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

I have received a letter from the honourable member for Hume proposing that a definite matter of public importance be submitted to the House for discussion, namely:

This government's spending making inflation worse

I call upon those honourable members who approve of the proposed discussion to rise in their places.

More than the number of members required by the standing orders having risen in their places—

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

Before the 2022 election Australians had good reason to be hopeful. They had a strong economy. They'd come through COVID. They had a budget that was in balance, and we had come through the pandemic well. But, of course, in the lead up to that election in May 2022, Labor had promised more. They had promised lower energy prices, lower electricity prices—indeed, $275—a lower cost of living, cheaper mortgages and higher real wages. Australians, of course, took them at their word. Australians, understandably, are good people. They are trusting people.

But, sadly, the experience of the last two years tells a very different story indeed. In that last two years the cost-of-living index for Australians who are working has gone up by over 18 per cent. As of today we see an 18 per cent increase in the cost of living for working Australians. Those opposite like to crow about how wages are going. Sadly, wages have only got up at half of that rate—at 8.8 per cent versus 18.2 per cent. Here's the point that those opposite don't get: it's the purchasing power in your pay packet that matters. That's the only thing that counts. The reason Australians go out and work hard is so that they can buy the things they need to live for their families to get by every single day. Those opposite don't get that when prices have gone up by double the rate of wages, then the purchasing power in their bank accounts and pay packets dissipates. That is exactly what's happened, with a reduction in real wages of over nine per cent for working Australians during that timeframe. Central to that are 12 interest rate increases under Labor.

The saddest indictment on what we have seen since those happier days back in early 2022 when there was real hope for Australians is that, compared to peer countries, we are absolutely at the back of the pack in dealing with inflation. Indeed, since December last year we are the only one of the major 10 countries in regions around the world that has seen inflation accelerating—going up. In every one of those parts of the world, other than us, we've seen inflation going down. We are absolutely at the back of the pack. Those opposite like to make international comparisons. That's the one that counts. We are seeing interest rates starting to come down in many of those countries, but not here. I'll have more to say about that in a moment.

But, at the same time, we're seeing an economy that has shuddered to a halt. GDP per capita hasn't gone forward for five quarters. We are in a household recession, and, in that grim economic context, we've seen 19,000 businesses going into insolvency. It's tragic to have to say this, but that is a record, and there are many lives and many family businesses that have been absolutely shattered by that set of circumstances, and we're seeing it every single day. Whilst those opposite pat themselves on the back, we go out and talk to Australians who are doing it very, very tough.

This is not the Australia that Labor promised. This is a poorer Australia. Australians have got poorer since Labor came to power. Part of this is that not only is inflation too high in Australia but it's too sticky. After three failed budgets—$315 billion of extra spending, $30,000 per household—we are now fighting on two fronts: an economy that's shuddered to a halt and inflation that's sticky. The harsh reality is that the Reserve Bank is saying this. It's calling it out. It's abundantly clear. The RBA said just last week that inflation, and therefore interest rates, will be higher for longer. That sends shudders down the backbones of so many Australians and Australian families who are trying to make ends meet every single day. Last week, Michele Bullock, the governor of the Reserve Bank, said, 'Make no mistake: inflation is still too high.' She also went on to say that she is not expecting to see rates come down any time this year. There are many Australians who felt the pain of that when she said it.

This is a result of a Labor government that has failed to make inflation—beating inflation and fighting inflation—its top priority. Independent economist Steven Hamilton put it very well when he said, 'Every lever of government has been geared towards exacerbating inflation.' Indeed, the RBA went even further. On page 4 of its Statement on monetary policy, it says:

Public demand is forecast to be stronger than previously expected, reflecting recent public spending announcements by federal and state and territory governments.

It's true that their mates in the state governments are adding to it. That's true. We know that. The Victorian government and the Queensland government are big spenders too. They're all doing it together. They're all in it together! There's no doubt about that. On page 50 of the Statement on monetary policy, it says:

The stronger outlook for public demand reflects ongoing spending and recent announcements by federal and state and territory governments.

This is backed in by Chris Richardson, another independent economist who is highly respected. He went on to say that it's 'clear as they can be', referring to the Reserve Bank. He said, 'There is extra spending in the system as a result of the budget'—the failed budget, the third failed budget of this Treasurer.

But apparently that wasn't clear enough for the Prime Minister or the Treasurer, because they both claimed that the RBA didn't say that. It's in the transcripts. It's in the statements. It couldn't be clearer. But, when the only thing you've got is spin, I guess you just spin. There's nothing else you can do. This was the Treasurer on RN Breakfast. This is good stuff. When it was put to him that Commonwealth spending, including by Labor, is fuelling inflation, he said: 'I don't accept that. I don't agree with that.' Well, the Reserve Bank governor said otherwise. And what about the PM? He just went into denial. He said, 'That's not what they've said.' They went to war. They want to fight with everybody, including us, except inflation. The only thing they don't want to fight is inflation, and that's exactly the one thing they should be fighting.

