David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

I move:

That the Senate take note of answers by ministers to questions from members of the opposition.

On the issue of the cost of living, it's amazing that, as opposed to giving some direct answers about what the government will do to help Australians who are struggling with the cost of living, they launched straight into some revision of history, which you'd have to describe almost as delusional. I'll cover some of those points before highlighting some of the differences between decisions that they are making now they're in government and those which we made when we were in government not that long ago, as well as some elements of design around critical elements of our economy that go directly to the cost of living.

On the delusion side, we heard a lot of comments today about debt that was inherited by this government. They made the case, somewhat delusionally, that this debt was irresponsible and a product of poor government. They seem to have forgotten that at the time, when the Morrison government was seeking to withdraw, for example, support to people through the JobKeeper program, it was members on that side who were saying the government should extend that program. At a time when we were successfully getting vaccination rates up throughout the nation—in fact, leading, toward the end, vaccination rates for second and third doses—it was that side who were suggesting we should pay people to have vaccinations. So the whole delusion around debt ignores the fact that decisions that were made led to good outcomes. So the $50 billion that was talked about as coming unexpectedly into the budget is in part because of decisions that were made to keep people in work. When people are in work, people are not drawing on welfare, and people are paying taxes, which means that government expenditure is down, and incomes are up. It's a matter of record—it's a matter of fact—that, over the term of the Morrison government, 1.9 million jobs were created and unemployment went down to 3.9 per cent, which is the lowest in decades.

Simultaneously with that, one of the ways that the government made decisions to actually reduce cost-of-living pressures was to give tax relief. In the measures that were brought in in various budgets, the Morrison government brought in $40 billion of tax relief, benefiting around 11 million Australians, which meant that the program we put in place would see 95 per cent of Australian taxpayers on marginal rates of 30 per cent or less. That is the way that you actually help people into work—you help people to keep more of what they earn so that they have the funds they need to care for their families, to pay mortgages and to pay their power bills.

We also sought to make sure that, from an engineering perspective, the things that actually enable our power system—for example, adequate supplies of gas needed for peaking power, to keep prices down—were available. So the other side made the promise some 96 times during the election campaign that they would reduce power prices by $275. Instead, there's a headline in the media of my home city, Adelaide, saying:

SA power bills to rise in cost-of-living blow

Tens of thousands of South Australian households are set to be hit with increased electricity bills after the energy industry watchdog made the "difficult decision" to increase benchmark prices by hundreds of dollars a year.

So, when we look at cost of living, it's important to understand that the decisions that are made actually impact on the government's ability to support families and on people's abilities to get jobs and keep more of the money they have made so that they can pay the bills.

What sorts of decisions do we see from those who are now on the government benches? If you look at the Australian Financial Review just this week, the headline there is, 'Labor "at it again" in surprise move on dividends'. So they are planning to bring in retrospective measures around imputation credits that will actually give surprise tax bills to people and increase the cost of living at a time when they're promising to reduce cost-of-living pressures.

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

We constantly come in here and hear this question put by the opposition on the cost of living. Yet here are the same people who wouldn't support a $1 increase for the lowest paid people in this country. Here are the same people who opposed childcare support for 1.26 million people. Here are the same people who didn't support and didn't act on gender pay inequity. And these are all things that we're doing—we're turning around and taking actions that have a real effect on cost of living for our community.

Let's look at the jobs and skills in this community. Let's talk about the hundreds of thousands of skilled jobs that were lost under this opposition when they were in government. Over nine years, jobs were lost. Of course, when a consensus is being built in this country, they don't want to turn up. The Leader of the Opposition refused to turn up to the Jobs and Skills Summit. That's the reality. That's what they think. They just don't have a policy or an answer.

