Simon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. Before the election, the Prime Minister promised, 'All families will be better off.' However, since the election, prices have increased across the board by 10 per cent. Rents are up 16 per cent, health costs are up 11 per cent, food costs are up 12 per cent and gas is up 33 per cent. Economist Brendan Rynne said last week, 'High government spending is also hampering the Reserve Bank's efforts to control inflation.' The Reserve Bank itself has said similar. Why can this government not manage inflation and, instead, is making the problem worse?

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

This government's first priority is to deliver cost-of-living relief, and you've seen that by the priorities that the government has put in place and has delivered on: every Australian taxpayer getting a tax cut, not just some; every Australian household getting $300 of energy bill relief; 2.6 million low-paid workers getting their third consecutive pay rise; stronger Medicare and cheaper medicines in every community; HECS debt relief for everyone with student debt; more homes built more quickly in every part of the country; cheaper groceries by strengthening the food and grocery code—all cost-of-living relief without adding to inflation. And, of course, we are planning the Future Made in Australia. There is more to do, but this is this government's agenda.

I remind the Leader of the Opposition in the Senate, when he comes into this place talking about the cost of living, that those opposite have opposed every piece of cost-of-living relief we have provided. You've offered no help. You've offered no plans for people who are doing it tough. What you have offered is relentless and pointless negativity. And, of course, what we do know, is that those opposite are planning $315 billion in cuts. This is their recipe to get the economy back on track, they say. This is their recipe for a stronger Australia: cuts to Medicare, cuts to pensions, cuts to payments, cuts to housing and cuts to TAFE. This is what those opposite think leads to a better economic outcome for families. Given that you're the party that has always believed in lower wages as a deliberate design feature of the Australian economy, I don't think Australians will think very highly of your $315 billion worth of cuts.

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

Senator Birmingham, first supplementary?

Simon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source

Before the election, the Prime Minister promised cheaper mortgages, but, under Labor, interest rates have increased 12 times, meaning a family with an average mortgage is paying $24,000 more per year. Interest paid on mortgages has nearly tripled under Labor. As Labor has handed down three budgets, economists have said the extra spending is keeping interest rates higher for longer.

Does the Labor government accept any responsibility for interest rates staying higher for longer in Australia, even as they come down in other countries?

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

Before I call Minister Wong, Senator McGrath, withdraw that comment.

James McGrath (Queensland, Liberal National Party, Shadow Assistant Minister to the Leader of the Opposition) Share this | Link to this | Hansard source

I withdraw.

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

You referred to a senator in a derogatory way. You seem puzzled, but you referred to a senator in a derogatory way. That's why I've asked you to withdraw. Minister Wong.

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

One thing we are not going to do is take the prescription of those opposite. These are the people who would prefer Australia to be in recession. That is what they are effectively saying. Looking at the last national accounts, we have, as the Treasurer and the finance minister have gone through in great detail, made the calls to ensure that we deal with cost of living relief in a responsible way while at the same time recognising where the economy is. The prescription those opposite are calling for would mean Australia is in recession. How is that going to help working families? That has always been your only prescription, hasn't it—that people have to do it tough. That's why you voted against energy price relief. That's why you voted against cheaper medicines. That's why you voted against the Medicare reforms. And that's why you've always opposed higher wages for Australians.

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

Senator Birmingham, a second supplementary?

Simon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source

In June 2022 Australia's inflation was 6.1 per cent, but in the eurozone it was 8.6, in the US 9.1 per cent and in Canada 8.1 per cent. Today inflation is 3½ per cent, but in the eurozone it's 2.2 per cent, in the US 2.9 per cent and in Canada 2.5 per cent. Why was inflation better in Australia than in other nations when Labor was elected but is significantly worse today? Why are Labor's budgets keeping Australia's inflation rate higher for longer?

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

I'd make two points about both inflation and growth. First, in relation to countries overseas, inflation peaked later and lower here than in most comparable nations. Rates started rising here later than in most comparable nations, and they rose by less in Australia than in most of these nations, including the ones you've outlined. Remember also that some two-thirds of the OECD have had a negative quarter of growth. Your prescription would ensure that we'd be amongst them.

That is their economic prescription for this country: lower wages, less cost-of-living relief and fewer jobs. This government is spending because we want to cut $315 billion out of the federal budget, which would include Medicare and pensions. Well, you can't get to $315 billion without doing that.

Opposition Senators:

Opposition senators interjecting—

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

Then come out and tell us what you're going to cut. Everybody knows what's in the Liberal DNA. (Time expired)

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

Senator McGrath, I remind you of standing order 203. I've called you a number of times already and we're not even 10 minutes in.