Minister Digs Deeper into Budget Black Hole

Media Release

22 January 2025

It has now been fourteen days since it was revealed that the Labor Government had a $7 billion black hole in its Budget.

The Minister for Finance has attempted once again to explain this dodgy accounting but has only dug herself deeper in this hole.

In comments published by The Mandarin, Minister Gallagher is quoted saying “Wages and salaries have been forecast using the exact same method that the Liberals used while in Government”.

What Minister Gallagher has failed to consider, is that the difference is that the public service has blown out by 36,000 people - a massive 20% increase - along with a record pay increase of 11%.

Shadow Minister for Finance and the Public Service, Senator Jane Hume, said Minister Gallagher needs to own up to the fact that she hasn’t accounted for public servant wage rises.

“It is no clearer to Australians as to why Katy Gallagher has signed off on a Budget that she knows is not accurate. She approved this wage rise, why isn’t it budgeted for?

“Katy Gallagher needs to be honest with Australians about how much taxpayers will be paying for this record wage rise for Labor’s bloated public service.

“Either Katy is deliberately being dishonest, or her Budget isn’t credible.”