Jess Walsh (Victoria, Australian Labor Party) Share this | Hansard source

I'm genuinely surprised that Senator Hume has put her name to this motion about our budget, about how it fights inflation and how it provides cost-of-living relief, because it was her questions, just a couple of weeks ago, to both Dr Lowe and Dr Kennedy about the budget and inflation at economics estimates that actually carefully drew out the evidence of the budget's disinflationary impact through our energy plan—a plan opposed by those opposite. So I'm surprised that the senator has come back for more today. I'm surprised that she wants us to talk about the disinflationary impact of the budget. I'm surprised that she wants us to talk about the cost-of-living relief that the budget does provide and the restraint that the budget does provide. But I am more than happy to talk about those topics today. We know that rising inflation means a cost-of-living crunch for Australians, especially those on the lowest incomes who are doing it tough, and that's why our budget addressed inflation head on. Getting on top of inflation is the central focus of our government's economic plan.

As the Treasurer said on budget night, our task was to restrain spending to check inflation while doing our absolute best to help people who are struggling to make ends meet. Our cost-of-living package was targeted to do just that—cheaper medicines and cheaper GP visits for those who need them the most; investment to tackle high energy prices; boosts to JobSeeker, single-parent payments and to rent assistance; and an historic pay rise for hundreds of thousands of predominantly women who are working in aged care. Not only will this cost-of-living relief package help Australians with their household budgets but, as Mr Lowe confirmed just a couple of weeks ago, the budget is expected to directly reduce inflation by three-quarters of a percentage point in 2023-24.

You don't need to take my word for it, because you can listen exactly to what the Reserve Bank governor said at estimates just a couple of weeks ago:

I don't think that the budget is adding to inflation; it's actually reducing inflation in the next financial year.

And he went on specifically to note the effect that the government's energy price-relief plan will have on the economy. He stated:

the fact that, through one specific policy, the government is able to take three-quarters of a per cent off an annual inflation rate is really important. Not only does it help people with their own finances, but it lowers the headline rate of inflation—

That is from the governor himself, and it's my recollection that it was from the governor himself in response to questions asked by Senator Hume. Apparently, the senator wasn't listening.

The causes of inflation are well-known. It's driven in part by Russia's illegal war in Ukraine and by broken supply chains, caused in no small part by a wasted decade from those opposite who decided to throw manufacturing off a cliff instead of backing and investing in it. Australians are paying the price for that today.

Australians understand that we didn't create the challenges that we're facing, but they did elect us to take responsibility for addressing them, and we are. This budget is about responsible spending while helping the most vulnerable in our communities. It was responsible to return 92 per cent of improved tax revenue to the budget over the forward estimates. It was responsible to keep real spending growth to an average of just 0.3 per cent a year over the forwards and to keep our own policy decisions to less than $10 billion over four years. And it was responsible to do the hard work of finding $22 billion in new savings, work that the previous government failed to do. It was responsible to do all of that, and we did. And our AAA credit rating has been affirmed, backing in Australia's budgetary approach, the approach of our government.

Our budget and our economic plan deliver. It targets much needed relief to those who need it most. It brings down inflation by capping energy prices and by providing bill relief, measures opposed to by those opposite, and it restrains spending and restores revenue to the bottom line. Ours is a budget for the times: relief for those who need it and responsible for the challenges we face. (Time expired)