Peta Murphy (Dunkley, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. What are the pressures on the Australian economy, and what is the Albanese Labor government's economic plan to address the inflation challenge in our economy?

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

Can I say to the member for Dunkley that her dedication and her determination is an inspiration to all of us, and can I say, on a personal level, thank you for all of the help and advice that you give me when it comes to our economic plans and policies as well. I appreciate that a great deal.

The national accounts last week showed growth in the Australian economy moderating as expected, the inevitable consequence of the combination of global challenges, high inflation and rising interest rates. Our economy, in the December quarter, grew by 2.7 per cent throughout 2022—faster than all of the major advanced economies and more than twice the growth of the OECD average. But it's a sign of the times that, even in one of the world's best economies, the inflationary pressures coming at us from around the world are still being felt very acutely around the kitchen tables of this country. We know that the tightening in interest rates, which began before the election, is adding to the pressure on many people and on many small businesses as well. Australians are under the pump, and, when interest rates go up, it does make life that bit harder.

Tomorrow, as honourable members are aware, the Reserve Bank will make its decision on interest rates. We don't pre-empt those decisions, but, clearly, the market is anticipating a further increase. The bank takes its decisions independently, and that independence is an important feature of our economic system. The government's job, the job that this government has taken responsibility for and embraced, is to focus on what we can do in government to get on top of this inflation challenge. There are welcome signs that the inflation challenge in our economy has peaked. There are encouraging signs that we are getting on top of it. But inflation will be higher than we'd like for longer than we'd like, and we need to acknowledge that.

Our three-point plan is all about relief for people doing it tough, repair of our broken supply chains and restraint in the budget as well. A meaningful part of that budget restraint was our decision on superannuation last week. This was a modest change and a sensible choice for a budget which is absolutely heaving with a trillion dollars in Liberal Party debt.

Milton Dick (Speaker) Share this | Link to this | Hansard source

The member for Deakin will cease interjecting.

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

When Australians are doing it tough, Labor's highest priority is targeted cost-of-living relief in a more responsible budget. The Liberals' highest priority is bigger tax breaks for people who already have tens of millions of dollars in superannuation.

Milton Dick (Speaker) Share this | Link to this | Hansard source

Order! The Treasurer will pause.

Government members interjecting—

Members on my right! I'll hear from the Manager of Opposition Business.

Paul Fletcher (Bradfield, Liberal Party, Shadow Minister for Government Services and the Digital Economy) Share this | Link to this | Hansard source

Mr Speaker, a point of order: the question went to pressures on the economy and the Albanese Labor government's plan to address pressures on the economy. The Treasurer is now wandering into an attack on this side of the House. He's a serial offender and he should be brought back to the question.

Milton Dick (Speaker) Share this | Link to this | Hansard source

I could not hear what the Premier—what the—

An honourable member: He'd make a good premier!

Don't tell the Premier that!

An honourable member: Have you got retirement ideas?

Honourable members interjecting—

Order! I couldn't hear what the Treasurer was saying, but I draw him back to the question.

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I won't tell her if you won't, Mr Speaker! Our plan is to make a modest change to tax concessions for people with millions of dollars in their super, to make the system more sustainable and more affordable. It's all about making the budget more responsible in the context of these cost-of-living pressures, which are impacting people right around the country. Those opposite have got a different plan. They go after people with robodebt and they come after Medicare.