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

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

How the Government's spending spree is being paid for by everyday Australians in their tax returns, electricity bills, mortgage statements and their difficulty finding a job.

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—

Ted O'Brien (Fairfax, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

I'm disappointed that the Treasurer isn't here today for this debate on the Australian economy. I don't know why that is.

Alex Hawke (Mitchell, Liberal Party, Shadow Minister for Industry and Innovation) Share this | Link to this | Hansard source

He's scared!

Ted O'Brien (Fairfax, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

He could be scared. But this is an opportunity for the Treasurer, if he wants to get down here. He can have 10 free minutes talking about himself and showering himself with compliments, which he loves to do. To his staff, who are no doubt looking from his parliamentary office: can you drag him from the bathroom where he's looking at the mirror, blowing kisses to himself, and see if he can come and talk about the Australian economy. It was said that if one learns to love oneself, it begins a lifelong romance. I daresay the Treasurer, on that count, is probably the most romantic person in the parliament!

Yesterday, we had news on inflation. Inflation hit the highest rate it has in about 2½ years, which speaks to the pain felt by Australian households and dashes hope for those who were looking to next week's RBA meeting in the hope that they might get a cut in their interest rates. I thought I'd do the right thing on behalf of the parliament, and the Australian people, and ask the Treasurer a question about the inflation rate. You know what he did? He didn't even address it. He talked about himself. I've taken this from Hansard. He said that he takes credit 'when things go well in the economy'. When things go well in the economy, the Treasurer takes credit. He also said that he takes credit 'when inflation comes down'. But yesterday inflation did not come down; inflation went up, to 1.3 per cent over the September quarter. That's 3.2 per cent over the year. This breaches the band of the Reserve Bank of Australia. This exceeded the forecast. This was an absolute miss from what was expected, and it spells trouble for Australians.

This surge in inflation that we saw yesterday, as the ABS delivered the data, is a direct consequence of the Treasurer's spending spree. You only have to look at the data to see that this government is spending out of control. This is the highest-spending government in 40 years outside recession—40 years. This government has lifted spending as a percentage of GDP from 24 per cent to 27 per cent. And, this financial year alone, Labor is spending an additional $160 billion compared with the coalition's last budget—$160 billion. On a household level, that equates to about $16½ thousand extra that this government is spending.

What have we got to show for it? Well, a poorer country, a weaker country, and a country that's becoming more dependent on foreign supply chains. I don't know whether you know this, Deputy Speaker, but government spending is growing at four times the pace of the Australian economy. That says it all. When it comes to debt, as a result of this government's spending, an extra $100 billion has been added to the national credit card. So debt's going to hit $1.2 trillion by the time of the next election. And this government will pretend that that's fine. But if you think of the children of Australia, if you think of those who are yet to be born and will be citizens of this country, they are the ones who will have to pay for your spending spree. They're the ones who are indebted. Every single minute that goes by, $50,000 gets paid on Labor's debt—$1.2 trillion.

Government members interjecting—

The MPs can laugh, but we are talking about the next generation. You are saddling them with debt. This is more than just an economic argument. There is a moral obligation on those who are in charge of the treasury benches to not saddle the next generation with debt. So, scoff all you like, as a Labor government, but it is the next generation of Australians that the coalition is defending.

It might be fair enough to ask, how is it that this government has decided to just go and spend? Well, the government have been the beneficiaries of the greatest revenue windfall in the history of Australia: $400 billion. A responsible government would not have done what the Treasurer did—put his hand in the cookie jar and baked more spending into his budget. The problem is, once the windfall is over, you've baked in more spending, which is why now we have a problem. Not only is this government racking up up to $1.2 trillion in debt but its own plan is another decade of deficits. And people keep paying for this. As you spend more, as you pour more money into the economy, prices rise. That's what we saw in yesterday's figures. It is why the Australian people are the ones who pay. Money is not free. If you rack up debt, if you run deficits, it comes at a cost, and it's the Australian people who pay. They know they pay when they go to the supermarket. Food prices are up by 15 per cent. Australians know they pay when they pay their education fees. Education is up by 17 per cent. They know they pay when they look at housing prices and rents—up by 17 and 19 per cent, respectively. Australians know they pay for Labor's spending spree because insurance costs are up by 37 per cent. There's one thing Australians really know they pay for, and that's Labor's electricity bills. I don't know if you're aware of this, but Labor actually went to the election, before, promising a $275 reduction in household power bills. Bills are up over a thousand dollars. In fact, electricity prices have gone up 39 per cent under this government; gas, 38 per cent.

These are the real-life consequences of Labor's spending spree. When you are in the supermarket next and you're saying, 'My Lord, the prices have gone up,' that is due to the Treasurer's spending spree. When you can't pay the school fees, that is due to the Treasurer's spending spree. When you see that you, as an average mortgage holder, are paying an additional $1,800 a month in interest payments, that is due to the Treasurer's spending spree.

But, in the absence of a revenue windfall, what do you think the Treasurer can now do? There's only one thing he's now thinking about. It starts with T. It's a three-letter word: T-A-X—tax. We have the Treasurer now gunning for tax. We knew that, because the only plan he had was to tax unrealised capital gains, and I invite all those Labor members who thought that was a good idea just to stand in their places or give us a wave. Whoopsie-daisy! He didn't have much support for that—the taxation of unrealised capital gains. No wonder he got completely rolled. But, as a result, of course, he's got a black hole of about $20 billion. And you can be sure of one thing: he's coming after you. He's coming after you with more taxes. We are talking about not just Sir Taxalot but King Taxalot.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

I remind the member for Fairfax—

Ted O'Brien (Fairfax, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

This is the new 'Jimflation' effect.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

Order!

