Varun Ghosh (WA, Australian Labor Party) Share this | Hansard source

I rise to take note of the answers to the questions asked by Senators Davey and Cash. Senator Davey asked a question about inflation and how cost-of-living measures, in her proposition, were going to drive up inflation. I'd like to deal with that as a matter of substance. When the Albanese government came to office, we had three wicked aspects of a problem that was left to us by the previous government. The first was inflation. Inflation had a 'six' in front of it, and it had been higher before that. The second was a budget that was in a state of disrepair. That was as a consequence of the fiscal policy of the two previous governments but particularly the Morrison government. We also had the difficulty of cost-of-living pressures and stagnant wages. Those are the three things that the government has endeavoured to address in its policy since.

In relation to inflation itself, there was a slight uptick in the monthly inflation in the last month's figures. Ultimately, monthly inflation has proved volatile both here and around the world, but, if you look at the trend since this government came to office, you will see it's been a broadly downward one, and we'd expect that to continue.

In terms of budget repair, this government has now delivered two budget surpluses. That puts downward pressure on inflation. In terms of wages and cost-of-living relief, this government has actually engaged in responsible and measured policies that will assist those who are on the downside of advantage or the people suffering most. I will start with minimum wages and wage increases because cost-of-living pressures are often highest for those who earn the least. From 1 July, a few days ago, the national minimum wage and the minimum award wage have been increase by 3.75 per cent by the Fair Work Commission, and that is in line with the submission that the government made in relation to its review. Over the three Fair Work Commission annual reviews since the 2022 election, minimum wages have increased by 5.2 per cent, 8.6 per cent and a 3.75 per cent, and 2.6 million workers on minimum wage are now directly benefiting from these increases. Across those three annual wage review decisions since coming to government, the wages of minimum wage earners have increased by $143 per week, or by $7,451 per year, and that is consequential for people who are facing financial pressures or finding it difficult. A full-time minimum wage earner's annual salary has gone from $40,175 to $47,627.

Through a commitment to industrial relations reform and reversing some of the punitive measures that Liberal and National coalitions have implemented over their years in government, this government has also recognised the importance of the trade union movement, ensuring that working people in Australia receive good wages. The antipathy to that movement and for people who put themselves through collective action on the side of people who don't have power in a workplace and endeavour to lift their wages can be felt palpably from the other side. That's not just an immediate policy that assists with cost-of-living relief; it's also a longer-term policy that's of benefit to fairness and opportunity in Australia.

In his book Battlers and Billionaires, Assistant Minister Andrew Leigh observed that unions have a vital role in fighting the rise of economic inequality in our society. Minister Leigh observed, 'A fall in union membership has been shown to be responsible for a significant portion of the rise in US inequality in the 1980s, and up to a third of the increase in inequality during the eighties and nineties was due to the collapse of union membership in Australia.' Unions stand on the side of working people in order to live their wages, and, from a cost-of-living perspective, the numbers I discussed earlier for the 2.6 million lowest-paid Australians are numbers that will make a real difference to people's lives.

We've also heard about a tax cut for every Australian, and, in my home state of Western Australia, that's 1.5 million people who will receive a tax cut of around $2,000 on average. In terms of energy bill relief, in WA, the residents of our great state will receive $300 from the federal government and $400 from the state government. That's $700 in the next year. These are real measures that are putting money into people's pockets and they're helping on the ground.