Simon Kennedy (Cook, Liberal Party) | Hansard source

Labor have given a tax cut to help with the cost-of-living crisis that they have created with a reckless approach to spending that has fuelled inflation. Across the last three budgets, Labor has committed an additional $315 billion in inflationary spending—an extra $315 billion. This accounts for almost $30,000 per household, and I would ask the average Australian household out there: do you feel $30,000 better off thanks to Labor's spending? Last week's figures showed core inflation has risen to 4.4 per cent, and it has increased for four months in a row. When inflation is rising, one can be sure that interest rates aren't going down and that Australian households are getting heaped and heaped with more weight until they're almost about to collapse.

Since the election, real disposable income is down 7.8 per cent; we have locked in bad workplace laws which are driving up the cost of doing business, and this is being passed on to the consumer as the cost of living increases; and families are now being slugged with higher tax. Labor is banking $60 million in bracket creep and has increased personal income tax by 20 per cent since the election. Betashares' chief economist described the latest consumer price report as a 'shocker', saying that it places huge pressure on the Reserve Bank to raise interest rates in August. What we have here is a reckless Labor government, with their budget increasing the probability that Australian households and families will be slugged with higher interest rates and more pain.

Families are hurting, because the prices of basic necessities are going up. Food is up 11.4 per cent, housing is up 14 per cent, rents are up 14 per cent, electricity is up 21 per cent and gas is up 22 per cent. But what do these numbers mean? They mean that every time you pay a gas bill, it will double every three years. That's what 22 per cent per annum means: every three years your gas bill is doubling and every three years your electricity bill is doubling. Australian families have had enough, and they can't take it anymore.

It isn't just a global phenomenon. Core inflation in Australia is high and rising; it's higher than in Sweden, it's higher than in the UK, it's higher than in Norway, it's higher than in Canada, it's higher than for our neighbours in New Zealand, it's higher than in the rest of the euro area, it's higher than in the US and it's higher than in Switzerland. In stark contrast with Australia, inflation is now falling in all those countries I just mentioned. So this Labor government has put the Reserve Bank between a rock and a hard place. Australian families are breaking and under pressure. Inflation is falling everywhere else in the world. Yet they're left with the impossible task of trying to get this narrow landing without crashing the economy because of this irresponsible Labor government and its spending.

Now, this government for the last two years have been completely distracted with the wrong priorities. They could have started from day one with a focus on cost of living; instead, they were focused on divisive social policies. No matter how much money the government try to spin this, from the data this is a homegrown inflation crisis. Now is the time for the government to rein in their irresponsible spending, to adjust their budget and deal with the problems so Australians aren't burdened further by their mismanagement of the economy and the country. Tight monetary policy is being undermined by Labor's loose fiscal policy. If interest rates rise between now and the end of this year, it will be on the government's head. Dr Chalmers needs to stand before the Australian public and admit this Labor government is the reason inflation is out of control.

In stark contrast to this irresponsible Labor government approach, the opposition and the Leader of the Opposition have stated how they will reign in inflationary spending and take pressure off Australians, take pressure off Australian households and take pressure off interest rates and mortgages.

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