Tania Lawrence (Hasluck, Australian Labor Party) Share this | Link to this | Hansard source

I move:

That this House:

(1) acknowledges that the Government is working to relieve the cost of living pressure for Australians on low and fixed incomes, with around 5.5 million Australians receiving an increase to their income support payments and pensions on 20 September, as a result of:

(a) indexation; and/or

(b) the boost to income support announced in the May budget as part of the $14.6 billion cost of living package; and

(2) notes the changes include:

(a) increases to the rates of working-age and student payments, including:

(i) Jobseeker;

(ii) Youth Allowance;

(iii) Austudy;

(iv) Parenting Payment Partnered;

(v) Youth Disability Support Pension; and

(vi) ABSTUDY;

(b) expanded eligibility for the higher rate of Jobseeker to those aged 55 and over, who are on payment for nine continuous months or more (down from 60);

(c) expanded eligibility for Parenting Payment Single, to single principal carers until their youngest child turns 14 (up from 8);

(d) increases to the maximum rates of Commonwealth Rent Assistance, the highest in more than 30 years;

(e) indexation increases for recipients of the Age Pension, Disability Support Pension, Carer Payment and veterans on a service pension;

(f) indexation of the income limits for Commonwealth Seniors Health Card recipients; and

(g) other supplementary payments including Telephone Allowance and Utilities Allowance which are also being indexed.

The country has great and imperative obligations to the weak, the sick, the unfortunate. It must give to them all the sustenance and support it can. We look forward to social and unemployment insurances, to improved health services … to a better distribution of wealth, to a keener sense of social justice and social responsibility.

These are the words of Robert Menzies when social justice was a shared goal of the major parties in this country back in 1944. The Albanese government is getting on with the job in working towards that vision, now abandoned by the opposition. We seek to ensure that no-one is left behind because financial stress affects people's health, happiness, opportunities and life choices. The stress experienced by an individual is never theirs alone, but also shared by their family, friends and the community at large.

The Albanese government understands and respects that at different times of our lives we will need or benefit from support, and that support can mean the difference between being able to access opportunities or otherwise suffering and being shut out of full participation in society. This is always true, but more so at a time when inflation, due to compounding international factors, is heightened and cost-of-living pressures more keenly felt. This government is committed to boosting payments, indexation and providing cost-of-living relief to those who most need it, evidenced by the $14.6 billion package announced in the May budget. And on 20 September, increases in the Commonwealth allowances took effect. These permanent changes will make life better for over 5½ million people—wholly one in five Australians. Back home in Hasluck, and in each and every electorate around the country, this works out, on average, to be more than 35,000 people who will directly benefit, and their families around them will benefit too.

For children and parents, single parenting payment recipients have seen the base payment rise to $942 a fortnight. Single parents transferring to this payment after the government extended eligibility in the May budget to cover children up to 14 years of age, up from eight years, will have seen a substantial increase of $227.50 per fortnight, including supplements.

For those looking for employment or upskilling, single jobseeker recipients have received a $56.10 increase per fortnight, the largest single permanent dollar increase to the jobseeker benefit ever in Australia's history. Adult Abstudy recipients have also received this increase, and partnered jobseeker and parenting payment recipients have received an increase of $54.80.

Of course, for those who find work, we have legislation in the parliament now to ensure that people are not cheated and that workers receive proper protection and a fair day's pay for a fair day's work. For those looking for housing, despite those opposite—those in the Liberal and the National parties—voting against it, we have passed the Housing Australia Future Fund, which we were elected with a mandate to deliver. Additionally, over 1 million households will benefit from a 15 per cent increase in rent assistance.

For seniors, people living with disability, carers and veterans, as a result of indexation there have been substantial increases to the age pension, the disability support pension and the carer payment. Single veterans will have received an increase of $32.70, and those on the disability special rate have received an increase of $53 per fortnight. There will also be an increase in educational allowances for veterans and increases to income limits for the seniors health card and other benefits. Further, this government has extended eligibility for the higher rate of jobseeker to many people aged 55 years and over. And let's not forget that this is the government that has brought about cheaper medicines, taken measures to assist with energy price increases, supported minimum wage increases and supported a substantial increase in the wages of aged-care workers.