Ted O'Brien (Fairfax, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

This is what it's all about, you see.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

Order! Order! Resume your seat. We've been through this before, you and I, and I have advised you that that is unparliamentary and that I would not have it in the House. You were about to ignore that, again, so I'm just asking you to withdraw those comments. Your time has expired, but I'd like you to withdraw those comments. It was an unnecessary addition to your speech.

Ted O'Brien (Fairfax, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

I'm happy to withdraw those comments.

Andrew Leigh (Fenner, Australian Labor Party, Assistant Minister for Productivity, Competition, Charities and Treasury) Share this | Link to this | Hansard source

To call those opposite a clown show would be an insult to the hardworking clowns of Australia.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

I don't think—

Andrew Leigh (Fenner, Australian Labor Party, Assistant Minister for Productivity, Competition, Charities and Treasury) Share this | Link to this | Hansard source

That—

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

Assistant Minister, I have just sat the member for Fairfax down for what I think is an undignified comment in the debate. I've previously ruled out whole references to circus performers, and I'd like you not to proceed with that. Please withdraw the comments, and let's get on with a dignified debate.

Andrew Leigh (Fenner, Australian Labor Party, Assistant Minister for Productivity, Competition, Charities and Treasury) Share this | Link to this | Hansard source

I withdraw, Deputy Speaker.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

Thank you.

Andrew Leigh (Fenner, Australian Labor Party, Assistant Minister for Productivity, Competition, Charities and Treasury) Share this | Link to this | Hansard source

After going to the last election promising Australians they would have higher taxes, lower wages and bigger deficits, those opposite have proceeded to tear themselves apart over the last few months. As one of their most senior women, Fiona Scott, has said, 'You don't win elections by threatening to sack the bloke next door.' Whether it's their internal climate wars, their immigration wars or their T-shirt wars, those opposite are less a coalition than a chook shed in a thunderstorm.

We had the coalition split after the election—the comical break-up, which led, briefly, to the opposition leader saying that it would be a frontbench drawn exclusively from the Liberal party room. As one backgrounded a newspaper outlet, they were acting like kids. For a while, the entire 15-member National Party cohort was to be moved away from the Speaker's chair towards the backbench seats, when suddenly they realised that they were making a decision that might affect their hip pockets and decided to reunite.

Then we had Senator Price defecting to the Liberal Party, nearly leaving the Nationals as a nonparty in the Senate. Shortly after, Senator Price was dumped from the coalition shadow ministry, not only because she couldn't back the leader but also for her highly offensive comments about Indian migrants. But she isn't the only one that seems to want to go back on Australia's multicultural success story—a multiculturalism that, as Tim Watts often reminds me, is supported by nine out of 10 Australians. We've had the member for Canning saying that he believed Australians were becoming strangers in their own country due to what he called 'unsustainable' immigration levels. I don't know what he would have made of immigration levels under the coalition, which were 40 per cent higher than they are under us. We've had Senator Canavan telling ABC's Afternoon Briefing that crime is clearly linked with migrant communities in Melbourne. We've seen a shameful attack on migrants from the coalition, which has forced those like Alex Hawke to come out and to finally make the case—

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

Assistant Minister, you need to refer to members by their correct titles.

Andrew Leigh (Fenner, Australian Labor Party, Assistant Minister for Productivity, Competition, Charities and Treasury) Share this | Link to this | Hansard source

Indeed. The Leader of the Opposition in the House also made the case—surprising many—for multiculturalism. We have seen the resignation of the member for Canning from the front bench after attacking what he called 'muppets'. That was after being attacked by the former leader, Peter Dutton, who said the member for Canning went on strike in the last election and fumbled key policy work. The tearing apart of the coalition is extended to Senator Hume, who, in the discussion between the Liberals and the Nationals, said that, if she joined the Nationals:

I'd have to speak a lot slower and talk about the regions more often …

We on this side understand, represent and care about regional Australia. We don't see people in regional Australia as needing to be attacked in any internal party games.

The battle has become hottest over net zero—that policy so radical that it was made the policy of the Australian government by coal-wielding Prime Minister Scott Morrison, a policy supported by every state and territory in Australia, every major business group and most of our major trading partners. Those who oppose net zero are those like Advance Australia, which has been running campaigns threatening Liberal and National Party members if they don't back net zero. We've heard sensible conservatives such as Matt Kean, say:

… let me say, as the former Liberal Treasurer in the largest economy in the nation, that is a sign they are heading for electoral oblivion. The coalition needs to reflect the mood of the Australian public, which is clearly saying they want strong and decisive action on climate change that is in our national interest …

So if I'm—

Aaron Violi (Casey, Liberal Party) Share this | Link to this | Hansard source

A point of order on relevance. We are five minutes into the MPI response. It notes the government's spending spree. It doesn't mention the opposition. The minister has spoken for five minutes—

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

Sit down.

You don't have the call, member for Casey, and, if I were to apply a strict rule of relevance in an MPI, I can assure you there'd be a lot of silent moments. I often give people a bit of leeway, and I have been listening until I couldn't quite listen then—because somebody was talking to me—and I have no hesitation in saying there was relevance in this MPI.

