Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance, Senator Gallagher. Today's monthly consumer price index indicator shows inflation remains steady at 3.4 per cent in the year to February 2024. So, Minister, this number demonstrates that the government are making progress in our fight against inflation. Can the minister please outline to the Senate why these numbers are an important marker of how our economy is tracking? How will the numbers factor into considerations that you and the government are undertaking as you finalise the May budget?

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

I thank Senator Pratt for the question and for her interest in the budget and in our nation's economy. We can see from today's monthly CPI data that it does show that inflation was steady at 3.4 per cent in the year to February 2024. This was below market expectation, and inflation remains at its lowest level in over two years. So we are seeing inflation moderate and continue to moderate. We've got real wages growing. We've got low unemployment. Monthly inflation is much lower than the 6.1 per cent it was at the election, and quarterly inflation is now at 0.6 per cent, a third of the 2.1 per cent we saw just before the election. This data shows that inflation was higher under the former government and it continues to moderate under us. We are seeing—

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

It is not!

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

It does, Senator McKenzie; if you look at the data, it does. We are seeing a return to real wages growth and we are seeing near-record levels of low unemployment. When we look at the budget, we see that our gross debt is lower, our real spending growth is lower and inflation is moderating across the economy.

We are not complacent, though, and we recognise that people are still doing it tough. We've got challenges facing our economy, with global uncertainty slowing growth, and we know and recognise those persisting cost-of-living pressures that exist across households right across Australia. Our budget will be one that balances the fight against inflation with the need to grow our economy; it will look at continuing relief from cost-of-living measures without adding to inflation; it will of course have those tax cuts rolling out from 1 July; and it will be looking at the opportunities, whether it be in energy transmission, human capital or the care economy, with a focus on investment for a new generation of growth and prosperity.

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

Senator Pratt, first supplementary.

Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

Thank you, Minister. Cost-of-living pressures are front of mind for Australians. You and the Treasurer have said that the tax cuts will form the centrepiece of the May budget, putting more of the money that people earn back into their own pockets. How will the federal budget continue to support Australians facing pressures on their household budgets?

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

Thanks, Senator Pratt, for the supplementary. The senator is right: Labor's tax cuts will be the centrepiece of the May budget. All Australian taxpayers will get a tax cut, because we want Australians to keep more of what they earn. However, we also recognise that cost-of-living pressures are still being felt right around the country, and we will do what we can responsibly in the May budget to support and ease some of those cost-of-living pressures.

We will of course look at how we target any extra help and whether it is responsible and affordable across the budget. We've already invested in making electricity bills cheaper, with the Energy Bill Relief Fund; making medicines cheaper; making it cheaper and easier to see a doctor; making child care cheaper; expanding parental leave; building more social and affordable homes; fee-free TAFE; and wages rising at the fastest rate in a decade, including, importantly, for minimum-wage workers.

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

Senator Pratt, second supplementary.

Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

Thank you for that insight into the important work being done by the Albanese government in preparation for the budget. Can the minister please explain why it is so important to have responsible economic management for the people of my home state of Western Australia?

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

I thank Senator Pratt for her supplementary. In the senator's state of Western Australia, 1.5 million Western Australians will get a tax cut from 1 July under Labor's tax plan, with 1.2 million of them getting a bigger tax cut. Ninety per cent of Western Australian women who are taxpayers will get a bigger tax cut. The average WA taxpayer will receive a tax cut of $1,504, which provides an additional $800 extra going into their pocket than they would have received under the former government's plan.

Of course, we are in a position to reshape these tax cuts because of our careful economic management that we have undertaken since coming to government. I'm proud of the work that's been done. We have gross debt lower than when the Liberals were in charge; we have real spending growth lower; inflation is lower; and, of course, we have delivered the first budget surplus in 15 years.

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

My question is to the Minister representing the Prime Minister, Senator Wong. As we conclude this parliamentary session, the last before the budget week, Australians continue to do it tough under the Albanese government. Under Labor, productivity is down 5.4 per cent over the past 18 months; real net disposable income per capita has fallen 7.5 per cent; personal income tax collection under Labor is 23 per cent higher than it was before the election; income from self-employment has fallen by 8.4 per cent over the year; almost one million Australians are now working two or three jobs; petrol prices are up 4.1 per cent for the year; education costs are up 5.1 per cent; and insurance costs are up 16.5 per cent—all this while Labor keeps spending more. Minister, as these figures demonstrate, life isn't easy under Mr Albanese and it's getting harder for many. Why are Australians worse off today than they were before the last election?

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

I'm very happy to answer a question about economic performance. I'm happy to answer a question about an unemployment rate of 3.7 per cent and record numbers of new jobs since coming to office. I'm very happy to answer this question, to remind those opposite that we have the lowest gender pay gap on record and record women's participation.

