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. How has the Albanese Labor government worked to help Australians during the worldwide inflation surge? How is the government cleaning up the mess left by the Liberals' and Nationals' reckless budget management and failure to plan for the future? What cost-of-living measures has the government introduced to support Australians? How is the government supporting Australians in other ways, including promoting higher wages and stronger rights for workers and bringing costs down for households?

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

My thanks go to Senator Walsh for that question. I might start by making a point about jobs and wages. As I said in response to Senator Hume, we've seen, since we were elected, more than a million jobs created. It's the first time any government has seen the creation of a million new jobs in a parliamentary term. We've seen a near-record number of women in jobs and the smallest gender pay gap on record. We've seen real wages grow more in the past 12 months alone than they did during the entire decade of the former coalition government. So real wages are growing under us—under them, not so much. In fact, we all remember Senator Cormann and the inside voice that came out when he talked about what the coalition's real plan was—that is, lower wages are a deliberate design feature of their economic plan.

In terms of inflation, we absolutely understand the challenge inflation places on an economy, on families and on people. That is why we have worked hard through the budget process not only to put downward pressure on inflation but also to deliver cost-of-living relief. I would again make this point: inflation is at much less than half of what we inherited and around a third of its peak.

Senator Walsh also talked about cost-of-living support. She's part of a government that has delivered bigger tax cuts for Australians—a tax cut for every Australian worker. Senator Walsh knows a lot about early childhood education and the people who work in that sector. Senator Walsh knows, Labor senators know and workers know that we are delivering increases for childcare educators at the same time as we are delivering cheaper child care. We have delivered energy rebates. People will remember in this chamber those opposite voting against energy price relief for Australian families. Fee-free TAFE and more bulk-billed— (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

I note that, under the Albanese Labor government's careful economic management, inflation has halved. How is the government tackling inflation, getting it back to where it should be while also bringing costs down for households, improving wages and providing cost-of-living support to all Australians?

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

It is true that we and the world have faced real challenges—the economic aftershocks of the pandemic and the ongoing effects of conflict around the world. We've seen disrupted supply chains, shortages in critical skills and a worldwide surge in inflation and in energy prices. We in Australia have made good progress. Of course, we want to do more, but inflation has more than halved under our watch. As I said, it had a six in front of it when we came to office. Now it has a two and it is back in the target range, the target band, for the first time since 2021.

Importantly, what we want to see is inflation coming down, wages going back up and the gender pay gap closing. We are seeing all of those things trending in the right direction. That is a good thing for Australian workers, that is a good thing for Australian families, and it is a good thing for the economy. (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

The Albanese Labor government has introduced cost-of-living relief, from tax cuts to cheaper child care and cheaper medicines. Minister, what reasons have Mr Dutton, the Liberals and the Nationals given for not supporting cost-of-living relief policies which help every single Australian?

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

Senator Walsh knows that we have been working to improve the lives of Australians with cost-of-living relief, and we also all know that Mr Dutton opposed all of it. He opposed the tax cuts for Australians. He opposed every cost-of-living measure. What we know, on Medicare, is that he opposed cheaper medicines and, I assume, he will continue to oppose the extension of bulk-billing. If you really want to know what Mr Dutton is like, you only have to look at his record when he was health minister.

Anne Ruston (SA, Liberal Party, Shadow Minister for Health and Aged Care) Share this | Link to this | Hansard source

Mr Dutton, Mr Dutton, Mr Dutton.

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

You might want to shout, but what we know is he was the worst health minister that Australia has ever seen—the health minister who wanted a GP tax, a tax on going to the GP. You're led by a man who wanted to tax people for going to the doctor, and now you want to come in here and tell us all that you're the friend of working people.

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

Senator Ruston, come to order!

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

Give us a break.

Honourable senators interjecting—

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

Senator Ruston, when I call your name, I expect you to come to order, not continue to yell across the chamber.

