Angus Taylor (Hume, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Prime Minister. Prime Minister, given Australia is in a GDP per capita recession, can the Prime Minister define what a GDP per capita recession is?

Hon. Members:

Honourable members interjecting—

Milton Dick (Speaker) Share this | Link to this | Hansard source

Order. Members on my left will cease interjecting, and members on my right will join them.

Anthony Albanese (Grayndler, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I thank the shadow Treasurer for his question and for his constant talking down of the Australian economy. He's quite upset because the comparison of Australia with the G7 or with the former government shows that here in Australia we have an economy that continues to grow. We have wages that are growing—including real wages. We have inflation which is continuing to moderate. We have productivity that is increasing, and we have a budget that has gone from a $78 billion deficit under those opposite to a $22 billion surplus.

If you compare that with other economies in the region, we have higher economic growth than Canada, than France, than Germany, than Italy, than Japan, than the UK—not higher than the US, it must be said, but it's higher than six of the G7 nations. We have employment growth that is higher than all the G7 nations—

Milton Dick (Speaker) Share this | Link to this | Hansard source

Order! The Prime Minister will pause. The Minister for the Environment and Water will cease interjecting. The member for Hume, on a point of order.

Angus Taylor (Hume, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

On relevance, it was a very tight question about defining a GDP per capita recession. If the Prime Minister doesn't know the answer, he should sit down.

Milton Dick (Speaker) Share this | Link to this | Hansard source

Please resume your seat. The Prime Minister was asked about—

Order! The Minister for Social Services and the Minister for Infrastructure, Transport, Regional Development and Local Government can cease with their interjections. The Prime Minister was asked about GDP per capita recessions. I take it that the member's asking for a definition of what that is. You're requiring an answer? Well, under the standing orders, I've got to make sure—I can't deliver that for the member for Hume. I just want to be upfront. I've got to make sure the Prime Minister is being directly relevant. I know the answer the member for Hume and maybe other members would like, but, whilst the Prime Minister is talking about the GDP, he is been directly relevant. That's not the answer you want, Member for Hume, and I appreciate that, but under the standing orders—

Angus Taylor (Hume, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

It was a very tight question.

Milton Dick (Speaker) Share this | Link to this | Hansard source

Yes, I appreciate that. But under the standing orders, for the Prime Minister to be relevant, he has got to be talking about the issue. He may not give the definition that you wish. I just hope everyone is clear on that and what the standing orders enable me to do. You want a direct answer? I can't do that. I can direct the Prime Minister to be directly relevant.

Anthony Albanese (Grayndler, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I'm surprised they don't want to hear that Australia has faster economic growth than Canada, France, Germany, Italy, Japan and the United Kingdom. They don't want to hear about that or that we have a lower unemployment rate than Canada, France, Italy, the United Kingdom and the United States, or that we have faster employment growth than Canada, France, Germany, Italy, Japan, the US and the UK—we have a faster employment growth than all the G7 countries.

Of course what we saw last week, with their questions, was that when the figure came in at 3.7 per cent for unemployment, with —

Milton Dick (Speaker) Share this | Link to this | Hansard source

The Minister for Skills and Training will cease interjecting.

Anthony Albanese (Grayndler, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

record employment growth under this government now totalling more than three-quarters of a million Australians in work, they hated it. They talked it down and they continue to talk down the Australian economy. I'm not surprised that they continue to talk down the Australian economy, because they have absolutely nothing positive to offer.

Zaneta Mascarenhas (Swan, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. How is the Albanese Labor government helping in the fight against inflation? How does this compare to other approaches, and what does that mean for the budget?

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

What a great addition the member for Swan is to our team, from the great state of Western Australia. The member for Swan knows, and we know, that Australians are under pressure. But, more than acknowledging that fact, we are doing something about it, and three facts go to this.

When we came to office, real wages were falling at almost 3½ per cent. Now they're growing again. Inflation in quarterly terms was 2.1 per cent when we came to office; it's now 0.6 per cent. When we came to office, monthly inflation had a six in front of it; now it has a three in front of it. We'll get another monthly figure tomorrow. The monthly figures, as we know, are a bit less predictable, a bit more volatile and a bit less reliable than the quarterly figures. Whether the number ticks up a little bit or ticks down a little bit tomorrow, the direction of travel is very clear. We know that inflation is down substantially since its peaks in 2022, but we know that people are still under pressure. We know that we're making welcome and encouraging progress in the fight against inflation, but inflation is still higher than we'd like. That's why our approach to inflation and to wages is so important.

We don't have an inflation problem in our economy because the lowest paid Australians are earning too much. We see decent wages growth as part of the solution to cost-of-living pressures, not part of the inflation problem. That's why we think cost-of-living help and tax cuts should be in addition to, not instead of, a decent pay rise for minimum wage workers.

Our cost-of-living policies are designed to put downward pressure on inflation. The ABS says we took about half a percentage point off inflation last year as a consequence of our cost-of-living policies that those opposite voted against.

Angus Taylor (Hume, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

How much did prices go up, Jimmy?

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

I am asked by the shadow Treasurer right on cue. I'm very fortunate. He asked me about prices. Since the middle of last year electricity prices have gone up about 3½ per cent. If they'd had their way when they voted against our plan, electricity prices would have gone up more than 18 per cent. When they voted against our cost-of-living help, they voted for higher inflation in our economy. Because of our efforts, inflation is coming down and wages are going up. This helps ensure that people earn more and keep more of what they earn. This is more important than ever in uncertain times, with our economy slowing, with consumption flat and with uncertainty in the world.

That's why the focus on the next budget shifts a little bit, but not a lot. It doesn't shift away from what is responsible and what is affordable, but it recognises that we've got this inflation challenge but we've also got a growth challenge in our economy. Our fiscal strategy will shift a little bit as well, as we have a bigger emphasis on investment in the drivers of future growth in the economy. There will still be a primary focus on inflation, but not a sole focus on inflation. The reason why the first two budgets were successful is that they were aligned with the economic conditions, and the third one will be as well.