Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Hansard source

Australians laughed 12 months ago when they were told that life wouldn't be easy under Albanese. That laughter has been replaced by fear and tears. We have heard from Labor senators talking about inflation and quoting from the Senate estimates effort of Senator Hume and others over the last few weeks. Let me leave you with these key dates: the budget came out on 9 May, the Senate estimates process began on the weeks beginning 22 May and 29 May, the RBA lifted interest rates on 7 June to 4.1 per cent. That is a sign. It is the lifting of interest rates on 7 June to 4.1 per cent by the governor of the RBA—that is the judgement about whether Labor's second budget has been doing enough or will do enough to tackle inflation in this country.

Let me remind you that inflation has peaked to 6.8 per cent in April, up from 6.3 per cent in March. Inflation is the greatest curse on the Australian economy. On this side we contend that Anthony Albanese as Prime Minister and Jim Chalmers as Treasurer are not doing enough. One Labor senator told us that it's the war in Ukraine and it's supply chain issues that are causing the inflationary problem. I say that is just not true. It's not true not because Senator Smith says it; it's not true because the statement of monetary policy released by the RBA in May says it is no longer true. Indeed, the government's own budget papers say that the inflationary pressures in our country are being caused by other matters. Inflation is a great curse. It is getting deep into our communities. First home buyers, low-income earners and retirees on a fixed income—these are the people who, over the coming months, will feel the real pain of the inflationary pressures in our economy because the government is not doing enough to address them. All of that work is being done by one institution alone, and that is the RBA and its governor.

The inflationary pressures in our country leave no-one behind. They'll be felt in school communities when parents can't pay school fees. They'll be felt in sporting clubs when families can't pay for equipment, annual fees or match fees. They'll soon be felt in our businesses, as businesses start to pass on those inflationary pressures. Indeed, the RBA says in its statement on monetary policy that is the inflationary expectation—thank you, Senator McKim, for nodding in agreement—that is now cementing itself in the psyche of Australians and Australian businesses that will become very, very difficult to move in the future. Anthony Albanese, as opposition leader trying to get into the Lodge, said that things would be better under Labor. He said mortgages would be cheaper, and we know that is just not true.

So why are Australians feeling the cost-of-living pressure more acutely? When I go around Western Australia, people are saying to me, 'Senator Smith, life is getting harder, but I feel like I'm working more.' It is a remarkable revelation—and that anecdotal experience that is shared with me is also shared in the statistics. Australians are now working the most hours ever since 1978 but feeling poorer for it. Over the last three quarters, GDP-per-capita growth has been zero. Hours worked have hit their highest levels since 1978. Productivity has collapsed, with GDP per hour worked decreasing for three of the last four quarters and net negative GDP per hour worked in the four quarters since Labor has come to government. Life is getting very difficult for Australians.

In my final few moments: it is first home buyers in this country, living in the outer suburban areas of our cities, that will feel the pain, with 1.9 million fixed-rate loans turning to variables over the calendar year— (Time expired)

Question agreed to.