SENATOR THE HON KATY GALLAGHER
MINISTER FINANCE
MINISTER FOR WOMEN
MINISTER FOR THE PUBLIC SERVICE
MINISTER FOR GOVERNMENT SERVICES
E&OE TRANSCRIPT
TELEVISION INTERVIEW
ABC
SUNDAY, 13 APRIL 2025
SUBJECTS: Labor Campaign Launch; Housing; Tax; Federal Election.
BRETT WORTHINGTON, HOST: G'day, Speersy. The sun's streaming in here, we're overlooking the Swan River, which got a shoutout from the Prime Minister not that long ago in his speech. The party faithful are leaving the event behind us, so if you can hear them, they're an excitable bunch. With me is Katy Gallagher, she's the Finance Minister and on pretty much every cabinet committee you can imagine. Minister, thanks for your time.
KATY GALLAGHER, MINISTER FOR FINANCE, WOMEN, THE PUBLIC SERVICE, GOVERNMENT SERVICES, LABOR CAMPAIGN SPOKESPERSON: Thanks for having me on.
WORTHINGTON: There was a little extra surprise in the speech then from the Prime Minister, this $1,000 tax deduction. Can you take us through that?
GALLAGHER: Well, that's really a significant commitment from us today, from the Prime Minister, really about looking at ways we can lower people's taxes but also ensure that we're running an efficient tax system as well. So, this instant tax deduction really is a big change to the way our tax system works, and it means for those that don't have a lot of tax to reduce or receipts or expenses, that they can offer this track, which is an automatic thousand dollars and get that off your tax and paid back through your tax return.
WORTHINGTON: So, today we've seen both Labor and the Coalition announce a series of housing policies and a few little tax tweaks here and there. A lot on the demand side, potentially less so on supply in the short term. Are you concerned that this is tinkering around the edges?
GALLAGHER: Well, I think in housing our focus is completely on supply, and that's a real contrast between what Mr Dutton has announced today and what we are announcing. Under us, there will be more houses and cheaper deposits, or lower deposits, and under him there'll be higher prices and less houses. Because their policies aren't actually going about supply, whereas ours are definitely about supply, because that is the key problem. And we need to make sure that young people are actually in the game of home ownership, and our two big announcements in housing today, 5 per cent deposits for any first home buyer, but also building properties that are just going to be sold to first home buyers. Again, two big commitments, but really important ones.
WORTHINGTON: As the Finance Minister, you're used to doing the numbers. Are you concerned, though, at the prospect of first home buyers being indebted up to their eyeballs with 95 per cent mortgages that they're going to have to find a way to repay?
GALLAGHER: Well, I think one of the big barriers to home ownership at the moment for younger first home buyers is the fact of saving up for a deposit. This helps them with that. It helps them get into housing ownership earlier, so they can pay off their own loan as opposed to paying off someone else's, renting. We look at all of these policies, carefully calibrate them, think about them deeply about how we make sure young people get a fair crack. And I think those two announcements we've made today do just that. And most importantly, it's about building more housing, which is what this country needs. And Peter Dutton didn't offer a solution to that at all today.
WORTHINGTON: How concerned are you though that the supply side measures will take up to eight years to flow through, but in the immediate term, you're going to see potentially a whole lot more people being able to flood in and make purchases leading to higher prices that they're going to be paying for?
GALLAGHER: Well, certainly we've looked at ours carefully. I think if you're talking about Peter Dutton's policies, I think in terms of some of his, there are some real demand side consequences to that. But you've got to remember, we are already investing heavily through the Housing Australia Future Fund, 28,000 houses under construction or in the planning stages now, more to come. So, we've already done a lot of work in the first three years. This builds on that. And Peter Dutton wants to abolish that. I mean, he actually wants to reduce the amount of housing that's being built in the social and affordable end. We don't think that's the answer. And again, I think there's a real contrast between what he's offering and what Labor is offering.
WORTHINGTON: Why do you think neither side of politics is willing to have a serious conversation about tax and our approach to the way in which we tax this nation?
GALLAGHER: Well, I don't accept that. I think we've done a lot in this space. Multinational tax reform, PRRT, we want to make some modest changes to super. We've had tax cuts for everyone. Again, Peter Dutton wanted to abolish those and wanted to face an election over them. We've got our top-up tax cuts and now we're making some efficient reforms with $1000 instant deductions. So, I think we have made progress, but it's not an easy space. There isn't a uniform view about how you proceed. But we've tried to deal with it in components in areas where we think we could make reform and we've done that in a pretty difficult political environment.
WORTHINGTON: You're a senior member of this government. We're here in the West, where Labor's political fortunes have been quite solid in recent years. How concerned are you about what voters in New South Wales and Victoria might have to say on polling day?
GALLAGHER: Well, we don't take this election for granted. We don't take any vote for granted. We've got to go and win every single vote. We know for Labor governments that's hard. And so, it's all about what we've done and what we're offering going forward. And I think there is a real contrast there. As the PM said in his speech, we are miles apart on our campaign launches today, and I think the offer between the two parties is miles apart as well. And I think a lot of what Peter Dutton had to say today was to distract from his nuclear plan, his $600 billion nuclear plan, which he never says how he will fund it, and also what he'll cut to get there, as opposed to what we're saying today, which is investing in all those areas like Medicare, housing, even in tax today to make sure Australians get a better deal.
WORTHINGTON: There's a lot of focus on Peter Dutton in the Labor campaign. What are tangible things that people can look to if you are reelected, that they can hold you to account for at the next election after that?
GALLAGHER: Well, I think we've got most of our announcements out there now. So, people see it's strengthening Medicare, lowering HECS bills, investing in education, on our pathway to universal child care, cost-of-living help, tax cuts. I mean, Peter Dutton's tax announcement today, that's a one-off. It's not going to be there forever. We're building in those tax cuts in permanent. And what he's saying is we'll give you the sugar hit now to get us through an election, but then we are actually going to introduce legislation to increase taxes on income tax on everyone. So, I think there is a real contrast. Obviously in energy, he wants to build nuclear power plants around the country. We want to invest in renewables with gas. So, I think there is a real contest. We don't take anything for granted. We've started this campaign strongly. The PM's very energised, as you just saw in there. He's got a clear pathway for the future and I think that's a real contrast between the two leaders.
WORTHINGTON: And what will it say about Labor if you do fall out of majority at this next election after such a long time in Opposition?
GALLAGHER: Well, we're campaigning for majority, and the PM was, again, very clear in that in the speech he gave today. In order to get the stability, the leadership, the agenda that we want to roll out, you need a majority Labor government and that's what we are campaigning for.
WORTHINGTON: To achieve that though, there's not a lot of gains to be made here in the West, does that mean the focus will be on the east coast for the final three weeks?
GALLAGHER: It's right across the country. As you see the campaigns move around. I mean every seat, I don't believe in anything like a safe seat in politics. I don't think anyone should. Every seat, there's 156 contests going on around the country and I think this election will be close. But I think when we're talking to voters and when we're asking them to consider putting a one next to Labor's column, one next to the Labor candidate, they will have a real choice on election day.
WORTHINGTON: It's three weeks to go. Katy Gallagher, we appreciate your time.
GALLAGHER: Thanks for having me on.
ENDS