But, then again, I should actually withdraw that comment, because they did have a policy; they had a clear policy to drive wages down in this country! This is a design feature of that government. When they were in government, they said it was a design feature. Of course, the consequence of that was having to see, for the first time in the history of this country, the middle class shrink under your watch—not with a solution, not with an answer, not with a plan to turn it around and make sure that working people and small businesses, and businesses generally, can compete in the markets that you've managed to do so much damage to. They went with trend; they had waste and rorts—

Sarah Henderson (Victoria, Liberal Party, Shadow Minister for Communications) Share this | Link to this | Hansard source

I rise on a point of order. The senator has twice referred to 'you' in his contribution. I would ask that he direct his comments through the chair, please.

Andrew McLachlan (SA, Deputy-President) Share this | Link to this | Hansard source

Senator Sheldon, you heard the point of order. I give you the call.

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

Thank you, Deputy President. 'You' is them, the opposition and the previous government, who turned around and quite clearly destroyed the middle class and were undermining it through their entire term. It was part of their design feature to make sure working people in this country had less in their pockets. And guess what? You have succeeded. You did deliver on your policy and we are all paying. When you—the opposition—were in government, you delivered on that policy. That's exactly what you did.

When those opposite were in government they turned around very clearly. When they were in government, this opposition turned around and said it was too hard to regulate the gig economy, where the average pay is $6.67 an hour.

That is right, Senator Ciccone. They said there was nothing they could do to give those people minimum payments in this country. That is what was said when they were in government. Since we got into government, we have said quite clearly we have to make a number of serious changes to what's happened under their watch. As those opposite drove down the middle class and put more pressure on pensioners, we have come up with solutions about pensioners, making sure we have work bonuses so pensioners can get out there and do more hours. We have built a consensus on jobs and skills across this economy. We have said we will make sure the middle class in this country grows. We watched quite clearly the previous government allow companies like McDonald's to steal from the youngest people in our country. We saw companies like Qantas steal hundreds of millions of dollars to pay their shareholders, while, as a government, those opposite gave them $2 billion—good suggestion. Did they have any strings attached, like not misuse the money? No, they didn't. There were waste and rorts, and the consequence was that hardworking Australians have been paying the price.

The previous government did not support a wage increase for aged-care workers. The opposition, when they were in government, would not support feminised industries getting wage increases. They would not fund the wage increases of the Fair Work Commission rulings. That's what those opposite did when they were in government. If their plan was for cost of living; they succeeded—wages down, middle class collapsing, feminised industries without wage increases, our lowest-paid not receiving wage improvements.

Ross Cadell (NSW, National Party) Share this | Link to this | Hansard source

I also rise to take note of the cost-of-living question. People visiting in their school holidays today have heard why it is called 'question time' and not 'answer time'. In the words of Patches O'Houlihan from Dodgeball, we have had dodgers, ducks and dips dives on questions today. Yesterday, Senator Pocock warmly welcomed Sam and Leone to this place, highlighting their struggles with the cost of living. Their answer from the government was to give them a wave.

It was a Liberal-National government who took decisive action to reduce the cost of fuel. It was a Liberal-Nationals government's pragmatic approach to reduce the excise by 25c a litre, putting money back into the pockets of mums and dads. Tonight that cost will be added to every single litre of fuel for every motorist across Australia. Andy Lane of Aberdeen wrote to me this week after fuel at his local service station rose from $1.40 to $1.91. From tonight, that will go to $2 16 a litre.

Since elected, this government have failed to recommit to their $275 cut to energy bills despite repeating this commitment during the election 97 times. Ninety-seven times we heard they would commit to a $275 reduction in energy prices, and what do we hear now? Silence. That is why June Rose Richardson from Taree contacted my office after receiving her last energy bill of $461.28. That is an increase of 30 per cent from six months ago even though Ms Richardson has reduced to energy usage by 20 per cent on last year. Prices just keep going up. The cost of living just keeps going up. Like Senator Pocock I ask the question: what do you say to Ms Richardson when those on limited incomes have to choose between heating and housing? Does she deserve a wave as well?

