New Reserve Bank of Australia governor Michele Bullock appeared before Senate estimates for the first time in her role on Thursday.
Speaking to the Economics committee hearing, the new RBA governor gave a tick to how the government had been handling the revenue windfall from company and personal incomes taxes, reduced welfare payments and high commodity prices.
Last year's budget ended up with a surplus of $22.1 billion, the first in 15 years, most of which has been banked by the government to reduce its debt.
Ms Bullock told Senate estimates the move was helping the central bank in combating inflation.
"We're being assisted, if you like, by the fact that the government has taken what is ... the cyclical benefits of the budget and banked them. I think that's very positive," she said.
In the Foreign Affairs Defence and Trade committee, Foreign Affairs Minister Penny Wong faced persistent questions over the Israel-Hamas conflict from Greens senator Jordon Steele-John.
The Greens senator raised concerns about Israel's response to the October 7 attack by Hamas militants.
He said Israel had denied provision of water, food and medicine to the 2.2 million people there and wanted to know if the government would "now clearly condemn the siege of Gaza by the state of Israel as a crime of collective punishment."
Two federal Labor MPs last week said civilians in Gaza were being collectively punished but others Labor MPs subsequently questioned on this have steered clear of using those words.
Foreign Affairs Minister Penny Wong responded that Senator Steele-John was making assertions which were "assertions of political judgement, not fact".
She called it a complex and distressing crisis, outlining that Australia has a longstanding relationship with Israel and that the government supported Israel's right to defend itself.
The government has also been clear that civilian lives should be protected and international law should be observed, she said.
DFAT officials also told senators they were aware of and studying new US sanctions against Hamas but ultimately Australia has "different legal bases for action".
Also on Thursday, the Education secretary Tony Cook clashed with Liberal senator Sarah Henderson in the Education and Employment committee.
Senator Henderson was questioning the senior public servant about "exorbitant" salaries at Studio Schools of Australia, which supports remote Indigenous students.
An initial grant of $6.8 million in 2021 was administered by the National Indigenous Australians Agency and agreed by the previous Morrison government.
"I'm concerned that you're trying to suggest that the [salaries] were somehow approved by the former Coalition government," the Victorian senator told the Education boss.
Senator Henderson tabled public documents that showed it was June 27 2023 when documents showed that two key management personnel were paid $815,405.
Mr Cook repeatedly stated he was being "very clear" that the business case for Studio Schools had begun in 2021 "in relation to salary costs."
The two talked over each other for a while, but Senator Henderson eventually accused the secretary of "implicating" the Coalition, a claim the secretary denied: "I strongly reject your implication of me. Strongly."
