Anthony Albanese (Grayndler, Australian Labor Party, Prime Minister) Share this | Hansard source

I thank the member for Berowra for his question and I also take the opportunity to acknowledge the significant stance that he has taken. I give my respect for the stance that he took on a personal level.

On the question, which goes to inflation and the impact of the budget on it: it occurs in a context of the Governor of the Reserve Bank saying, on 2 May, 'Inflation in Australia has passed its peak.' This will be a first, but I'll quote Terry McCrann. Terry McCrann had this to say: 'I don't see the budget as a serious threat to inflation. I certainly don't see the Reserve Bank reacting by raising interest rates.' The Commonwealth Bank said this:

The move to surplus in 2022/23 represents a fiscal contraction that is helpful in moderating the inflation pulse through the economy.

Bill Evans, of course, said: 'I don't expect them to put upward pressure on interest rates in the near term.' That is what respected economic commentators have said.

That shouldn't be surprising, because, when a government does what we did with the budget, which is to bank, over the two budgets, some 87 per cent of revenue gains—compared with what the Abbott, Turnbull, Morrison governments did, of banking just 40 per cent, or the Howard government, just 30 per cent—then that is what responsible fiscal policy looks like. That takes pressure off the area on which the honourable member has asked. But in addition to that, of course—unlike the anticipated deficit projected by those opposite, which was $78 billion when they were in government and handed down their budget, just over one year ago—that fiscal turnaround is the most serious fiscal turnaround in Australian history, from a $78 billion deficit to a projected surplus of $4.2 billion. This comes, of course, off the back of the highest CPI that we've seen this century—2.1 per cent in the March 2022 quarter—that saw vegetables rise by 6.6 per cent, fruit by 4.9 per cent, beef by 7.6 per cent, tertiary education by 6.3 per cent and fuel by 11 per cent. That was the legacy that we inherited when we came into office. The opposition created the mess, but we are busy fixing it. (Time expired)

See this speech in context