Andrew Leigh (Fenner, Australian Labor Party, Assistant Minister for Productivity, Competition, Charities and Treasury) Share this | Link to this | Hansard source

Today we introduced into the House key environmental protection and biodiversity conservation reforms, five years to the day after the Samuel report was delivered to the then environment minister, the now opposition leader. We are doing so because we want business to have the certainty of quicker approvals and because we want to see the environment properly protected. Tomorrow, key bulk-billing incentives will take effect. Everyone who is bulk-billed will now see the bulk-billing incentive applied, and there will be additional practice incentives. In my own electorate of Fenner, we've already seen three practices approach the health department about becoming fully bulk-billing practices. We are working to address climate change, not only committed to net zero but committed to our target of 43 per cent emissions reduction by 2030 and a 62-to-70 per cent emissions reduction by 2035. This is good for the climate, but it's also good for jobs and prosperity. The nuclear madness that the coalition took to the last election wouldn't just have cost some $600 billion; it would also have seen Australia grow more slowly and emit more pollution.

Our productivity agenda sees us committing to get rid of non-compete clauses that are shackling millions of Australian workers from moving to a better job. Getting rid of non-compete clauses will be great for productivity, great for wage growth and great for innovation. We're dealing with supermarket price gouging by saying that supermarkets that charge excessive prices will be subject to multimillion dollar fines. We're getting national competition policy going again—policy that, in the 1990s, helped deliver a huge productivity surge, which was behind the best productivity decade in the post-war era. Our $900 million National Productivity Fund works with states and territories on things like planning and zoning reform in business, reforms that are going to see our national productivity increase.

We're cracking down on unfair trading practices to ensure Australians aren't paying inflated prices due to poor and dodgy business conduct. We're reviewing the right-to-repair scheme, which took effect under Labor. It provides more choice and lowers repair costs for Australian motorists. We are consulting on options to strengthen the Unit Pricing Code as a crackdown on shrinkflation, and we're making it easier for supermarkets to enter the market, to see more productivity in Australia. We are overseeing an economy whose unemployment rate is lower than many of our trading partners. Many other economies are seeing challenges with inflation, which is rising everywhere except the UK, where it is significantly higher than it is here. More than a million jobs have been created since we came to office—stronger jobs growth than any major advanced economy.

The coalition are a goat rodeo in suits. It's vaudeville without the talent, slapstick without the charm. But we are getting on with the job. We are delivering for the Australian people. We are focused on tackling the cost of living, boosting productivity and working collaboratively with the states and territories in order to deliver policies which are good for households, good for the environment and good for the prosperity of future generations.

Sam Birrell (Nicholls, National Party, Shadow Assistant Minister for Regional Health) Share this | Link to this | Hansard source

In the face of some of the political rhetoric and game playing that goes on, particularly from that side, I want to talk about some real Australians, real people.

Hamish is a dairy farmer in my electorate. He gets up at 4.30 every morning and milks approximately 500 cows. In the winter it's icy cold in the dairy. It's dirty. There are a lot of flies in the summer. At 3 pm he gets the cows in and does it all again. It's tough work, but he loves it. He loves producing clean, healthy food for Australia. After the afternoon milking, he goes out again and irrigates his paddocks, sometimes well into the night. Hamish is really worried that the Murray-Darling Basin Plan changes by this government will reduce the amount of irrigation water and push prices up, making dairy farming even more difficult. Hamish pays a lot of tax, and the produce earns a lot of tax for Australia when it's exported.

Matt is a fruit grower. He pays a lot of tax. He works really hard, and he barely sleeps during the harvest season. The energy bills for his coolstores, required to run 24/7, are going through the roof. His employee is originally from India. He works long hours, earning good money, to get ahead in his new country, and he pays a lot of tax.

Tom is from Gunnedah. He manages an engineering firm that does a lot of work for mining and energy companies. He works seven days a week and endures a lot of stress, with the price of everything going up, and that's been getting a lot worse in the last three years. He pays a lot of tax.

When the government indulges in wasteful spending and threatens private enterprises, I want those opposite to think about Hamish, Matt and Tom and their employees, and all those people paying tax and doing difficult jobs that are essential to Australia's economic prosperity. The philosophy of this government is that everything is free. But nothing is truly free; someone has to pay for it, and often it's the blood, sweat and tears of Australians taking a risk, working incredibly hard in difficult conditions and paying a lot of tax. We should respect those people.

Our philosophy is that you grow the economy, and to grow the economy you've got to have a competitive private sector. There needs to be a culture in this country of enabling private industry to thrive and employ people. We should not create a system where more and more people are reliant on governments distributing taxes to get by. Every day in this place, in question time, all the government seem to do is brag about spending taxpayers' money as if it is theirs, but it was earned by other people.

Some of the spending we agree with. Some of it's good. A lot of it's wasteful. Who pays? And how are we looking after the industries that provide us with those tax dollars? Those industries are suffering because, when government spending gets unsustainable and it goes up four times faster than the economy is growing, we get inflationary pressures, and those put more pressure on business. The economic health of this country is in a really difficult place, and the trajectory is not good, because everything's going up. The inputs are going up, and I don't see policies to help bring them down—and energy is a classic example.

