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

My question is for the Minister representing the Treasurer, Senator Gallagher. What proportion of Australian households will face the impact of higher inflation and interest rates being higher for longer as a result of Labor's budget but will be receiving none of your selective handouts?

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

Thank you for the question. I guess we should expect that kind of divisive question from those opposite that seek to divide Australia as opposed to unite it. If the senator had read the budget papers, they would have seen that we are predicting that inflation comes down considerably over the next financial year before heading back to the target range. I would remind those opposite that interest rates began rising under them.

Op position senators interjecting—

Because you lost the election, mate. You lost the election. That's why. We have been in a period of tightening of monetary policy since that time, and that's why the budget has been carefully crafted to not add to the inflation challenge in the economy.

Here is a list of things where we have our focus on all Australians. This is a budget that seeks to make investments that benefit all Australians, no matter how much you try to divide different groups across our community. In terms of wages growth, who do you reckon that helps? For the first time in a decade, by overturning your policy to deliberately withhold wage increases from working people, we are going to see real wages growth. Part of the reason we have significant upward revisions in this budget is that we are seeing wages growth. Our investment in Medicare and the tripling of the bulk billing rate supports all families across the country. We're putting downward pressure on inflation to tackle the cost of living. On energy bills, the gas energy caps that we put in place, which you voted against—have a look in the budget at what that says. The fact is that people will be paying less on their bills as a direct result of— (Time expired)

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

Senator O'Sullivan, first supplementary?

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

Yesterday on Today, construction worker Frank was interviewed and said:

I feel that our standard of living has reduced considerably; I've never seen it like this.

Australia should be considered as a lucky country. Are we lucky? No, we're not.

Give the working person, the people who supports the country, the middle-income workers, more relief.

Minister, wouldn't Frank and indeed all Australians be better off if you had a plan to tackle inflation rather than a budget that just selects a few winners?

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

Here we go. It's so predictable. I didn't see that interview, but what I would say is that there are challenges in our economy because of 10 years of failure to deal with the challenges—to deal with the energy transition, as one example—and we are playing catch up so that we can seize the opportunities and the jobs and the income that are going to come with that energy transition. We are putting in place legislation that you voted against to get wages moving in this country. You voted against it.

Every single time we put in this place some legislation to improve the lives of working people, you vote against it. You vote against the Housing Australia Future Fund. You vote against the National Reconstruction Fund. You vote against every idea that we bring into this chamber to build a better future for every Australian. You vote no to it, and then you come in here and start pretending that you're on their side. It doesn't add up. (Time expired)

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

Senator O'Sullivan, a second supplementary?

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

This budget confirms that the cost of living continues to go up. Gas and electricity prices continue to rise, real wages are not growing, inflation remains high, unemployment will rise and Australians will pay more taxes. Why is it that Australians always pay more under Labor?

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

What the Australian people will see in this budget is targeted cost-of-living relief. This will help those that are most vulnerable. Are you opposed to that? Are you opposed to those investments? It sounds like you are. It will deliver historic investments in Medicare and aged care. Are you opposed to that? It sounds like you're opposed to that. There will be a wage increase for aged-care workers. Are you opposed to that too? That's in the budget. It sounds like you are opposed to it. It will grow the economy in skills and in small business for renewables. It sounds like you're opposed to that as well. It will strengthen the budget surplus and clean up the mess that we inherited. There was $11.5 billion in legacy funding pressures that were just going to tip of a cliff. There is $17.8 billion in savings in this budget. We're borrowing less. We're paying less interest. We've forecast a surplus this financial year, and you're opposed to that. (Time expired)

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I ask that further questions be placed on the Notice Paper.