House debates

Tuesday, 28 March 2023

Matters of Public Importance

Cost of Living

3:28 pm

Photo of Milton DickMilton Dick (Speaker) Share this | | Hansard source

I have received a letter from the Manager of Opposition Business proposing that a definite matter of public importance be submitted to the House for discussion, namely:

The government's continuing failure to address the cost of living crisis facing Australian households and businesses.

I call upon those honourable members who approve of the proposed discussion to rise in their places.

More than the number of members required by the standing orders having risen in their places—

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

Australians are facing a cost-of-living crisis. They see it every day in higher mortgage repayments, higher power bills, higher food prices, higher rents—everything is going up. This is the exact opposite of what the Prime Minister repeatedly promised Australians at the last election. We all remember the bold promises: lowering household and business energy bills by $275. We were told, 'Labor has real, lasting plans for cheaper electricity and cheaper mortgages.' We were told Australians would be better off under a Labor government. The Prime Minister personally promised his $275 power bill cut not once, not twice, not five times, not ten times. Was it thirty times? Was it fifty times? It was 97 times. It was personally promised 97 times by the Prime Minister. But, when we ask him about it now, those bold promises are replaced with weasel words, with equivocation, with obfuscation and with evasion. The simple fact is that the Prime Minister promised cost-of-living relief during the election, but life is only getting harder for Australians under this Labor government—even though, bizarrely, last week the Prime Minster claimed it's been a pretty good 10 months. Most Australians would have responded to that claim with incredulity.

Let's have a look at what has happened when it comes to mortgages. There have been nine straight interest rate rises on this government's watch as inflation has surged. A family with a typical mortgage of $750,000 is now paying $1,700 a month more than they were when rates began rising last year. That is an extra $20,000 a year that a typical Australian family now needs to find. More than 800,000 Australian households will be moved off fixed mortgage rates onto variable rates this year. That will put even more pressure on already tight budgets.

When the Prime Minister was directly asked about the quote, the comment, the promise, the undertaking—'Labor has real lasting plans for cheaper mortgages'—he couldn't scuttle away quickly enough. What do the facts tell us, as opposed to the misleading rhetoric from the Prime Minister? Research from Roy Morgan shows that an estimated 1.19 million mortgage holders were at risk of mortgage stress in the three months to January 2023. Just today, the NAB reports that more households are reporting financial difficulties. Australian families are 'starting to feel the pinch and are getting more worried about their financial future'. What does the Westpac-Melbourne Institute Consumer Sentiment Index say? 'Consumer sentiment holds near 30-year lows.'

Photo of Sharon ClaydonSharon Claydon (Newcastle, Australian Labor Party) Share this | | Hansard source

Member for O'Connor, I don't think it is especially helpful when your own Manager of Opposition Business has the floor to be interjecting.

Photo of Rick WilsonRick Wilson (O'Connor, Liberal Party, Shadow Assistant Minister for Trade) Share this | | Hansard source

I'm trying to help—

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

He is very helpful, and we are helpful because—

Photo of Sharon ClaydonSharon Claydon (Newcastle, Australian Labor Party) Share this | | Hansard source

If you do it again, I will ask you to leave. I want to actually listen to the debate. Thank you.

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

we are a united team. We must notify the House, with a heavy heart, that the Westpac-Melbourne Institute Consumer Sentiment Index was unchanged at 78.5 in March, holding near historic lows. What did the spokesperson say? They said:

This marks the second consecutive month of extremely weak consumer sentiment. Index reads below 80 are rare, back-to-back reads even rarer. Indeed, both the COVID shock and the Global Financial Crisis saw only one month of sentiment at these levels. Runs of sub-80 reads have only been seen during the late 1980s/early 1990s recession and in the 'banana republic' period of concern in 1986 …

Is there a common factor between those times and these times? Indeed, there is: a Labor government. Yet, we see no economic plan from this government to deal with these matters, just an ever-expanding and ingeniously creative list of content excuses from the Treasurer, the commentator in chief.

But this is no laughing matter for Australians. The member for McPherson raised last week the case of her constituent Jason from Robina, a 35-year-old father of two who has had to take on a second job and cancel his children's swimming lessons as his mortgage repayments are expected to almost double as he comes off a fixed rate loan.

But it's not just interest rates where Australian families are feeling the pain. It is also power bills, which are a direct consequence of the extraordinary mismanagement from this government. Australians were told that their power bills would be going down by $275, yet we have just seen the recent default market offers. They show in state after state that, in fact, power prices are going up. In Victoria, half a million Victorian families and businesses will see their electricity bills rise from July. Yearly household bills will rise by about $400. Yearly small-business bills will jump from $5,600 to over $7,300 a year. For South-East Queenslanders energy bills are going up by $383. In New South Wales they are going up by $564. In South Australia they are going up by $485.

And what does this incompetent government do? It has a set of policies which are putting at real risk the continued supply of gas. The Australian Energy Market Operator is warning of the very real risk that the gas will run out in Victoria during winter, literally leaving Victorians in the cold. We were all called back here in December. There was an urgent recall. Labor members were recalled from holidays around the world back to parliament, back to Canberra, in December. 'We are going to fix it,' we were told. But do you know what? We are three months on and not one dollar of the promised relief has in fact flowed. You could not more clearly expose what has happened as a naked political stunt.

What are Australians experiencing while this government dithers? Caruso's Italian restaurant in the Sutherland shire in Sydney was forced to close its doors permanently. According to owners Rocky and Kerrin Pitarelli, rising electricity costs was one of the main reasons. Peter Spillane, an elderly gentleman on a fixed income in the member for Herbert's electorate, said he is having to choose between cooking his dinner and turning on his air-conditioning because of spiralling increases in power prices. Ross and Cynthia are age pensioners in South West Rocks in the electorate of the member for Cowper who were told by their provider that their new power bill will go up by more than 40 per cent to $474 per quarter. Kieran, who runs Hutch & Co cafe in Lilydale, a small business in the electorate of Casey, is bracing for the cafe's power bill to increase this year by $,2438. That's one hardworking small-business person of hundreds of thousands around Australians who are facing this extraordinary increase in costs thanks to the incompetence of the present government.

