Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Hansard source

The member for Blair is a terrific local member and it's a real honour to serve with him here in the House of Representatives. As he knows, our budget last night was all about helping people with the cost of living, strengthening Medicare and building Australia's future. In the communities that the member for Blair represents, the communities represented right around the room today, we know how important that is. What the budget does is it tries to build on the progress that we're making together as Australians in our economy. We have got inflation down. Real wages are up. Unemployment is low. Debt is down. Interest rates have started to be cut and growth is rebounding solidly in our economy as well, with a bigger and bigger role for the private sector, which is especially welcome.

Now, as I said before, in terms of a stronger economy that the member asked me about, we did get some very good news today on inflation. Monthly inflation fell to 2.4 per cent—in the lower half of the Reserve Bank's target range. Annual trimmed mean inflation fell to 2.7 per cent, well within the band as well, and this reflects the very welcome, very encouraging progress that we're making together as Australians on inflation. The budget last night forecast that inflation will come down quicker and sooner than was anticipated, even at the end of last year. What that reflects and what that recognises is that, with all of the investment we're making in helping with the cost of living and strengthening Medicare and investing in every stage of education, investing in housing, making our economy more resilient in the face of all of this global economic uncertainty, we have found a way to do that consistent with inflation coming down further and faster in our economy. And what all of that means is that the soft landing in our economy that we've been planning for and preparing for now looks increasingly likely.

The Australian economy is genuinely turning a corner and we saw that in the budget last night. Now, we acknowledge that, even as the national aggregate numbers turn in our favour, we know that that doesn't always immediately translate into how people are feeling and faring in the economy and communities like those represented by the member and every member here, and that's why the cost-of-living help is so essential in the budget. We know that cost-of-living pressures are front of mind for most Australians, and dealing with the cost of living is absolutely front and centre in our budget that we handed down last night. That's why it beggars belief that, when we're trying to cut taxes for every Australian worker not one more time but two more times, those opposite came into the House today and voted against it. What that now proves beyond any doubt is that, if those opposite win the next election, Australians will be worse off. They'll be paying higher taxes, and that's because this opposition leader wants to cut everything except taxes for workers.

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