Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

I move:

That the Senate take note of the answers given by ministers to questions without notice asked by Opposition senators today.

Twelve months ago, Jim Chalmers, we thought, started work on this year's budget, which was delivered last night. The budget is delivered in the House of Representatives every May every year. Jim Chalmers, as the Treasurer, had 12 months to prepare for last night's budget—12 months to think how Prime Minister Anthony Albanese, how Treasurer Jim Chalmers and indeed how Labor senators would respond to the cost-of-living crisis that is crippling our economy, as well as mortgage stress, which is crippling the experiences and the savings of Australian families, and indeed how they would respond to the 27,000 business insolvencies that have taken place under almost three years of Labor. And when thinking about how he would respond to this disastrous set of economic experiences being felt by people in their homes and by small-business owners, Labor's response was 70c a day sometime next year. That is the depth of care and consideration that this Labor government has put to the issues of falling living standards and falling productivity levels. That is the extent of Jim Chalmers's creative thinking. That is the extent of Anthony Albanese's economic experience: 70c a day, to be delivered sometime next year.

Senator Hume's contribution a moment ago was absolutely right: this is an election bribe. It does nothing to tackle tax reform in this country. It does nothing to tackle the productivity challenge we face in this country. And of course it does nothing to tackle the collapse in living standards that Australians have experienced and will continue to experience for years ahead of them. It is not a budget that delivers even the closest resemblance to anything that can be described as sound or responsible economic management, and it certainly is not a plan that tells Australian families and Australian businesses that their standard of living is on the way up instead of on the way down.

Labor's fourth budget is a plan they hope will get them across the line on 3 May, 10 May or 17 May. It is most definitely not a plan about how this country can keep its head above water for the next three years and for the next 10 years. It's a shameful exercise by Labor, on the eve of the election, to try to hoodwink Australian voters into thinking that a vote for Labor is a vote for the future. A vote for Labor is a vote for Jim Chalmers's future; there's no doubt about that. A vote for Labor might actually be a vote for Anthony Albanese's short-term future; there's no doubt about that. But it is absolutely not a vote that anyone should be handing to Labor if they care about the future direction of this country.

In just three short years—well, three long years, if you've been a mortgage holder suffering mortgage stress or if you've been a small business that's been forced into insolvency—Labor has ruined the country and has ruined the economy. You don't have to believe me; you just have to look at the data. The OECD says Australian living standards have slipped. Regulators say small business insolvencies have peaked at 27,000, and more is expected. The RBA provided data to me just last week saying that mortgage stress in this country is up. People should not risk their vote at this election on Labor.

Jana Stewart (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

I feel like I'd be so embarrassed if I were those opposite, getting up and asking us questions about what we on this side have done, when they've opposed almost every single one of the things we've done. To give a couple of examples, every single cost-of-living relief measure that we've brought into this place, whether it be cheaper medicines or tax cuts, they've opposed. But they've got the cheek to come in here and ask us what we're doing for cost-of-living relief. They've opposed every single one of those measures.

As to being asked about jobs, the Labor Party is the party of the worker. We've created one million new jobs in our term of government, the most of any first-term government. We absolutely back Australian workers. We've done that. We've got wages moving again. We've done that while we've kept unemployment low, and we're also getting inflation under control.

You'd think that it might be of interest to those opposite, actually, to help us with all those things—to help the Australian economy and Australian workers. But, every time, they've sat on that side of the chamber and voted against every single thing that we've done to support Australian households, and they come in here with the cheek to ask us what it is that we're doing when they know, because they sat on that side and voted against it every single time. It is completely embarrassing for you, actually.

In the meantime, the Albanese Labor government is putting money back in the pockets of Australians who are making the run to the supermarket or the petrol station. We know that every dollar matters, and it should be back in your pocket. The cost of living is front of mind for every Australian right now. It's the No. 1, No. 2 and No. 3 issue. We know that in the Albanese Labor government. We know that no Australian should have to check their bank balance and decide between putting food on the table, sending their kid to school, seeing a doctor and putting petrol in the car. We don't want Australians to have to make that choice, and that's why our No. 1 priority is taking the pressure off Australian families through our responsible economic management and the cost-of-living relief we're providing to Australians.