We know that the impacts of this are running right through Australian society. The cost-of-living inquiry being carried out in the other place has revealed that, according to Coles, Aldi and IGA, Australians are changing the way they shop. They are moving from normal brands to home brands, they're buying less beef and they're moving from fresh food to canned food. Lifeline, the well-respected charity, is seeing record levels of activity from people seeking help and support. Anglicare Australia and emergency relief providers across Australia have all recorded an increase in demand for services ranging from 10 per cent to 50 per cent compared to the start of 2022. More people are having to seek emergency relief to pay rent and to keep a roof over their heads. What about Beyond Blue? A recent sample collected by this respected mental health organisation found for 37 per cent of respondents cost-of-living pressures have negatively impacted on their mental health either 'quite a bit' or an 'extreme amount'. A survey conducted by the Salvation Army showed that more than half of respondents were struggling to pay for one of their essential utilities.

The fact is that things are grim for millions of Australians. They are grim because of the mismanagement from this lot opposite. The claim that it has been a 'pretty good 10 months' shows nothing other than that we have a Prime Minister who is absolutely out of touch with what Australians are facing.

3:38 pm

Photo of Patrick GormanPatrick Gorman (Perth, Australian Labor Party, Assistant Minister to the Prime Minister) Share this | | Hansard source

I am proud to be here as part of a government that has continually stood for building up the social safety net. Let's look at those who voted against energy price relief in December of last year.

Photo of Rick WilsonRick Wilson (O'Connor, Liberal Party, Shadow Assistant Minister for Trade) Share this | | Hansard source

Come on, Patrick—tell us about your flight home, mate.

Photo of Patrick GormanPatrick Gorman (Perth, Australian Labor Party, Assistant Minister to the Prime Minister) Share this | | Hansard source

They came into this place, having complained and complained, and then they voted against their own constituents getting energy price relief. But this is part of a longstanding—

Photo of Rick WilsonRick Wilson (O'Connor, Liberal Party, Shadow Assistant Minister for Trade) Share this | | Hansard source

What's the carbon footprint of a private jet?

Photo of Sharon ClaydonSharon Claydon (Newcastle, Australian Labor Party) Share this | | Hansard source

You are not in your seat, Member for O'Connor. If you are leaving the chamber, please leave quietly.

Photo of Rick WilsonRick Wilson (O'Connor, Liberal Party, Shadow Assistant Minister for Trade) Share this | | Hansard source

I'm not allowed to discuss it?

Photo of Sharon ClaydonSharon Claydon (Newcastle, Australian Labor Party) Share this | | Hansard source

Are you leaving the chamber, Member for O'Connor? If not, sit down. Sit down or leave the chamber quietly. I am asking you: are you leaving the chamber? Otherwise, sit in your seat and we will get on with the debate.

Photo of Patrick GormanPatrick Gorman (Perth, Australian Labor Party, Assistant Minister to the Prime Minister) Share this | | Hansard source

This action from those opposite, who voted against energy price relief, is one in a long list of actions to undermine the social safety net which millions of Australians rely upon. Labor brought the age pension into reality in this country, which was undermined by the conservatives opposite. Labor built up Medicare and Medibank. They tore it down, and we had to rebuild it again. They undermined it time and time again—so much so that, if you want to become the Leader of the Opposition, the Leader of the Liberal Party, the best way to get there is to attack Medicare throughout your career. He proudly tried to introduce a GP co-payment of $7. The Leader of the Opposition proudly had his big policy idea to make sure that the first thing you needed to give when you rocked up at emergency was not your Medicare number but your credit card number. He tried to increase the price of medicines by $5, and because of all of those actions—many of which failed because those on the Labor side proudly blocked those terrible ideas—those opposite chose to make him leader of the federal parliamentary Liberal Party.

Labor builds up the social safety net. We built up paid parental leave. Those opposite go to elections promising to expand paid parental leave, but they never actually follow through when in government. Again, we built up the National Disability Insurance Scheme, a proud outcome and deliverable of Prime Minister Julia Gillard, and we made sure it was fully funded. Those opposite put a staffing cap in place and left people waiting and waiting for packages that they should have received. So I'm proud to stand as part of the Albanese Labor government—a government that came to office promising and committing to support a pay increase, whereas everyone on that side went to the election saying they didn't even think people should get a dollar-an-hour pay increase on the minimum wage.

I want to go back one year in time. I know that those opposite often want to go back 10 months in time. I don't know why they only ever want to go back 10 months, but let's go back a whole 364 days:

… war rages in Europe. The global pandemic is not over. Devastating floods have battered our communities. We live in uncertain times.

They were the words of Treasurer Josh Frydenberg in framing his budget. Since then, we know the global outlook has become less certain. We've seen the impact of inflation and the interest rate rises which started under the coalition and continue to impact the budgets of governments around the world and, indeed, here at home. But there can be no doubt that this government has acted on the cost of living. I know those opposite might be sceptical, so don't take it from me; listen to the Leader of the Opposition. This is a quote from him before he went into hiding, before he lost his visa to the state of New South Wales, before he decided that he was no longer able to visit Victoria for unknown reasons that end about 6 pm on Saturday:

… we commend several good measures in Tuesday's budget: the extension of the childcare subsidy to more Australian families; the commitment to reduce the Pharmaceutical Benefits Scheme co-payment, to lower the cost of medicines; the support for housing for our veterans; the initiatives to combat domestic violence; and the funding to help Australians recover from devastating floods.

It was a rare moment of honesty from the Leader of the Opposition in October 2022. I commend him for once—possibly the only time in his political career—actually saying that there was something good happening. He said more than just no. Indeed, he supported some important cost-of-living programs put in place by this government. They didn't do it in the 10 years they were in government, but I commend them for supporting it in their first year in opposition.