Today Senator Dean Smith moved an amendment to give seniors like June Rose, who receives an age pension, the ability to earn additional income to help with the rising cost of living they are experiencing under Labor. Because if this government won't to help them, we will help them help themselves.

I would like to thank the Greens for their support on this measure. Again, where was Labor again on this? They were silent. The lowest earners, the hardest workers, are suffering disproportionately under those opposite. What we are seeing is not just a two-speed economy under Labor, but a two-class economy—those who can see the city from their front doors and those who can't. The class warfare that defined Bill Shorten's leadership is now rearing its ugly head under Anthony Albanese, the man who said, 'I like fighting Tories. That's what I do.' If you live in the CBD, welcome to Albo's gold class, but for those of us in the regions—the doers, the makers, the growers, the producers of our wealth—we are relegated to cattle class. The bread and butter budget that Treasurer Jim Chalmers has promised is all regional communities across the country can expect from Labor—to eat bread and butter, because they'll afford to eat no more.

We have already heard first-hand how Catherine King has been cancelling vital funding for projects across regional Australia that were funded whilst we were in government. She is becoming the David Copperfield of regional infrastructure, making projects disappear with the flash of a wand. Some of these projects are even in Labor seats, but they are regional and so they don't count anymore under this government that counts the cities, not the regions.

Marion on the North Coast has told me that on 1 July her doctor stopped bulk-billing. She, like many in the Forster Tuncurry area and across country communities, must now pay $70 on concession to see the doctor, with only $39 returned by Medicare. Not only do we have to choose between heating or homes, we now have to choose about health as well. What are we going to tell the people about that? How will you address these cost-of-living issues faced by Andy, June Rose and Marion? We heard today—in the words of Patches O'Houlihan—you will dodge, duck, dip, dive and dodge anything to help them out.

Andrew McLachlan (SA, Deputy-President) Share this | Link to this | Hansard source

Before I give Senator Payman the call, Senator Cadell, in the future can you refer to the Prime Minister as the Prime Minister or by his seat and not 'Albo'.

Fatima Payman (WA, Australian Labor Party) Share this | Link to this | Hansard source

N () (): It's interesting to hear the audacity the other side has to attack us when we've hit the ground running. We're 120 days in and we've delivered more for the nation than those opposite could even dream of. Senator Cadell, it is very interesting to hear two new senators discuss cost-of-living pressures when my fellow WA senators here would also know that Western Australians made a massive decision in the election and that was to elect a government that actually cares; that's passionate about ensuring that everyone has a fair go; that's passionate about ensuring that there's integrity, transparency and action on things that are impacting our lives; that's passionate about ensuring that the pressures on families are reduced. The fuel excise was introduced on 30 March. Isn't that a surprise! Just two months before the election. Was that a vote winner? I'm not sure. I'll leave that.

In saying that, people understand the pressures on the budget and why we can't continue and extend the fuel excise. With a trillion dollars in debt, Australians know that we cannot fix the problems overnight. This government has been doing a lot in terms of the skills crisis we're facing. Young people in Western Australia have been coming up to me and talking about the pressures on the housing market, not just not being able to afford rent but also the fact that young people slipped through the cracks under the previous government. We have not been considered at the decision-making tables.

It is atrocious to sit in this place and to hear those opposite having a go at us when we've achieved so much in the last 120 days.

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

What have you achieved?

Fatima Payman (WA, Australian Labor Party) Share this | Link to this | Hansard source

If you were listening, you would have heard Senator Sheldon literally list so many things we've achieved. As a fellow WA senator, you would definitely know that we needed a change in government because there was way too much inaction, division and lack of focus by the previous government. Australians were sick of it. They were just tired. They needed a sense of hope, and that's what the current Albanese Labor government is going to be delivering.

We will go into October and come out with a budget that will benefit everyone. That is something that's dear to my heart. I've seen how my sister, who is a Master of Pharmacy student and also has an 18-month-old baby, is struggling to make ends meet. She's struggling to pay her mortgage with her husband. She's struggling to pay for child care. This has all happened. We've seen the impacts on real people, and it is time to get the ball rolling.