The budget you saw last night from Treasurer Jim Chalmers and Katy Gallagher is another great example of what it is that we are doing as a government. The Albanese Labor government will deliver two more tax cuts to every Australian taxpayer in 2026 and 2027, taking the total to 50 bucks a week extra in your pocket. Those people over there are making fun of this, saying that it'll be five bucks. Well, five bucks actually gets you a loaf of bread and two litres of milk. That actually matters to families who are doing it tough.

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

Where do you shop?

Wendy Askew (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Where do you shop?

Jana Stewart (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

You might not think so. I just checked on the Coles app. That's where I know I can get a loaf of bread and a two-litre bottle of milk. So $5 actually makes a difference when you're trying to put food in your kids' bellies, but you're over there making fun of it. Those extra dollars make a difference for Australian families, absolutely.

We know that Australians are still under pressure, and that pressure is being felt at the checkout, with the energy provider or at the doctor. Electricity prices went down 25 per cent last year, but they're still putting pressure on households. We know that. Two rounds of energy rebates have helped take some of the sting out of energy costs. Three hundred dollars of energy bill relief for every Australian household is absolutely making a difference, and the next instalment of that is coming on 1 April for Australian households. We're also making sure that you can see a GP for free, with the single largest investment in Medicare since its creation over 40 years ago. We believe that the only card that you need to see a doctor should be your Medicare card, unlike those opposite, who think you should be pulling out your credit card. Those are not our values. They are absolutely not our values. We're also making medicines cheaper. When we came to government, the cost of a prescription was $42. We are going to cut that to $25, because we don't want you to have to choose between putting food on the table and taking care of your health. One thing is clear: under Dutton, he'll cut and you will pay.

Paul Scarr (Queensland, Liberal Party, Shadow Assistant Minister for Multicultural Engagement) Share this | Link to this | Hansard source

As to the cost of a loaf of bread, I've just done some quick research. If you go onto a website called the Numbeo website, it indicates that a 500-gram loaf of fresh white bread is cheaper in Iceland, the US—including Puerto Rico—Switzerland, Norway, Costa Rica, Denmark, Luxembourg, Jamaica or South Korea than in Australia. I could go on. In dozens of countries, it is cheaper to buy a loaf of bread than it is in Australia. So don't come here and talk to us about the cost of a loaf of bread.

The previous speaker spoke about this as being 'another great example of what we are doing as a government'. That's how they described this budget. I say to the people of Australia: do just three things, if you want to assess this budget. Before you make a decision at the next election, please do these three things. First, the one page in the budget that you should have a look at is in Budget Paper No. 1, Budget strategy and outlook, table 3.2. What will you see there? Underlying cash deficit: $27.6 billion, 2024-25; $42.1 billion, 2025-26. Deficit: $35.7 billion, 2026-27; $37.2 billion, 2027-28; $36.8 billion, 2028-29. A sea of red ink is what you'll find in another great example of what this government's achieved. That's only looking at the underlying cash balance. It doesn't include off-balance sheet items, which—under some accounting sorcery—aren't included in that table but would add $104 billion to that deficit, taking you, over the forward estimates, to a total of $283.4 billion of deficits in this budget. That's the first thing you should do, look at table 3.2.

The second thing you should do is read what economists are saying about this budget. I want to quote from an article written by Professor Richard Holden, a professor of economics at the University of New South Wales. This is what he says about the budget. These are his words, not the words of a politician on either side of this chamber. These are the words of an economist who's studied the budget. I'm quoting from an article in the Fin Review. This is how he describes it:

Chalmers is wrong. The worst is not behind us, it is yet to come.

