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's responsible budget management helping in the fight against inflation and easing the cost of living? How does this compare to other approaches?

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

Thanks to the member for Swan for her question but also for the really quite remarkable representation she provides to her community here in this place. As the Prime Minister has pointed out a couple of times today, when we came to office, Australians were going backwards due to a combination of higher and rising inflation and falling real wages. We inherited huge deficits and a trillion dollars of Liberal debt, and we've been working hard to clean up the mess.

Inflation has more than halved, and real wages are growing again. We've recorded two consecutive surpluses for the first time in almost two decades. The Governor of the Reserve Bank said that that's helping in the fight against inflation, and we've also shaved off $150 billion in Liberal debt. But we know that people are still under pressure, and we know that the pressure on the national budget is intensifying rather than easing, and these are the points made by the Deloitte report which was released overnight and which talked about the impact of a slowing Chinese economy, for example, or a weakening in our labour market and what that means for the budget.

Hon. Members:

Honourable members interjecting—

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

The member for Casey is warned.

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

It remains the case that this government has overseen the biggest positive turnaround in the budget in a parliamentary term in Australian history. We have turned two big Liberal deficits into two big Labor surpluses, and that is a powerful demonstration of our responsible economic management. That's why Deloitte made two points. First, Deloitte acknowledged our fiscal discipline and said we deserved credit for banking upward revisions to revenue. They also said in their report that the soft landing that we are seeking is looking likely in our economy. Those are two points that Deloitte made in their report.

We have made it really clear that there are pressures on the budget that we are working in a responsible and methodical way to deal with.

Opposition members interjecting—

I wanted to give those opposite, who are chirping away, an example of these pressures on the budget. When the mid-year budget update is released in December, one of the biggest increases in spending will be for veterans. That's because of the work that we have done to make sure that veterans are getting their claims processed and getting the support that they need and deserve after a lifetime of service. So what you'll see in the MYEFO is a big increase in funding for veteran support. Those opposite describe looking after veterans as 'wasteful spending'. They think it's wasteful spending. This shows us, once again, what a risk they are to the household budgets of people right around this country. We are increasing support for veterans. That will be one of the reasons why there's a deterioration in the budget. Those opposite don't support it, and that shows again what a risk they are to the budget and to household budgets right around Australia.

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

The member for Herbert was continually interjecting during that answer. He will leave the chamber under 94(a). I simply can't have non-stop interjections in an answer. It's ridiculous.

The member for Herbert then left the chamber.