The Albanese Labor government is going to ease those pressures, not only the housing and climate change crises that young people are facing but also the education crisis. When it comes to accessibility to TAFEs, apprenticeships and traineeships, the Labor government will ensure that everyone has access to the education we deserve, and also employment opportunities. It is tough putting food on the table. It is tough paying bills. It is tough making ends meet. These are based on the mismanagement of the previous government. All the rorts and all the poor decision-making policies have landed us in a very difficult place. Australians know that it's not something we can change overnight, but they have faith in the Albanese Labor government to fix the issues and the mess. They trust us based on the leadership and transparency that we have indicated and that we have been delivering, including the abolishment of the cashless debit card last night.

Richard Colbeck (Tasmania, Liberal Party) Share this | Link to this | Hansard source

I do note that the government is really struggling to defend their position on this. As we saw during question time, and as we continue to see during the motions to take note, what the government continue to do is to try and deflect the question, blame somebody else for the problem, so that they don't have to actually answer the question. That's one of the really disappointing things. I think Senator Cadell's comment was on point. It's called question time because it's about the questions; it's not about the government providing answers. They continue to deflect the question, to blame somebody else—it's not their problem—and then not answer the question. Why don't they answer the question? It is because, despite going to the previous election saying hundreds of times that they had a plan, they actually don't have a plan. They did make some promises, particularly in relation to the cost of living. They said that Australians would continue to receive pay rises ahead of the CPI. Well, how's that promise going? That promise has disappeared. We know that, with the CPI rising the way that it is, it's not sustainable and it's only going to continue to feed into the inflationary cycle. So, Labor's promise from before the election will actually hurt Australians, so they know that they can't keep that promise and they've walked away from that.

They promised Australians a $275-a-year reduction in their energy bills. That lasted a matter of only a few weeks. They've walked away from that. They told Australians that Labor would be with Australians all the way. That's what they told them before the election when they were seeking their vote to get elected. What is patently clear is that Australians are on their own under this Labor government.

When it came to providing support for cost of living through the reduction in fuel tax, we provided that, at the peak of the price of fuel. It was Labor's decision as to whether they continued that, as it would been ours had we won the election; we didn't. But it would have been a decision that we had to make. It is now a decision for the Labor Party. So, trying to deflect, trying to blame somebody else is, quite frankly, cowardly; it's weak; it's gutless. And Labor need to be prepared to take responsibility for it.

We know the history of Labor's management of the finances. We saw what happened when they were in government last time, and we still remember what happened when they were in government the time before. It took the coalition six years to get Labor's mess under control after we last came to government, in 2013. Once we'd done that, after six years, we had the budget back in balance. And then the pandemic started. But we remember that when we put JobKeeper in place we saved hundreds of thousands of jobs, kept hundreds of thousands of workers connected to their businesses and kept the economy strong during the pandemic, Yet the Labor Party were barracking and calling for us to spend more money. They wanted us to spend $300 per Australian—$6 billion—to encourage people to get vaccinated, when they were already rolling up in their droves to do that.

So, how much worse would Australia's financial position be if we had listened to the Labor Party and the things that they were calling us to do when we were in government and which we resisted? We responsibly wound back the income support that kept the economy going, that Australians supported during COVID. We have one of the most successful vaccination rates of any country in the world. And we came out of COVID with a strong economy. The government is now benefiting from the strength of the economy in the budget numbers. It's interesting, though, that the independent Parliamentary Budget Office confirmed that Labor's policies would result in higher debt and deficits than the plan put forward by the coalition at the last election. So, they can't come in here and try to deflect—not answer the question and blame somebody else. They are responsible for their financial position and they should have the courage to stand up and take that responsibility.

Andrew McLachlan (SA, Deputy-President) Share this | Link to this | Hansard source

I put the question in relation to the motion moved by Senator Fawcett.

Question agreed to.