There is a long list of economists who have made similar comments. In the cost-of-living committee last week, Shane Oliver said, 'The RBA's job would be a lot easier if they didn't have the surge in government spending that's been occurring over the last few years.' How much clearer can you be? Steven Hamilton said, 'The RBA has got its foot on the brake, and the government has got its foot on the gas.' That's a good line. Warwick McKibbin, former RBA board member, said that he agreed with the RBA governor rather than the Treasurer. He said, 'It is excess demand that's the problem. Government policies are adding to excess demand.' Richard Holden, a respected economist, told the cost-of-living committee last week that Labor had delivered three very expansionary budgets that were putting upward pressure on inflation. I don't know how many people I have to quote here, but it's clear that there is a better way.

Those opposite spent $500 million on a failed referendum. They are spending billions on corporate welfare. It was pointed out by one of my colleagues that one of the billionaires has decided to give the money back because it's no good, but, anyway, that's what they're doing. They are giving millions in grants to the union movement, including the CFMEU. Grants to the CFMEU—that's well-spent money, isn't it? No wonder they don't want to deregister it!

Whilst I'm talking about deregistration, productivity in this country is going backwards by five per cent. It's unprecedented. We've never seen labour productivity go like that as it has in the last two years, making the job of the Reserve Bank nigh-on impossible. The Reserve Bank governor herself has said that. She said: 'We would really like productivity to get back to its trend levels before the pandemic. That will be the key to the fortunes of this country.' Those opposite have no idea. They are out of their depth. They are out of touch. They are getting every decision wrong.

Kate Thwaites (Jagajaga, Australian Labor Party) Share this | Link to this | Hansard source

It's been 40 days since the last MPI in this place. The member for Hume could have used that time to reflect on how he could step up to support Australians. But we've had no such luck. We're back and we're back to those opposite complaining and saying no. They're saying no to supporting Australian workers. They're saying no to supporting Australian women, like the early childhood educators our government is supporting with a well-deserved, much-needed pay increase. We know that those opposite are against tax cuts for Australian workers. Those opposite are against wage increases for Australian workers. They're against cheaper childcare. They're against fee-free TAFE. They say no because the reality is that they're not up to saying yes and doing the hard work of supporting Australians and building our economy.

So it's been 40 days, and we come back to more of the same. It's more of the same disappointment and more of the same negativity. Australians know they can't trust the Liberals and the Nationals. They know this because, when they look at the member for Hume, they don't see someone who's ready to step up and support Australians. They see someone who cannot be taken seriously. It's almost as if the member for Hume wants higher interest rates and higher inflation so no-one notices he has no policy and no credibility. He's almost cheering on and begging for higher interest rates because that's also his record and the record of those opposite. Of course inflation was higher under those opposite. We experienced a decade of drift and neglect under the Liberals and the Nationals, and that demonstrates to all of us their inability and their failure to deliver for Australians. Those opposite left us with higher inflation and with huge deficits. And even now, as we're in the third year of a three-year term, they still have no positive plan for this country. They still have no plan to support Australian workers and to support Australian women. They still come in here saying no.

We can see how much worse Australians' lives would be if the Leader of the Opposition were in charge. We can see that because he tells us. There would be higher power prices. His nuclear frolic would cost $600 billion to produce just four per cent of Australia's energy by 2050. There would be higher taxes and, of course, lower wages, which again we remember were a deliberate design feature under those opposite when they were in government. That's the reality awaiting Australians if the Liberals and the Nationals have their way. Of course we remember that, when the Leader of the Opposition was the Minister for Health, he undermined Medicare, starting a six-year freeze to Medicare rebates and trying to abolish bulk-billing by introducing a mandatory payment on every single visit to the GP. The previous Liberal-National governments, which the Leader of the Opposition was a senior member of, repeatedly said that they would deliver a surplus, yet they went none for nine. Instead what they delivered was a trillion dollars of debt and deficits as far as the eye could see. By contrast, Labor, this side of the parliament, are investing in Australians for now and into the future. We are putting in place a responsible plan that is delivering results, and we will in fact be the first government to deliver back-to-back surpluses in almost two decades.

It is no surprise that much of the negativity we get from those opposite comes at the expense of Australian women. There is not a positive plan for Australian women that the Leader of the Opposition and those opposite haven't wanted to say no to. There's not a woman who wanted to stand for Liberal preselection that they haven't wanted to say no to either, but I'll save more on that for another day. So when our government announces a much-needed 15 per cent pay rise for early childhood educators, a female dominated workforce, all we get from those opposite is more negativity.

