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 Prime Minister, Senator Wong. On this final sitting day of parliament's budget session, interest rates remain at a 12-year high, now for the eighth straight month, with no relief in sight. Core inflation is on the rise again, at 4.4 per cent, with the cost of rent up by 7.4 per cent, food by 3.3 per cent, housing by 5.2 per cent, electricity by 6.5 per cent and insurance by 14 per cent. There are 1½ million mortgage holders now considered at risk of mortgage stress, having to dedicate more than 30 per cent of their pre-tax income to repayments. Eminent economist Warwick McKibbin noted that the budget's consumer price index suppression was nothing more than a political trick. And Brendan Rynne said that any inflation reduction is simply smoke and mirrors. Minister, how much worse is it going to get for Australians because of the Prime Minister's failed economic plan?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I thank Senator Hume for her question on the economy and cost of living. I would say to her that we are very seized as a government at the cost-of-living pressures that Australians are facing. We know how tough so many Australians are doing. That is why the budget we brought down had cost-of-living relief as its No. 1 priority.

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

But it's not working.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

The senator might like to remember some of that cost-of-living relief: a tax cut for every Australian taxpayer, $300 of energy bill relief for every Australian household, a freeze on the cost of PBS medicines for every Australian, a third consecutive pay rise for 2.6 million workers, more funding to build homes in every part of Australia, and an increase in paid parental leave, taking it to 22 weeks. And that's on top of what we have already delivered through past budgets, which is cheaper child care, HECS relief for everyone with student debt, fee-free TAFE and the biggest investment ever in expanding bulk-billing.

In contrast, what you were offering is Senator McKim's policy on the supermarket sector. That's what the coalition was offering. That is your only positive offering. It's Senator McKim's policy offering on the supermarket sector.

In relation to cost-of-living relief, most of the things that I have outlined you have opposed. So everyone will know when you come in here talking about cost of living that what your record shows is a complete disinterest except for political gain.

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

Six financial market economists—Citi, Deutsche, Judo Bank, Morgan Stanley, Rabobank and UBS, now expect the RBA to hike its cash rate target by 25 basis points to 4.6 per cent before parliament returns in August. Why is the Albanese government's plan fuelling inflation and driving up interest rates, making life harder for Australians that are already doing it tough in an all-out cost-of-living crisis?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I will not be talking about the job of the independent Reserve Bank. What I would say is that the only people who are barracking for an interest rate increase are those opposite, because they always put self-interest above the national interest. In relation to the fiscal policy, I would remind those opposite that we are on track to return a second surplus. They simply had to return some 'back in black' mugs.

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

After just two years under Labor, food is up 11.4 per cent, housing is up 14 per cent, rent is up 14.2 per cent, electricity is up 21.5 per cent, gas is up 22.2 per cent, health is up 11.1 per cent, education is up 10.9 per cent and insurance is up 16.2 per cent. They have spent an additional $30,000 per household with nothing to show for it except stubborn, homegrown inflation and rising rates. Minister, what do you say to Australians who say you are to blame— (Time expired)

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

Thank you, Senator Hume. Your time has expired.

Order, Senator Hume! I called that time had expired twice, and you continued with your question.

Senator Hume, you are not in a debate with me.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I think what is really interesting about the political attack that we just witnessed is that in relation to so many of the measures that we have put in place to seek to deliver cost-of-living—

Sarah Henderson (Victoria, Liberal Party, Shadow Minister for Education) Share this | Link to this | Hansard source

It's not working.

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

Order, Senator Henderson! I hope that I am not going to spend the entire question time calling particular senators to order. If I call for order, it includes every single senator in this place. Have some respect. Minister Wong, please continue.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

In relation to the cost-of-living pressures that the senator went through, the senator is on the team that voted against almost every single one of the measures designed to deliver cost-of-living relief to Australians. They have opposed the measures we have put in place to bring in more bulk-billing and cheaper medicines. They have opposed measures we have delivered to try to increase the supply of housing. On electricity, they have opposed the relief for Australians and they are proposing the most expensive form of energy there is. That is their response to the cost of living. (Time expired)