Those are his words. In relation to the so-called tax cuts, this is what Professor Holden says:

The government is stealing a $10 note from you and throwing back a $2 coin.

That's how Professor Holden describes the 70-cents-a-day tax cuts in this budget. Why? Because of bracket creep. He says:

A worker on $100,000 a year will get a $268 tax cut in the 2026-27 fiscal year and $536 each year after that. So $5000 over a decade. But the same worker will be hit by $25,000 in increased taxes from bracket creep …

With increased taxes of $25,000 you'll get $5,000 back. This is the Labor Albanese government stealing a $10 note from you and throwing back a $2 coin. So the second thing you should do is read that article by Professor Holden.

The last thing you should do is ask yourself: after three years of the Labor Albanese government, am I better off? If you are not better off—and we know, as Senator Hume referred to this, that net real disposable income has fallen by eight per cent over the term of this government—over the last three years, then why, in goodness sake, would you give this Labor government another three years? Why would you expect a different result? The millions of Australians who are doing it tough out there, should ask themselves this question: am I better off or worse off after three years of this Labor government?

Lisa Darmanin (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

I'd also like to take note of the ridiculous assertion by Senator Hume earlier today that Australians are poorer because of Labor's failed policies. This could not be further from the truth. Since 2022, when we came into office, this government has been working every single day to bring responsible economic management to this country and ensure Australians are better off. Under Labor, inflation is down, incomes are strengthening, unemployment is very low, interest rates are coming down and now growth is rebounding solidly as well. We've got the budget in much better shape, with the biggest ever fiscal improvement in a parliamentary term—$207 billion better than what we inherited. In our first two years we've delivered the first back-to-back surpluses in nearly two decades, and this year we've almost halved the deficit. We've lowered the Liberal debt that was left to us by $177 billion, saving $60 billion in interest costs over the next decade.

And this budget is keeping the reform wheels turning as well. We're boosting wages, boosting competition and boosting growth by banning non-competes for most workers, making sure that they can move to better, higher paying jobs. We recognise people are still under pressure and that's why our highest priority remains easing the cost of living for Australians.

I want to talk a little bit more about non-competes. Far from contributing to poorer outcomes for Australians, this is an important reform close to the hearts of many Australian workers. The Albanese government is taking action to stop unfair non-compete clauses that are holding back Australian workers from switching to better, higher paying jobs. We will ban non-compete clauses for most workers when those clauses have no justification and drag down wages.

The budget is backing workers, boosting wages and building a stronger economy. Reforming non-compete clauses is about encouraging aspiration, unlocking opportunity, lifting wages and making Australia's economy more dynamic and competitive. Right now, more than three million Australian workers are covered by these clauses, including early childhood educators, construction workers, disability support workers and hairdressers—some of whom have been taken to court by their employer for simply trying to change jobs and get a better life for themselves and their families. Research suggests that the reforms could lift wages of affected workers by up to four per cent, or about $2,500, per year for a worker on median wages. The Productivity Commission modelling suggests that these changes could improve productivity and add $5 billion, or 0.2 per cent, to GDP annually as well as reduce inflation.

I want to move briefly to the impact of the budget on Victorians. Very soon Victorians, along with the rest of the country, will be heading to the polls, and as a Victorian senator I want to look at how Victorians will fare under this budget. Victoria will be a big beneficiary. Every taxpayer will receive tax cuts of up to $268 in the 2026-27 year and $537 in 2027-28. And despite what those opposites say, those are big amounts of money for some people. And, combined with the first round of tax cuts, average Victorian taxpayers will be $2,530 better off.

Some comments were made about energy. Treasury estimates that this will directly reduce headline inflation by around half a percentage point in 2025—this is the additional energy rebates—and reduce household bills by 7½ per cent nationally, on average, when compared with going without the extension of the rebate. The Australian Bureau of Statistics has shown the energy rebates that the government has been rolling out with the states have directly reduced electricity prices. In 2024, they fell by 25.2 per cent, but would have fallen by just 1.6 per cent without energy rebates. What this means for Victoria is that all 2.5 million households will get this $150 to help with their bills, along with 223,000 eligible small businesses. This government's energy bill relief payments to Victoria in 2025-26 are estimated to total $441.4 million. The divide could not be more glaring. Labor is building Australia's future; the coalition is blocking it.