What better example of the state of the Liberals' and Nationals' views towards women than Senator Rennick's post on social media this week. Senator Rennick clearly has not stepped foot in a childcare centre this century. His comments that institutionalised childcare destroys the family unit and brainwashes children are incredibly out of touch and incredibly insulting to all the women who work in those centres and to all the families who rely on those centres and the excellent service and education they provide. They are downright dangerous views from senator who was personally backed by the Leader of the Opposition to have his place. That a member of the opposition reacts in this way to women being paid fairly for critical work they do, that he reacts by shouting about a so-called woke mind virus, tells Australians everything they need to know about those opposite's views towards women. I note that those views of Senator Rennick have still not been denounced by the Leader of the Opposition, and I look forward to him telling Australian women that he does not share those terrible views.

This pay raise is important. As Lisa, an early childhood educator of over 20 years, said, it is a 'monumental moment'. It is life-changing for workers and for the kids and the families who rely on early childhood education in those crucial early years. Another early childhood educator, in my home state of Victoria said, 'Instead of searching for a second job, this pay increase will now help me pay rent and put food on my table.' Karen, an early educator in Queensland, said, 'Those who work two or three jobs just to make ends meet will be able to spend more time with their families.' So, in delivering this reform, our government is keeping prices down for Australian families while delivering for Australian women and Australian workers. It is good for Australian workers, it is good for Australian families and in fact it is good for all of us, because we are also setting up the next generation with the best possible start in life.

I get the privilege of seeing this first-hand in my own life when my three-year-old comes home and shares with me the letters and numbers he's learnt at his early education centre that day, as well as the friendships he's making and the way he's learning to navigate the world. I've also had the experience of what it looks like when we don't back this vital sector. Like so many Australian parents, I've received the text message you get saying that your centre is down on staff members, that they're over ratio and you need to come and pick your kids up today. So, we do need to support this sector. We need to support the vital staff to continue to work to make sure the sector thrives into the future. I also get to see first-hand how hard the educators who support my son—the educators at centres across my electorate, from Ivanhoe to Eltham—work to support Australian children: the skills, the training and the dedication they bring to setting up our next generation for the best possible future. It's good for early education workers, good for Australian women and good for Australians.

And everyone has backed it—everyone except those opposite. We know that those opposite do not just have negative words on their agenda. They also have cuts on their agenda. What a surprise, that the Leader of the Opposition would look to borrow from the playbook of previous leaders, such as Tony Abbott, and that he would consider cuts to basic support payments for the elderly or wage cuts—as I said, keeping wages low was a design feature under the previous government—when people are already under pressure. This is not just financially irresponsible; it is callous and cruel. The Leader of the Opposition should come clean with Australians about where these cuts that they're all talking about will cut from. Will it be the indexation of the age pension that's cut? Will it be social security payments indexation? Where are the cuts going to be? Again, we remember that when the Leader of the Opposition was the health minister, in a former government, we saw savage cuts to Medicare. We saw the track record he brought to government. We saw the attitude he brought to supporting Australians. We can only worry about what that will mean if he has the chance to be in charge.

Our government is focused on supporting Australians with the cost of living. We know the pressures are very real at the moment. That is why we are delivering relief, with every Australian taxpayer, not just some, getting a tax cut, and our $300 energy bill relief flowing to every household, and 2.6 million low-paid workers getting their third consecutive pay rise, backed by this government. Inflation is still higher than we'd like, but it is less than half its peak and it is much lower than we inherited from those opposite. At the time of the last election, inflation had a '6' in front of it; now, it's got a '3' in front of it. Underlying inflation has moderated, and the momentum of inflation pressures is downwards. Our budget strategy is supporting Australians. We will continue to do the work to support Australian workers, to support Australian women, to build the future this country needs, while all those opposite can do is say no.

Anne Webster (Mallee, National Party, Shadow Assistant Minister for Regional Health) Share this | Link to this | Hansard source

I have spoken many times about the cost-of-living crisis and the impact on my constituents in Mallee. Australia is the only economy that has seen inflation increase, not decrease, since December. Labor's homegrown inflation continues to hurt small businesses in my electorate, who shoulder the weight of employing locals and keeping the lights and the heaters on in homes across Mallee. They are small and often family businesses who are now anxiously considering closing down. A recent Australian Chamber of Commerce and Industry survey indicated 57 per cent of regional and remote businesses have considered leaving or closing their small businesses just over the last 12 months. The latest Australian tax office statistics show 46 per cent of small businesses did not make a profit in the most recent reporting year. Three quarters of self-employed business owners, for whom their business is their full-time livelihood, earn less than the average total weekly full-time wage. Small-business owners are getting older, with the average age now 50, up from 45 in 2006. Only eight per cent of small-business owners are under the age of 30, half of what it was in the 1970s. And what are they hearing from this incompetent government? Nothing, crickets, nada.

