Sam Rae (Hawke, Australian Labor Party) Share this | Hansard source

Australians are doing it tough. Families have been grappling with rising costs, whether at the grocery checkout, at the petrol station or in their mortgage repayments. For many, these pressures have made it harder than ever to stretch their budgets and make ends meet. We understand this, which is why tackling the cost of living has been and remains the top priority for the Albanese Labor government.

I want to make two points right upfront here. Firstly, Australians are not going to cop the arrogant hypocrisy of the Liberal Party coming to this place, crying crocodile tears and pretending to care about working people. Secondly, the Liberal Party, in their last term of government—nearly a decade—did immense damage to our economy, and it will take significant time to turn that damage around and set our economy straight. But we are putting in place the critical components to ensure that we have a strong, resilient, sustainable economy that serves working people.

When Labor came to office we inherited an economy that was burdened by a trillion dollars of Liberal debt. And it wasn't just the size of the debt that was concerning; it was the legacy of poor decision-making behind it. Over their decade in power, we saw the worst productivity growth in more than 50 years. We saw deliberate wage suppression that kept Australians' pay stagnant. And we saw reckless spending, including billions in handouts, to corporations making record profits. This was an approach that left Australian families worse off and our economy weaker overall. Inflation had soared under the Liberal Party to 6.1 per cent, and real wages were falling, leaving households under immense pressure. That's why the Albanese Labor government took strong and decisive action to stabilise the economy, address inflation and ease the strain where possible on families and households.

Today headline inflation has dropped to 2.8 per cent—its lowest level in nearly four years. This progress didn't happen by accident. It was the result of tough decisions to repair the budget, improve fiscal discipline and deliver targeted relief to those in our community who need it most. Our energy rebates, childcare reforms and cheaper medicines have all made a difference, but we know that there's more to do.

Falling inflation doesn't yet mean lower prices for families. For many the pressure on their budgets remains severe, and we are under no illusion that our work is already done. To truly ease the burden on Australian families, it is essential that workers see real wage growth. For too long wages stagnated while prices soared. Australian workers were falling behind, working harder but able to buy less. This was the reality under the previous Liberal government.

Under our Labor government that trend has reversed. Real wages have now grown for four consecutive quarters. The latest ABS data shows the wage price index grew by 0.8 per cent in the last quarter, bringing annual growth to 3.5 per cent. Crucially real wages adjusted for inflation rose by 0.7 per cent in the year to September 2024. This is the strongest real wage growth in four years. Compare this to the five quarters leading up to the last election, when real wages fell by 3.4 per cent under the coalition—that's five consecutive quarters where workers were going backwards, with rising costs eroding their take-home pay.

Since we came to office nominal wages have grown at an annualised rate of 3.8 per cent, nearly double—double!—the 2.2 per cent recorded under our Liberal predecessors. While wage growth has moderated slightly, it remains stronger than at any time during the coalition years. For the first time in years Australian workers are seeing their pay outpace inflation. It's not just a statistic. People can feel it at home in their household budgets and when they go to the supermarkets.

The problem is not solved—no-one is suggesting that it is—but it is a meaningful shift that is finally helping families to manage higher costs and to improve their quality of life. There's not an Australian worker in this country—no matter who they vote for, no matter what their politics are—who believes that the Liberal Party will do a better job of helping Australians in realising real wage growth, realising a regular pay rise and keeping their household costs down.

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