House debates
Monday, 25 November 2024
Private Members' Business
Cost of Living: Fertility Rate
6:42 pm
Jenny Ware (Hughes, Liberal Party) Share this | Link to this | Hansard source
I move:
That this House:
(1) acknowledges:
(a) the release of the Government's Centre for Population research paper dated October 2024, Fertility decline in Australia: Is it here to stay?; and
(b) that the paper provides that:
(i) fertility rates in Australia continue to decline under this Government;
(ii) the average number of children born to Australian women in 2023 is 1.5;
(iii) in Australia fertility outcomes are lower than fertility desires;
(iv) cost of living pressures have caused Australians to postpone childbearing; and
(v) the high cost of housing has made it increasingly difficult for young adults to achieve their home ownership goals prior to starting a family;
(2) recognises that the Government has:
(a) failed to manage the economy, resulting in a period of skyrocketing inflation fuelling the current cost of living crisis;
(b) failed to address the housing affordability crisis; and
(c) been incapable of supporting a stable economic and housing environment to empower Australian women, resulting in the fertility decline to 1.5 children on average in 2023;
(3) expresses concern that the Government's economic and housing mismanagement have forced Australian women to delay having children, resulting in a decline in their fertility; and
(4) calls on the Government to better manage the economy and housing for the betterment of all Australians including Australian women and reverse the declining fertility rates.
In October of this year, the Government Centre for Population released its research policy and paper 'Fertility decline in Australia: is it here to stay?' That had some very troubling statistics in it and some very troubling news for us, as a country, going forward. Essentially, the paper provides that fertility rates in Australia continue to decline—they have continued to decline over the past 2½ years under this Albanese Labor government. The average number of children born to Australian women in 2023 was 1.5.
In Australia, fertility outcomes are lower than fertility desires. This means that Australian women want to have more children, but, because of a series of circumstances, are unable to. The two main reasons that were identified in the government's own research paper were cost-of-living pressures that have caused Australians to postpone child-bearing and the high cost of housing that has made it increasingly difficult for young adults to achieve their homeownership goals prior to starting a family. The impacts of longer-term low fertility on a country such as Australia are very significant, bearing in mind that we currently—despite our very large landmass—have a population of around only 25 million.
Over the past 30 years, the total fertility rates in Australia have continued to decline overall. There have been times when there were peaks—under the Howard-Costello government, for example, when the baby bonus was brought in. I'm very proud to say that I was one of the beneficiaries of that back in 2006, when I had my children James and Nicholas. Overall, fertility rates have declined, and they've taken a very sharp decline under this government. When we see why that is occurring, it has been sheeted home that it is the cost of living under this government. Most people that are trying to purchase a home or are paying off a mortgage have had 12 interest rate rises under this Labor government. The cost of housing has never been more expensive than it is under this government.
What we have seen is that, as one of the authors of the report, Ms Cho, said:
The long-term decline in fertility of younger mums as well as the continued increase in fertility of older mums reflects a shift towards later childbearing.
We may originally think—does it really matter if women are having their children a little bit later? It really does. After about the age of 32, for most women, their fertility starts to decline at quite a rapid rate. Some of the social, cultural and economic impacts of declining fertility include that we will see a much larger ageing population. We'll see a reduced working population. We'll see an increase in pressure on the healthcare system, challenges to our aged-care and our pension systems, and cultural and social change, because, if we are having our children later, there is less chance, for example, that children will have the advantage of having grandparents around them. For older Australians, there is less chance that they will, in fact, be able to have the joy of grandchildren.
So what do Australian women do? One of the other issues is, of course—I don't blame the government for this; I blame them for most of the other issues with fertility—that a lot of women these days simply do not meet their partner until they may be in their 40s, for example, which is often when their fertility is really going to struggle. What we have found over the past decades or so is a process of egg freezing. In that way, eggs are preserved when a woman is in a high-fertility part of her life, and then they can be utilised at a later date. But we need to do far more for women in that process. The process is not straightforward. It's expensive. It's prohibitive for most women.
I say that these fertility rate declines are a big problem and the Australian government needs to address this.
Bridget Archer (Bass, Liberal Party) Share this | Link to this | Hansard source
Is there a seconder for the motion?