Andrea Doering runs Joywood Fashions in my hometown of Mildura and has been in business for 50 years. In her own words, Andrea said this week, 'Small businesses are copping it.' She says that, after COVID, they struggled like everyone else and consequently reduced staff until, as a small business, they got down to her husband, herself and one other staff member. She said: 'We worked hard. People don't realise how hard you work. Over the last 12 months, it's been tough—a brutal economy, brittle. It's just about to break. When I was young, we used to make five-year plans, but now you go day to day. You can't forward-plan in a business. Everyone rides on the back of small businesses. We won't exist. I can see other businesses dropping off every day. My husband says, "There goes another one. That one's shut." They're shutting up left, right and centre. There's no hoo-ha; it's just like, well, another one's bitten the dust. And there is no funky rhythm from Queen to accompany that line. It is nothing but sad.' Andrea says: 'In Mildura, nobody is running businesses on leases. Everyone is on month-to-month.' She says, It's a whole different game out there.' Andrea is not the only one who believes this Labor government hates Mildura and lays the blame for our current regional economic conditions on Labor. She says, 'They do it to us on purpose.' What an indictment on this shocking government.

Steve Timmis in Mildura runs the very success Fossey's Distillery, a producer and retailer of the famous Fossey's Gin. Steve says: 'In the last 12-month period, my sector is down about 40 per cent gross revenue. Additionally, our costs have risen 20 per cent. Everything has gone up: electricity, wages, superannuation. That is a 60 per cent difference on where we have been. Nobody is spending. Instead of going out one or two times a week, now it's once or twice a month. People have hunkered back down. They do not have free money to spend. I am no spring chicken and I am worn out after COVID. A lot of people at my age or younger are just worn out. I hunkered back down and I didn't spend money on myself. I had over 15 employees but they no longer work for me. I ensured they found other jobs before they left. It's a sad decision. There is not one little sniff of happiness anywhere, really.'

These are the human faces of Labor's homegrown inflation crisis. Their reckless policies and spending are driving up the cost of living and the cost of doing business.

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

I'm thankful to have this opportunity today to talk about the real work we're doing to support local people in my electorate of Gilmore on the New South Wales south coast to help ease the cost of living while, importantly, putting downward pressure on inflation. We know that people are doing it tough. Inflation is still higher than we'd like, but it's less than half its peak and much lower than what we inherited from the coalition.

We're providing meaningful cost-of-living relief in a responsible way that doesn't add to inflationary pressures while laying the foundations for a stronger and more resilient economy. In my electorate of Gilmore, 64,000 taxpayers are getting a tax cut, which they are starting to see in their pay packets. That's an average tax cut of $1,405 per annum for a taxpayer in Gilmore. In fact, 87 per cent of taxpayers in Gilmore are now getting a bigger tax cut than they would have got under the Liberals' plan. Our energy bill relief of $300 for every household and $325 for around one million small businesses is also starting to flow.

Our cheaper medicines policies have already saved over $2 million for people in Gilmore, and it's putting downward pressure on inflation. We've frozen the maximum PBS co-payment on medicines for one year, and pensioners and concession card holders will pay no more than $7.70 for their PBS script because we've frozen that for five years. The Batemans Bay Medicare Urgent Clinic has seen over 6,000 patients, all bulk-billed. The new Endometriosis and Pelvic Pain Clinic at Milton is also providing much needed health assistance, again bulk-billed.

We're helping build a more resilient community, one that makes more things right here in Australia and in my region, because we want a future made in Australia. Our fee-free TAFE is making a real difference in skills shortage areas, with local trades courses booming, which is essential for local businesses and jobs.

What a fantastic announcement just last week: the Albanese government will fund a 15 per cent pay increase for early childhood education and care workers. A typical ECEC educator who is paid the award rate will receive a pay rise of $103 per week from December 2024, which will increase to at least $155 per week from December 2025. On Thursday last week, I visited the ECTARC The Basin Education and Care Service at Sanctuary Point, and I talked with early learning educators. It was Early Learning Matters Week, and it's easy to see the important work of early learning educators and what a positive difference early learning makes for children.

But the availability of early learning centres and educators is also critical for working parents in my electorate, because if you can't find care for your child then how do you go back to work? Time and time again, I have had parents very concerned about the availability of care for their child and how it was impacting their ability to return to work and run their business. We all knew what a big part of the problem was: early learning educators weren't paid enough. This was historical, but it needed to be fixed, and that's what we're doing. This is a responsible wage increase, deliberately and responsibly designed, which takes pressure off childcare fees. We know that families, workers and businesses do need to make sure that early learning educators are paid appropriately so more people can participate in work and business and so that we have workers, businesses and jobs for the future.

It should come as no surprise that the Liberals have opposed all of our cost-of-living relief and want to wind it back. What do they want to wind back? Tax cuts, fee-free TAFE, a pay rise for early learning educators? If the coalition truly cared about fighting inflation and easing the cost of living, they would have actually supported our cost-of-living relief measures, but instead they voted for higher prices and higher inflation. The coalition have nothing but a negative plan. They are the 'noalition', and they simply cannot be in government. We have a positive plan, and we are absolutely supporting people right across my region and right across Australia.

