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

My question is to the Prime Minister. The IMF predicts that Australia's inflation is expected to be the second highest of any advanced economy in 2015. Australia is at the back of the pack when it comes to fighting and beating inflation. Will this Prime Minister take responsibility for the cost-of-living pain Australian families are feeling today?

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

I think he meant 2025, rather than 2015. He might want to check that. No doubt he can fix the Hansard later. He's only a decade out.

I think it is, unfortunately, dishonest of the shadow Treasurer to ask a question about inflation without acknowledging the very welcome and very encouraging data we got just last Wednesday. That showed that the inflation that we inherited at 6.1 per cent is now at 2.8 per cent. He could have mentioned that. He could have mentioned, as well, that, if he wants to ask me a question about headline inflation, he shouldn't have spent the last six months saying that headline inflation doesn't matter and that only underlying inflation matters. He's got to make up his mind about which one of those he wants to use. And, if he's going to ask me about inflation, he should fess up to their shameful record on inflation, when inflation was more than twice what it is now on our watch. Inflation was much higher and rising under them, and it's much lower and falling under us.

He asked me about the IMF report, and I'm obviously not going to read to him the IMF report. I assume he has someone who turns the IMF reports into little cartoons so that he can understand them. But I will say this about the IMF report: the IMF has valuable insights to make. The IMF has valuable insights to share with the global economic community. We have our own forecasts, which we'll update in the usual way in the mid-year update. The Reserve Bank have their own forecasts, which they'll update this week, as it turns out. I know that those forecasts, like the ones that he asked me about, are always the subject, rightly, of a lot of focus and a lot of attention.

I'll say this, and it's a bit like what the Prime Minister said a moment ago: if you want to make comparisons between countries, make the full comparisons. Inflation peaked lower and later here than in most other countries. Rates started rising here later than in most other countries. They rose by less and had a lower peak here than in most other countries, when it comes to interest rates—and inflation similarly. And, if you want to compare us to other countries, acknowledge that a lot of countries have got higher unemployment than us as well. A lot of other countries have got weaker economies than we do. Two-thirds of the OECD had at least one negative quarter in the last year. So I say to the shadow Treasurer that, if he wants to make comparisons, he should make the whole comparison.

While he's talking about the IMF—

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

Order! The shadow Treasurer has asked his question.

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

The IMF said last week that, when those opposite were in charge, we had the 14th strongest budget in the world. Now we're in the top three.

Honourable members interjecting—

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

Order! The Treasurer will pause.

The Prime Minister will cease interjecting so I can hear from the shadow Treasurer on a point of order.

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

Speaker, you're showing a lot of leniency to the Treasurer, but the truth is the question asked for a compare and contrast with other countries on inflation, not between the government and other times.

Honourable members interjecting—

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

Order! We'll do this in a matter-of-fact, orderly way. The Leader of the House.

Mr Tony Burke (Watson, Australian Labor Party, Leader of the House) Share this | Link to this | Hansard source

It's a point of order on relevance. The question was about 2015. The shadow Treasurer misread the entire question. The Treasurer is doing his best with what was given to say something relevant to Australia now. But, when what was put was about a period that was a decade ago, then to take a point of order on relevance is a real stretch.

Government members interjecting—

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

Members on my right! We're not going to do anything until the House comes to order.

The member for Bruce and the member for Holt, no, it doesn't work that way. People are entitled to raise points of order, and they will be shown respect while they are doing it. The member for Wannon on a point of order.

Dan Tehan (Wannon, Liberal Party, Shadow Minister for Immigration and Citizenship) Share this | Link to this | Hansard source

Further to the point from the Leader of the House, it is not being directly relevant when you're not addressing Slovakia and the comparison with Slovakia that the question asked. That was what the question asked.

Honourable members interjecting—

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

Order! I know it's the beginning of the week. The opposition are entitled to ask questions. I'm just going to remind the Treasurer that I want him to be tighter with his answers and I want to make sure he's being directly relevant. I'm listening carefully to the figures. I haven't heard him mention the country Slovakia yet—

Honourable members interjecting—

Order! He may come to that. I can't make him say what you'd like him to say, but I will make sure he is being directly relevant. I just want him to conclude in the last 17 seconds on that point.

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

Inflation peaked lower and later in this country than in other countries, and any honest comparison would acknowledge that. If you want to ask me about IMF comparisons, ask us about the one that says we've gone from 14th under you to on the podium under this Prime Minister.