Energy is the economy. And, as I've said in this place before, renewable energy is good technology. It's great technology. But it needs to be part of a diverse mix in the grid. And, as I've talked about, the Centre for Independent Studies reports that it's good at about 30 per cent, but, when it gets near 60 per cent, prices go up. If prices are going up, businesses can't be competitive. And, if businesses can't be competitive, Hamish, Matt and Tom can't be profitable. And, if they're not profitable, they're not paying tax. And, if they're not paying tax, where's Labor going to get money to hand out and then brag about during question time? I would just like you to respect and think about the Hamishs, the Matts and the Toms of this world, who do hard jobs, pay tax, create private enterprise, employ people and keep this country going. Don't waste their hard earned dollars.

Matt Gregg (Deakin, Australian Labor Party) Share this | Link to this | Hansard source

I see the coalition remained unencumbered by self-awareness as they provided that lecture on the running of the economy! They raised a number of topics in their MPI, including tax returns, from the party that proposed increased taxes at the last election; higher spending; higher debt; higher deficit—well done, coalition; and electricity bills, from the party that caused policy paralysis for nine years and continue to eat themselves over the very topic. The reason we have higher-than-desirable electricity bills is years of policy failure to ensure that the supply of electricity meets demand. It's a simple supply-and-demand problem. But, instead of having a coherent, consistent set of policies, we find a chopping and changing of 20 different policies over a relatively short period of time.

They talk about business. How on Earth can business invest in the clean energy future if there is no policy certainty? It is the worst possible thing you could do, no matter what direction you're in, to ensure there is investment in energy. They held up coal. They even wore coal as make-up in one case, but they didn't actually make any new coal-fired power plants. They didn't increase the supply of electricity. There were three gigawatts less of coal-fired power when they left than when they went into office. So, even as coal lovers, they were terrible at their job.

Now, we find ourselves in a situation where we need to rapidly deploy technologies to ensure an electricity supply that is sufficient in amount, that is low enough in cost and that we can rely on going into the future. So, instead of finding the policy that says 'renewables only'—they forget about the fact that we've got batteries that pump hydro and that are backed by gas. They go to war on a policy that doesn't exist, and then they promote a policy of their own that also doesn't exist.

We had an announcement of nuclear last night, but we don't know if net zero is there, because we're waiting for Matthew Canavan's no doubt independent and well-researched report on the future of net zero. We have to ask: what does that do for industries and households? That policy paralysis means that we are not getting the investment we need, and haven't had the investment we've needed, in this sector for a long time. Thank goodness a Labor government has been elected. We can provide policy clarity.

We, unlike the opposition, are not so arrogant as to think that we're smarter than AEMO, smarter than the Treasury and smarter than pretty much every other expert in the energy space—who confirm that the cheapest form of energy is renewable energy. We're deploying it at pace, along with the safeguards to ensure consistency of supply and reliability. We're investing in gas supply. We're making sure that pumped hydro is being rolled out. We're making sure that battery technology is being utilised, and households have voted with their feet: 104,000 homes have thankfully ignored the side show and decided to invest in battery technology. They know that storage of renewables is the cheapest way to power your home and the cheapest way to power your business, as long as the settings are right.

People are getting off the grid, and they're not paying higher power bills. People in my electorate, and in electorates all over the country, have been voting with their feet. It's exciting to see a government that is finally committed to a sensible energy policy that maintains coherence in the energy space and gives business the certainty it deserves.

In their MPI, the opposition talked about mortgage repayments. They are forgetting that inflation was sitting at about 6.1 per cent when we first came to office. It now has a three in front of it, and we've had, I think, three interest rate reductions in the last year.

Cameron Caldwell (Fadden, Liberal National Party) Share this | Link to this | Hansard source

Twelve rises!

Matt Gregg (Deakin, Australian Labor Party) Share this | Link to this | Hansard source

Well, we have turned the inflation we inherited around. Now, we find ourselves in a position where our economic management is being compared with that of a government that, for nine years in a row—and after entering office with an action contract promising to 'end the waste'—brought in probably every rort in existence: sports rorts, car park rorts and every other form of rort you could possibly imagine. The colour spreadsheets were active! They were overspenders. They never delivered a surplus. They showed that all their rhetoric about being responsible was just 'reduce, reuse, recycle' from the Howard years.

They continue to lack credibility when it comes to jobs. We have seen 1.5 million additional jobs created in the economy since the Albanese government was elected. We've got one of the lowest unemployment rates for a new government in over half a century. We have an incredibly good record on jobs. We have an incredibly good record on real wage increases. It is not a deliberate design feature of our economic architecture to suppress wages. We want wages to grow. We want living to improve in our country, and we want to make sure we are readying ourselves for the future. We're going to have a 21st century energy grid that will power a 21st century economy. This means that young people can enter the future with a confidence they simply could not have under the coalition government. The coalition party room is where hope and common sense go to die. I'm so glad to be part of a government that is actually delivering the policy settings we need for the future Australians deserve. That is across policy areas.

As we've said, people are doing it tough right now. We take that incredibly seriously. The job is not done yet, but you can tell that this government is committed to making life in this country better. We will do what we need to do to support Australian workers, Australian businesses and Australian industries. It is important for the future of the country that they have at least one side of politics with its eye on the job.

Simon Kennedy (Cook, Liberal Party) Share this | Link to this | Hansard source

Thank you to the member for Deakin. That was like a mini Chris Bowen: just as fast and just as divorced from reality.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

I will remind the member for Cook to use correct titles.