We have to look at context. As they often say when you want to get somewhere: 'You wouldn't start here.' And you definitely wouldn't want to start here when it comes to the economic situation that was left by those opposite: a trillion dollars of debt, a 49 per cent increase in childcare fees, $3.4 billion for submarines that were never built, 85,000 Australian manufacturing jobs lost, an NBN built four years late with second-rate copper and $28 billion over budget. Who signed off on all of them? I got out the Expenditure Review Committee membership and there, right in the middle, is the now Leader of the Opposition signing off on the trillion dollars of debt, signing off on the closure of manufacturing jobs across this country, signing off on $3.4 billion for submarines that were never built, signing off on a 49 per cent increase in childcare fees.

But there was someone who wasn't on the Expenditure Review Committee; I went down and looked for the member for Bradfield. He wasn't there. He was giving us lots of free advice, and he must have given lots of free advice when he was in government, back in the day, sitting around the cabinet table wondering why he hadn't been chosen to be placed on the Expenditure Review Committee. But that didn't stop him from doing huge economic damage. There was the $28 million blowout in the National Broadband Network, for which he was responsible. As arts minister, he was busily arguing against giving JobKeeper to the very arts sector he was supposed to be advocating for. He did achieve one thing, proudly: he purchased 21,000 kilometres of extra copper. That's enough copper to go all the way around the circumference of the world, purchased by the now member for Bradfield when he was busily doing his little bit to build up that trillion dollars of Liberal debt that's now left for the Albanese government to resolve and pay the interest on because those opposite lost control of their budget.

But losing control and losing arguments are not something that are new to the member for Bradfield. I note that he was out there recently, advocating that those opposite should have backed the government's initiatives on the safeguard mechanism. In the Guardian of 8 February we read:

Paul Fletcher and Simon Birmingham pushed back against a decision to oppose the Albanese government's planned overhaul of the safeguard mechanism during shadow cabinet deliberations over the past fortnight.

There are many interesting things about that. It was kind of someone else in the shadow cabinet to have shared that information with the public at large through the Guardian. But it's also interesting that there's obviously disagreement on that side about the decision that was made by those opposite not to engage with the government on the safeguard mechanism but instead to try to continue their role as climate warlords and to continue the climate wars. That's the approach that they've taken.

And so we come to what the two competing approaches are in this place. One side of this chamber wants to get wages moving. We did that proudly by supporting an increase to the minimum wage. Those opposite wanted to have low wages as a deliberate design feature. They ran around, proudly, saying that it was a deliberate design feature to keep wages low. Those on this side want cheaper medicines, and delivered them from 1 January. Those opposite were too busy looking at GP taxes and charging people to walk into emergency departments. This side wants cheaper child care and, in less than 100 days from now, we're making sure that 1.2 million families get cheaper child care. Those on the other side were happy to sit back and do nothing as childcare fees went up and up and up—there was a 49 per cent childcare fee increase on the watch of those opposite. This side is proudly expanding paid parental leave to six months, and we all remember the promises they made—particularly those in the past, from 2013—about expanding paid parental leave. The minute they were elected they did absolutely nothing about it. On this side of the chamber we have an energy price plan that everyone on this side of the chamber proudly voted for. On that side, they said no to price caps and no to energy relief. The only thing those opposite said yes to was to hide a 20 per cent power increase until after the election. This side of the chamber backed a $10 billion investment to build 30,000 affordable homes. Those opposite are saying no—no to the housing that we know is so desperately needed.

Photo of Josh BurnsJosh Burns (Macnamara, Australian Labor Party) Share this | | Hansard source

It's absolutely twisted!

Photo of Patrick GormanPatrick Gorman (Perth, Australian Labor Party, Assistant Minister to the Prime Minister) Share this | | Hansard source

I agree with the member for Macnamara: it is absolutely twisted! I know that one of the speakers on the MPI this afternoon will be the member for Hasluck. I had the absolute fortune of being in her electorate earlier this week, with the laying of the first track for the Ellenbrook rail. This means that people in Ellenbrook and in the north-eastern suburbs can actually get home quicker and cheaper because of Labor governments building rail and investing in the practical infrastructure which reduces the cost of living. (Time expired)

3:48 pm

Photo of Luke HowarthLuke Howarth (Petrie, Liberal Party, Shadow Minister for Defence Industry) Share this | | Hansard source

With an assistant minister like that, it's no wonder the Prime Minister is so out of touch! He doesn't recognise the government's continuing failure to address the cost-of-living crisis facing Australian households and businesses. From power, to rent, fuel, insurance and groceries, the cost of living is now a national crisis, and every single one of these backbenchers is responsible. We would all remember the Prime Minister pledging to Australians that we'd all be better off under Labor—do we remember that? We warned the Australian people that life wouldn't be easy under Albanese! Yet this bizarrely out of touch Prime Minister claimed last week that it's been a pretty good 10 months. Well, let me tell you what my constituents think about the last 10 months. Sarah Jane from Griffin: 'Times are very tough at the moment. We have noticed a huge change in our grocery bill. Every single bill we have has increased. It's all becoming very overwhelming and hard to stay afloat. Wages haven't increased and I cannot see them increasing to cover the cost of all the other price increases either.'

Shenelle Leighton: 'Family of five used to spend $400 a fortnight for a huge shop. Now we need to set aside an extra $200 per fortnight just to get us through. Our rent just went up $90 per week and we are spending almost double what we used to on petrol.' We remember that the Albanese government removed the fuel excise. She continues: 'Couldn't afford to drive an hour for a friend's shave for a cure because we needed to save for petrol to get the kids to school. It is a joke.'

Rebecca Deverell from Griffin: 'Two adults and four kids spend around $400 a week which has increased to $100 per week, with my husband and I generally only eating one meal a day to be able to afford lunchbox snacks for the kids and cat food.'

Kelli Barker from Bracken Ridge: 'Family of seven with one adult, two teens and four little kids. We have a budget of $500 a fortnight, and now rent is up that's down to $340. We live on noodles and pasta for most of the second fortnight just so we can afford fuel to get to and from school.'

Jasmine Muir from Deception Bay: 'I used to be able to comfortably spend $350 a fortnight on groceries, meat and fruit and have some extra snacks for the kids. Now that hardly covers groceries and meat, and the kids are lucky if they get fruit to last two weeks or if we have food to the last fortnight.'

