Matt O'Sullivan (WA, Liberal Party) Share this | Hansard source

I'm pleased to present this matter of public importance, but I do so with a real sense of regret that this is the environment we are facing right now. The truth of the matter is we are facing the worst cost-of-living crisis this country has seen in over three decades, and it's being presided over by this government. Cost of living is the single biggest issue that Australians are facing every single day, yet those on the other side roll around each day looking for others to blame. They blame the Reserve Bank governor, they blame the Ukraine war, they blame the previous government. They continue to go on, other than taking responsibility for it themselves.

Rather than seeking to fix spiralling inflation, this government pours fuel on the fire. It does nothing about its own fiscal policy while the RBA simultaneously is trying to address monetary policy. The government's actions add to upward inflation pressures; that's what the Reserve Bank has said. This is the reality. During a cost-of-living crisis when inflation is rampant, no-one is a winner. High inflation is not selective; it affects every aspect of society. Everyone is facing this cost-of-living crisis.

ABS data shows an annual rise in food prices of between seven and eight per cent, and an annual rise in utilities of between 12 and 14 per cent. That's what Australians are facing. Every time they go down to the grocery store they're seeing those rising costs, and it's affecting them. They're having to make some really tough choices. Every time that utility bill arrives in the mail and they open it up, they're seeing significant increases. And this government is all talk but no action. It is not addressing the fundamental issues of this cost-of-living crisis.

The Australian Financial Review reported today that more than one in 10 firms in the retail, hospitality and construction sectors are at risk of going bankrupt in the next 12 months as high interest rates and consumer slowdown heap pressure on company finances. That is awful because that means jobs in these important industries. People working in retail and people working in hospitality are finding it difficult. These businesses are finding it difficult. The cost-of-living crisis is biting at the heels of the retail industry. We've seen Myer report today that their growth has ground to a halt. They saw double-digit growth figures in the first half of last financial year, and their growth has only increased by 0.4 per cent in the last six months. This is happening across retail. It's happening across hospitality. Anyone running a hospitality business will tell you this; you go into the cafes across our cities, across our regional towns, and you will see that they are struggling. People are having to make tough choices. They're choosing between discretionary funding and paying their mortgage. That's what's happening—and this is on your watch, Labor. At 4.1 per cent, interest rates are currently the highest they've been since 2011. Families are hurting, and this government, sadly, is asleep at the wheel.

The impact of inflation and rising interest rates is being felt by businesses and families across Australia. Rising mortgage payments, rising prices at the checkout and rising energy bills are all eating away at already tight household budgets. This quarter alone, 150,000 people are moving from fixed rates to variable rates. We are facing a cliff here, and this government is not doing enough to address it. They're putting fuel on the fire. It cannot continue. This government is away at sea when it comes to addressing the fundamentals of our economy, particularly in the area of productivity. You don't ever hear the government talk about productivity. You never hear that word come from the Prime Minister's mouth, yet it's the single most important thing that needs to be addressed to address this cost-of-living crisis. You keep putting fuel on the fire by increasing government spending and you're not doing anything to address productivity, which we know would put downward pressure on inflation.