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

My question is to the Minister representing the Treasurer, Senator Gallagher. How much more will an average Australian household be paying in electricity and other costs this financial year?

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

I thank Senator Cadell for the question. I can say that, with the implementation of the Powering Australia plan which we have in this budget, $21.9 billion is going to fixing the energy mess of 10 years of denial and delay. There were 22 policies, none of them landed. With the investments that we are making in Powering Australia, we will be putting downward pressure on energy prices over time. This is why this work has become more urgent than ever. We need to put all of our effort into implementing these policies and making sure that we are fixing the grid and getting more renewable energies into the system so that we actually have a government that supports the energy transformation that is needed and was denied to the Australian people by the former government. This challenge is the one that is perhaps most urgent in terms of our economy and in terms of cost-of-living pressures on households and businesses. We understand that.

The budget has forecast expected increases in gas and electricity prices over the next year. Depending on which state or territory you are in, the impact of that will differ, but we do acknowledge that it is a significant impost on households and businesses. In the ACT, for example, where we have 100 per cent renewable energy, prices between 2021 and 2022 are going down. That is the reality because renewable energy is the cheapest form of energy. We understand that, and that is exactly why we need to put more effort into cleaning up the energy mess that you guys left behind. (Time expired)

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

Senator Cadell, your first supplementary question?

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

I note the minister's inability to say how much more an average Australian household will be paying in electricity and other costs. I refer the minister to NAB's consumer sentiment survey, which says that by Christmas consumers can expect an increase of 33 per cent for grocery costs, an increase of 52 per cent in fuel costs and an increase of 31 per cent in utilities costs. Minister, do these expectations reflect the reality of the price hikes Australians can expect?

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

GALLAGHER (—) (): I'm sure those opposite are reading and understanding the inflation challenge that is alive and well across the Australian economy. And, yes, we have an inflation problem that we are not seeking to exacerbate with this budget. The Reserve Bank is increasing interest rates in order to reduce inflation and get it back to within normal range. The government took the very responsible decision in this budget to make decisions that did not make the work of the Reserve Bank any harder. The easiest thing to do would be to say that we could spend some of the upgrades that we got in terms of revenue. That would be the easiest thing to do. But what we did was bank 99 per cent of that, and where we did provide additional spending, we put it into services that did not increase the inflation problem in this country.

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

Senator Cadell, your second supplementary question?

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

With Australian households already hurting under Labor, and Labor's promise to cut electricity prices by $275 already broken, will the minister guarantee that they will at least keep their promise to deliver all of the legislated income tax cuts for Australians earning more than $45,000? Or will Australians face being slugged with higher taxes as well as higher costs under Labor?

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

This government keeps all of its promises.

Opposition Senators:

Opposition senators interjecting—

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

Minister, resume your seat. Order, all senators on my left!

Order, Senator Henderson!

Senator Scarr, order!

Thank you, Senator Ayres! I should not have to repeatedly call out 'Order!' When you become that loud, the obvious response from the President is to call you to order. And, when I call you to order, I expect quiet. Minister, please continue.

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

You'll see that in the budget that we handed down two days ago. I know that it is funny to those opposite and I know that it is a foreign concept to those opposite that you would actually have a government that does what it says.

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

Minister, please resume your seat.

Senator McKenzie!

That was very disrespectful, Senator McKenzie.

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

Madam President, I rise on a point of order on relevance. I don't know if it is because the finance minister did not hear the question that Senator Cadell asked, but it was actually about broken promises.

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

Senator McKenzie, the minister has only just started her response. I have had to call the Senate to order twice because it's very hard to hear. I do believe she's being relevant, but I can assure you that, if she's not, I will draw her back to the question.

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

I acknowledge that it is a foreign concept for those opposite that you would actually, in government, do what you said you would do and deliver on the commitments you make. That's what this budget does—on cheaper child care, on cheaper medicine, on renewable energy and on delivering all of our commitments. You see them in the budget: ending the waste and rorts—we're doing that; budget repair—we're doing that; and not adding to the inflation challenge—we're doing that. And we're still delivering on hospitals, on aged care and on the NDIS. We are fixing up all of these areas that you neglected for years. This budget is a sign of our commitment to deliver on what we promised. (Time expired)