Hayley Jellis from Mango Hill: 'It's actually cheaper for a parent to give their kids a McDonald's happy meal for $5 than a home-cooked meal.'

Alexandra Tramacchi from Griffin: 'As a single parent of four kids under six, it is definitely cheaper to have takeaway every night. My shopping bill went from $150 per week 12 months ago to $220 for exactly the same stuff.' Twelve months ago it was way cheaper, Deputy Speaker, through you, to the assistant minister, and since the Albanese government has been elected cost of living is out of control.

Kylie Holley from Griffin: 'We have two teenagers and what used to cost me about $200 a week is now regularly $300-plus a week. That's buying cheaper cuts of meat and getting things in bulk or when they are on special like laundry powder. I'd say that groceries have gone up by about a third to a half in the last six months. It's a massive change in, I'd say, the last six months.

Linda Garner from Deception Bay: 'Between exorbitant rent prices and the cost of groceries increasing out of proportion, the current government has succeeded in making us a society struggling to survive.'

I have got more pages, more pages, more pages. Bec Aitcheson: 'I used to spend around $200 but now it's reached $450.' This government is absolutely hopeless and completely out of touch. They come in here and make up porkies every day of the week. Let me tell you, Prime Minister, through you Deputy Speaker, it hasn't been a good 10 months. For people in my electorate it has actually been hard to make ends meet. For last 10 months they've been waiting nervously to see how they're going to pay the bills. Small businesses have borne the brunt of the government's empty words over the last 10 months. It has been 10 months of going hungry. It has been 10 months of people wondering where they'll sleep each night. You ought to be ashamed of yourselves, the lot of you. Stand up and fight for the people who are doing it tough.

Photo of Sharon ClaydonSharon Claydon (Newcastle, Australian Labor Party) Share this | | Hansard source

The member for Lalor on a point of order.

Photo of Joanne RyanJoanne Ryan (Lalor, Australian Labor Party) Share this | | Hansard source

Several times the member made the point of going through you, but then in that last 10 seconds he failed to go through you, Deputy Speaker, and therefore reflected on the chair.

Photo of Sharon ClaydonSharon Claydon (Newcastle, Australian Labor Party) Share this | | Hansard source

I will ask the member for Petrie to come back and withdraw for the sake of the House, please.

Photo of Luke HowarthLuke Howarth (Petrie, Liberal Party, Shadow Minister for Defence Industry) Share this | | Hansard source

Sorry, what am I withdrawing?

Photo of Sharon ClaydonSharon Claydon (Newcastle, Australian Labor Party) Share this | | Hansard source

Did you not listen to the point of order?

Photo of Luke HowarthLuke Howarth (Petrie, Liberal Party, Shadow Minister for Defence Industry) Share this | | Hansard source

I'm asking you what I am withdrawing.

Photo of Sharon ClaydonSharon Claydon (Newcastle, Australian Labor Party) Share this | | Hansard source

A reflection on me, when you directed your—

Photo of Luke HowarthLuke Howarth (Petrie, Liberal Party, Shadow Minister for Defence Industry) Share this | | Hansard source

I didn't reflect on you at all, Deputy Speaker. I reject what the member for Lalor has to say. She can't listen to what important people are saying in my electorate. Once again—

Photo of Sharon ClaydonSharon Claydon (Newcastle, Australian Labor Party) Share this | | Hansard source

The member for Petrie will take his seat. I don't want you yelling—

Excuse me. I do not want you yelling. You just agreed not to withdraw, despite me asking you.

Photo of Luke HowarthLuke Howarth (Petrie, Liberal Party, Shadow Minister for Defence Industry) Share this | | Hansard source

I didn't reflect on any of them.

Photo of Sharon ClaydonSharon Claydon (Newcastle, Australian Labor Party) Share this | | Hansard source

And you don't wish to assist the House in any way by withdrawing your comment?

Photo of Luke HowarthLuke Howarth (Petrie, Liberal Party, Shadow Minister for Defence Industry) Share this | | Hansard source

I don't know what she's talking about. That's all I'm saying.

Photo of Sharon ClaydonSharon Claydon (Newcastle, Australian Labor Party) Share this | | Hansard source

This is a very undignified way to conduct a debate in this House. That's all I can say. You were on your feet, raising your voice. You made many comments through me, as you rightly should, so as not to reflect on other members. The member for Lalor has risen on a point of order, saying your last comments did not go through me, and you were reflecting on me. You are disagreeing with that and you do not wish to assist the House in any way.

Photo of Luke HowarthLuke Howarth (Petrie, Liberal Party, Shadow Minister for Defence Industry) Share this | | Hansard source

Yes, I am. I respect the Deputy Speaker and I respect the chair.

Photo of Sharon ClaydonSharon Claydon (Newcastle, Australian Labor Party) Share this | | Hansard source

Then you have defied assisting the House in any way, and that is great pity. It's very unhelpful, member for Petrie.

3:56 pm

Photo of Josh BurnsJosh Burns (Macnamara, Australian Labor Party) Share this | | Hansard source

Getting lectured by the member for Petrie on being out of touch, after that member went around the country telling everybody to have a positive spin on homelessness, is about as much irony and hypocrisy as I can handle.

Those opposite are getting up in arms about the cost of living for Australians, and Australians are doing it tough. We on this side of the House understand that Australians are doing it tough. That is why the very first thing that we did when coming into government was to try to lift the wages, especially for some of the lowest-paid workers in our country. After 10 years of sitting and watching those opposite govern this country, 10 years of listening to people like the member for Petrie coming into this place with all bluster and without any substance whatsoever, we have to ask ourselves: can we name one single policy—one single thing—that those opposite did to lift the wages of Australian workers? Not one. Not one measure. Not one legislative instrument. Not one bill. Not even one MPI came into this place, while they were on the Treasury benches, that was designed to lift the wages of working Australians. The exact opposite approach was taken. The minister for finance, after having a cigar in the courtyard out the front, came in and said, publicly, all of the quiet bits out loud. He said that low wages were a deliberate design feature of the economy under those opposite.

