Tony Sheldon (NSW, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance, Senator Gallagher. The independent Reserve Bank just released its monthly interest rates decision. Can the minister update the Senate on what that decision was and what it means for Australians, particularly for those with a mortgage?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

AGHER (—) (): I thank Senator Sheldon for the question. The government understand that Australians are doing it tough and that household budgets are under real pressure. The independent Reserve Bank has just announced its decision to increase interest rates by another 50 basis points to bring the cash rate to 2.35 per cent. This had been widely predicted, but we know that doesn't make it any easier for homeowners We know this means that families will have to make more hard decisions about how to make ends meet. What it means for an average homeowner owing $330,000 is that they will have to find about $95 extra a month for repayments, on top of the $310 extra in repayments since early May. For Australians with a typical $500,000 mortgage it's about an extra $145 a month, in addition to the extra $475 they've had to find since early May.

We know that interest rate rises mean that families have to make those hard decisions about how to make ends meet. But, as the Senate knows, it's not the job of the government to interfere with the independent decisions of the Reserve Bank. The Albanese government's plan is about steering the economy through this difficult period and building that better future that the Australian people deserve. We'll do this by investing in the productive capacity of the economy and making those sensible and considered policy decisions and investments that won't add to inflationary pressures. We will look, in particular, at the areas we focused on in the Jobs and Skills Summit around accessing cheaper and more affordable child care, cutting the price of medicines, fast-tracking those fee-free TAFE places, bringing forward to next year the increase that we would have seen in pensions, allowances and rent assistance and, of course, legislation— (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Sheldon, a first supplementary?

Tony Sheldon (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Can the minister explain what the government is doing to assist Australians with current cost-of-living pressures that have built up over many years?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Since we formed government, we've hit the ground running, implementing our policies that we outlined in the election campaign, to respond to the cost-of-living crisis that we inherited from you lot—those opposite. We can't solve 10 years of neglect and wasted opportunities overnight; we have to start by acknowledging that. But it is our job to do what we responsibly can to help Australians deal with these pressures in the short term and build a more resilient economy that is better able to withstand future shocks. That's why we are making child care cheaper through our $5 billion investment in the October budget. It's why we're making medicines cheaper. It's why we argued for a minimum wage increase and it's why we're starting to get the work going on getting wages moving again. It's why we're lifting the speed limit on the economy, with more investment in TAFE and more investment in cheaper and cleaner energy.

Hon. Senators:

Honourable senators interjecting—

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Do you like that? Cheaper and cleaner energy. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Sheldon, a second supplementary?

Tony Sheldon (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Can the minister outline the importance of having a clear plan that will grow the economy? How will that help Australians through these challenging times?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Sheldon for the question. Unlike the previous government, which didn't have an economic plan—it just had a Prime Minister who wanted to grab any portfolio he could; that's the only plan that you guys had; you each didn't know what the other was doing—our economic plan is a deliberate and direct response to the economic circumstances that were left by those opposite.

Hon. Senators:

Honourable senators interjecting—

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

You hate hearing about it, don't you, because you know it's true.

Sue Lines (President) Share this | Link to this | Hansard source

Minister, please resume your seat. Order! The minister needs to be heard in silence. Minister, please continue.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

We inherited an economy characterised by high and rising inflation, flat and falling real wages and productivity paralysis. That is your record. We also inherited a budget with a trillion dollars of debt, deficits as far as the eye can see and billions of dollars trapped in the way of the National Party—and I hope that that keeps your coalition together. That's your record. We're not going to stand here and be lectured by you guys about any cost-of-living prices, considering we're the ones dealing with the mess that you left us, and you abandoned Australia in the process.