James McGrath (Queensland, Liberal National Party, Shadow Assistant Minister to the Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. As has been pointed out several times in this chamber, new analysis of OECD data reveals that Australians have experienced a greater collapse in living standards than any other advanced economy, with inflation adjusted disposable incomes falling 5.1 per cent to June 2023. Why is it that the governments of the United Kingdom, France, Denmark, Poland, the United States of America, Spain, Chile, Belgium, Finland and Hungary were all able to deliver real growth to household disposable incomes last year, while the Albanese Labor government has inflicted the sharpest decline in household incomes of any advanced economy?

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

I thank Senator McGrath for the question, and my answer will be the answer that I've been giving consistently in this chamber around the plan that this government has to support households who are doing it tough because of the inflation challenge that we inherited from those opposite.

Opposition Senators:

Opposition senators interjecting—

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

Order!

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

That's right. I know—

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

Minister, please resume your seat. I have called the chamber to order. I should not have to keep repeating myself. The minister has the right to be heard in silence.

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

The inflation challenge that we inherited from those opposite—I know you don't like it, but the single biggest quarter of inflation growth was your final quarter in government. That is when interest rates had to start going up to deal with it, because we inherited—

Opposition senators interjecting—

Well, the facts don't lie. So our plan has been to deliver—

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

Minister, please resume your seat. Senator Birmingham?

Simon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source

I have a point of order on direct relevance, because Senator McGrath's question goes to the 12 months to June this year, which is the OECD data. Senator Gallagher is trying to rely on the quarter before that—not even the 12 months of her government.

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

Senator Birmingham, you are well aware that is a debating point. Minister Wong?

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

I raise a separate point of order. I would just make the point that you have called for order quite a number of times, and the opposition are completely ignoring it—

Opposition senators interjecting—

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

Order!

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

as they are now!

I'm just making the point. We understand that, at times, this can be a robust chamber, but this is a repeated disregard for the President's rulings or exhortation to have the minister be heard. I'd ask the opposition to allow the minister to at least answer the question.

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

Thank you, Senator Wong. I will remind people that the senator has the right to be heard in silence.

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

As Senator McGrath knows—because context is important here—the decline in household living standards occurred in its sharpest form in the final quarter of the former government, when inflation was at its peak. That context is important, as is the fact that, in the countries nominated by Senator McGrath, inflation peaked earlier than it did here. It rose earlier, and it peaked earlier.

Opposition senators interjecting—

Well, again—

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

Minister, please resume your seat. Order!

Just a moment, Minister; please resume your seat. Senator Cash, I just called the chamber to order, and the minute the minister got back to her feet, you started interjecting again. When I call the Senate to order, it does include you, Senator Cash.

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

In many of those countries, inflation peaked higher than it did in Australia, but it certainly peaked earlier, and so it would make sense that our return of inflation to a target range will be later than those other countries. They're the facts. It doesn't change our plan for cost-of-living relief, getting the budget in better shape and making investments in the productive capacity of the economy.

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

Senator McGrath, a first supplementary?

James McGrath (Queensland, Liberal National Party, Shadow Assistant Minister to the Leader of the Opposition) Share this | Link to this | Hansard source

Minister, you stated yesterday:

… the inflation challenge is the biggest challenge that we are focusing on in the economy. It's staying higher than we would like for longer than we would like.

Is inflation today higher than you planned for when you delivered the budget in May?

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

I won't have the budget documents within the minute that it would take to retrieve them. But do I note that the RBA, in their statement on monetary policy, have updated their forecasts. In my recollection, it's largely in line with the Treasury forecast as at budget time. That is what the Treasurer has advised the community. If there is anything further, I will update, but it is staying higher than we would like for longer than we'd like. I don't think anyone has made any pretence about that. So the job we have to do is to not get distracted by the shouts of irrelevance over there—the shouting irrelevance that you have become—but to stay focused on what we need to do, which is roll out cost-of-living relief, get the budget in better shape and make those investments in clean energy, skills and housing. That is what we are focused on.

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

Senator McGrath, second supplementary?

James McGrath (Queensland, Liberal National Party, Shadow Assistant Minister to the Leader of the Opposition) Share this | Link to this | Hansard source

If inflation is staying higher than you would like for longer than you would like, in excess of your budget plans or forecasts, what new plans or actions is the Albanese government taking to stop the freefall in Australian household incomes?

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

As I've said, it remains largely in line with Treasury forecasts. As I advised in my previous answer, what we are doing—

Hon. Senators:

Honourable senators interjecting—

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

Minister, please resume your seat. Order! Minister, please continue.

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

What we are doing is rolling out our cost-of-living relief, most of which you opposed; getting the budget in better shape, again fixing the mess that we inherited from you; finding real savings and banking revenue; and delivering a surplus. Remember, you printed the mugs. We actually delivered one. You had the 'Back in Black' mugs that had to get secretly put to one side and hushed up and put away very quickly. We actually delivered the first surplus in 15 years. These are all things that materially help put downward pressure on inflation. As the ABS data showed last month, our measures, which you voted against, actually took ½ per cent off CPI for that quarter. That is what we are doing. We are working in line with the bank to get inflation back towards its target rate.

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 notice.