Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

That is a great question, Senator Sheldon. I think it'll be hard to top that question today. I'm pleased to let Senator Sheldon know that, under the Albanese Labor government, more people are earning more and keeping more of what they earn. Our workplace relations agenda is helping Australians with secure jobs, better pay and safer workplaces. Those people in the gallery want to hear about that: about getting higher pay, more secure jobs and even more. Thank you for the applause. I'm pleased to tell the gallery that on 1 July, next Monday, Labor is delivering a tax cut for every taxpayer, including every taxpayer up there in the gallery; $300 in energy bill relief for every household, including the households of those up there in the gallery; a freeze on their PBS medicine costs; a pay rise for the 2.6 million people on awards; and 1,721 more dollars a year for workers on the minimum wage. Every one of those measures was opposed by Peter Dutton and the opposition. Unlike the opposition, we believe that helping Australians get higher wages is a key part of providing cost-of-living relief.

We know that the previous coalition government kept wages low as a deliberate design feature of their economic architecture, but now we know that, in opposition, the coalition have voted against every single one of our workplace relations measures. Of course, we recently learned that their industrial relations spokesperson, Senator Cash, has given her support to the New South Wales Liberal Party's Work Choices style policy platform. In a leaked letter to the New South Wales Liberal Party, Senator Cash said their platform had 'several good ideas that align with the coalition's approach to industrial relations'. What are those good ideas, according to Senator Cash? They include making it easier to sack people, abolishing the better off overall test, removing rights as a condition of employment, and removing award protections for thousands of workers. (Time expired)

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

Minister Watt, I remind you: when you refer to members in the other place, please use their correct titles. Senator Sheldon, first supplementary?

Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

I would be delighted to, Senator Sheldon. Isn't it interesting that Senator Cash, who usually has a lot to say in question time—she's very busy over there talking about very important matters of opposition right now—when we bring out the fact that she's written to the New South Wales Liberal Party, saying that it has 'several good ideas that align with the coalition's approach to industrial relations'—

Oh, you are here, Senator Cash. What we know about those policies that Senator Cash has endorsed is that they would remove minimum pay and conditions for truckies, nurses, schoolteachers, Australian Federal Police officers, shop assistants, early childhood educators and coalmine workers.

In contrast to that, on Monday 1 July, 2.6 million workers in Australia will see their pay increase as a result of the Albanese government's action and the Fair Work Commission decision. Every taxpayer, not just some, will receive a tax cut, and there will be $300 off every power bill for every household. Under Labor, you'll earn more and keep more of what you earn. Under the Liberals, you'll work more for less. (Time expired)

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

Senator Sheldon, second supplementary?

Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

Thank you, Senator Sheldon. As you very well know, the Albanese government's No. 1 focus is easing the cost-of-living pressures for all Australians. Combined with wage growth and our investment in reliable renewable energy, only the Albanese Labor government is delivering the cost-of-living relief that Australians need. Mr Dutton and the coalition want Australians to pay more for their risky nuclear reactors and pay more for their power, but they can't even get their lines straight. Will there be a cap on renewables or not? Senator Birmingham, or 'Solar Simon', as we like to call him, doesn't think so. He doesn't think there will be a cap on renewables.

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

Minister Watt, withdraw that, thank you.

Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

I withdraw. I didn't realise it was offensive to be called 'Solar' on the other side of the chamber, but apparently it is. But Mr Littleproud, the Leader of the National Party, has a different view. He says there should be a cap on renewables. How much will it cost? Well, apparently Australians aren't entitled to know, but Mr Littleproud says he knows. And the member for O'Connor, Mr Rick Wilson, knows the Collie reactor will be $7 billion. The Liberals and the Nationals want people to pay more for their power. They oppose every cost-of-living measure we're delivering to Australians. (Time expired)

Michaelia Cash (WA, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Minister, after three Labor budgets, the cost of food is up 11.4 per cent and housing 14 per cent. Rent is up 14.2 per cent. Electricity is up 21.5 per cent. And insurance is up 16.2 per cent. Can Australians expect to see significant decreases in the cost of any of these essential items prior to Christmas?