David Gillespie (Lyne, National Party) Share this | Link to this | Hansard source

This matter of public importance is really central to life in Australia at the moment, because the cost of living is really putting families and businesses under stress. Across the board, all the costs of living—health, food, education, housing, electricity, gas prices, transport costs—are up. There were 19,000 businesses, small businesses mainly, that went into insolvency in the last reporting period. We have to face the fact that the fundamentals of our economy are all out of balance.

As the Reserve Bank explained, as clear as day, the government is spending too much money—taxpayers' money and borrowed money. But we're not getting anything to see for it. There is no productivity gain in all this spending. It's just playing catch up. We need to have policies that improve productivity. The latest tranche of legislation that came through in the last two sessions has set the scene for a huge lack of productivity, with pattern bargaining and widespread wage claims.

Everyone supports a wage rise, but productivity needs to be improved to pay for it. Small businesses know this. That's why so many of them are now under stress: they're not getting the productivity. With the industrial relations changes coming down the barrel towards small businesses in my area, they will realise that the unions will be in command of how they run their businesses and that they will get much easier entry into their businesses and on pretty flimsy grounds.

The reason for inflation is the fundamentals of what makes an efficient economy: small amounts of government spending, spending that leads to productivity growth, and tax rates and interest rates that mean the cost of money for businesses and individuals isn't too high. We've seen 12 interest rate rises since this government came to power. Australia's core inflation rate is the only one in our peer OECD countries that is going up. It's all Australian-grown inflation, whereas it's going down in other countries. Even though there have been some wage rises, real household disposable income and the number of things you can buy with your income have gone down.

The latest disposable income figures show that, since the Labor government took over the Treasury benches and running government, real disposable income has fallen 7.8 per cent on a per capita basis. The force that is putting rent up and occupancy down is unbridled immigration. In the last annual figures, 638,000 new people were living in Australia. Former Labor Party governments have always been loose on immigration because each immigrant that comes here brings economic activity—we hope—and investment. With these current immigration settings, temporary migrants, who aren't highly skilled and who aren't bringing capital, aren't giving the lazy economic boost.

When you look at the GDP figures, compared to the number of new people, there's negative growth for all this massive population shifting into our beautiful country. That's why vacancy rates were around four per cent when we were in government—and the latest vacancy rates across Australia average out at 1½ per cent. Mortgage rates have gone up enormously, such that, to service their mortgage, the average Australian uses 48 per cent of their disposable income. Many renters are paying 55 per cent of their income. (Time expired)

Matt Burnell (Spence, Australian Labor Party) Share this | Link to this | Hansard source

As a young bloke who grew up in Sunraysia in Mildura, I want to put on the record and clarify what the member for Mallee said earlier. The Labor Party does have your back. I will always make sure that that area has the attention of our relevant ministers, because it will always have a very close place in my heart, especially given the fact that I've still got quite a lot of family that live in the area.

It's a bit rich when the member for Hume comes into this place and talks to the media, peddling the same old tired lines about inflation going up because of our government's spending. It's been a good couple of months since the Treasurer handed down this year's budget, so I'd like to hope that by now the member for Hume may have gotten through at least some of the papers. He might have a fighting chance if it were released as an audiobook. The premise itself is absurd—and I'll enjoy going into why later—but first I'd like the member for Hume to scroll through the several targeted and calibrated cost-of-living relief measures that our government introduced in the previous budget or, better yet, any of the previous budgets that the Albanese Labor government has handed down containing cost-of-living relief. I'll be waiting to hear what you would like to cut out of the mouths and hip pockets of hardworking Australian families, all in order to impact inflation minimally, if at all.

Despite this, I'm sure that soon enough the member for Hume will come back into this place with the exact same topic, ready to have a crack at us again at MPI time. I guess to wipe out the shame of being around the Abbott-Turnbull-Morrison governments in the cabinet room, you have to be a goldfish. Let me assist the member for Hume and, for that matter, anyone occupying that side of the chamber who might need a contemporary history lesson back from mid-2022.

Those opposite, after losing the election, fronted up to the parliament with a trust deficit and a moral deficit, and handed over a budget deficit of around $78 billion. They ran a budget deficit that large despite inflation starting with a six at the time of the last election. I do understand that people come into this place from very diverse walks of life. Some are good with numbers and some are good at doing the numbers, but I can't say that many of us would consider the member for Hume to be either one of those. In short, a $78 billion budget deficit when inflation was speeding away at six per cent was probably not ideal. This was coupled with gross debt soaring towards a trillion dollars when they handed over the keys to us. They'll blame it solely on the pandemic, despite debt accumulating faster after the worst of it. But that also doesn't quite explain why they still ran deficits of that size.