Next month, our targeted support for Medicare takes effect. Bulk billing is the beating heart of Medicare, and after nine years of cuts and neglect by the former government we know it's never been harder or more expensive to see a GP. That's why the Albanese Labor government is tripling the bulk-billing incentive—the largest ever increase in the 40-year history of Medicare.

Targeted support is not just a great thing for the individuals and families that will receive these benefits. In many cases, it also has an anti-inflationary effect. It enables spending on essentials and small businesses, and it is good for the economy at large. The increase in financial support that the Albanese government is providing during these difficult times is about meeting the needs of families around this country, helping individuals experiencing stress and enabling people to live their lives and access opportunities with dignity. (Time expired)

Rebekha Sharkie (Mayo, Centre Alliance) Share this | Link to this | Hansard source

Is the motion seconded?

Louise Miller-Frost (Boothby, Australian Labor Party) Share this | Link to this | Hansard source

I second the motion and reserve my right to speak.

Jenny Ware (Hughes, Liberal Party) Share this | Link to this | Hansard source

I rise to speak about this motion that deals with the cost of living. At the outset, I will say that it is refreshing to see a member of the Albanese Labor government who now actually wants to bring forward a discussion on the cost of living. However, with all respect to the member for Hasluck, this motion does not deal with the issues on the cost of living that I am hearing about throughout my electorate.

What is not being spoken about in this motion is telling. It does not talk about Australian families struggling daily with the escalating costs of living, which has been occurring since May last year. It does not talk about the cost of energy. It does not talk about mortgage repayments. It does not talk about rents. It does not talk about the cost of fuel, the increasing cost at the supermarket check-out or the increasing cost of insurance premiums. It does not talk about the fact that real wages have dropped under the Albanese Labor government. It does not talk about productivity and what plan the government has, if any, to address productivity. It does not talk, overall, about what the government's intention is to combat inflation.

Let's turn to some of these headline issues. Australians are now paying more than ever for their electricity. There is still no effective energy plan. The energy plan that has been introduced by Minister Bowen, instead of delivering the promised $275 cut, means that Australians are now paying at least 15 per cent more in energy costs than they were paying one year ago. There is no sign of any reduction in gas costs, which are up by 14 per cent on latest data. Fuel prices continue to climb, with unleaded petrol typically past $2 a litre. In my electorate, the electorate of Hughes, I have not been able to find a service station where we can purchase petrol for under $2.36 a litre, and rates are significantly higher in the regions.

A third of my electorate hold a mortgage. An average Australian family with a mortgage of $750,000 is now paying $22,000 more a year than they were just a year ago. And the Albanese Labor government has not said what it is going to do to help these Australians. Australians in private rentals are paying on average at least 15 per cent more than they were a year ago. The government needs to put forward a back-to-basics economic agenda that will put fighting inflation and driving productivity growth at its centre. Inflation, overregulation and low productivity are the main problems now facing the Australian economy.

Turning to productivity, we are now in what is called a per capita recession. That means we've had two quarters where growth per person, growth per Australian, is negative. Outside of the pandemic, this is the first per capita recession we've had since the mid 2000s. This means that economic output per person is going backwards. And we've heard nothing from the Albanese Labor government. What assistance is it going to give to business for this? What assistance is it going to give to increase the productivity of all Australians?

This is what Australian families and businesses are feeling every day. It's what people in my electorate of Hughes have been telling me as I've been moving around the electorate. Cost-of-living pressures are not just an economic issue; they're also a social issue. Lifeline and beyondblue are now reporting that more than 80 per cent of calls are being made by Australians saying they are suffering from cost-of-living stress and personal debt. So, this has now moved beyond just an economic argument. It is now something that this government needs to address. It needs to address it quickly. It needs to stop being distracted by other issues and stop trying to distract Australians, because Australians know what their real issue is, and their real issue is cost of living.

Sam Rae (Hawke, Australian Labor Party) Share this | Link to this | Hansard source

I'm very proud of the work the Albanese Labor government is doing to ease the cost-of-living pressures that people in my electorate are facing. We know that Australians are doing it tough as inflation hits hip pockets around the country. Since early last year, when inflation and interest rates started rising in the dying days of the former Liberal government, Australians have been forced to pay more for the things they can't do without. That's why the Albanese Labor government's priority has been and continues to be addressing inflation and the cost-of-living challenge it presents.