Dai Le (Fowler, Independent) Share this | Link to this | Hansard source
I second it and I reserve my right to speak.
6:48 pm
Jodie Belyea (Dunkley, Australian Labor Party) Share this | Link to this | Hansard source
I'm pleased to be speaking on this motion by the member for Hughes. Fertility decline in Australia is not an issue unique to Australia. It reflects a global issue seen in most developed countries across the world. The total fertility rate over the past 30 years has slowly dropped from 1.86 in 1993 to 1.63 births per woman this year, 2024. This, of course, presents many complex challenges in a society like Australia, and there is no easy fix. Part of the reason for the decline in fertility is that more women are working than ever before, a trend that continues to increase.
Women's participation in paid work has increased considerably over the last 50 years. Women made up almost half the paid workforce in Australia in 2020 compared to around 30 per cent in 1966. Here in Australia, the gender pay gap continues to narrow, with the pay gap now at 21.1 per cent, down from 21.7 per cent last year. This is a good thing.
So why do we have the issue of a decline in fertility rates? Financial pressures on families, the cost of living and housing affordability are massive, which means more women need to work, while other social issues such as the impact of climate change and the increasing threat of global conflict are things that generation Z and millennials deeply care about when they consider whether to have a family or not. I have spent time talking to gen Zs and millennials about whether they wish to have children or not. Many of them are concerned about the society they would be bringing their children into. This is something I'm deeply concerned about as I ponder what my 18-year-old son is going to inherit and have to deal with in terms of climate change and global conflict. This world is a complex and increasingly worrying place to live in, and our children know that because of the widespread dissemination of information through social media.
Last night, I watched a program on the ABC that also talked about the impact of lifestyle on fertility rates for both women and men. According to the research, about 30 per cent of women and men have issues with infertility. Infertility is increasing as a result of lifestyle, stress and diet. Research also indicates the use of plastics and the leaching of chemicals into our food are impacting fertility rates. But, of course, it must be acknowledged that a large reason why more women are working is due to economic pressures on households and individuals. The cost of raising children in Australia has risen dramatically.
So what are we doing about it? The government knows that people are doing it tough right now. Our economic plan is all about helping people with their cost of living while fighting inflation. Bringing down inflation means we can bring down costs for households. The government's delivery on cost-of-living measures includes a tax cut for every taxpayer and energy bill relief, cheaper medicines and more bulk-billing GP visits, and cheaper childcare and early childhood educator pay rises. All of this is helping Australians earn more and keep more of what they earn. We've also made really good progress in the fight against inflation. It has more than halved since we came into power. Inflation had a six in front of it when we came into office, and now it has a two.
As homeownership rates have declined and rents have soared, younger generations face a dilemma of choosing between financial security and starting a family. This is particularly tough in municipalities like Dunkley. That's why the government is investing $32 billion into building more homes for Australians. In contrast, Peter Dutton and the Greens are blocking housing investment. In the middle of a housing crisis, Peter Dutton has committed to cutting $19 billion from housing. There are many other measures we are taking to address the fertility issue and support more people to have families. There is so much more we need to do, and we will do it.
Bridget Archer (Bass, Liberal Party) Share this | Link to this | Hansard source
A reminder to members to please refer to other members by their correct titles.
6:54 pm
Zaneta Mascarenhas (Swan, Australian Labor Party) Share this | Link to this | Hansard source
I would like to thank the member for Dunkley for going first; I really appreciate that. Thank you, Deputy Speaker, for giving me the opportunity to talk about this important topic. I think the member for Hughes's motion is certainly interesting. I do want to say one thing: having children is a deeply personal choice made by individuals, and it is their choice.
In my experience, decisions aren't simple and people weigh up multiple factors, such as timing, finances, health, personal goals and career. For some the choice might be to not have children at all. That is their right, and it's not our place to judge or question anybody's plan for parenthood or not. But it is our job, as the government, to make sure it is easier for those who want to start or grow a family.
When Labor came into government, this country was in a mess. Let's not sugar-coat it. Wages were stuck and living standards were sliding. The coalition also had a women problem: not enough women in the caucus and not recognising that women choose to work. Often they work in the care industries, which historically has been undervalued.
