Catryna Bilyk (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. It's clear that helping Australians with the cost of living is the government's No. 1 priority, and I was pleased to see last month's budget included a comprehensive cost-of-living plan that provided responsible relief in a way that eases pressure on Australian and helps Australians keep more of what they earn. Can the minister provide further detail on this plan to the Senate and how it relieves cost-of-living pressures for every Australian?

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

I think Senator Bilyk for her question and for her hard work that she does in the beautiful state of Tasmania, representing all the people of Tasmania. Today, we can assure Australians that, with only five days to go, this government is totally focused on making sure that we are addressing cost-of-living pressures where we can while easing and putting downward pressure on inflation.

In addition to the tax cuts, the budget delivered a further $7.8 billion in cost-of-living relief. We have the tax cuts from 1 July—five days to go—for 13.6 million Australians; not just some taxpayers but all taxpayers. Eighty-four per cent of taxpayers will be better off under our tax plan. We have the $300 in energy bill relief for every household in Australia and $325 for one million small businesses. We have a freeze on PBS medicines. We know that medicines can really hit the hip pocket, particularly for those that are on long-term medications and have to go and get those scripts filled every couple of months or every month, depending on the medication, so we're putting more pressure on making sure that medicines stay affordable. We're increasing rent assistance by a further 10 per cent, building on the 15 per cent that we did in our last budget. We also have debt relief coming in for students to deal with the indexation arrangements of the HELP and HECS debt. We've got paid super on government paid parental leave.

Opposition Senators:

Opposition senators interjecting—

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

The bill will be coming, and it will take pressure off debt. It will provide debt relief for students and it is, as Senator Henderson knows, retrospective, building more homes for Australians and making the food and grocery code mandatory. All of these measures together are focused on easing cost-of-living pressures.

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

Senator Bilyk, a first supplementary question?

Catryna Bilyk (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Thanks for that comprehensive answer. The job of fighting inflation challenges is not over. It is good to hear about the government's efforts to drive down inflation and take the pressure of household budgets. Can the minister update the Senate on how last month's budget will help address inflation?

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

Thank you, Senator Bilyk. Inflation is still too high, and we understand that people are still under the pump and feeling the impacts of those price pressures, but we are making progress. Our policies in the budget will take three-quarters of a percentage point off inflation this year and half a percentage point next year. Treasury are forecasting that we could get back to the inflation target sooner than we had expected, but we understand that people are under pressure, which is why—again, it was confirmed by the ABS data released today that some of these inflation and price pressures would be even higher had we not taken the action we took in the last budget.

Opposition Senators:

Opposition senators interjecting—

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

Well, if you don't believe that, you don't believe the ABS data.

We're delivering more rent assistance and new energy bill relief to every household and one million small businesses in the budget.

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

Senator Ruston, I'm going to ask you to withdraw.

Anne Ruston (SA, Liberal Party, Shadow Minister for Health and Aged Care) Share this | Link to this | Hansard source

I withdraw.

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

Thank you. Minister Gallagher, it's not appropriate—

It has always been my practice, when I request senators to withdraw, to not then make further political points by repeating offences, and that cuts both ways. Did you wish to continue? Otherwise, Senator Bilyk, second supplementary?

Catryna Bilyk (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Can the minister please outline the pressure Australians would be under without the government's investments in responsible cost-of-living relief? How does this government's responsible approach contrast with Peter Dutton's risky plans, and how would they impact the economy?

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

Senator Bilyk, I do remind you to refer to members in the other place by their correct titles.

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

I thank Senator Bilyk for the question. We are seeing inflation moderate and, in the monthly data, we do see some movement around, but we are seeing in the quarterly data and certainly from its peak in the December data at 8.4 per cent good progress on inflation moderation. But we want to see more, and that's why we have been focused on making sure that we've got that cost-of-living relief, that we are seeing job creation even in these difficult times, that we've got wage increases happening and that we're putting downward pressure on inflation by delivering two budget surpluses. That hasn't been done for a while, has it? And I note has been welcome.

This stands in contrast of the risky offering of those opposite, which is to tear up all the work that we've been doing and put in place a risky, uncosted plan that's going to drive up energy costs across the country. (Time expired)