Karen Grogan (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. The Albanese government is acutely aware of the cost-of-living challenges facing many Australians and has undertaken measures to relieve cost-of-living pressures while not adding to inflation. Can the minister inform the Senate of the independent Reserve Bank's decision on interest rates today and what this decision means for Australians?

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

I thank Senator Grogan for her question and her interest in the Australian economy and the impact that some of the inflation challenges are having on Australian households. Today, the independent Reserve Bank Board has decided to leave the cash rate unchanged at 4.35 per cent. This is a welcome reprieve for millions of Australians, especially in the lead-up to Christmas, when we know budgets are tight. This decision follows recent news that inflation fell further in the month of October to 4.9 per cent, substantially lower than the 6.1 per cent it was when we were elected.

While inflation is moderating, it is still too high and we understand that many Australians are doing it tough. Inflation and cost of living are the biggest challenges facing Australians right now. That's why it's been a real focus of the Albanese government and why we are rolling out the $23 billion in cost-of-living relief that has been carefully calibrated to make sure that it eases pressure on households but doesn't add to inflation. In fact, two of the measures, those in relation to child care and our energy bill relief, actually put downward pressure on inflation, something that has been acknowledged by the ABS. It confirmed that our cost-of-living policies are putting downward pressure on inflation.

Since coming to government our economic plan has been focused on providing targeted cost-of-living relief, fixing the budget and investing in skills, housing and energy to lay the foundations for future growth. Our economic and fiscal strategy has been welcomed by credible organisations and commentators, who have seen the decisions we have taken about showing spending restraint, returning significant revenue upgrades to the budget and delivering a surplus. I will come back to that. (Time expired)

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

Senator Grogan, a first supplementary?

Karen Grogan (SA, Australian Labor Party) Share this | Link to this | Hansard source

It is great to see inflation turn. The government, I know, is delivering significant investments in cost-of-living relief, including the $23 billion package that the minister mentioned previously. Minister, can you please provide an update on the government's recent initiatives to further support Australian households, particularly in health and housing?

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

I have updated the chamber this week on the Medicare urgent care clinics. We are delivering on our cheaper medicines policy, which has seen the biggest price reduction in the 75-year history of the PBS. Australians have saved $200 million on more than 18 million cheaper medicines since the start of the year.

There is also the work that we have been doing in housing with the National Housing Accord, which will invest an additional $350 million in federal funding to deliver 10,000 affordable rental homes over five years from 2024, matched by the states and territories. There is the funding we have provided through the Social Housing Accelerator and $3 billion through the new homes bonus to address 10 years of complete failure from the former Commonwealth government in the housing space which has led to some of the pressures that we are seeing today. We have our electricity bill relief, cheaper child care and cheaper medicines. I know those opposite don't like talking about cost-of-living measures, because they voted against them. (Time expired)

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

Senator Grogan, a second supplementary?

Karen Grogan (SA, Australian Labor Party) Share this | Link to this | Hansard source

The OECD last week recognised how the Albanese government's budget settings and cost-of-living measures are helping in the fight against inflation. While our economy is expected to slow over the coming year, the latest OECD report highlights that Australia faces challenging global circumstances from a position of strength, with a resilient labour market and good prices for our exports. Can the minister detail how other independent assessments have backed the government's responsible approach to cost-of-living pressures?

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

(—) (): Our strategy has been welcomed by a range of organisations, including the OECD, the IMF, Deloitte, Fitch and Westpac, as being an approach which does not add to the inflation challenge but, indeed, is putting downward pressure on it, as I outlined in my first answer. It's also important, of course, to know that we have created hundreds of thousands of new jobs. We've got an unemployment rate with a three in front of it, the gender pay gap at record lows, the participation rate at a record high, business investment up and industrial disputes down. We've got a surplus that we've delivered. We didn't just say we would do it; we actually delivered upon it. These are the decisions that we have taken that prove that inflation has peaked, and it is moderating. We are pleased to see this. There's more work to do, obviously, but we are absolutely determined to ensure that our decisions support putting downward pressure on inflation. (Time expired)