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

They're doing it tough!

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

Senator Birmingham!

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

I'm happy to answer a question about the fact that we are ensuring that wages are moving again. A party that opposed increases to the minimum wage—

Opposition senators interjecting—

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

Senator McGrath and Senator McKenzie!

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

A party that opposed increases to the minimum wage for the lowest-paid workers wants to talk to us about Australians doing it tough! I mean, give us a break! This is the party that opposed our plan to ensure that we delivered energy price cost relief, which they voted against. But they want to talk to us about Australians doing it tough!

Australians must look at you and think: 'What a joke! What a joke!' You talk about the cost of living and yet you opposed every measure that we have put in place to deliver cost-of-living relief to working families.

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

Senator Colbeck!

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

And then you have the gall to come in here and say: 'Oh, woe is us! I know we don't want increases to the minimum wage. Oh, woe is us! I know we don't want cost relief for energy prices. Oh, woe is us! I know we don't want cheaper medicines. But it's really bad, this cost-of-living crisis.' Really? You have no credibility when it comes to the economy and you have no credibility when it comes to the cost of living. You voted in here, over and over again, against every measure this government has in place to address the cost of living and you come and cry crocodile tears, when everyone in Australia knows those opposite always— (Time expired)

Honourable senators interjecting—

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

Order! Just a moment, Senator Birmingham, please resume your seat, I will come back to you.

Senator Watt! To all of those senators who I called by name, who were yelling across the chamber—including you, Senator McKenzie—you're being incredibly disrespectful. Senator Birmingham, your first supplementary.

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

As members and senators leave this place today, a household with an average mortgage of $750,000 is paying $24,000 a year more in interest than they were when Labor was elected, with no sign of relief on the horizon.

Opposition Senator:

An opposition senator interjecting—

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

Mr Albanese has broken promise after promise, including his promise to cut electricity prices by $275 and his insistence that he wouldn't touch stage 3 tax cuts. Has the prime minister forgotten his promise of cheaper mortgages and cheaper electricity? Has he?

Honourable senators interjecting—

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

Order! Senator Birmingham has the right to ask his question in silence.

An honourable senator interjecting—

I beg your pardon. They needed to be quietened down anyway! And, Senator O'Sullivan, I think that was you who whistled before. If it wasn't, I apologise, but whistling in the Senate is absolutely inappropriate.

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

I can't whistle!

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

If it wasn't you, Senator O'Sullivan, I apologise.

Honourable senators interjecting—

Order! Someone on my left whistled; It is absolutely inappropriate. I'm not going to stop and call the chamber to order every few minutes.

A government senator interjecting—

Order on my right as well! I'm waiting to call Senator Wong. Minister Wong.

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

As we leave this Senate chamber, one truism still holds true, which is that the Liberals always want you to work more for less. That is their position. And what other facts hold true? First, we had the Leader of the Opposition in the Senate actually complaining about the tax cuts again. That shows, doesn't it—

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

It's a broken promise!

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

Oh, it's a broken promise? Here we have one of the most important cost-of-living measures that the government has undertaken, that the parliament has backed—that you backed—and you're still complaining about it! What does that say? As we leave the Senate, we will remember that cheaper medicines are opposed by those opposite. As we leave the Senate, we will remember that energy price relief is opposed by those opposite. As we leave the chamber, increases to the minimum wage, we will remember, are opposed by those opposite.

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

Senator Birmingham, second supplementary?

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

Financial comparison group Finder found in a recent survey that one in five Australians have no savings, 76 per cent say that they are stressed with their current financial situation, and many will run out of money to pay the mortgage by year's end. How is it that people have got it so good, as Senator Wong wants to stand here and say, and why does the Albanese Labor government have its head buried in the sand when it comes to delivering on its promise to get cost of living under control and mortgages down? (Time expired)

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

First, I want to say that we on this side absolutely and clearly understand that so many Australians are doing it tough, which is why we were so clear about the importance of putting in place a tax package which delivered a tax cut to every Australian taxpayer and delivered more to working families and to people on average incomes—something that you are still complaining about. We understand that Australians are doing it tough, which is why we wanted to put in place energy price relief, and we were opposed in that by you. We understand Australians are doing it tough, which is why we believe that people on minimum wages should have a wage increase—also opposed by you. We know Australians are doing it tough, which is why we wanted cheaper child care and fee-free TAFE and to strengthen Medicare and to strengthen bulk-billing and all of the measures that we have in place. Instead, what we are met with is continued opposition by those opposite. They are crocodile tears which are being cried on the other side. (Time expired)