So we will be not be taking lectures by those opposite, who have over 10 years built an economy on low wages and wage suppression. We have tried to dismantle that. There is a lot of work to be done, but we take our responsibilities to the working people of this country extremely seriously. With the high inflationary environment that current households face, we are trying to implement policies that will not extend the high inflationary environment but provide cost-of-living relief for families who are doing it tough. It takes a particularly twisted type of logic for those opposite to come in here and complain about the cost-of-living pressures—especially around energy prices—when they voted against a measure that would not only cap gas and coal prices but also offer a $1.5 billion package that would go directly into reducing energy bills for Australians. How much bluster do you have to be filled with to have the arrogance to come into this place and say, 'We think that energy prices should be lower, but any time we have an opportunity to contribute to that, we're just going to excuse ourselves and oppose everything that this government does, because we think that's in our political interest'? That's what they have been doing.

It's not just that. Think about housing. The cost of housing is astronomical. It has never been harder to buy a home than it is right now. I was speaking about this last term under the previous government, yet those opposite, with the same arrogance, come into this place and try to lecture the parliament about the cost of living. Yet with the very opportunity they have to try and increase supply and do something meaningful for the first time in 10 years, especially for social housing properties—something the federal government completely didn't do while they were in government—they excuse themselves and just blame us because that is what they believe is in their political interests. It is nonsense. It is absolute nonsense. For those opposite and people like the member for Petrie to come into this place with all of that bluster and rudeness that he displayed, without doing one single thing—not one thing—to lift the living standards, the welfare and the wages of Australian workers shows exactly how empty and hypocritical those opposite are, because they are not willing to do things or to stand by the Australian people. They are willing to come into this place and throw around political slogans that they think are in their political interests. I have news for them. Australians saw through the emptiness. They saw through the nastiness. They saw through the incompetence and the attitudes of those opposite and they said, 'Do you know what? We can do better.'

Politics can be better. We don't expect everything to be fixed all at once. But we at least want people to have a go. That is why we are trying to reduce the cost of child care and we are. That is why we are trying to lift the wages of Australian workers and we are. That is why we are trying to lower energy bills for Australians and that is what we're doing. We are serious about helping Australians. All those opposite have are bluster and political nonsense, and Australians can see through it.

4:01 pm

Photo of Aaron VioliAaron Violi (Casey, Liberal Party) Share this | | Hansard source

I thought today we might get through the MPI without me needing to go back to my favourite ABC fact check and, unfortunately, we didn't get there. The assistant minister was nice enough to mention the $1 trillion in debt that the government likes to talk about. Unfortunately, the data doesn't back up that claim. The number was $517 billion when this government took over in 2022. It is in the budget papers.

Photo of Patrick GormanPatrick Gorman (Perth, Australian Labor Party, Assistant Minister to the Prime Minister) Share this | | Hansard source

Keep talking about it.

Photo of Aaron VioliAaron Violi (Casey, Liberal Party) Share this | | Hansard source

Feel free to have a look. Just because Jim gives you a talking point doesn't mean it is true.

Photo of Sharon ClaydonSharon Claydon (Newcastle, Australian Labor Party) Share this | | Hansard source

Member for Casey, you do need to refer members by their correct title.

Photo of Aaron VioliAaron Violi (Casey, Liberal Party) Share this | | Hansard source

I apologise. It was $517 billion. It is in the budget papers, despite what the Treasurer and others like to say about it. I just put that on the record again. We need to continue to do that. There is another great saying. As a Collingwood man, I'm a big fan of Michael Malthouse, our last premiership coach. Hopefully Craig McRae will be the next. He said, 'If you spend your whole life looking in the rear vison mirror while driving you'll end up hitting the car in front of you,' and that is what we have at the moment. We have a government that continues to talk about the previous government, with the Prime Minister today going back to give us a history lesson from 2014.

At some point you need to lead, you need to take responsibility and you need to stop making excuses. I mean, the Prime Minister himself said, 'Look, it is the job of the Prime Minister to deal with the challenges that Australia faces and not just constantly blame someone else.' He said that on MMM Perth, 16 May 2021. He may have said that in 2021. What did he say in 2022? 'I want to step up to the plate. I will accept responsibility. If I am given the great honour of holding high office as Prime Minister of this country, I won't seek to blame anyone else. I will accept the responsibility that goes with that job.'

The reality is the Australian people know that what he said then is not what he is saying today. He sits at that dispatch box every day in question time offering excuses, talking about the Ukrainian war. Yes, it happened in March last year. He conveniently doesn't talk about his modelling for the $275 power price relief that was commissioned in December 2021. Anyone who knows anything about economic modelling knows that, when a significant input changes, you would change what you say. So 28 times after the invasion of Ukraine by Russia the then opposition leader continued to mislead the Australian public by referencing the $275 price.

This is a prime minister who is out of touch. Last week he talked about it being a great 10 months. We hear many of those opposite talking about how tough it is for their constituents. It is tough in Casey as well. We almost have continued bipartisan support, except for the Prime Minister, who stands here and talks about it being a great 10 months. It hasn't been a great 10 months for Kieran at Hutch and Co. I was there on the weekend, having a chat to him. He is struggling with rising input costs, making tough decisions on whether that business will survive. It hasn't been a great 10 months for a lot of residents in Casey but clearly a great 10 months for this out-of-touch Prime Minister.

It's not just the families of Australia that are being abandoned by this government; it's the small businesses of Australia—not one Dorothy Dixer question from the government backbench to the Minister for Small Business about what she's doing to help small businesses in Australia that are struggling right now. So I thought I'd go and have a little bit of a look at her media releases and see the policies she has released on small business—the heart of the economy, the engine room of Casey and the nation. We've got two releases this year from the Minister for Small Business: one on 1 January talking about mental health support for small business, which is a great initiative. It's very needed—helping them deal with the challenges. But there's another one about helping them transition to energy efficiency, which they definitely need because, as Kieran has shown, their energy prices are going up significantly.