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

My question is to the Minister representing the Prime Minister, Senator Wong. The recent COSBOA Small business perspectives report, released last month, shows the biggest pressures for small and medium enterprises are rising energy costs, the increased cost of doing business, the increased cost of goods due to inflation, and impact of rates rises on mortgage costs and rents. Minister, the Albanese Labor government promised to fix most of these concerns prior to the last election. You promised to reduce energy bills by $275 and deliver cheaper mortgages and claimed Australians would notice what a change of government would feel like in their wallet. Instead, interest rates remain at record highs, despite cuts in most comparable global economies. Inflation remains sticky. Energy bills continue to skyrocket. As a result, business insolvencies are now at record highs. Minister, will your government take responsibility for any of these broken promises?

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

The government always takes responsibility for ensuring we steer Australia through economic challenges, and that's what we have done. That is what we are doing. I remind Senator McGrath that, when we came to government, inflation was at 6.1 per cent and it was rising. Now it is at 2.8 per cent and it is falling. It is less than half of what we inherited and a third of its peak. That's the first point. The second point, in relation to energy price relief—as I recall, Senator McGrath, you were amongst those who voted against it. To come in here and say that small businesses are very worried about energy bill relief after you voted against providing them with energy bill relief seems a very odd political position. It's a very odd political position.

Small businesses are the engine room of the Australian economy, and they are at the heart of local communities across the country. They employ some five million people and contribute $500 billion to our economy. That is why we do have to ensure that we deliver for small business and help them bounce back from challenges and improve their long-term resilience. The most recent budget provided more than $640 million in practical and targeted support for small business. The government policy is to give a tax cut through the $20,000 instant asset write off, something that I think originally there was some dispute on the other side on—about whether they were going to support it. I'm pleased that, on this one occasion, they actually did the right thing. We've abolished a number of nuisance tariffs in the largest unilateral tariff reform in two decades. We have updated the Commonwealth Procurement Rules, with small businesses getting a bigger slice of the $75 billion the Australian government spends each year in contracts, with a 40 per cent target for contracts up to $20 million and a 25 per cent target on contracts up to $1 billion in value.

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

Senator McGrath, first supplementary?

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

Minister, recent research from Roy Morgan found that 1.9 million homeowners are at risk of mortgage stress, increasing by 852,000 since you came to government. The average owner-occupier mortgage has now risen to $634,479, a 9.3 increase from 2023. Can you explain how these figures represent the cheaper mortgages the Prime Minister promised to voters prior to the last election?

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

I think there were three economic points in relation to that. The first is inflation, and I've responded to that on a number of occasions. The second is wages. We see that, unlike you, we have more people entering the workforce. We have more people who are able to keep more of what they earn because of our tax cuts. Of course, we have wages growing in a way they did not grow under you. The third point is obviously housing supply. We know that housing affordability and the difficulty with housing affordability is in great part being driven by a lack of housing supply. On all three of these domains of economic policy you see the government acting and the coalition doing what you would anticipate, which is opposing.

It is the case that many people are struggling to make ends meet. It is the case that many people are struggling when it comes to mortgages, and what— (Time expired)

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

Senator McGrath, second supplementary?

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

In his 2022 victory speech, the Prime Minister stated:

… I can promise all Australians this—no matter how you voted today, the government I lead will respect every one of you every day.

How can the Prime Minister possibly claim to have kept his promise to respect Australians when he has failed to deliver on any of the numerous promises he made prior to the last election, like delivering cheaper mortgages or reducing energy bills by $275?

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

The disrespect actually is to vote against assistance to Australians and then come in and play politics with the fact that Australians are doing it tough. That is what the game plan is. I know there's a lot of arrogance on the other side. Mr Dutton, we know, is a very arrogant man. But if you're serious about helping in these jobs—if you're serious about trying to help people with the work that you're doing—then surely you should be trying to deliver the sort of relief that the government is. We understand how tough people are doing it. That is why we have worked hard to deliver cost-of-living relief while we are working hard to bring inflation down and to ensure wages continue to increase. I just make the point that those on the other side oppose cost-of-living relief and oppose higher wages. (Time expired)