Simon Kennedy (Cook, Liberal Party) Share this | Link to this | Hansard source

Sorry, the mini energy minister. He's just as fast and just as divorced from reality. Perhaps a bit less well-read. I think the member for Deakin just said that the reason we've had higher electricity prices is the former coalition government. Is that right?

Matt Gregg (Deakin, Australian Labor Party) Share this | Link to this | Hansard source

Nine years.

Simon Kennedy (Cook, Liberal Party) Share this | Link to this | Hansard source

Nine years. Why is it, then, that coming into the 2022 election, your side of politics promised 97 times that bills would go down by $275?

Matt Gregg (Deakin, Australian Labor Party) Share this | Link to this | Hansard source

That line worked for three years.

Simon Kennedy (Cook, Liberal Party) Share this | Link to this | Hansard source

It worked. That line worked for three years. We've heard it here, Australia! The member for Deakin just said, 'That line worked for three years.' They've been repeating a lie. They say the coalition is the reason prices went up. But, before the 2022 election, they stood in front of you 97 times and said prices would go down by $275. Well, there are only two explanations for that. There are only two explanations: either you have no idea how energy markets work, or you do and you lied to the Australian public anyway. Which one is it?

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

Excuse me.

Simon Kennedy (Cook, Liberal Party) Share this | Link to this | Hansard source

Sorry for the humour.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

You know the standing orders around the use of that particular word. Withdraw and rephrase.

Simon Kennedy (Cook, Liberal Party) Share this | Link to this | Hansard source

I withdraw, and I'll rephrase.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

Thank you.

Simon Kennedy (Cook, Liberal Party) Share this | Link to this | Hansard source

One of two things must be true. You either have no idea, none whatsoever, about how energy markets work, or you do and the opposition lied anyway. Which one is it? They're awfully quiet now! You could hear a pin drop in the chamber, because it's embarrassing. And you know what? What is happening is people in my electorate are living it. Just last week, I was out at FJP Manufacturing. This is a business—we have a few manufacturing businesses clinging to life in Cook. They have seen their gas and electricity prices both up by over 70 per cent in the last two years. As I said—and the energy minister liked to clip me up about this—you don't really care about TAFE. Do you know what's happening to people? They took seven apprentices three years ago—

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

Member for Cook, I'm taking a point of order, I presume, from the Chief Government Whip.

Joanne Ryan (Lalor, Australian Labor Party) Share this | Link to this | Hansard source

Yes, point of order, Deputy Speaker. The member persists directing his responses not through you but at people on this side of the chamber.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

I will remind the member for Cook that, in an effort to depersonalise these debates, we have the standing order that directs the comments through me, so please—

Simon Kennedy (Cook, Liberal Party) Share this | Link to this | Hansard source

I withdraw, and I'll adjust. FJP Manufacturing's bills are up 76 per cent. They had seven apprentices just at the start of the last term of government. They're down to three apprentices, and they're worried it's going to zero. These people employ 50 people in my electorate. Phill is the guy who runs the show there. He works incredibly hard bending metal, doing powder coatings and supplying businesses all throughout Sydney. Yet they are being crushed under energy prices. Only three weeks ago, I was out at Kareela shops, meeting a chicken shop provider there that's had its energy prices more than double. Just yesterday, I received an email from someone in my electorate screenshotting their bill. What did they screenshot in their bill? Even though they had solar, their home bill had more than doubled. Their rate per kilowatt hour had tripled. This is the reality Australians are living with.

So, when those on the other side stand up here and tell us, 'Oh, yes, the only reason we have electricity prices up is the coalition,' it's clearly not true. Why are these lies being peddled? Because it's a vulnerability. It is a vulnerability, and it's going to get worse. Why do we know this? Because we're seeing the bodies pile up—Whyalla steelworks bankrupt, Tomago about to be bankrupt and Mount Isa smelter bankrupt. The CEOs of BlueScope Steel, Cadbury and Mars are all coming in and saying that manufacturing and industry are at a crossroads, and they risk going offshore. The CEO of BHP said that in Australia energy costs are two to three times those of comparable economies. BlueScope Steel said our gas prices are three to four times those of the US. The bodies are piling up, and it's not pretty. Guess who's holding the gun? It's the energy minister of Australia.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

A point of order from the assistant minister?

Andrew Leigh (Fenner, Australian Labor Party, Assistant Minister for Productivity, Competition, Charities and Treasury) Share this | Link to this | Hansard source

The allegation of violence by the member for Cook at the end of his speech was entirely inappropriate and utterly unparliamentary, and I ask you to ask him to withdraw.

Simon Kennedy (Cook, Liberal Party) Share this | Link to this | Hansard source

It was a metaphor, but, to assist the House, I withdraw.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

I appreciate that. I give the call to the member for Forde.

Rowan Holzberger (Forde, Australian Labor Party) Share this | Link to this | Hansard source

Thank you. When I gave my first speech in the House, I said that I don't have political heroes, but I've got plenty of sporting ones. One of my greatest heroes is Dean Jones, one of the greatest batters ever to play for Australia. There were times when you were watching him, where the poor bowler was being hit all over the park. They must have been thinking, 'There is nowhere we can bowl to this person.' That's exactly what it is like watching the shadow Treasurer bowl up to the Treasurer of this country at the moment. That's exactly what it must be like when they have to come up with an MPI every time. Where can they hit the government that is so focused on the Australian people, so focused on their game, while they're divided on themselves? Where do they hit it?