Andrew McLachlan (SA, Deputy-President) Share this | Link to this | Hansard source

Senator Fawcett, the whip, in guidance, has indicated that you're to speak for three minutes and One Nation for two minutes. If One Nation don't arrive, then I will extend your time. You have the call.

David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

Thank you. I had better speak a bit quicker then! In 2022 the Australian people decided to give the Albanese Labor government a chance. They trusted the promise made by Mr Albanese that life would be cheaper under his government. Well, how did that work out? We know food has gone up by 13 per cent, housing by 14 per cent, rent by 18 per cent, electricity by 32 per cent—excepting the one-off things that Labor has put in that they're calling 'cost-of-living support', which won't last for long—and gas by 34 per cent. In my home state of South Australia, we sometimes pay up to 45c per kilowatt hour, compared to places in the world where the cost is down around 13c per kilowatt hour. Experts around the world say that it will only get worse because of the policy direction of the Albanese government. When it comes to housing, the Albanese government promised 30,000 affordable homes. What have they delivered? Zero new homes have been built. As estimates highlighted, the few homes that have been delivered are actually repurposed existing housing stock, so that's another promise not delivered.

In contrast, the ACCC highlighted in December 2021, at the end of the coalition government's term, that there was an eight-year low in electricity prices under the coalition government and their policies. The coalition's policy going forward is in line with the OECD, the International Energy Agency and the expert economists and engineers of the world, who say that we can reduce the cost of power, increase the reliability of power and reduce emissions through including nuclear generation as part of our mix.

The Australian people also trusted the Albanese government on defence. They trusted Mr Albanese when he said in March 2022 that he vowed to provide Defence with the resources it needs to protect Australia. Well, how did that work out? The Australian Strategic Policy Institute, in their independent analysis, have highlighted that, despite the promises of funding in the future, in the actual three years of delivery of the Albanese government since they came to office in March 2022, funding in real terms has actually gone backwards by about $1½ billion. We see them robbing Peter to pay Paul across a whole range of projects, with some $83 billion worth of cuts across air, sea, land and space, which has decreased Australia's military capability.

In four or five weeks time, the Australian people will once again get to go to the polls and decide on who they wish to have govern this country. As one of my colleagues, Senator Scarr, said just previously, one of the key questions people should be asking themselves is: are you better off than you were three years ago? The answer for the majority of Australians is no, and that's because the government have been distracted for almost half of their term by things like the divisive Voice campaign, which cost half a billion dollars that could have been far better spent; they've been fixated on an ideological approach to energy that is flying in the face of global experts on energy policy; and, most disturbingly, they have been delinquent in their responsibility to properly resource what both sides of politics acknowledge is the first priority of government—the defence of the nation.

When you look at this budget, again, independent experts are saying that it is failing to respond to the real security threats that Australia is facing. The signature support that they're saying they'll give to Australian people is a cup of coffee a week in 18 months time. That's not helping families dealing with grocery bills, rent bills, housing stress and rent pressures today, nor is it investing in Australian industry, despite the promises of a future made in Australia. What the defence industry tell me on a frequent basis is that they see the funding going offshore to international primes, in the main, for capabilities that won't be delivered for another five to 10 years. Australian jobs are disappearing or being put at risk, and the future is not being made in Australia.

So, when Australians go to the polls in a few weeks time, they should ask themselves: are you better off than you were three years ago? Do you want a government that's distracted, delinquent and fixated on its ideology, or do you want a government that has a good track record and plans that align with international best practice in engineering and economics? Australia needs a Dutton government to get back on track.

Question agreed to.