But Labor has a plan. We have been promising to change all that and we have been. Wages are moving. The minimum wage is up 18 per cent and award wages are up 14 per cent. We have seen increases to wages in the aged-care sector, which is really important, and we hope to see increases in the early childhood education sector as well. Inflation now has a two in front of it. These figures are not made up; they are facts. The gender pay gap is the smallest it has ever been. This is real, tangible progress, but you wouldn't believe it if you listened to the opposition and paid attention to this motion.
The opposition is teaming up with the party of protest, the Greens, who have fought us every step of the way. They voted against wage increases time and time again. They're stuck in the past. Labor wants to move people forward; they want to make sure you're not stuck. The cost of living is on everyone's mind and it shapes so many big decisions—starting a family, buying a house or changing careers. We get it. It's shaping what I do every day in representing the interests of Swan. That's why we've tackled it head on.
Under Labor, inflation has halved since we took office. We have delivered relief where it counts: bigger and better tax cuts for every taxpayer, energy bill relief for every household, cheaper child care—giving families more choices and extending paid parental leave to 26 weeks by 2026. Superannuation is being paid on paid parental leave, which will help lower the gap between superannuation balances of men and women. We've delivered paid prac for nursing and midwifery students. We also delivered pay rises in industries dominated by women, like aged care. These aren't just numbers; they are actually changes that are helping families get ahead.
What has the Opposition done? Nothing. Worse than nothing; they've actively blocked progress. They voted against cheaper child care, voted against wage increases and oppose an affordable housing plan that could put 40,000 people into homes. We're ready to go, but what I hear from the other side is no. They want to cut Medicare and they don't support affordable housing. They're out of touch with the needs of Australian families.
Labor is delivering for families. We're making it easier to plan for the future, to balance work and family and to live with dignity. With many parents facing a tough decision about family planning, they deserve a government that's got their back—a government that supports them with affordable child care, secure housing and fair wages.
The biggest risks to families is the opposition. Their policies, or lack of them, would leave Australians worse off. We've seen their priorities; they don't include everyday Aussies in their plans. Labor is here to move this country forward, so we're lifting wages, cutting costs and supporting families. That's the Australia I believe in, a place where people can thrive and not just survive. We won't stop fighting for a better future for everyone: families, single people and couples.
6:59 pm
Bridget Archer (Bass, Liberal Party) Share this | Link to this | Hansard source
Thank you to the member for Fowler her assistance. I rise to speak on this important topic and thank the member for Hughes for raising it here today. I was quite concerned to see these released figures, and they should be ringing alarm bells for the government as well as fertility rates in Australia continue to decline under this government.
The average number of children born to Australian women in 2023 was just 1.5. There is a perfect storm brewing that is impacting on Australians' choices in relation to having children, which, if not corrected, will have long-term consequences.
Increasing cost-of-living pressures are one key issue that has forced Australians to delay having children, and the high cost of housing has made it increasingly difficult for young adults to achieve their homeownership goals prior to starting a family. The Albanese government has failed to manage the economy, resulting in a period of skyrocketing home-grown inflation which is fuelling the current cost-of-living crisis.
Very few Australians can say they are better off than they were almost three years ago, and many are falling behind, despite the Prime Minister's assertions before the last election, when he repeatedly stated that Australians would be better off under him and that no-one would be left behind. Well, they are being left behind—in droves. The employee cost-of-living index shows that for employee households the cost of living is up by 18.9 per cent. We've seen families' standards of living slashed, with the largest fall in real disposable income in the advanced world. Disposable incomes have collapsed by 8.7 per cent under this Labor government—the largest fall since records began. Interest rates have increased 12 times. Mortgage interest payments have tripled. A family with a mortgage is $35,000 worse off. And household savings have collapsed by 10 percentage points.
The government has to date failed to address the housing crisis or the serious cost-of-living pressures facing Australian couples and leading them to have to make the difficult choice between starting a family and paying their bills. It is highly concerning that the government's serious economic and housing mismanagement has forced Australians to delay having children, resulting in this significant decline in fertility rates. The Treasurer says there's nothing to see here, that this is 'the landing we've been planning for and preparing for'. But Australians know there is nothing soft about this landing. Instead, prices are still rising, and Australians have now experienced almost three years of above-band inflation. Australians are feeling the pinch, and that's why inflation needed to be attacked aggressively and early. But Australians are paying the price at the checkout, and cost pressures are eating away at Australian small business margins.