So today they've come up with the words 'spending spree'. Let's have a look at what is meant by a 'spending spree'. To me, a spree is something you do carelessly, throwing around money frivolously on things that don't matter. But, when the opposition say, 'Spend less,' what they really mean is, 'Invest less.' I've run a small business, and it's been an enormous privilege. You learn quickly that there are two ways to run a small business: either you invest in your plant and your people and build something sustainable, or you strip the profits out and run the business into the ground. Running a country is like running a small business: you can slash and burn, or you can build and invest in your people and your future.

Let's look at what we're investing in. We are investing $8.5 million in Medicare. One of the most profoundly moving experiences that I have had in politics was this week when we were ringing around the GP clinics in Forde. We have only got to about three-quarters of them so far but already we have found out that it is going from seven bulk-billing clinics to 15 overnight. I have never in all of the time that I have been either watching or participating in politics seen a single policy with such an immediate impact as this one. It saves Australians money, improves our health, helps the economy, supports families, but it costs money.

Let's look at housing. There is $43 billion invested in housing.

Honourable Member:

An honourable member interjecting—

Rowan Holzberger (Forde, Australian Labor Party) Share this | Link to this | Hansard source

That's right. That is what they are calling a spree. But in one year—and I will say it is in one year—we have built more houses in Forde than the opposition built in almost 10 years of government across the whole country. I say one year because they spent two or three years trying to hold it up because they saw it as a spree.

Finally, in skills and training, we have free TAFE, which the opposition said people would not value because it is free. When I was working on farms I learned that with the right skills you can fix everything. As I am sure the member for Riverina knows, with a bit of silicon and fencing wire, you can fix just about anything. And it turns out that with the right skills you can even fix the broken skill system that we were left with after the opposition gave it to us.

The thing that Australia has which is our most valuable resource is not underground but on top of the ground. It is the people of this country. With the right skills you can skill up and you can get a return on that investment and that is what all of these things are—they are a return on an investment. They are carefully calculated, methodically thought through returns on the investment that we will see for generations to come.

Do you know what really costs? Doing nothing. That is the bill that you do not get until after the election. Because when governments do not invest it is Australians who are left to pick up the tab. There are just some things that it is better to do collectively, for the government to invest in. Health care is one of them; otherwise, you end up with a health system like the American system, where it is every person for themselves. Public housing is another one of them. Skills and training is another one of them. While the Australian people are sick to death of privatisation and economic rationalism, for some reason the opposition wants to continue with that failed policy. There is a role for government investing in the economy, just as there is a role in the good management of a company investing in its plan and its people. The opposition say if you do not pay for it, you do not value it. But if you cannot afford it, you are locked out, and the country suffers.

Michael McCormack (Riverina, National Party) Share this | Link to this | Hansard source

I wholeheartedly agree with the member for Forde, who has just said when governments do not pay for funding, Australians are left to pick up the tab. When they do not fund something, Australians are left to pay the bill, and he is so very correct. Because what we have seen from this Labor government is a complete neglect of regional Australia.

We heard in question time today that Labor apparently has more regional members than there are on this side. Well, if that is the case—and I am not disputing it—then why aren't those regional members sticking up for their constituents? Why aren't they sticking up for their electorates, which are being left high and dry by the minister for infrastructure, who is from Ballarat, by the regional development minister, who is from Eden-Monaro, because they are not funding regional Australia, certainly nowhere near to the point where we were when we were in government, and roads are just full of potholes. We have civic centres, aquatics centres, regional hubs just being left behind, and this is just such a shame. When we talk about the difficulties of regional Australians in particular, we are talking about those people who during COVID carried this nation. We hear about the trillion dollars worth of debt. The member for Rankin, the Treasurer, goes on about all the time. ABC Fact Check have said it's nowhere near a billion dollars. What that trillion dollars—it was about $800 billion, but let's not let $200 billion get in the way of the Treasurer's remarks—did was it kept the doors of businesses open. We kept people alive during the worst global pandemic ever, certainly the biggest pandemic in a century since the World War I Spanish flu.

Andrew Leigh (Fenner, Australian Labor Party, Assistant Minister for Productivity, Competition, Charities and Treasury) Share this | Link to this | Hansard source

You doubled the deficit in your first budget!

Michael McCormack (Riverina, National Party) Share this | Link to this | Hansard source

I didn't interrupt you, Minister, so you might just leave me to make my remarks. All the minister at the table did, all the member for Fenner did, was just play the person. His whole 10-minute speech was just picking off coalition member by coalition member.

But let's not get personal. It's not about us in here in the House of Representatives; it's about the people out there who are hurting and paying electricity bills which are far too high. Those opposite promised, on 97 occasions prior to the May election in 2022, that there would be a $275 reduction in those power bills. The member for Deakin, in his contribution, belled the cat, because he said, 'That line worked for three years.' Well, he's going to regret that interjection, because it was a line—in fact, it wasn't just a line; you could leave the 'n' out of that word—and it was uttered over and over and over again, and it was not true. It might have worked for three years, but it's not cutting through now. People's electricity bills, their power bills, are 40 per cent higher than they were before Labor came to office. That's 40 per cent more on household budgets. That's 40 per cent more on farmers and factories and people who are keeping the lights on in this nation.

This nation is hurting. The transport industry is struggling. We've got the construction industry in freefall. We've got so many sectors—Tomago this week. Everywhere you look in every state and every territory we've got people who are struggling to make ends meet. This is simply not good enough. And it's simply not good enough from a government who said they would address these issues. For 18 months all we heard about was the Voice. For 18 months they took their eyes off the ball. Then, when they decided to get focused about the economy, it was too late.

