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 Treasurer, Senator Gallagher. Under Labor, Australia's core inflation is higher than in comparable economies, including the US, the UK, Canada, Japan, the euro area, Sweden, Norway, Switzerland and New Zealand; and our economic growth is lower than in comparable nations like the US and the UK, with some comparable nations already starting their interest rate easing cycles. Minister, why is it that, after three Albanese Labor budgets, Australians are saddled with an entrenched per capita recession, negative productivity, sticky inflation and interest rates staying higher for longer?

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

I thank Senator Hume for the question. I think all of those opposite need to go and see a doctor because I think they have the worst case of corporate and political amnesia that I have ever seen.

Opposition Senators:

Opposition senators interjecting—

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

Senator Henderson, I'd love to call you. I'm just waiting for your colleagues in particular to recognise that you're standing and to give you the silence you deserve.

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

President, point of order on reflecting on all senators on this side: given it's dementia week, given the many implications of what the senator has said—

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

Senator Henderson, there was no particular reference to any particular senators. Minister Gallagher.

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

I withdraw if it makes question time run more smoothly. But the point I was making is that there seems to be no memory of when those opposite were in government, when inflation in the quarter that they left government was the highest that we have experienced in inflation growth.

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

But lower than in other countries. Yours is higher.

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

Well, thank you, Senator Birmingham! Okay. So it was lower. Right. Senator Hume just drew the comparison with the United States. So do you, Senator Birmingham, accept that inflation peaked higher in the United States—

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

Ministers take questions!

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

Senator Birmingham shouldn't be disorderly and interject. I think the point that Senator Birmingham made well for me is that, when you use international comparisons to make a political point, as you've just done, it is important to understand the facts, which are that inflation peaked higher in the United States, and inflation peaked later and lower here. And it is a good thing that it peaked lower here, because of course, when you've got inflation, it hits households, and that's the point. And interest rates were higher in the US than they ever reached here. They are currently at 4.3 per cent; they were over five per cent in the United States. So inflation was higher and interest rates were higher. So, when you draw the international comparison, let's actually be upfront and honest.

We have a lot going for us in this economy. We have inflation moderating, we have wages growing, we have a strong labour market— (Time expired)

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

Senator Hume, first supplementary?

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

ABS data shows that, since the election of the Albanese Labor government, real disposable income in Australia has gone backwards by 8.7 per cent. That's a worse outcome than comparable countries. Given your repeated justification that interest rates peaked later and lower in Australia, why is it that the disposable income of Australian households has been hit harder than in comparable countries?

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

Order! Senator McKenzie and Senator Watt, both of you are very fortunate to have voices which project across the chamber. Question time is not the time to exercise your voices. I'm asking you to listen in respectful silence.

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

I thank Senator Hume for the question. We've made it no secret that we accept that households have been doing it tough with the inflation challenge. That is true for households not just in Australia but around the world as the world deals with the post-COVID inflation challenge that every country has seen. That is why, Senator Birmingham, we have introduced all of the cost-of-living support that we could responsibly do without adding to the inflation challenge: to help households. We accept that households are doing it tough, which is why cheaper medicines, better access to Medicare, investments in housing, investments in rent relief, investments in energy bill relief—all of that matters. That's why we're confused about why you come in here and complain about households doing it tough but, when you look at your voting record, it actually shows you voted against support. Our focus is on relief for households and making sure this inflation challenge continues to moderate. (Time expired)

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

Senator Hume, second supplementary?

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

Minister, will Australian households see their disposable income recover at all this financial year, or will Australians ultimately have endured three—potentially four—Labor budgets only to see their household income go backwards while government spending keeps surging?

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

Households are getting a lot more support than they would have under your economic plan. Our economic plan is about not adding to the inflation challenge, helping households through this, creating jobs and getting wages moving again. Your economic plan is to cut $315 billion from Commonwealth spending at a time when our economy is hardly growing. That is your economic plan. Our economic plan is working. We've got jobs growth. We've got growth in the economy. We've got wages moving again. We've got cost-of-living relief flowing through to households and we're putting down the foundations of growth through our Future Made in Australia plan, which, again, you oppose. Every step that we are putting in place to make sure our economy has the right support for the future is opposed by those opposite.