The Albanese Labor government's 10-point plan to address cost-of-living pressures is about providing targeted and responsible relief where it's needed most. The $23 billion of support is providing electricity bill relief, cheaper child care, cheaper medicines and more affordable homes, just to name a few. While relief is at the centre of our economic plan, we're also looking at repairing the damage done by the mismanagement of the former Liberal government. We've already delivered the first budget surplus in 15 years, and inflation is finally moderating. Wages are growing, after a decade of deliberate suppression under those opposite, and a record 550,000 jobs have been created.

While this shows the economy is improving under our stewardship, there is still some way to go as Australians continue to face the financial pressures we all feel at home. Australians on low and fixed incomes are doing it particularly tough. That's why a boost to income support was included in our cost-of-living relief package in the May budget. As of 20 September, 5.5 million Australians who receive income support saw an increase to their payments as well as an expansion of eligibility to ensure more people are getting the support they need. This included the largest increase to Commonwealth rent assistance in 30 years, an expansion of eligibility for the single parenting payment and increases to payments including JobSeeker, youth allowance, partnered parenting payment and more. The Albanese Labor government are boosting these payments because we are committed to ensuring vulnerable Australians are not left behind in times of economic hardship.

That's why we're ensuring other basic necessities are more affordable as well. Our intervention in the energy market has kept wholesale prices lower, while our energy relief program will provide more savings for concession card holders. Similarly we're making health care cheaper and more accessible. We've already reduced the cost of filling a script at the pharmacy by $12.50 and started rolling out 60-day prescriptions, effectively halving the cost of medications included in the program. From the start of next month we're tripling the bulk-billing incentive, the largest increase in history, to increase access to bulk-billed GP appointments for concession card holders and kids.

After inheriting a trillion dollars of Liberal debt, stagnant wage growth and an economy that had experienced in the worst decade for productivity in over 50 years, this Labor government is getting on with the job of cleaning up the Liberals economic mess. We understand that while providing responsible relief to household budgets we must also do what we can do drive down inflation. That's why we're investing in our economy where the previous government chose not to. We're making significant investments in economic capacity and productivity. The $15 billion National Reconstruction Fund will enhance Australian manufacturing capability and ensure Australia is a country that makes things. Our fee-free TAFE program, which saw 215,000 people enrol in just the first six months, will help ensure we have the skilled workers we need to grow our economy into the future. These measures are about laying the foundations for future growth and ensuring we are better prepared for global economic challenges in the future. We can't afford to repeat the decade of inaction and neglect we saw under those opposite. Labor's plan will ensure that our economy is resilient, it's sustainable and it is prosperous for all Australians into the future.

Pat Conaghan (Cowper, National Party, Shadow Assistant Minister for Social Services) Share this | Link to this | Hansard source

I rise today to highlight the extreme cost-of-living pressures so many in my electorate of Cowper are facing and the very real needs of middle Australia and those men and women who are now becoming Australia's working poor. I've listened to those opposite congratulate themselves for increasing payments to those who are already on some form of payment or welfare—and credit where credit is due, so they should have; they are struggling just as much. But recently I conducted a survey throughout my electorate, and it was a cost-of-living survey to understand why pensioners, single parents and those with disabilities are finding it tough. People are being forced to choose between eating and heating or medicine and groceries or limiting their time at home because the cost of fuel has rocketed. Given those examples, sitting here listening to speakers on the other side, where are the solutions? Where are the policies? It's not just about handing out money. There are so many holes in Labor's cost-of-living strategy bucket. We're pouring money into the top, and it's flowing out of the bottom. Where are the strategies to plug those holes at the bottom of the bucket?

We talk about reducing electricity prices. The last speaker said electricity prices are going down. He needs to visit my electorate, where prices have gone through the roof, over 30 per cent. Some may say, 'You need to go to renewables.' In my survey I asked, 'Do you have solar?' Over 65 per cent of those who responded said, 'Yes, we have solar.' That included rental properties. Only two per cent had batteries. I'll give you this idea for free: how about some subsidies for batteries for people in the regions—or even it in the cities, to make it fair. For policies and strategies to plug that bucket, instead of trampling all over our agricultural land, look at different ideas. Regions like mine don't want to spend that money. But they understand that this is where we're going, and they will try anything to push down those skyrocketing prices.

