Carina Garland (Chisholm, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. How is the Albanese Labor government helping Australians with the cost of living? What alternative economic approaches would leave Australians worse off?

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

I thank the member for Chisholm, not just for her question but for being a key part of our efforts to provide cost-of-living help via her work on our caucus economics committee. And because of the work of this side of the House, there are tax cuts flowing to every taxpayer and there is energy bill relief to every household, cheaper medicines, cheaper early childhood education, more rent assistance, better wages, fee-free TAFE and, after the election, if we win, more student debt relief. We've been able to provide this cost-of- living help at the same time as we've delivered two surpluses in our first two years.

Because of our responsible economic management, inflation is down, wages are up and unemployment is low. On the inflation front, we got a very important and interesting contribution today from the economists at Westpac. They said, when they dramatically lowered their expectations for inflation this quarter and next quarter, that 'core inflation is moderating faster than anticipated' and 'the moderation in core inflation is fundamental'. Westpac have lowered their forecast for headline inflation to two per cent in this quarter and 1.7 per cent next quarter, which is not just within the Reserve Bank's target band but below it. And for trimmed mean underlying inflation they're now expecting 2.7 this quarter and 2.4 next quarter, which is not just within the target band but in the lower half of the target band.

When we came to office, inflation was much higher and rising. Now it is lower and falling. That's because this side of the House has been focused on the cost of living while that side of the House has focused on cuts, conflict and culture wars. After three years of opposition, those opposite still don't have any costed, coherent or credible economic policies. All they have are secret costs and secret cuts which will make people worse off. The reason they will make people worse off on that side of the House is that they can't find $10 billion a year for free long lunches, or they can't find the $350 billion in cuts that they say they want to impose, or they can't find the $600 billion they need for this nuclear fantasy without going after Medicare again, without going after pension indexation, without going after housing and without going after wages.

So, the choice at the election is going to be really clear: that coalition of cuts and conflict and culture wars, making Australians worse off and taking Australia backwards, or this Prime Minister and his Labor government, getting on top of this inflation challenge, rolling out cost-of-living help, making things better for people when it comes to the tax cuts and energy bill relief, and building Australia's future.