Gordon Reid (Robertson, Australian Labor Party) Share this | Hansard source

The alcohol excise indexation is a longstanding feature of the tax system and has been under governments of both persuasions—under Labor and under the Liberals and Nationals. The alcohol excise rate is indexed to the consumer price index to ensure that alcohol excise receipts keep pace with inflation and that the tax component of alcoholic beverage prices remains broadly stable as a proportion of their total price.

As we know in this chamber, this indexation for alcohol occurs twice a year—it occurs once in February and then again in August—and then revenue from that excise goes into funding essential services for the benefit of the whole community, such as health, defence, education, infrastructure—I could go on. The government listens respectfully to the ideas put to it. We have weighed it up against other priorities and, essentially, within the budgetary constraints that we inherited from the coalition, including a trillion dollars of Liberal Party debt—all of this was taken into consideration.

Inflation is still higher than we would like, but it's less than half its peak and much lower than what we inherited from the coalition. At the election, as we know, inflation had a six in front of it, and now it's got a three in front of it. It's still too high—it is sticky—but it does now have a three in front of it. Underlying inflation has moderated, and the momentum of inflationary pressures is going downwards.

Our budgetary strategy, the last budget that was handed down by the Treasurer, is helping to fight against inflation in this country, not hamper it. Fiscal policy isn't the primary determinant of prices in our economy, but our decisions, the federal Labor government's decisions, in the budget can help, and they are helping. Our budget is helping to take some of the edge off inflation. We have delivered the first back-to-back surpluses in almost two decades, which the RBA governor has said are helping to fight against inflation. We're also on track for larger-than-forecast surpluses, which could be the largest back-to-back surpluses on record.

Demand in our economy is weak because people are under pressure, which is why our economic plan is all about fighting inflation without crunching the economy. Our cost-of-living relief is easing pressure on Australians, and ABS data shows it took half a percentage point off inflation. In the year to the June quarter of 2024, electricity prices rose by six per cent and would have risen by 14.6 per cent without our energy rebates. In the year to the June quarter of 2024, rents rose 7.3 per cent. Without the largest increase to rent assistance in 30 years, they would have risen to 9.1 per cent. In the year to the June quarter of 2024, childcare prices fell by 5.7 per cent but would have risen 14.9 per cent without our policies.

If the coalition truly cared about fighting inflation, if they truly cared about budget repair and about proper and true economic management in this country, they would be voting for our cost-of-living relief. Their track record on this is absolutely shameful. They won't back in the policies that will help everyday Australians not just in my electorate of Robertson and not just in the city centres but right across the country, from the coast to the bush, from the north to the south. An example of this betrayal of the Australian people was when they voted against our energy bill relief. They voted for higher prices. They voted for higher inflation. What the Albanese Labor government is focused on is tackling inflation through responsible and targeted cost-of-living relief, and the Labor surpluses are absolutely assisting with that.

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