Sophie Scamps (Mackellar, Independent) Share this | Link to this | Hansard source

SCAMPS () (): I move:

That this House:

(1) notes that:

(a) everyday Australians are experiencing a cost of living crisis; and

(b) the Government is investigating ways to respond to the United States of America's (US) Inflation Reduction Act, which is focused on demand-side solutions by the electrification of households, small businesses and transport; and

(2) calls on the Government to urgently bring forward its plan for responding to the US Inflation Reduction Act, to rapidly decarbonise and to reduce cost of living pressures.

No-one, and certainly no constituent in my electorate of Mackellar, is in any doubt that we're living through a cost-of-living crisis. A full four percentage point rise in interest rates since May 2022, increasing electricity, gas, petrol and grocery bills, and higher prices for everything from travel to education are hurting individuals, families and small businesses alike. A record 1.5 million people, almost a third of all mortgage holders, are now considered at risk of mortgage stress. That's without even considering the people, particularly young people, who may have been able to get into the property market a few years ago when interest rates were low but now can't because of higher interest rates and higher costs of living.

There's no doubt that the cost of living is one of the very biggest issues facing Australia today. And there's no doubt it's a difficult problem for governments to solve, not just our government but governments all over the world. However, governments elsewhere are taking bold steps to tackle not only this cost of living issue, but also the greater existential crisis of our times: climate change. Tackling these issues at the same time can be done. It's clear that climate policy and policies that tackle cost-of-living pressures are inextricably linked.

Our closest ally, the United States, last year introduced its Inflation Reduction Act, and it is changing the world in a positive way and at pace. The Inflation Reduction Act, amongst other things, is an investment by the US government into domestic energy production through the promotion of clean energy and the electrification of the nation using this clean energy. It is the largest piece of federal legislation ever to address climate change. The Inflation Reduction Act provides tax credits and incentives for things like electric vehicles, home energy efficiency upgrades, home energy supplier improvements and advanced manufacturing. Within less than a year of its operation, the success of the act is clear. $US370 billion of government rebates and incentives have mobilised an estimated $US1.2 trillion in additional private sector capital.

Australia can and must rise to the challenge thrown down by the US. In fact, it is not so much of a challenge as a once-in-a-generation game-changing opportunity—for renewables, industrial revolution here in Australia. To do nothing would be to lose talent, investment and innovation to the more favourable conditions established in the US. To do nothing would be to miss an opportunity to reduce the cost-of-living pressures facing millions of Australians.

It's time for the Australian government to design a system of incentives and rebates to turbocharge the transition to a clean energy economy. Our response must be unique to Australia, of course, and play to our comparative advantages. That comparative advantage is incredible. Our wind, solar, critical minerals and energy transition metals are the envy of the world. Here is what we could start with: the production and export of green iron and steel, green alumina and aluminium; the processing and refinement of minerals and metals; advanced manufacturing of solar, wind and battery componentry, electrolysers and grid control technology; the electrification of heat pumps and home energy management systems; the acceleration of transmission infrastructure including cabling and towers; and investment in zero carbon transport—vehicles and fuels.

Climate and energy finance expert Tim Buckley quite rightly says that Australia's response to the US act should be commensurate to our opportunities, that our opportunities are limitless, and that we have the opportunity to change the world. Just three weeks ago Australia's Centre for Policy Development released a report entitled Green Gold – a strategy to kickstart Australia's renewable industry future. The report calls for the Australian government to respond more aggressively to the US Inflation Reduction Act by spending $100 billion for green aluminium and ammonia and onshore processing of iron ore over the next 10 years. What is incredible is that this could be paid for by simply ending federal subsidies for the fossil fuel industry, which currently sit close to $10 billion a year or $100 billion over 10 years.

An Australian IRA-style bill would not only help to decarbonise our economy but help create the highly paid clean energy jobs of the future and, importantly, help to reduce a huge cost-of-living pressure that Australians face. We must urgently rise to this challenge. (Time expired)

Steve Georganas (Adelaide, Australian Labor Party) Share this | Link to this | Hansard source

Is there a seconder for the motion?

Allegra Spender (Wentworth, Independent) Share this | Link to this | Hansard source

I second the motion and reserve my right to speak.

Fiona Phillips (Gilmore, Australian Labor Party) Share this | Link to this | Hansard source

Today I want to talk about one of the most pressing issues facing my community, the cost of living. It is no secret that household budgets are under pressure, but that's why addressing inflation and providing targeted and responsible cost-of-living relief is our No. 1 priority. Since being elected, we have rolled out substantial targeted cost-of-living relief measures, putting billions of dollars back into the pockets of Australians who need it most. It's all part of our 10-point plan to address the cost-of-living pressures in our economy.

Let's start with cheaper medicines. The Albanese Labor government have already helped people save thousands of dollars through our cheaper medicines policy. We have dropped the previous co-payment from $42.50 to $30. This measure alone has already saved local people in the Gilmore electorate over $772,000 in medicine costs on over 69,000 prescriptions. But it is not only that. As of last month, doctors are now able to prescribe 92 of the most common medications listed on the PBS for 60 days. This is twice the medication for the price of a single script. This will save patients up to $180 per eligible medicine a year. People will also save on unnecessary trips to the doctor. They will also save on fewer trips to the pharmacy.

Recently, I announced the location for the Medicare urgent care clinic at Batemans Bay. The urgent care clinic will provide free care for urgent but non-life-threatening injuries. There will also be a Head to Health clinic opening in Moruya for adults and a new headspace opening in Kiama for young people aged 12 to 25. Both these clinics will provide free or low-cost mental health services, further helping with the cost of living. We have also provided more Medicare bulk-billing by tripling the bulk-billing incentive.

