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

I welcome the opportunity to talk about our targeted cost-of-living measures that were calibrated carefully in the budget. As we said, from 1 July this year, which was Monday this week, we have tax cuts flowing into the pay packets of every taxpayer in the country and, importantly, energy bill rebates and relief for every household in Australia, recognising that this is a big bill for most households and that we should be providing support where we can. I read the minutes of the RBA board meeting which were released yesterday, and obviously the question did not give a comprehensive analysis, shall I say, of the minutes, which were quite extensive and went through what is happening not only in the international environment but also here domestically.

I don't think it's any surprise—in fact, we dealt with this issue at estimates—that energy bill rebates were about putting downward pressure on inflation in 2024-25, and I don't think anyone has pretended otherwise. That year is the focus of that effort, and that was the evidence of Treasury, and it was my evidence. It's very consistent with the lines that the Treasurer and I have used since budget day. We believe that, whilst inflation is moderating in welcome ways, it is remaining higher than we would like for longer than we would like. We have made sensible investments to support households with some of those pressures as we get inflation back into the target range.

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

Senator Davey, first supplementary?

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

No, I don't agree with that. I think there's evidence from the governor about how the fact that we are running surplus budgets—not only one already delivered last year but one that we will deliver shortly—is actually assisting. So I don't agree with that. I think you are very selectively reinterpreting or providing your own analysis of the minutes. The minutes also go through arguments about maintaining the cash rate at the level it currently is, Senator Davey, so if you've read the minutes you will realise—and it is a useful document that journalists and other commentators look at—there are arguments for and against decisions that the RBA board may take going forward. I think it's useful information. It sets out the challenges that many are considering, but no; I do not agree with your question. (Time expired)

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

Senator Davey, second supplementary?

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

It is interesting. I haven't heard examples from those opposite, while they criticise spending, of what spending in the 2024-25 year they don't support. Is it the tax cuts? What are the Nationals telling the Liberal Party that your position is? We know you've won on nuclear. We know you've won on divestiture powers. Here is the Australian Liberal Party actually moving policy to divest businesses. This is the world we're living in: where the Nats tell the Liberals what their policy is, and then you all come in and implement it. Is it the tax cuts that you don't support? Is it the energy bill relief that you don't support? You can't have it both ways, President. You cannot come in here, complain about spending but then not explain which of those measures you don't support.