The economy has tanked and it's getting worse. Inflation is up this week. It's such a struggle for people, particularly for people who are paying rent or trying to get into their first home. We've got a housing minister who talks about building a million homes. Good luck with that, because it's just not going to happen on Labor's watch. You can say it as much as you like and you can say it as convincingly as you like, but it's not happening. The people out there in voter land aren't fooled. They certainly are not fooled, because every time they get their power bill, every time they go to the supermarket and go to the cash register, and every time they go to the bowser at the petrol station they are paying through the nose for the follies of the Labor government, for the mistakes of this government and for the shortfalls of this government. This government will pay for this just like ordinary, everyday Australians are paying through the nose every day of the week.

Carol Berry (Whitlam, Australian Labor Party) Share this | Link to this | Hansard source

I am one of those members that represents a regional community. Just this morning we announced that we are investing $1 million to address potholes and drainage in a road at Bass Point—which is a jewel in the crown of our community, not only for locals but for the visitor economy. So I wonder: is that to be considered an investment, or a spending spree?

The federal government cares about reducing cost-of-living pressures on individuals and families across Australia. More than that, we have taken practical steps to reduce those pressures. To begin, we've reduced personal income tax rates for Australians on lower incomes, and further tax cuts are coming. These are tax cuts that the opposition opposed. Of course, the opposition is good at one thing; it's good at opposing. We have taken practical steps to reduce the tax burden on people who have lower incomes, because Labor cares about ensuring people on lower incomes keep more of what they earn.

In relation to energy prices, we have been working hard to address the burden of energy costs, because we acknowledge that for many households and small businesses this remains a significant pressure. The federal government has extended the national energy bill relief program, offering every household and around one million small businesses automatic electricity bill rebates.

Beyond rebates, important structural reforms relating to energy are underway in the transition to renewable energy. The Australian Energy Market Commission projects that, with a coordinated transition to renewables and electrification, households could reduce their energy spending significantly over the next decade. With the transition to renewable energy, our government aims to create jobs, reduce pressure on energy bills, and lower emissions. These steps combine immediate relief with the longer-term structural reform of the energy system, which will be good for the environment and will reduce energy bill costs for Australians.

Regarding unemployment, average unemployment under the Albanese Labor government is the lowest of any government in 50 years. Our government has adopted a comprehensive approach aimed at not just lowering the unemployment rate but also addressing underemployment and labour market underutilisation. Our national employment rate is at historically low levels. However, there remains untapped potential within our labour market, and we are working to ensure that we are reducing barriers to work, increasing skills, supporting transitions to work, and ensuring secure, fairly paid jobs. These efforts are designed to deepen labour force participation, reduce underemployment and promote economic activity, thereby strengthening household income, reducing welfare dependency and contributing to cost-of-living relief.

The Albanese Labor government has employed a range of strategies to reduce cost-of-living pressures for Australians. Notably, in the area of health care, where many Australians experience significant cost pressures, we are making record investments in bulk-billing. Our investment will deliver an additional 18 million bulk-billed GP visits a year. This investment, as well as our reductions in the cost of medicines under the PBS and our investment in urgent care clinics, is designed to reduce cost pressures on individuals and families.

On top of that, as I mentioned, our government has cut taxes so that Australians can keep more of their earnings. We've subsidised energy bills, and we're reforming the energy system so that households will have lower power bills over time. We've supported economic conditions for lower interest rates through economic stability and labour market policies. We've supported lower unemployment rates and better labour market outcomes, recognising that secure work is one of the best ways to relieve cost-of-living pressures. More than 1.1 million jobs have been created since we came to office. That is stronger jobs growth than in any advanced economy.

In terms of supporting individuals and families with cost-of-living pressures, it should be acknowledged that no measure works in isolation. The macroeconomic environment, global energy markets, inflation and structural change all exert force on household budgets. But our government has made cost-of-living relief a priority, as reflected in our healthcare reforms, our energy bill relief and the tax cuts we have delivered. We are managing the economy in the interests of all Australians, and this continues to be our focus.

Tom Venning (Grey, Liberal Party) Share this | Link to this | Hansard source

Today I rise to speak on the grave matter of fairness and fiscal responsibility. The reality is that everyday, ordinary Australians pay the price for a government that has decided to spend money as if it grows on trees. It doesn't take an economics degree to see that this government is addicted to spending taxpayers' money. That addiction has a price, and you—the police officer, the schoolteacher, the farmer, the retailer—are picking up the tab. Let me say it plainly. We are borrowing from our children's future, paying the interest today so that the debt will fall on our children tomorrow. The cost of living is soaring. Rent is up by 21 per cent, food costs are up by 16 per cent, mortgages are up by $1,800 a month on average, and power prices are up by 46 per cent and increasing.

You cannot separate the borrowing and the spending from the environment in which jobs become harder to find, wage growth stagnates and regional families feel left behind. In regional South Australia, farmers reel under generational drought—fishers destroyed by the algal bloom, and manufacturing on life support. Yet we see a city focused government pouring money down the drain for inner-city handouts and vanity projects. So when you look at your tax bill, your power bill, your mortgage statement or the difficulty you're having to find a secure job, it's not just the market, it's not just inflation, it's not just the cost of living; it's also a government that chooses to borrow and spend big rather than live within its means.