Years later, when inflation isn't even beginning to moderate, and after the Reserve Bank is about to start raising interest rates, the Albanese Labor government has reversed those deficit numbers all three times. In particular the budget deficit is back in the black. We have delivered back-to-back surpluses for the first time in nearly two decades not once but twice in a row, which is something those opposite couldn't achieve in nine years. This isn't some accounting trick or other tomfoolery, like when the member for Hume decided to amend the regulation to stop Australia families from knowing their power prices were going to go up under his watch with the DMO. While we are balancing the books, paying $80 billion less now in interest rate payments—larger than their last budget deficit—they still desperately want to cling on to a bit of hubris and think they are the responsible economic managers.

We are cleaning up the mess those opposite left, sure, but more importantly we are providing help where it counts for Australians who need it the most. That's what you get when you have a government that actually knows how to manage an economy. The member for Hume can dodge accountability all he wants by coming into this place with the same MPI. We are more than happy to keep jogging his memory. Don't try to hoodwink working families into thinking that the cost-of-living relief our government is delivering is somehow bad for the economy, when those families are doing it tough and need that assistance the most. The opposition may have made 'back in the black' coffee mugs when they never deserved to, but what Australia doesn't deserve is for those opposite to keep treating them like mugs.

Jenny Ware (Hughes, Liberal Party) Share this | Link to this | Hansard source

The Albanese Labor government has now been in power for more than two years, and I just want to remind this place what Anthony Albanese said on 17 March 2022, which was, 'A Labor government will lower the cost of living,' and 'a Labor government will deliver cheaper mortgages and cheaper rents.' I've just heard from a number of those across the other side, who have been espousing the economic credentials of this government. This government has failed in two key areas for Australians, and those are the cost of housing and the cost of everyday groceries. Under this government, for more than two years, we have seen real disposable income fall by 7.8 per cent. The cost of housing and rent has risen by 15 per cent. The cost of food has risen by more than 11 per cent. While inflation remains so high, interest rates must remain high. Why is it that inflation in our country is so high? When we compare ourselves with our trading partners, we see that their inflation rates are coming down. We now have higher inflation than every other advanced economy. We are the only G10 nation where core inflation is accelerating. The United Kingdom and Canada, for example, now have their inflation under control, and interest rates have fallen as a result. The inflation rate is clearly linked to this government's wasteful and irresponsible spending—$315 billion worth.

I hear the interjections from the other side. That's $30,000 spent for each and every Australian household. There's not a household in my electorate that feels $30,000 a year better off. The Reserve Bank last week specifically linked the continuation of high interest rates to homegrown inflation. That is spending by Labor, federal and state governments. Australians, already heavily geared with large mortgages as well as business loans continue to pay for Labor's overspending and its homegrown inflation.

Already, as a result of Labor's incompetence on the economy, Australian mortgage holders—and there are 22,000 of them in my electorate—are paying $24,000 more per year on their average mortgage than they were under the coalition government. That means that they've paid $35,000 under this government that they did not pay under the previous government. So much for cheaper mortgages.

Inflation means that each month the take-home pays of Australian workers buy less than they did in the last month, and Australians know it. We've all, in this place, been back in our electorates, with everybody telling the same story that they are telling me in my electorate. They know that their mortgages, their rents, and the cost of their groceries are higher now under Labor than they were previously. If we look, for example, at some basic food and grocery items, the price of eggs is up by 22 per cent, and milk costs 19 per cent more. Prices of breads and cereals are up by more than 20 per cent, vegetable oil by 28 per cent, pet food by 16 per cent, chicken by 10 per cent and cheese by 23 per cent. If you want to get a takeaway meal, that's now costing 15 per cent more than it did over two years ago.

This is what the Labor government has delivered for Australians in two years. Across my electorate of Hughes in Southern Sydney and beyond into neighbouring South Western Sydney, from Illawong to Ingleburn, from Bonnet Bay to Bangor to Bundeena, from Heathcote to Hammondville and from Moorebank to Macquarie Fields, Australians know it. They're paying more on their mortgages. They're paying more in rent, and they are paying far more each week for their groceries. Throughout the local government areas near me—Sutherland, Liverpool and Campbelltown—Australians are paying more.

The Reserve Bank has linked the inflation rate, and the fact that Australians are paying more, to this government's overspending. The government's continuing claim that this is due to global circumstances has been flatly denied by the Reserve Bank this week. All Australians—those in my electorate and those throughout our country—are paying the price of Labor's gross overspending and mismanagement of the economy. Australians deserve far better than this Labor government.

