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

My question to the minister representing the Prime Minister, Senator Wong. Should Australians prepare to live with interest rates being higher for longer, as forecast by ANZ CEO Shayne Elliot?

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

What Australians do have is a government that is working very hard to fight inflation. We have seen some moderation in the most recent inflation figures—obviously, much more is required, but we are committed to fighting inflation because we understand the effect that it has on families, on the cost of living and on how people are struggling as a consequence of higher inflation.

We're focused on fighting inflation. We know the opposition are fighting anything but inflation. We know that a number of the measures that ensured—

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

Senator Wong, resume your seat. Senator Hume?

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

On relevance, I mentioned interest rates, not inflation. The minister is yet to use the phrase 'interest rates'.

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

As you know, Senator Hume, I can't put words into the minister's mouth.

Senator Hume, you are not in a debate with me. Please resume your seat. As I said, I am not in a position to put words into the minister's mouth. I'm happy to remind her of the question but I believe the minister is being relevant. Minister Wong.

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

I'm interested in the proposition that inflation is not relevant to interest rates. That seems to be the point of that point of order—that somehow a discussion of inflation is not relevant to interest rates. As the shadow minister knows, interest rates are set independently by the Reserve Bank. What governments can do is to ensure that we engage in the fight against inflation. Unfortunately, when we and the Australian community needed allies in that, instead they've had an opposition determined to oppose the measures that the government is seeking to put in place to fight inflation.

I would remind the shadow minister that without our energy plan electricity prices would have risen 18.8 per cent instead of 8.4 per cent. So they're happy for electricity prices to go up nearly 19 per cent. That's the position of the opposition. Energy price relief that you voted against— (Time expired)

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

Senator Hume, a first supplementary question?

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

Is the ANZ CEO correct when he states that the rate of current government spending will keep interest rates higher for longer?

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

As I recall, this government returned a surplus in 2022-23. I know that is difficult for the coalition to accept, because they trumpeted the 'Back in black'—they got the mugs out; they were quite triumphant—but then, of course, they didn't actually deliver one. I know that's very hard for them to accept. The reality is that this is a government that returned a surplus of $22.1 billion in 2022-23. It was a dramatic improvement from the forecast nearly $78 billion deficit that we inherited. In fact, that is a $100 billion turnaround, the biggest nominal budget improvement in Australian history.

We've returned 95 per cent of revenue upgrades to the bottom line in 2022-23. That is more than double the average of the previous government. So I have to say I don't think we'll take a lecture from those opposite, who returned deficit after deficit and did not return revenue upgrades. (Time expired)

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

Senator Hume, secondary supplementary?

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

With the Reserve Bank governor describing inflation is now being a 'homegrown' problem and the ANZ CEO identifying current government spending as a driver of higher inflation and higher interest rates, do the Prime Minister and the Albanese government accept any responsibility for the pain and mortgage stress being felt by a record number of Australians?

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

We understand how tough so many Australians are doing it and we do not shirk our responsibility to do all we can to fight inflation. And, unlike those opposite, we're not going to be distracted by—

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

By the Voice?

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

the political arguments. Unlike those opposite, we're not going to be voting in this chamber against energy price relief—

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

You're not going to be distracted by job security?

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

Senator Hume, you've asked your question.

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

Unlike those opposite, we're not going to be focused on political fights. We are going to be focused on fighting inflation, which is the key driver behind the cost-of-living challenges that so many Australians have. Unlike those opposite, we are also not going to be running a low-wage economy. We're not going to be holding wages deliberately low, because we understand that also matters when it comes to the cost of living.

An opposition senator interjecting

I'll take the intervention from the shadow minister, who said, 'That pushes up inflation too.' We have the Mathias Cormann line here—that in fact there's a deliberate design feature of the Australian economy to hold wages low. I don't think that should have been scripted for you. (Time expired)