Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. In April last year, the now Treasurer said:

This is a full-blown cost of living crisis … a triple whammy of skyrocketing costs of living, falling real wages and rising interest rates.

Since the election, the cost of living has truly skyrocketed. Inflation is at its highest point in 30 years, real wages can't keep up and interest rates are at their highest point in a decade. Minister, does the Treasurer acknowledge that under this Labor government there is truly a full-blown cost-of-living crisis?

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

I thank Senator Hume for the question. I think the government has been very clear that cost-of-living pressures and addressing them in a responsible and reasonable way is a priority for this government. In fact, when Minister Bowen started to deal with the fact that we were going to have blackouts, from day one we've been dealing with the decade of delay, dysfunction and refusal to tackle the challenges that are now impacting households right across the country. So we accept that cost of living is the No. 1 issue for probably every household in this country.

As a government we have to look at the ways that we can ease that cost-of-living pressure in a way that doesn't add to inflation. I think the major difference—there are a couple of differences. The largest quarter of inflation was in the March quarter last year, which was actually under you when you were in government. That was the largest quarter, in terms of inflation growth.

The other difference is that you have a government that's actually dealing with the issues, rather than putting their head in the sand and pretending that everything was just fine. That is a major difference, in energy, in health, in child care, in energy prices, in the cost of medicines, all of these areas that we're dealing with, and that's whilst we've got a budget that's heaving with a trillion dollars of debt, while we're going through all of the terminating measures, the things that weren't funded properly—remember all that?—the zombie measures, that were never going to get through the Senate, that you had there bolstering your bottom line. We're fixing all of that. We're investing in those areas where we can make a difference to households without adding to inflation.

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

Senator Hume, a supplementary question?

Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

The cost-of-living committee last week heard that Woolworths' charity partners have already told them that they will need increased food donations in 2024, and that there has been a 12 per cent increase in the number of Australians struggling to pay their power bills. Minister, why hasn't the government delivered the $275 price cut or other cost-of-living relief that it promised last year to help Australians with their energy bills?

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

That question is just wrong. We are doing what we said we would do in terms of implementing our cost-of-living measures that we took to the election: cheaper child care, cheaper medicines. We have been dealing with the energy crisis that you opposed. The gall of you—

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

Minister, please resume your seat. Senator Hume, a point of order?

Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

On the issue of relevance: I specifically asked about energy bills.

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

Yes, and you started with a couple of sentences around charity and increases, so I think the minister—

Order! Senator O'Neill, a point of order has been called, I'm responding to it, and all I can hear is you. I ask all senators to be respectful and to listen and be quiet. I believe the minister is being relevant, but I will continue to listen and I will direct her to the body of the question if she doesn't go there.

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

On energy—the gall, frankly, of being asked that question, when you opposed the cost-of-living relief in the bill that this Senate passed in December last year. It was over $1 billion to go to help with the cost of energy increases that occurred under your watch—that Minister Taylor hid before the election. The increases people are feeling now actually occurred under your government. We are dealing with it, and you opposed the money going in to get to households this year to help them to lower their energy bills by hundreds of dollars. You sat there and said no. (Time expired)

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

Senator Hume, a supplementary question?

Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

HUME () (): Last week the Senate's cost-of-living committee also heard that 800,000 Australian households are going to be coming off their fixed rate mortgages and going onto variable rate mortgages throughout 2023. We heard that the cash rate rises this cycle have increased the typical Australian variable mortgage holder's repayments by around $10,000 per year. Minister, with the RBA increasing the cash rate again today, how much more will the average Australians with variable mortgages be worse off under this Labor government?

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

Dealing with the inflation challenge is the defining economic challenge facing the country. We've been very clear about that. The RBA has increased the cash rate by a further 25 basis points today. They are, of course, independent and make those decisions based on the economic data that they are seeing. We have been saying for some time that we understand that these increases—particularly for those households that have mortgages, and often large mortgages—are significantly impacting household budgets. There is no doubt about that.

To specifically answer your question, it depends on what your mortgage is, and the terms with which—

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

Minister, please resume your seat. Senator Hume?

Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

If the minister doesn't know the answer to this question, I would be very happy if she took it on notice—

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

What's the point of order?

Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

Sorry, the point of order was relevance. She clearly didn't know the answer. If she doesn't know I'm quite happy to have it taken on notice because it was a very specific question.

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

Senator Hume, please resume your seat. The minister is being directly relevant.

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

It's very patronising of you, Senator Hume. I have the answers. It depends on how much you owe and the rates for which your mortgage is. But it is hundreds of dollars, and we understand that. (Time expired)