Treasury opening statement to the Economics Legislation Committee

In an address to the Economics Legislation Committee, Treasury Secretary Dr Steven Kennedy outlined key challenges facing the global and Australian economies, including weak global growth, trade tensions, and domestic cost-of-living pressures.

Kennedy highlighted uncertainty around household spending, despite early signs of recovery in disposable incomes. He noted that Australians have been rebuilding savings after a period of financial strain, which may delay stronger consumer spending. Inflation has eased to 2.4 per cent, and housing cost pressures are stabilising, but the pace of economic recovery remains unclear.

On trade policy, Kennedy cautioned against protectionist measures, stating that tariffs would harm Australian consumers and businesses. While global trade tensions continue to rise, Kennedy emphasised that Australia’s best response is to maintain open markets and strengthen economic resilience.