Gordon Reid (Robertson, Australian Labor Party) Share this | Link to this | Hansard source

The fumbling and stumbling of the shadow Treasurer continues today with his cerebral incompetence on show not just for the people in this chamber but for the gallery, for those watching on at home and for the entire world, continuing in question time to admire the sound of his own voice rather than ask credible questions or provide any productive economic or fiscal policy to this chamber and this parliament. It really, really is a shame. Those that once prided themselves on economic management and fiscal responsibility now vacantly occupy those opposition benches, providing little substance, providing little direction and providing little credibility. They are not a viable alternative government for the Commonwealth of Australia.

What did the Liberals leave us, an incoming federal Labor government, with? They left us a budget position that was more like a nuclear reactor meltdown, high inflation and wages that were going backwards. If the Leader of the Opposition and his loyal shadow Treasurer were to be in charge of this country, their unbridled liberal conservatism and right-wing populism would destroy this economy. Not only that but it would disadvantage millions of Australians right across our country, particularly in my home electorate of Robertson but also, I know, in many others, including their own. From the city to the bush, from north to south and from east to west, every Australian would be disadvantaged by what they consider to be responsible economic management. It gives me a headache.

If the Leader of the Opposition and the Liberals—

Mike Freelander (Macarthur, Australian Labor Party) Share this | Link to this | Hansard source

It would be a cerebral headache, wouldn't it?

Gordon Reid (Robertson, Australian Labor Party) Share this | Link to this | Hansard source

Yes, that's right. If the Leader of the Opposition and the Liberals are filthy about inflation now, then they must be livid with the position that they left this incoming Labor government in. Under the Liberals, inflation was going up faster than green grass through a goose. Not only that but it had a six in front of it, with an out-of-control net policy spend.

The suggestion that our cost-of-living relief for Australians is the primary driver of prices in a $2.6 trillion economy is absolutely absurd. Our net policy spend in 2023-24 is small in comparison to the size of our $2.6 trillion economy. What we have done is strike the right balance between our most recent budget, which provides assistance to millions of Australians, and the two that came before it. Our cost-of-living relief is helping Australians right across this country. So, for the benefit of the opposition, because I know they don't listen—this is, what, the 50th time that we've had this MPI—our cost-of-living relief is helping Australians right across the board.

Let's go through a few of those cost-of-living measures that are helping Australians. We're freezing the cost of PBS listed medications, which is making sure that Australians can receive the medications that they need so their chronic illnesses aren't exacerbated and they don't end up in our emergency departments. Let's talk about our bulk-billed urgent care clinics. If you're too sick for the GP and not sick enough for the emergency department, you now have a place to go. The Labor Party in this country has created not only a new medical speciality but a new model of care that is known the world over but is now right here on the shores of Australia because of this Albanese Labor government.

Let's talk about energy bill relief, which is not just for households and not just for people but also for small businesses. This is another way that this federal Labor government is backing our business community. Small businesses are the backbone of this country. I know because my parents are small-business owners. They are the backbone of this country, and they employ a significant number of people.

Let's also talk about the big one. Let's talk about a tax cut for every Australian taxpayer. That is for tens of thousands of people in the electorate of Robertson. That is for millions of people across Australia. This is just a short list of the cost-of-living measures that this federal Labor government is providing to Australians, and we will continue to serve the people as we have always done.

Simon Kennedy (Cook, Liberal Party) Share this | Link to this | Hansard source

The member for Robertson just spent four of his five minutes talking about the opposition. It's not hard to understand why, because there's not much that is positive to talk about, though in the one minute he did start talking about the government and its policies he talked about energy bill relief, without any hint of irony as well. There he was, high-fiving and celebrating a $300 subsidy—the gall.

The government promised $275 of bill relief. Prices in my electorate have gone up by up to $1,000, yet there you are smiling and being smarmy. You're celebrating a $300 subsidy when prices are up by $1,000. In what world do you think that's positive? There you are high-fiving and celebrating tax cuts when the average Australian cannot make ends meet.

Mike Freelander (Macarthur, Australian Labor Party) Share this | Link to this | Hansard source

Can I just remind the member for Cook to address his remarks through the Speaker.

Simon Kennedy (Cook, Liberal Party) Share this | Link to this | Hansard source

Yes, Mr Deputy Speaker. The member is talking about these things, celebrating them, and I'm left confused and my electorate's left confused. Only last week I was talking to a single mum at St Vincent's Gymea who is facing homelessness. She's not celebrating these tax cuts. She's not celebrating this energy relief. These people are hurting. They're not laughing, smiling and talking about how good a budget surplus is. She's worried about where her and her disabled son are going to live.

I know a teacher looking at moving out of New South Wales to WA. I'd ask the member for Robertson to explain to the teacher in Cronulla who can't afford to buy a house why they need to be looking at moving over a five-hour flight away from the rest of their family. It's because they cannot afford to buy a house or pay the rent. They're not celebrating that.

Mike Freelander (Macarthur, Australian Labor Party) Share this | Link to this | Hansard source

Order! The member is entitled to be heard in silence.