Let me walk you through the arithmetic of work debt servicing means in everyday terms, because regional Australians understand numbers. We are paying $50,000 every minute in interest on the debt. That's roughly $72 million per day—money that could have been spent on upgrades to regional hospitals, fixing the roads we rely on, supporting community housing in towns like Port Pirie and helping businesses hit by the algal bloom, drought and unaffordable housing prices.

So what do we see for regional South Australia? We see a government that is focused on inner-city spending and confusing tax grabs, while regions again miss out. We see schools that still need upgrades. We see roads that still need repairs. We see the government promising regional investment, but then redirecting the money to bailouts, handouts and vanity projects. And we see workers with only $30 left each week.

It is not just a policy failure; it is a broken promise for families in the regions saving for a home, paying off a mortgage or running a small business. The message they get is the government can't manage its own money, so it comes after yours. We must return to a government that believes in lower, simpler taxes; that lives within its means; that does not mortgage the future of regional Australians so that inner-city votes can be changed. We need fiscal discipline, not fiscal drag. We need spending that genuinely invests in a productive economy, in regions, in small business, in primary industries—not wasteful spending that piles up debt.

I return to the shadow government's matter of public importance. The government's spending spree is being paid for by everyday Australians in their tax returns, their electricity bills, in their mortgage repayments and in their struggle for jobs. Let me be clear: it is not the government who pays off the debt, it is not the bureaucrats who pay off the debt; it is the farmer, the teacher, the tradie, the small business operator, the regional family. That is who is carrying this government's burden.

I call on this government to stop the reckless spending, stop the endless tax fest and hollow promises. Give Australians the respect of knowing you will live within your means like everyone else has to. If government spending is a tool, spend it on value-adding initiatives, like hospitals, roads, schools and energy resilience in towns like Port Lincoln and Port Parham. Let it help our small businesses recover. Let it support jobs and growth in regional Australia. Let's do it in a way that does not leave our children paying the interest, because, simply, this big-spending, tax happy government seems incapable of making the hard decisions needed.

Jess Teesdale (Bass, Australian Labor Party) Share this | Link to this | Hansard source

I rise today as both a teacher, who cares for children across Australia, and a representative of a regional community. Our test is simple: Are Australians better off today when they open their tax return? When they check their mortgage statement? When they search for a job? Those opposite are crying 'spending spree', but Australians are seeing the reality. They see a government that is delivering tax cuts, driving down energy costs over the long term, backing record job creation and helping ease mortgage pressure. That's not a spree; that's a strategy. That's not chaos; that's a plan. I understand that is unfamiliar to those opposite.

When we look at energy options, the choice could not be clearer. We stick with a volatile, ageing fossil fuel system, or we invest in clean cheaper renewables that cut bills over time. Griffith University research shows that if we had stayed reliant solely on coal and gas, the cost of generating electricity would be 50 per cent higher today. I really want that to sink in—every power bill would be higher; every family and small business would pay the price. Fifty per cent is a big difference. Numbers are tricky though.

The CSIRO confirms that renewables with transmission and storage included are the cheapest form of new energy generation in Australia. It's not ideology; it's engineering, it's economics and it's evidence. And households are feeling the difference. We know that the Australian Energy Market Commission projects that electricity prices could be 13 per cent lower over the next decade if our renewable rollout continues as planned. We know the Australian Energy Regulator reports that wholesale prices have been falling since late 2022, thanks to cheaper fuel, more renewables and decisive government action. This is real progress and, while we don't pretend a decade of neglect can be fixed overnight, we are doing the hard yards to build a secure and affordable energy future. That's what we do. We build for the long-term, just like we did with Medicare, and now we can't actually imagine an Australia without it.

The government's record on job creation and growth is also something that, like Medicare, we should all be celebrating. More than 1.1 million jobs have been created since we came to government, the strongest single-term job creation on record. It's actually also the lowest average unemployment rate of any government in 50 years. That's not a slogan; that is the ABS talking. More Australians are in work than ever before, and we're not stopping there.

We're backing fee-free TAFE, we're rebuilding advanced manufacturing and we're investing in those clean energy jobs, because these important and very well paying jobs of tomorrow can be done by people here, across Australia, in Burnie, in Devonport and in La Trobe, when we put in place the right training opportunities.

We've also delivered tax cuts for every single Australian taxpayer—one this year, another in 2026 and another in 2027. By the 2027-2028 financial year there's going to be an average of $2,500 extra in people's pockets every year. We're supporting people to earn more and keep more of what they earn, and we're doing it fairly. I do wish to compare that to those opposite, who actually made a vow—something that we do in marriage—to undo our tax cuts and take that money away from people.

Australians are doing it tough, and we know that there are many external threats that are impacting us right now. That's why rate relief matters. Our Reserve Bank has cut interest rates three times this year, and I can tell you that, on my schoolteacher salary, that is a huge impact to families. Depending on your loan, the cuts are actually saving households hundreds of dollars a month, and that would not have happened without the work and planning done by the Albanese Labor government.

We are delivering for the people of Bass. We are delivering for the people of Australia, and they know what this government stands for: cheaper power bills in the long-term; more secure, better paid jobs; tax cuts for every Australian; mortgage relief when it's needed most. We're not chasing headlines; we're delivering outcomes. It's not a spending spree; it's a nation-building plan.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

The time for this discussion is now concluded.