A division having been called in the House of Representatives—

Sitting suspended from 17 : 56 to 18 : 07

Returning to the cost-of-living crisis in the regions and policies by Labor, many of them in fact impact negatively on people in regional and rural areas. One of those policy areas is cheaper child care. While I accept that it may assist people in metropolitan areas, I've just spent two days in Coffs Harbour and Port Macquarie meeting with childcare educators who are operating at 60 per cent capacity because they can't find the staff. Because of that they have waiting lists of 200 to 300 children even in the smaller townships such as Kempsey. So while Labor might say, 'We are making cheaper childcare', what they should doing is putting policy out there to create areas where we get more workers, more educators into the regions.

In addition, they talk about cheaper medicines. By bringing in the 60-day dispensing rules, what we've seen as a direct result is services that were previously provided free by community pharmacies, such as Webster dispensing and delivery, people in my electorate are now being charged $5 a week for the Webster-paks and $5 a week for delivery. That's $520 a year in addition to what those people were paying, over and above.

Finally, in terms the skyrocketing cost of fuel, not too long ago Anthony Albanese, before he was Prime Minister, tweeted to the Morrison government 'Fuel is at $2.15. What's the Prime Minister going to do about it?' Well, fuel is now at $2.30. Prime Minister, what are you going to do about it?

Matt Burnell (Spence, Australian Labor Party) Share this | Link to this | Hansard source

I rise to speak in favour of the motion moved by the member for Hasluck in this place on the cost of living. Usually when it's my turn to speak on the cost of living it's during an MPI and we're arguing against many an argument the opposition continues to put forward. Some of those claims are entirely debunked, yet they continue because that's what the talking point sheet says. I feel we are somewhat at a disadvantage today, coming into this debate after a question time where cost of living was on the forefront of the agenda. It's fair for the opposition to ask these questions of the government. It's telling that the Albanese Labor government is coming into parliament during question time on the front foot, leading with this government's move to take the cost-of-living pressures off everyday Australians.

Many of those on the other side of the chamber were of course part of the government that was so glacial and reactive that it literally took a global pandemic event to make any slight movements themselves to assist people who were in many cases already out of work due to pressures from the pandemic. The tail of circumstances always wagged the dog of the Morrison government.

Thankfully we now have a government at the helm that is proactive, a government that acts in a responsible way to assist families with cost-of-living pressures. Yet we have a opposition who now criticise the government for not being able to forecast the length of the illegal war that Russia still continues to wage in Ukraine. We do not blame the former government for the entire COVID-19 pandemic, but we must now, as a government who has inherited the Treasury benches they once occupied not too long ago, deal with the complications and spending that the Morrison government put in place to combat the sharp economic downturns that many countries face during that time, though it could be argued that the trajectory was moving downward for us prior to the pandemic.

But just the same, a government in theory must traverse external pressures from broad when attempting to mitigate their efforts at home. Even at home those opposite failed to mention the inflationary pressures and climate necessitating interest rate increases that existed prior to the election that saw them turfed out. They do have considerable form for employing tactics reliant on the Australian people forgetting events that were both uncontroversial and on public record too. Inflationary pressures and interest rate rises were extremely common across the world in other countries, much like the previous government spent where it could to try to avert a number of imminent effects of the pandemic on our shores.

Luckily, those opposite are now confined to backseat driving in our public discourse, confined to the sidelines, being an opposition of protest rather than one that can be an adult of the table and be a driver of economic reforms which, as they would full well know, this government foreshadowed long before they were elected. But time and time again during the life of this parliament those opposite, even when contrary to the opinions of their natural allies like the Business Council of Australia, to name one, had offered support of legislation such as the National Reconstruction Fund. They even blocked measures to give Australians cost-of-living relief with their power prices. But they will say that we are not doing enough.

We are happy to address the opposition's concerns with fact. We must enact cost-of-living relief in a measured approach, lest those opposite say that any measure enacted is inflationary—which they have also done, for what it's worth. Our government is proud of delivering not just the first budget surplus in 15 years, though we don't have the mugs to prove it. We are seeing wages on the up, swimming against the tide those opposite put in place to bake low wage growth into the foundations of our economy. We have a 10-point plan that we will, every single day that the opposition wants to talk about cost-of-living relief, combat their base political argument with facts. We have made medicines cheaper for Australians. We have boosted income support payments. We have made hundreds of thousands of fee-free TAFE placements to take that cost away from those who want to upskill themselves and increase their potential earning capacity. After a long and terse stand-off that those opposite were a large part of, we are getting on with the job of providing affordable homes for Australians.

