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

My question is to the Minister representing the Treasurer, Senator Gallagher. Today's monthly inflation figures confirm what Australians have been feeling: after three Labor budgets, trimmed mean inflation has jumped to 4.4 per cent, with fuel up 9.3 per cent, electricity prices up 6.5 per cent and housing costs up 5.2 per cent. Only a month ago, Minister, you stated that this government's budget is 'an inflation-fighting budget'. The targeted cost-of-living measures announced in the budget are 'expected to reduce inflation'. You went on to say, 'Inflation now has a 3 in front of it.' The forecast of Treasury has us reaching an inflation rate with 'a 2 in front of it' through this year. You also stated:

We stand by the inflation forecasts that are outlined in our budget.

…   …   …

So all this rubbish that they go over about how we are exacerbating inflation—we have halved it!

Minister, doesn't today's inflation data demonstrate that the Reserve Bank's assessments are more credible than yours? (Time expired)

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

As Senator Hume would know, the RBA forecasts and the Treasury forecasts are very similar. I'll leave the bank to explain their forecast, but we certainly support the Treasury forecast. Senator Hume was quoting me in comments about our budget, and those comments that I made are accurate—that is, the budget we handed down will take pressure off inflation. That has been supported by analysis. Indeed, in the release today by the ABS, electricity prices did rise 6½ per cent, but, without the energy bill relief, the ABS points out that they would have increased 14½ per cent. And rents, if I use that example, have increased slower because of our investments in Commonwealth rent assistance—again, measures which those opposite didn't support when we brought them in. We are putting more work into rent and more effort into energy bill relief. It will reduce inflation and it will support households. We are doing all of this because we need to keep downward pressure on inflation, but we also need to support households at the same time. They are the responsible, measured decisions that we took in our budget. They will put downward pressure on inflation. Inflation remains higher than we would like, and that is why our measures in the budget are targeted at putting downward pressure on inflation but supporting households with the main issue that they're facing at the moment, which is addressing cost-of-living pressures.

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

Senator Hume, a first supplementary?

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

Minister, your latest budget was widely criticised by respected economists for its inflationary spending, with Chris Richardson saying at the time: 'My big ask of the budget was that it didn't poke the inflationary bear. I don't think it passed that test.' Will you finally now admit that, after three budgets, your government has failed the inflationary test and made life harder for Australians by keeping rates higher for longer?

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

No, I don't support the proposition being put by Senator Hume. Our budget is a measured, responsible budget making appropriate investments.

Opposition Senators:

Opposition senators interjecting—

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

Well, the challenge for those opposite is to outline the areas they do not support. They come in here and criticise the budget but don't for a moment outline the areas they would cut. You wouldn't give energy bill rebates? You wouldn't do extra investments in keeping medicines lower, or the tax cuts, perhaps—all of those issues: are they not supported? You don't support those any longer? What a surprise. This budget was specifically targeted at not only dealing with the inflation challenge in the economy but also providing cost-of-living relief, because that is what all of our constituents are telling us is their No. 1 issue. They didn't want the slash and burn. We all remember the 2013 budget. (Time expired)

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

Senator Hume, a second supplementary?

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

At the start of 2023 the Senate Cost of Living Committee was told by a local food charity operator that the No. 1 thing the government could do to get the cost of living under control would be to get interest rates down. Since then, rates have increased four times because the government has failed to get its spending under control. Minister, why is it that you only have spin and political tricks, when Australians really need a credible path to getting inflation under control?

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

There was a lot of rubbish in that question, but on the question of food banks and emergency relief—

Opposition Senators:

Opposition senators interjecting—

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

Order! Minister Gallagher, please resume your seat.

Senator Smith, I've called the chamber to order, and that includes you. Minister Gallagher.

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

On the issue of food banks and emergency relief—and I note Senator Hume outlined in her question the important work that they do—this government has invested more into that sector to deal with the pressure—

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

Senator Cash!

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

because they were—surprise, surprise—underfunded by those opposite—

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

Senator Cash!

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

as was the entire non-government sector.

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

Minister, please resume your seat. Senator Cash, I called you twice and you continued to be disrespectful. Minister, please continue.

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

The entire non-government sector was underfunded when we came to government. We found services had not been properly indexed, not properly supported, and we have had to fix that up as well. I imagine that's an area that you would like to cut and slash as you did when you were last in government.

This budget is responsible—it's tackling inflation and, most importantly, it's providing much-needed relief to households that are under pressure—and we will continue to focus on our plan.