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

My question goes to the Treasurer. Scores of economists have linked higher inflation and interest rates to this government's spending spree. Former Treasury assistant secretary David Pearl said the Treasurer is 'squarely to blame for the inflation mess we're in'. IFM Investors' chief economist Alex Joiner said, 'The fiscal guardrails have come off.' Treasurer, as mortgage holders are hit with their 13th interest rate rise under Labor, will you now finally take responsibility?

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

One of the problems with them not talking to each other over there is that his mate over there just asked the same question, essentially the same question.

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

Order! The deputy leader has asked his question.

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

At least when they used to talk to each other they could work out who asks what instead of wasting two questions on the same one. But anyway—

Opposition members interjecting—

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

Order! The member for Lindsay and the member for Fairfax have had good goes, so we're just going to cool it. We're going to hear from the Treasurer.

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

I thank the shadow Treasurer, who is also now, I'm told, the shadow Assistant Treasurer. They found the only bloke over there who could work with him, and they're still not convinced there won't be leaking of private conversations!

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

Order! The Treasurer will return to the question.

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

As I said a moment ago to his colleague, there are a number of economists who have pointed out, as have the Reserve Bank today in coming to their decision, that the uptick in inflation, the pressure on the outlook, is coming from private demand. I remind him again. Diana Mousina from AMP said, 'Government spending has peaked, and the growth in government spending is going to add less to inflation.' Belinda Allen from the Commonwealth Bank said, 'The public sector's contribution to growth has eased significantly.' Luci Ellis from Westpac said, 'Public sector demand growth is slowing and indeed was negative over the first half of 2025.' They couldn't be clearer. There are a number of economists who've pointed out, as have the Reserve Bank today, that what's happened with the inflation outlook is an upside surprise in private demand, not public spending.

The shadow Treasurer and shadow Assistant Treasurer should also know, now that the statement has been out for almost half an hour, that the Reserve Bank board itself has said the pressure is coming from private demand. So, a bit like his friend earlier on, I encourage him to read the Reserve Bank statement that they put out. Similarly, the Statement onMonetary Policy makes it clear that the pressures are coming from private demand, not public demand.

On the last part of his question, about taking responsibility, I think in the first answer today I made really clear that I take responsibility for all parts of my job. I take responsibility for playing a helpful role in this fight against inflation. I remind the House that one of those things that I take responsibility for is cleaning up the mess that was left to us by those opposite, who had inflation higher than six per cent and absolutely roaring. They are the same people who had bigger deficits, never delivered a surplus, didn't show spending restraint and took to the election a policy for higher income taxes, bigger deficits and more debt. Of all of the people that I would take a lecture from on responsible economic management, not one of the three far-right parties over there would be on the list.