Dave Sharma (NSW, Liberal Party) Share this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallaher. Minister, despite both your own and the Treasurer's attempts to blame the shocking national accounts figures on interest rates, independent analysis from the RBA and market economists has revealed those claims to be false. ABS data shows that inflation wiped out 4.4 percentage points of household income gains last financial year compared to higher interest rates, eroding 1.3 per cent, and increased taxes, reducing real income by a further 1.1 per cent. That's according to analysis by former RBA economist Jonathan Kearns, who said, 'The erosion by inflation is greater than that of interest rates.' Minister, will you correct the record for the Treasurer and acknowledge that inflation and higher taxes are eroding household incomes by three times as much as interest rates?