This is government that has abandoned Australian families and has abandoned small businesses. Small businesses are struggling. The minister does not stand at that dispatch box, ever, and talk about small business. I had a look through; I've not seen any visits to small businesses. She's happy to talk about round tables and media releases talking with the ministers for small business from other states, but she's not a voice for small business in this House when they need it. They have been abandoned. The Australian people have been abandoned in this cost-of-living crisis by this out-of-touch government.

4:06 pm

Photo of Tania LawrenceTania Lawrence (Hasluck, Australian Labor Party) Share this | | Hansard source

Every morning the Liberal and National parties must get together and ask one another whether they've thought of any new policies yet, and when the other says no, they agree to just keep on talking about the cost of living as if no-one in the community realises it was their poor stewardship of the economy that helped lead us into the situation we're in now. The cost of living isn't just a convenient place for the coalition to hide from real policy development. Let me start by first acknowledging just how tough it is for many people in this current climate. I'm regularly contacted by constituents in my electorate of Hasluck letting me know about the tough decisions they are having to make as they feel the pinch of the cost-of-living pressures.

Labor understands and it is core to our values that we address inequality in our systems and address the needs of our nation's most vulnerable. It is the Labor government that will work and has been working since last May to make life better for every Australian, which is why the philosophy of obstruction at all costs from those on the other side is an affront. Honestly, it's galling. Having the coalition bleat endlessly about the government's response to cost-of-living pressures baffles the mind. It is like the 'who killed Hannibal' meme: the coalition drive a B-double truck right through the guts of the economy, jump out of the driver's seat and say, 'Why would Labor do this?' Once again, while those opposite continue to try and score cheap and nasty political points, the adults in this room have been busy getting on with the job of implementing policies to ease the cost of living.

For relief in the short term the Albanese Labor government has introduced cheaper medicines. From 1 January this year prescriptions on the PBS have been capped at $30, the first reduction in prescription costs in the scheme's history. Already in my electorate of Hasluck, people have saved $278,264.49 in the very first 74 days of this policy being in place. It's extraordinary. From 1 July this year Labor's cheaper child care will assist with the cost of living for 1.2 million Australian families. That's more than 5½ thousand families in the seat of Hasluck alone. We're also supporting people to study, to get the qualifications they need to join a jobs market very keen to have new workers: 180,000 fee-free TAFE places are now available. I have been to my local North Metro TAFE campus in Midland alongside the Minister for Skills and Training, and we've seen together those fee-free TAFE places filled. Students studying early childhood education, for example, a massively important career, told us they were able to start studying for a meaningful career because there was no charge.

And look at wages. What was the very first thing this government did under the Prime Minister Albanese's leadership? We backed up our word from the hustings and wrote a letter to the Fair Work Commission supporting the case for an increase to the minimum wage and a range of modern awards. 'Absolutely' is what the soon-to-be Prime Minister said when asked if he would back a pay rise for the nation's lowest paid workers. The commission took on board the government's submission and provided some relief via increased wages. Albeit modest, this was still a significant rise relative to the wage stagnation of the previous decade.

If we need further examples of the practical help that this government is providing to ease the cost of living, we can look no further than housing. Some relief is immediate and some relief requires the vision of a government with principles and a team of high-quality ministers. Our housing policies are specifically designed to make housing more affordable, both through financial assistance and government guarantees and through the addition of more housing stock. We will facilitate the construction of thousands of new homes each year, putting downward pressure on mortgages and rents in the process.

If I'm getting correspondence from my constituents who are finding cost-of-living pressures challenging, then I know that those opposite are also getting the same types of letters, emails and phone calls. So how do members from a party that doggedly chooses to vote against cost-of-living measures introduced into this parliament look their constituents in the eye and tell them that they have their best interests at heart? Until those opposite are willing to be constructive in the project of easing the burdens of cost-of-living pressures, they could do worse than ceasing the endless stone throwing from within their glass houses.

These types of practical policy responses that we're introducing are designed and implemented by a government alert to the challenges that we are all facing. It is exactly the type of behaviour voters expect, the type of behaviour voters hoped for with a responsible government in charge.

4:11 pm

Photo of Keith WolahanKeith Wolahan (Menzies, Liberal Party) Share this | | Hansard source

I thank the member for Hasluck for pointing out how important it is to look constituents in the eyes, because that's exactly what the Prime Minister did to the nation 97 times. We've heard the excuses that tried to walk back that promise, and we haven't heard that promise repeated in this place. But it's important to note that that promise was made 28 times after the invasion of Ukraine. He looked down the cameras into the eyes of millions of Australians and was so desperate to be sitting on those benches that he kept repeating that promise, and he now acts like it doesn't exist. The member for Hasluck will forgive us when we take those words and say that they are, indeed, well chosen and ones that the Prime Minister should have adopted.

I've said on many occasions there were lessons to learn for our party, and we have heard from the crossbench, from the other side, and even from our own side that integrity was up at the top of the list. There is no more important example of integrity than when you give a promise, you keep a promise; that you will be judged by what you do, not what you say; and you will be particularly judged by what you do after you no longer have a reason to hold on to a falsehood. And that's what we are talking about here.

Government Members:

Government members interjecting

Photo of Keith WolahanKeith Wolahan (Menzies, Liberal Party) Share this | | Hansard source

Members opposite, you seem quite perplexed as to why these MPI discussions keep coming before you. You seem quite confused as to why we're repeating it. The clue is in the title.

Government members interjecting

If there's a pause in interjections you might want to listen to this: 'the government's continuing failure'—'continuing'. Many treasurers from the Labor Party have sat opposite and quoted in their essays and papers John Maynard Keynes, but they're missing this quote that's attributed to him: 'When the facts change, I change my mind.' We never hear that from those opposite. That's why we have here a continuing failure. If that failure is addressed, these MPIs will stop. They will stop; I promise.

Government members interjecting

I look you in the eye and say, 'These will stop.' They'll stop, because the failure to address the cost-of-living crisis a real thing. Don't trust me; trust the Edelman Trust Barometer about what Australians think of this place. In a survey of 28 countries, when Australians were asked about trust for government, it found that 45 per cent now distrust government.