This government has wasted time and squandered opportunities for action. But its members keep repeating their lines: that they've made medicine cheaper, that they've made it cheaper to see a doctor, that they've reduced electricity prices and that they've made child care cheaper. But it is political sleight of hand when rising prices have far outstripped any discount the government might have provided. Worse, it overlooks the fact that doctor and childcare shortages mean that the service can't be accessed anyway.
I recently hosted the shadow minister for early education, Angie Bell, in my electorate, where we heard firsthand about the chronic shortage of childcare places across the region, with waiting lists for places. And I know from talking to many of my constituents that this is a direct issue impacting family decision-making when it comes to starting or adding to their family. If this is what the government thinks is 'all going to plan', Australians should be deeply concerned. Australians are hurting and can't hang on while their government keeps telling them they've never had it so good. And they can't trust this government when it says it's part of their plan—'Just trust us; we're working on it.' I call on the government to better manage the economy and to take action to correct course urgently, starting with MYEFO, and lay out some certainty so that Australians can make decisions about their future with confidence and certainty.
7:03 pm
Dan Tehan (Wannon, Liberal Party, Shadow Minister for Immigration and Citizenship) Share this | Link to this | Hansard source
A cost-of-living crisis has real implications right across the board. It has real implications for the household budgets that people are facing at the moment. When you look at the facts, they are absolutely damning as to what this government, the Albanese Labor government, has delivered for the Australian people: the largest fall in real disposable income in the advanced world. Disposable incomes have collapsed by 8.7 per cent under this Labor government—the largest fall since records began. We have never had tougher times in this country than those that are being faced by the Australian people at the moment. That has real implications, and one of those implications is that we're seeing that, at a greater rate, people are putting off having children. Families and couples are taking the decision to put off having children, and now we've seen our fertility rate drop to 1.5.
The Prime Minister, Anthony Albanese, and the Treasurer, Jim Chalmers, say: 'There's nothing to see here. Everything is fine.' Well, by every measure, it's clear that everything isn't fine and they have to, before it is too late and they cause too much pain, focus on addressing the cost-of-living crisis in this nation. And, if they don't, then they should just say, 'This job of being in government is too hard for us, and we're going to let someone else have a try.' They could start by addressing the fact that we have seen personal income taxes increase by 25 per cent in the 2½ years they've been here. So you've seen real disposable incomes drop at a rate greater than nowhere else in the world, yet we've seen income taxes go up by 25 per cent. No wonder people are feeling pain in their household budgets.
Not only that but they are putting pressure on when it comes to housing, and we've seen how that pressure has been placed on the Australian people. They haven't been allowing houses to be built, and they've let in a million people in just over two years. So there are no houses being built, and a million people have come into this country, and they wonder why we've got a rental crisis and a housing crisis. Why then are young Australians especially going, 'I don't know whether this is the right economic climate to have children in and I don't know whether I can afford to have children, because, first of all, I want to be able to put a roof over my head.'
That's why this motion is so important: it calls out the government to finally act. Get your heads out of the sand, Prime Minister and Treasurer, and understand the pain that you're causing people and understand that you need to act. You've got one last opportunity before the election, because we're all assuming the election is going to be in March, and that's the MYEFO. So when you deliver the MYEFO, Treasurer, in the lead-up to Christmas, let's see you address some of these cost-of-living issues. If you do that, you might start to instil some confidence—into young people, in particular—that now is the time to start a family.
But, if you continue down your policy approach—with a 25 per cent increase in income tax and through making sure that disposable incomes reduce at a rate that we've never seen before, making sure that you're not building houses and making sure that you're continuing to deliver your 'big Australia' policy, which has seen one million people come to this country in the last couple of years—then I can tell you that what we're going to see, sadly, is that fertility rate get even worse. We have to ensure that young Australians can have the dream of owning their own home and having their own family.
Rebekha Sharkie (Mayo, Centre Alliance) 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 for the next day of sitting.
Sitting suspended from 19:08 to 19:42