Gladys Liu (Chisholm, Liberal Party) Share this | Hansard source

Despite the challenges of the last two years, Australia's economy remains strong, its fundamentals remain sound and it continues to prove its remarkable resilience. In line with this underlying strength in our economy and labour market, wages are bouncing back. The latest ABS data shows wages grew by 2.2 per cent through last year, higher than the 1.5 per cent forecast in the budget. Wages growth of 2.2 per cent in the September quarter is the strongest since the start of the pandemic. The figure is even higher in the private sector, with wages up 2.4 per cent over the year. And it's expected to get even better. As the RBA governor said this week, wage growth is expected to pick up and is forecast to increase by 2½ per cent over 2022 and three per cent over 2023.

Not only are wages rising, but the actual share that Australians get to keep in their pocket is greater, too, thanks to the Morrison Liberal government's tax cuts. Tax relief has been a big focus for us. We have tax cuts for small businesses and we have tax cuts for households. The reality is that the facts speak for themselves. Take an Australian on $60,000 a year as an example—say, a nurse or a teacher. They are $6,480 better off as a result of the tax cuts that we have been providing as part of the structural reform that I am proud to have voted on that we've been taking to our tax system. The best way to see wages grow is to get more Australians into work and to continue growing the economy. That is what our tax reforms are doing. Despite the challenges of COVID-19, small and medium businesses have created 600,000 jobs right across the country.

Australians know from painful experience that the only thing they can be sure of under a Labor government is higher taxes. Higher taxes don't increase wages. Higher taxes will take away your hard-earned money. Higher taxes will shrink the economy and lead to fewer jobs. Of course, we recognise that there are challenges out there for many Australians. The fact that petrol prices are rising is concerning, to say the least, but it is insulting to the intelligence of Australians to suggest that this is anything other than a function of global supply and demand pressures. Australians know that. They see that this is a global problem, not one just affecting our country, and people see through the Labor Party spin.

The Prime Minister has said, and few would disagree, that Australia's economic recovery from the COVID-19 pandemic must be secured by people who have a track record of economic management. So let's have a look at the Labor Party's record. With respect to the cost of living, the proof is in the pudding. Under Labor, the cost of living was up by 2.7 per cent on average during their last term in office. By comparison, under the coalition government, it has been up by 1.8 per cent. That is exactly a one-third less increase than under Labor. Interest rates are also at historic lows at the moment. What it means is that somebody with an average $500,000 mortgage over a 30-year tenure will be $600 a month better off today than they would have been under Labor, when interest rates were higher. So, if the member for Rankin wants to fight an election on the cost of living, as he says, bring it on.

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