Photo of Louise Miller-FrostLouise Miller-Frost (Boothby, Australian Labor Party) Share this | | Hansard source

It was because of you.

Photo of Keith WolahanKeith Wolahan (Menzies, Liberal Party) Share this | | Hansard source

No, this was taken afterwards; this was taken on your watch.

Government members interjecting

No, this was taken on your watch. November 2022—I'm pretty sure the election had happened before that. So this is about your watch. Nothing is more important, with trust in government and trust in you, than the promises made prior to the election.

There are a lot of interjections. I note that side doesn't like being asked questions lately.

Photo of Sharon ClaydonSharon Claydon (Newcastle, Australian Labor Party) Share this | | Hansard source

The member for Hasluck and the member for Boothby will tone down the interjections, please.

Photo of Keith WolahanKeith Wolahan (Menzies, Liberal Party) Share this | | Hansard source

We see that the number of Australians who think our country is more divided today than in the past is at 45 per cent. Again, it was in November 2022—on your watch. The number in Australia who say that the lack of civility and mutual respect is worse than they've ever seen—this is a good time for more interjections please—is at 61 per cent. It has never been worse. The number for those who say that the social fabric that once held this country together has grown too weak to serve as a foundation for unity and common purpose is at 54 per cent.

Australians are sick of the ideology, of course, because—let's be honest—no-one in this place is earning a salary that means that when they open a bill for their electricity or other utilities they have to think twice, or that when they're standing in the queue at Coles, Woolworths or the IGA they have to put things back on the shelves. None of us earn a salary that makes us ask those questions, but most Australians do. They're not just making those sorts of sacrifices; they're lining up in Foodbanks across the country. In my electorate, there are six of them. I've visited them, and the queues are longer than they've ever been. They're mostly full of women who are in broken relationships and have children sitting in the back seat of their car. So you can jest, but this is a serious matter and we hope that there is some action from those opposite.

4:16 pm

Photo of Tony ZappiaTony Zappia (Makin, Australian Labor Party) Share this | | Hansard source

Today's cost-of-living pressures are as a result of nine years of incompetence and negligence by the former coalition government. For the Manager of Opposition Business, the member for Bradfield, to bring this motion before the House, when he was a senior member of the last coalition government, quite frankly is appalling, in the sense that he takes no responsibility for a government that he was a senior member of.

Inflation, interest rates, energy costs, food costs, health costs and housing costs were all on the way up in May 2022 because of the Morrison government's failure to manage the economy. The only thing that didn't go up, as other speakers on this side of chamber have made absolutely clear, is wages. They remained stagnant for almost the whole nine years that those opposite were in office. Every day that the coalition raise the cost of living in this House they are reminding the Australian people of their own incompetence. The Australian people understand that economic conditions don't change overnight, that they actually change over long periods, and, for that reason, it will take the Albanese government time to repair the mess that we inherited. It seems to be part of history: every time Labor come into office it's time to repair the mess. We have found that again this time.

I'll briefly talk about some of the issues that go to the heart of the cost of living, which is what we are talking about today. I'll talk about interest rates. The first interest rate rise occurred under their watch, and it was very clear at the time that interest rates were on their way up. Interest rates were on their way up because inflation was rising, and inflation was rising because of the mismanagement of the economy by those opposite. Inflation is caused by a number of factors. I'll touch on only some of them, because time won't allow me to go through them all. First is energy costs, possibly one of the most important drivers of inflation at the moment. The member for Hume, just prior to the election, hid the truth about energy costs because he knew they were rising and he knew that they were rising because of failures on the part of the coalition government at the time. What policies did they have in place to manage price rises? Absolutely none. Then, when the Albanese government brought into this parliament legislation which capped the price of gas, which has made a difference, what did those opposite do? They opposed it. Again: no thanks to those opposite for trying to help the Australian people, who generally are struggling with the cost of living.

Let's turn to food prices for just a moment. Food prices come about because of supply and demand. Supply and demand are directly impacted by extreme weather events—in other words, weather events which are becoming more frequent and more severe because of climate change. And where were they on climate change? Doing absolutely nothing. So if you want to blame this government for the problems of today, look at your own history, where you didn't act when you could have.

With respect to extreme weather events, one of the issues that is hitting families hard right now is insurance costs—again, as a result of those weather events. Insurance costs have skyrocketed to the point that some people simply cannot afford them, because insurance companies have to wear the costs every time there is major flooding or major fires, and those costs have to be shared throughout all of their policyholders.

I'll turn to health costs for a moment. After nine years, we had a health system in absolute crisis. Bulk-billing rates were going down, there were doctor shortages across the country, the aged-care system was in crisis—all because the previous coalition government starved all of those areas of funding. They come in here and talk about the cost of living. It's because of their negligence over so many years, across so many portfolio areas, that we face cost-of-living pressures today.

This government, to its credit, is gradually working through all of those issues, whether it's getting wages moving, cheaper medicines, cheaper child care, expending paid parental leave, controlling energy prices, or offering more affordable housing. All of those areas will make a difference, but they're not going to get through unless we get the support of this parliament, and they won't go through overnight.

4:21 pm

Photo of James StevensJames Stevens (Sturt, Liberal Party) Share this | | Hansard source

They won't go through overnight. We never heard that in the election campaign when the now government wanted to talk about the cost of living. There were all sorts of famous, unbelievable things they were going to achieve on day one, first amongst them the $275 decrease in electricity prices.

A couple of weeks ago, the people of South Australia heard the terrible news that the default market offer in my home state of South Australia is going up by more than 21 per cent on 1 July 2023. That $275 commitment by 2025 is going to be hundreds and hundreds of dollars more after you take into account how much increase is happening in the intervening period if those opposite want to claim that they are still going to achieve that.

Government Members:

Government members interjecting

Photo of James StevensJames Stevens (Sturt, Liberal Party) Share this | | Hansard source

I appreciate them putting that—sort of—on the record by interjection. I'll repeat into Hansard that the interjections were that yes, that promise is going to be achieved by 2025. We on this side look forward to monitoring that and watching it very carefully and very closely.