Sooner rather than later the coalition will have to make a choice about whether to be constructive in their criticism or remain critical in their criticism. I have absolute faith that the Australian people can tell the difference. They certainly will after the effects of our policies are fully felt after many global pressures subside. We will continue to fight for Australians. We will continue to fight against those opposite complaining that we aren't doing enough, when they have fought tooth and nail in this place and the media to prevent it.

James Stevens (Sturt, Liberal Party) Share this | Link to this | Hansard source

I'm not sure if this motion is the beginning of the government's attempt to suggest to the people of this country that they understand and are doing something about cost-of-living pressures, because it is a remarkable proposition to congratulate yourself for merely increasing payments indexed to inflation. That in real terms is no increase whatsoever. I suppose it belies the truth: how much this government has no appreciation of how tough it is out there for the average Australian family and the average Australian household.

The people of this country want a government that is focused on the issues that they care about and the issues that are impacting them. No. 1 on their list is the cost of living; No. 2 is the cost of living; No. 3, closely, is the cost of living; and then No. 4 and No. 5 are a tie for the cost of living. Those are the issues that the people of this country are talking about at barbecues, around the kitchen table and in the workplace.

A message was sent to this government very clearly on Saturday that people want to see this government focus on issues that are concerning them, and I'm sure a lot of Labor members are reflecting on just what the results in their own seats are saying about what their communities think of how in touch or not they are with those challenges. I commend the member for Macarthur, who has been very honest and open. He said things on the record in the media today. Other Labor MPs have not, of course, put their name to comments, but I think that many in the government are finally realising that they need to take seriously the enormous pressure that is being felt by Australian families and Australian small businesses.

This is a motion congratulating the government on the cost of living. Well, no-one stops me in the street and says, 'I'm so glad I've got a government that's really addressing the cost of living.' Ever since the government changed and Labor came in, no-one has told me that it's easier to meet a mortgage payment. No-one has told me that it's easier to pay a power bill. No-one has told me that it's easier to save and buy their own home. No-one has said, 'When I go to the checkout at the supermarket, I get a very pleasant surprise.'

In fact, of course, I am hearing the absolute opposite, as is, I'm sure, anyone that's actually in their communities. People are saying that they're having to make such difficult decisions—things like cancelling family holidays and taking on second jobs or more shifts. They're worried about whether they can keep their children in a particular faith based school that they've chosen to send them to, because all those costs are going up. The absolute necessity costs are skyrocketing, whether it's shelter, rent or mortgage payments, or buying fresh fruit and vegetables. Some people are saying: 'I don't buy fresh fruit and vegetables anymore. I go to the freezer section because it is actually too expensive, on my fixed income, to purchase things I used to be able to comfortably purchase, because of the way in which prices are going up.' That's the circumstance people are in.

Imagine you're a family that usually goes up to Port Broughton, if you're from Adelaide, or another holiday spot for the long weekend. Maybe you stay at the local caravan park or a home that you've usually hired over the years. Imagine saying to the kids: 'We're just not doing that this year. That holiday that we always look forward to just won't be happening because our household budget is absolutely crunched at the moment.' Every time you get an envelope with a logo of one of the utility companies, you think: 'Wow, I don't even want to open that right now. I might leave it a day or two, because every time I open a power bill, even though I expect it to be going up—because that's unfortunately what I've been conditioned for—the velocity of those increases are just frightening.' In South Australia, there are stories of increases of more than 20 per cent in the average household power bill since July. That's the reality out there.

We've got a motion before us with a government saying that they're really proud of things like indexing support payments to people. All that means is that they're keeping up with the spiralling costs that are burdening the average person. Of course, inflation is a broad measure. Increasing payments by inflation is not anywhere near meeting the increase in your power bill or the increase in your rent. Those sorts of costs are going up in this economy way more than inflation is going up. So it is really tough out there right now, and it's a little bit galling to have a government come here and congratulate themselves on a topic that the average Australian thinks they are absolutely failing on. I hope that they take note of some of the messages that were sent to them from some of their safest electorates on the weekend and recognise what the people of this country want them to be focusing on, which is cost-of-living relief.

Bridget Archer (Bass, Liberal Party) Share this | Link to this | Hansard source

The time allotted for this debate has expired. The debate is adjourned and the resumption of the debate will be made an order of the day for the next sitting.