Jess Walsh (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. The cost of living is the No. 1 issue I hear from constituents about and the No. 1 priority of the Albanese Labor government. I am worried to see those opposite spruiking policies that experts say will drive up prices, including nuclear reactors and supermarket divestiture, without any plan to actually provide effective relief now. Can the minister outline what the Albanese government's approach is to providing cost-of-living relief now, putting downward pressure on inflation and setting Australia up for the future?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Thank you, Senator Walsh, for the question. She, like every member of our caucus, understands that Australians are under pressure, which is why we have made helping all Australians with the cost of living our priority. From 1 July this year, we have a tax cut for every Australian taxpayer, not just some, as those opposite wanted; $300 of energy bill relief, which you opposed; a freeze on the cost of PBS medicine for every Australian, which, again, was not supported by you; a third consecutive pay rise for 2.6 million workers, opposed by the party who believe that low wages should be a deliberate design feature of the Australian economy; more funding to build homes in every part of this country, also opposed; and an increase to paid parental leave. That is on top, as I said before, of Labor delivering cheaper child care, HECS relief for everyone with student debt, fee-free TAFE and the biggest investment ever in expanding bulk-billing.

What do those opposite have to offer Australians? First, as I said, they want to adopt the Greens party's policy on supermarkets, which we know risks increasing the prices that people pay at the checkout. In addition, they want to adopt the most expensive form of electricity there is, nuclear reactors, which would not be operational until the 2040s, and they have no plan about what to do with supply between now and then.

In relation to supermarkets, if I might return to that, I would remind those opposite that the former ACCC chair Graeme Samuel said, of Mr Dutton's policy, that it is a 'disgrace' and it's 'populist politics'. Mr Dutton, whether it's on nuclear or on supermarkets, has no answer on the cost of living. (Time expired)

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

Senator Walsh, first supplementary?

Jess Walsh (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Thank you, Minister, for that answer. I'm proud to be part of the Albanese Labor government, which is working to support women across the country. Can the minister please explain how women are better off under Labor's tax cuts than they would have been under the plan proposed by those opposite?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I note that Senator Walsh has spent a great deal of her working life advancing the causes, wages and conditions of working women, and she understands acutely the imperative of women's equality and financial security—an economic and social imperative. Around 6½ million working women will, from this week, pay less tax as a result of the government's policies. What those opposite might not like to remember is—

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

Senator McKenzie and Senator Hughes!

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

nine out of 10 of these women will get a bigger tax cut than what they were proposed to get under you. You want to talk about women's economic security, but nine out of 10 women would have been worse off under your tax policy. Let's remember which government, which party, is actually delivering for working women. Those who have never delivered for working women are those over there. (Time expired)

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

Senator Walsh, second supplementary?

Jess Walsh (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

I thank the minister for that answer. Australia has a housing shortage, and experts are clear that we need to build more homes to help with this issue, which is adding to cost-of-living pressures on renters and those wanting to buy a home.

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

Senator Walsh, please resume your seat. Senator McKenzie, are you going under a different name? When I call your name you don't respond. I'm going to ask Senator Walsh to start again. I ask for the clock to be reset and I ask for silence. Senator Walsh, please start the question again.

Jess Walsh (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Australia has a housing shortage, and experts are clear that we need to build more homes to help with this issue, which is adding to cost-of-living pressures on renters and those wanting to buy a home. Can the minister please update the Senate on what work the government is doing to help build more homes more quickly in every part of the country?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

After almost a decade of neglect under those opposite, we do have a housing shortage, and we need to build more homes, more quickly, in more parts of the country. That is why the government has $32 billion in new housing initiatives in our comprehensive Homes for Australia plan. It includes an ambitious national goal of building 1.2 million homes by the end of the decade. What we know is that we have to deal with housing affordability, and the best way to deal with that is to increase supply and to ensure there are more affordable options for all Australians.

Unfortunately, this is another area of policy where we have seen the extremes of the political spectrum: the Greens and the coalition line up together to prevent progress, standing in the way of more help for Australian home buyers through their continued opposition to so many aspects of our housing plan. (Time expired)