The most terrible cost-of-living pressure at moment for Australian families is the dramatic reduction in real wages under this government. If the Australian Bureau of Statistics are wrong, it's up to you to dispute your own government agency, but we certainly think that they are accurate, and we certainly don't dispute that inflation in the December quarter annualised ran at 7.8 per cent and wages growth ran at 3.3 per cent. That is a disgrace. Real wages are going backwards at the highest amount in decades. You've got a particularly unique record in the government, which is the highest reduction in real wages for decades. While people are doing it so tough, with their wages going backwards, in my home state of South Australia electricity bills are going up by more than 21 per cent. Again, that's the government regulator. That's the AER. They put that statement out a couple of weeks ago. They said that electricity prices in my home state under the default market offer are going up by more than 21 per cent. Nine interest rate rises since the election. Interest rates are going up at the most dramatic rate in decades, and you have to go back to the dark days of that Keating recession that we had to have to see any of these sorts of statistics replicated—mortgages going up so rapidly, electricity prices going up so rapidly, inflation running at 7.8 per cent and real wages going down.

These are the things that the people of this country care about and are worried about, and I know previous speakers are mocking the fact that we're having a debate about the cost of living. What else should we be talking about if not the most significant challenge facing each and every Australian right now, which is their relative standard of living going backwards on every competent, clear metric of what people face in the household budget, whether that's utility prices, rents, mortgages, putting food on the table, family holidays, or whether or not the relativity of their pay packet against those increasing costs is going up or down? We know from the Australian Bureau of Statistics that it is going down. That is the fate of the average family in this country right now under Labor. Those are the statistics speaking. There is no spin on that. That is the reality of the government agency which we all believe and trust to produce credible statistics on our economy, the Australian Bureau Statistics. They see wages going backwards, electricity prices going up, rent going up on and mortgages going up.

Regrettably, it is only going to get worse because the electricity determinations are for a future point in time. Electricity is going up in my home state on the default market offer by more than 20 per cent. So inflation is at 7.8 per cent and people have that fate to look forward to in the future. So, in three months time, however hard it is to pay your electricity bill now, it will be 21.3 per cent harder in the state of South Australia. That's in the future under this government.

What are the government doing about it? They brag and say that people should be grateful about the fact that prices haven't gone up by more than 21.3 per cent. That's the retort from those opposite—that people in this country should be grateful that it's not worse that 21.3 per cent. What a disgraceful proposition and what a complete abrogation of responsibility for the most important issue facing families in South Australia, my home state, right now, which is the cost of living. There is no plan. They are just sitting back and letting these prices go up more than 20 per cent. All they want to do is talk about the previous government because they have nothing to talk about as a positive plan for the future. Next election, there will be a chance to change that dramatically.

4:26 pm

Photo of Fiona PhillipsFiona Phillips (Gilmore, Australian Labor Party) Share this | | Hansard source

In 2023 we should be optimistic about the future but realistic about the challenges coming at us from around the world. I think people in Gilmore know that we have a lot happening. Australians understand that we didn't create the inflation challenge in our economy, but they certainly elected us to take responsibility for addressing it—and we are. I'm pleased to say that, since being elected last year, the Albanese government hasn't wasted any time. Our sensible and equitable measures are already helping Australians deal with cost-of-living challenges, to put it simply.

The Albanese Labor government are putting downward pressure on everyday costs for everyday Australians and we are getting wages moving. We had almost a decade without a coherent energy policy. One of the fastest growing costs for households and businesses is energy. Since elected, we have taken urgent action to shield Australian families and businesses from the worst of the energy price spikes. Our energy price relief plan has helped by limiting the price of coal and gas and providing energy bill price reductions for those who need it most, like pensioners, seniors card holders and small businesses, all while investing in cleaner, cheaper, more reliable energy. Since the announcement of the intervention, forward prices have dropped significantly from what they would have been. That is the real signifier that this energy price relief plan is working. While we're doing our best to address the rising energy prices, it's important to mention that those opposite voted against targeted energy bill relief for thousands of Australian households and businesses.

Another big pressure on household budgets I hear about on the new South Wales South Coast is the cost of health care and, for that matter, the increasing difficulty accessing GPs and medical services. That is why I am delighted that Australians will now pay up to 30 per cent less for prescription medicines on the Pharmaceutical Benefits Scheme, with the maximum co-payment dropping from $42.50 to $30. This is a huge win for my community on the South Coast.

We are delivering Medicare urgent care clinics, including one at Batemans Bay, further helping with the cost of living. That's something to be proud of. We have also made it easier for GPs and nurse practitioners to move to the New South Wales South Coast by removing or reducing their study loans if they work in the regions. We want to attract and retain GPs in our regions. This has a direct impact on the cost of living in my region by attracting people who want to work in health. It also lowers the amount of time that people need to travel to receive medical treatment, saving time and money.

Before being elected, I worked as a TAFE teacher. I know the difference vocational education can make in regional communities both for students and for local businesses. Unfortunately, education can be a prohibitive expense for some. That is why I am so happy that we are providing fee-free TAFE places in industry skills shortage areas. These places are in the areas that our communities need the most, like construction and early childhood education. Fee-free TAFE will encourage people to upskill and work in critical areas that we all benefit from, including local businesses.

We're not just offering TAFE places in early childhood education, though. We're also making child care cheaper. In less than 100 days, 96 per cent of families will be better off, with cheaper child care, and no family will be worse off. That's over 1.2 million families who will be better off. In Gilmore, around 4,800 families will benefit from cheaper child care. Making child care cheaper doesn't just benefit thousands of families. It boosts workforce participation and helps local businesses. That is a great outcome.

If those opposite want to really do something to help the cost of living for households and businesses, they should just back our Housing Australia Future Fund, because one of the biggest things I hear is the lack of affordable and social housing. We are getting on with our plan to help fix this, but they need to back in that plan. These are just some examples, and there are still more to come. Make no mistake, the Albanese Labor government is addressing the cost-of-living pressures in a sensible, equitable and compassionate way.

Photo of Sharon ClaydonSharon Claydon (Newcastle, Australian Labor Party) Share this | | Hansard source

The discussion has now concluded.