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

I thank Senator Cash for the question. Inflation remains a significant challenge across many economies across the world. Australia is no different. We are seeing a welcome moderation in the inflation rate compared to when we came to government. Let's not forget we inherited inflation at 6.1 per cent. It peaked in December 2022 at over eight per cent. I think it was 8.4 per cent. It has come down and is now moderating, and that is welcome. I would have thought we would have all welcomed that.

In terms of the three budgets since we came to power, we have had a record number of new jobs since coming to office. That is a great thing. We have the lowest gender pay gap on record. We have record women's participation. We have wages moving again for the first time, after a decade of stagnation and policy that kept wages low. We've seen increases in the minimum wage. Of course, we've delivered the first budget surplus in 15 years, with another one to come. I know that hurts those opposite.

In terms of cost-of-living help and support for families, we have tax cuts for every taxpayer on 1 July. We have cheaper child care, cheaper medicines, Medicare urgent care clinics. We have tripled the bulk-billing incentive. We've got fee-free TAFE places. We've got energy bill relief. We've strengthened PPL. We've extended PPL. We're going to pay super on PPL. All of these are measures that those opposite in 10 years couldn't get around to. We've got increased support for JobSeeker and single parents. We have established the Housing Australia Future Fund, recognising the disarray the housing policy area was in. All of that we've achieved in just three budgets. (Time expired)

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

Senator Cash, first supplementary?

Michaelia Cash (WA, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

Deutsche Bank chief economist Phil O'Donoghue said yesterday:

Underlying inflation is intolerably high in Australia. In fact, Australia is the only G10 country where underlying inflation has increased since December.

If the government's budget is working to put downward pressure on inflation, as you continue to claim, why is Australia the only G10 country that has seen a rise in inflation since December?

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

As Senator Cash knows—or I hope she knows—inflation peaked here lower and later than most G7 countries. Given it peaked later in Australia, its moderation is slightly behind.

In fact, it peaked higher in most countries, Senator Birmingham. Across the OECD, inflation in Australia peaked later and lower than 21 out of 37 countries. Interest rates started rising here later than in the US, Canada and the UK. Despite that, our core inflation is lower than the UK and New Zealand. Inflation is moderating, but it will remain higher than we would like for longer than we would like, which is why we've taken the sensible decisions that we did in the budget—not only the tax cuts kicking in on 1 July but energy bill relief, our cheaper medicines policies and our work that we're doing for students with the HELP and HECS debt relief. All of this is to support people at—

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

Thank you, Minister. Senator Cash, second supplementary?

Michaelia Cash (WA, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

David Bassanese, chief economist at Betashares, described the inflation figure as a 'shocker', adding, 'The result places enormous pressure on the Reserve Bank to raise interest rates in August.' Meanwhile, Steve Mickenbecker of Canstar stated that the inflation rise was 'staggering', predicting the RBA would likely raise rates at its August meeting due to the high risk of entrenched inflation expectations. Minister, do you accept that the likelihood of another interest rate hike has increased?

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

I don't speculate on interest rate increases or decisions made by the independent Reserve Bank. I do note that, in this space, there are a lot of opinions, a lot of commentary and a lot of people writing various commentary about what they expect to see. We do not engage in that. The bank is independent. It will make its own decisions, and we don't pre-empt any of that. But the broader point is that inflation has moderated. It is much lower than its peak. It's much lower than what we inherited when we came to government, and we will continue to use all the levers available to us to make sure that we are putting downward pressure on inflation through measures like energy bill relief and through measures like Commonwealth rent assistance—housing and rents, where we're seeing those rates of inflation higher than we would like. Those measures are targeted at that. At the same time, we'll support households facing cost-of-living pressures through our targeted assistance that we're providing through the budget.