make sure that we are in a pretty good place, strengthening our economy, getting inflation down, helping with cost-of-living and repairing the budget. And this is all really important when it comes to our defence against this global uncertainty that we're seeing.

SARA: In the light of the global growth outlook, does the Australian economy needs stimulus?

GALLAGHER: Well, we've always, and we've made it clear, that we always make decisions based on the economic circumstances of the time. But I think what you saw in the Budget is our continued investment in people, their cost-of-living pressures, addressing those really important service areas, making sure we're helping with Medicare, particularly strengthening Medicare, making sure we're helping people with their energy bills, and that will flow through the Budget. Obviously, the Treasurer is keeping in very close contact with Treasury and his international counterparts to monitor what's been happening around the world. He'll continue to do that, but we've always made it clear that we would make decisions about what we need to do in light of all of the economic reality of what we're living in. And the fact that we've been able to get the Budget in better shape, make sure we are repairing those fiscal buffers, paying down debt, lowering the interest payments on that debt, has all been an important part of our work over the last three years.

SARA: In light of the outlook, and given that the government is in caretaker mode and not really in a position to offer fiscal stimulus, does that put more pressure on the Reserve Bank to offer some relief?

GALLAGHER: Well, as I said, we've got a lot of investments that are flowing through our Budget already. The Bank will make its own decisions. Obviously, the markets are now responding to what they're seeing and pricing in a number of interest rate cuts beginning in May. They're expecting multiple cuts. I think it was expecting three, they're now expecting five starting in May. But this is a matter for the Bank. They make their decisions, obviously, they will be watching what's happening around the world keenly as well. I know the Treasurer has been in contact with the Governor and we'll keep ensuring that all of that information is flowing. But yes, I think it's very clear the markets are expecting interest rate cuts this year.

SARA: When we're looking at the tariffs directly, could the retaliatory tariffs between the US and China in particular, could that actually create some opportunities for Australian exporters? Treasury suggests that Australian agricultural exporters could actually benefit.

GALLAGHER: Look, obviously it remains to be seen. We're seeing continued -- I see some further statements from the US around its tariffs with China. We are, as I said, and I think the Treasurer said yesterday, we are well placed. Obviously, we are making sure that we are supporting those trade-exposed industries, making sure that we can support them in exploring other markets from the US. And obviously China is really important in our trading relationship, so we'll continue to work with those trade-affected industries. I think we are well placed. We're continuing the Treasurer in discussions and the Trade Minister with our international counterparts, and that work will continue.

SARA: Labor will unveil a $1 billion commitment today for more mental health services and to grow the mental health workforce. I note that none of the funding for mental health services goes to the Territory that you represent, which is the ACT. Why haven't you secured support for those services in your own backyard?

GALLAGHER: Oh, well, indeed we have. I mean, there are two Medicare mental health centres in the ACT, one in Civic and one in Tuggeranong, and we have made sure that ACT gets its fair share of support in relation to mental health. But also in this announcement today importantly, there's a service in Queanbeyan, which people would know, locals will know. It's just on the border of the ACT and ACT services always have a fair bit of flow from Queanbeyan and the surrounding region. So, making sure we are supporting regional services as well, with Kristy McBain in Queanbeyan, has been a part of the thinking. But these new investments have come by recommendations from stakeholders that have been working with the Minister for Health and the Assistant Minister for Mental Health, Emma McBride, in putting this package together. Really important, because our focus is on making sure people can get access to free mental healthcare through those centres, but also making sure we are filling that missing piece for young people in particular with more significant mental illness. So, the specialist care centres and making sure Headspace can expand with some of the higher complexity of young people that they're seeing as well. So, this really kind of comes at this mental health issue from a number of different fronts, but really trying to make sure we are covering a lot of the areas where there's increased need, particularly for young people, but also training the mental health workforce for the future as well, which is such an important part of making sure we can deliver services in an ongoing way.

SARA: Just finally around Canberra, some of your corflutes just have your name on a pink backdrop. There's no mention of Labor or Labor colours, what's happening there?

GALLAGHER: Oh, thank you for noticing. Look, to be honest, people just tell me what the best way to put yourself out there is. But I don't think anyone would not know that I am with the Labor Party. I've been around for a while now and certainly I'm very proud to be a member of the Labor Party. So, we're campaigning hard in Canberra. We don't take anything for granted and making sure people can see me and see my name out there is really important part of that.

SARA: Katy Gallagher, we'll leave it there. Thank you.

GALLAGHER: Thanks very much.

ENDS