Simon Kennedy (Cook, Liberal Party) Share this | Link to this | Hansard source

The member for Robertson keeps interjecting, probably wanting to celebrate his energy subsidy, tax cuts and the like, but he's clearly not listening. He's not listening to his constituents. I'm sure his constituents in Robertson would be telling him that.

Australia is doing worse than all other G10 countries. Why does Australia have higher inflation than the other G10 countries? I invite the next member from the government to explain to me why Australia's inflation is higher than in every other G10 country? That question's been asked a lot, but I still haven't heard an answer. I'm genuinely curious.

I'm also genuinely curious why they think the RBA is saying Australia is going to have higher inflation for longer. What is the answer to that? I'd also like the explanation for why independent economist after independent economist is blaming public spending for contributing to inflation, and yet the government don't want to take any ownership of it. Shane Oliver said the RBA's job would be a lot easier if it weren't for government spending. Warwick McKibbin is also saying the government's policies are adding to inflation. We have had independent economist after independent economist agree with this. Please explain this to me and to the rest of Australia.

After two years of Labor stewardship, Australians are being crushed by inflation and they are in a per capita recession. What does that mean? Over the last year, Australian families have been getting poorer. Forty-nine per cent of Australians have gone cold this winter due to fears of higher electricity prices. They've gone cold. They've decided not to heat their houses just to save money. They're not high-fiving about a one-off $300 subsidy that's disappearing into the ether. It's not surprising that Labor believes the answer to higher electricity prices and higher childcare costs is more subsidies and more government.

On this side of the House, we believe the answer to higher inflation is lower prices. It's lower prices from actually investing in supply, not pulling it off early. It's about not taking away energy supply but keeping it there and investing in more and more energy supply. It's not about subsidising child care. It's about more childcare centres to lower the prices.

What is the result of these one-off subsidies? Net disposable income per capita has fallen 7½ per cent. 'What would the Liberals do?' I hear them ask on the other side. A coalition government would focus on increasing supply of energy. We wouldn't be closing down energy supply; we'd be adding to it. This Labor government is under the impression that it's small-target, subsidy-driven set of policies is going make it more electable. The Australian population can see through it. We would also cut wasteful spending. Labor has spent $30,000 for the average household. I can tell you that households in my electorate of Cook and, I'm sure, in the electorate of Robertson do not feel $30,000 better off under this government.

Jodie Belyea (Dunkley, Australian Labor Party) Share this | Link to this | Hansard source

Whilst those opposite engage in blatant politicking on the serious issue of Australians doing it tough and oppose initiatives to support average Aussies, this government is taking measured and effective steps to help Australians struggling whilst balancing them against the current global inflationary environment. I know the Treasurer and finance ministers are working incredibly hard to maintain this balance and make sure Australians receive real and tangible help with their household budgets. Tackling inflation is a really tough challenge. There's no magic wand to fix it, as the Liberals know full well. Inflation at the time of the last election was roughly double what it is now. Labor has halved it. We know CPI indicators are volatile, but let me tell you: inflation would be even higher if it weren't for Labor's cost-of-living relief—and a surplus.

I hear every day from my constituents in Dunkley that they are struggling with their household budgets. I hear it at my electorate office, street stalls and doorknocks. But they also know that inflation is due to serious global factors. They're much smarter than the Liberals give them credit for.

Labor is listening and we are acting. That's why we have designed cost-of-living measures that deliver for those doing it tough and take into consideration inflationary pressures. We are taking steps for responsible cost-of-living relief while keeping spending under control. And the opposition needs to know that we do need to provide relief. We cannot deprive Australians of help, as they, the opposition, would have it. That's why we've delivered cheaper medicines, investing in $4 billion to freeze the PBS co-payment for five years and are adding more medicines to the PBS register. In Dunkley, residents have so far saved over $2.2 million because of this government's cheaper medicine policies. Those doing it toughest, like pensioners and concession card holders, won't pay more than $7.70 for their PBS medications. There is also $300 in energy relief for every household and $325 for every small business. The primary focus of our economic plan and budget is to ease pressure on Australians and put downward pressure on inflation, and power bill relief does both.

Our cheaper childcare reforms are delivering real cost-of-living relief to Australian families. This is good for children, good for families, good for workers, good for Australia. And more than three million Australians with a student loan will benefit from a capped HELP indexation rate, with $3 billion in student debt being wiped. There are tax cuts for every Australian; 87,000 taxpayers from Dunkley will benefit and have benefited from this. For those doing it really tough, there is a 10 per cent increase to maximum rates of Commonwealth rent assistance, benefitting close to one million households across Australia. This will benefit nearly 7,000 households in Dunkley.

These are just some of the many cost-of-living measures. The Labor government has a strategy that is responsible and fair and is making a positive difference. This means Australians get to earn more and keep more of what they earn.

Mike Freelander (Macarthur, Australian Labor Party) Share this | Link to this | Hansard source

The discussion is now concluded.