Energy costs are a concern for many people in my community, which is why we supported and delivered a targeted energy rebate of $500 per eligible household. This means thousands of pensioners, families and carers will receive a one-off $500 payment towards their electricity bill. That is real, targeted relief for people's power bills which the coalition voted against. We introduced coal and gas price caps, further easing pressure on energy bills.

We've increased the pay for aged-care workers. On 30 June this year aged-care workers were given a 15 per cent pay rise. For too long aged-care workers have been among the lowest paid workers in our economy, yet they have one of the most important jobs: looking after our elderly and vulnerable. This pay rise doesn't only reward them for the hard work they do; it also helps with the household budget.

It is not just aged-care workers, though. We are getting wages moving again. We have expanded Paid Parental Leave. We have also boosted income support payments. This includes raising the age pension, the veteran service pension, JobSeeker and youth allowance. That means thousands and thousands of people in my region have more money in their pockets for things families can't do without, such as groceries, fuel, energy and much more.

We have increased rent assistance and we have a huge agenda for building more affordable and social rental homes. Our cheaper childcare measures are providing relief on one of the biggest expenses families have, child care. When we launched the cheaper childcare subsidy, I met a local mother, Lisa, who told me that our changes to child care will mean she won't have to choose between being a mum and progressing her career as a healthcare professional on the South Coast. That's fantastic because it makes child care cheaper but also empowers parents to continue to work and support their community. Our fee-free TAFE and skills shortage measures are making a real difference while also providing cost-of-living relief.

We are delivering real relief where it's needed most, targeting the cost-of-living pressures that are hitting our communities the hardest. Australia is not immune to the global factors which are causing inflationary challenges. But people can be reassured that our combination of budget restraint, the first budget surplus in 15 years, getting inflation under control and targeted cost-of-living relief is helping put more money back into people's pockets. Our No. 1 priority is addressing this inflation and cost-of-living challenge. That's why we have a 10-point plan to address the cost-of-living pressures in our economy, and I am working hard every single day to provide the cost-of-living relief our community deserves.

Allegra Spender (Wentworth, Independent) Share this | Link to this | Hansard source

s SPENDER () (): It's no secret that people across the country are struggling with the cost of living. It's the biggest issue facing constituents in Wentworth, where each week I have a steady stream of constituents contacting me asking the government to do more. Outside of housing, energy bills are one of the biggest drivers of our current challenges, with the retail electricity tariffs rising by more than 20 per cent. These energy price rises have been driven by Australia's dependence on expensive and volatile fossil fuels, which spiked with the war in Ukraine. And while we're seeing some moderation as we get more cheaper renewables into the grid, the challenges facing families are acute.

The government must take further action on household power bills, and we should be looking to our American counterparts for inspiration. It's now just over a year since President Biden signed the US Inflation Reduction Act. The IRA is the single biggest investment ever made in transitioning America's energy system from one based on expensive fossil fuels towards one based on cleaner, cheaper renewable energy. It's a landmark inflation-busting bill that has lowered costs for many American families, spurred domestic manufacturing and made historic investments in climate action. The US IRA includes $369 billion in energy and climate spending, which could nearly triple over the decade. The IRA has also played a critical role in stimulating large-scale renewables, advanced manufacturing and future industries such as hydrogen.

But the key to the US IRA was the focus placed on the demand side: where Americans use energy in their homes, vehicles and small businesses. Under the IRA, the average household in America qualifies for around $14,000 in incentives to electrify and lower their power bills. They get a 30 per cent rebate when they install more-efficient electrical appliances, like hot water heat pumps. They get a 30 per cent rebate when they buy rooftop solar or a household battery. And they get a 30 per cent rebate when they purchase a second-hand electric vehicle. These incentives are helping households to permanently reduce their power bills through cheaper renewables and improved home energy performance and, at the same time, make a difference to the planet. The impacts are clear to see. US inflation is down to 3.7 per cent, 272 new clean energy projects have been announced, and carbon emissions are projected to decline at twice the rate expected previously.

The US IRA is already delivering for the American economy and our climate. In our cost-of-living crisis, Australia needs its own inflation reduction act, not only because of our once-in-a-generation opportunity to lead the world in clean energy exports, critical minerals and advanced manufacturing but also because it is the best way to reduce household power bills right now. I welcome the government's commitment to developing an IRA response. We need to see this urgently, and households must be at the centre.

The government has made welcome commitments in the budget, but the $1.3 billion commitment is just one-tenth of the incremental investment that Rewiring Australia estimated is needed to electrify every Australian home. If Australia was to match the scale of incentives under the US IRA, the investment required would be much higher. When we put households at the centre of an Australian IRA we must ensure that nobody is left behind—in particular, the one-third of Australians who rent. Renters make up 45 per cent of my electorate of Wentworth. But, despite recent government announcements, they remain locked out of the opportunity to permanently reduce their power bills through electrification. They're dependent on their landlord to make upgrades to their property, but landlords don't benefit from the lower power bills that come from switching out expensive gas for more-efficient electrical appliances.

That's why two weeks ago I joined my crossbench colleagues in presenting the government with a fully costed proposal that would turbocharge the installation of more than 10,000 additional hot water heat pumps, induction cooktops and energy-efficient home heating each year. When combined, they will reduce renters' power bills between $514 and $594 each year. Measures like these are essential to reducing household power bills and our carbon emission and must be included as part of Australia's response to the Inflation Reduction Act.

Terry Young (Longman, Liberal National Party) Share this | Link to this | Hansard source

There being no further speakers, the debate is adjourned and the resumption of the debate will be made an order of the day for the next sitting. In regard to the next item of business, a motion related to climate change, as the member for Higgins is present, the motion lapses.

Sitting suspended from 17 : 01 to 17 : 06