Malcolm Roberts (Queensland, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

The Reserve Bank has just announced the inflation rate for May as four per cent, which is above the expected rate of 3.8 per cent. What's even worse is that the underlying inflation rate, which had been trending downward, has now increased to 4.4 per cent. Inflation is surging, and it's entirely the fault of the Albanese Labor government. Today we heard Finance Minister Gallagher again bragging about this government's track record on protecting wages. The data does not support that statement.

According to the Australia Institute, real wages of everyday Australians have fallen from $52,900 to $52,080 since this government came to power. That figure has been calculated to March this year, so it doesn't take into account what is now rising inflation. If everyday Australians feel like they're working harder and going backwards, it's because you are. The inflation spike was entirely predictable. Net zero measures continue to force up electricity prices, which cascade throughout our entire economy. Every business, from farming to manufacturing to retailing, uses power. Any increase in power has to be passed on, and this is what we're now seeing.

One Nation calls on the government to abandon the insane net zero transition before the economy falls apart entirely, catastrophically. In the March quarter, business bankruptcies were at record levels. Bankruptcies in the building sector were especially high. Housing construction is not rising; it's falling. Yet this government continues to bring in more new-arrival immigrants, which is inherently inflationary. The economy as a whole is just barely staying out of recession, with GDP growth at 0.2 per cent, a figure that shows the destruction that net zero is causing to our entire economy. I hope the Reserve Bank holds its nerve and doesn't raise interest rates. If it raises rates, everyday Australians will be doing it even tougher. What a mess. This government is not fit to govern—no trust.

Dave Sharma (NSW, Liberal Party) Share this | Link to this | Hansard source

The monthly inflation figures are out for the month of May, and it is not good news for households or Australians. Inflation is running at an annualised rate of four per cent, and it is actually accelerating. It was 3.4 per cent in February, 3.5 per cent in March, 3.6 per cent in April and now four per cent. Inflation is not under control; it's getting worse. Is it any wonder? From the Labor government, in their last budget, we saw a 4½ per cent increase in real growth in spending and an additional stimulus put into the economy of $44 billion, or two per cent of GDP, in a single year. Of a windfall of revenue—due to high commodity prices and bracket creep—of some $365 billion since this government came to office, over $300 billion has been spent. This led organisations such as the Australian Financial Review to describe the last budget as the most irresponsible budget in recent memory.

At the RBA meeting last week, the cash rate was kept on hold at 4.35 per cent, with the RBA saying that demand was too strong and that recent budget outcomes, including state Labor and federal budgets, are having an impact on demand and slowing their pathway back. Inflation is now getting further away from the RBA's two to three per cent target. This is an Australian phenomenon. In the US, inflation is running at 3.3 per cent. In the eurozone area, it's 2.4 per cent. In the UK, it's two per cent. In Canada, it's 2.9 per cent. But, in Australia, our figure has a 4 in front of it. Let's break down what this means. It means things are costing more for households. It means that interest rates are going to stay higher for longer, meaning you're paying more on your mortgage. And we're seeing Australians paying more tax. All up, this government's fiscal and budget strategy is a complete failure.