Tom French (Moore, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. How is the Albanese Labor government helping with the cost of living and strengthening the budget? How does that compare to other approaches?

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

The good people of Moore elected an absolute champion as their local member in this place. I appreciate his question. Inflation last week and rates this week were important reminders of the challenges in our economy, despite all of the progress that has been made together. Inflation at the end of the year didn't come in much higher than we expected, but it came in higher than we would like. Some of that inflation is temporary; some of it is more persistent. It's nowhere near the peaks that we saw in 2022 under those opposite, but all of it adds to the pressure that people feel around the country, and the Reserve Bank's decision will add to that pressure as well. We understand that inflation is too high in our economy. We acknowledge that; we get that, and that's why we're acting on it. We are acting on it with cost-of-living help that those opposite oppose. We are acting on it with tax cuts that those opposite oppose and want to repeal. We are acting on it with budget repair that those opposite were completely incapable of.

Inflation is one of three major challenges, but it is the most pressing challenge in our economy in the near term. We've also got a longer standing challenge with productivity, and both of those are set against the backdrop of global economic uncertainty. But we need to remember, as we confront all of this together, we also have big advantages. As the Reserve Bank governor said on Tuesday:

We are actually in a really good position.

This goes, I think, to those opposite—

Opposition Members:

Opposition members interjecting—

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

Well, they're now sledging the Reserve Bank governor, Mr Speaker. They're now sledging the Reserve Bank governor. So out of control is their partisanship that they're now going after the independent Reserve Bank governor, just like the opposition leader went after the Treasury secretary earlier in the week. Now those opposite want to talk to the Australian economy—

Opposition members interjecting—

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

Order! I'm just going to ask the Treasurer to pause. I genuinely can't hear. There's too much noise. The member for Goldstein is not going to interject any more, otherwise we won't be having the MPI today. I mean it. So no more interjections from the member for Goldstein, otherwise the opposition will lose the MPI and there'll be consequences for actions. The Leader of the Nationals and the Deputy Leader of the Nationals are getting a good go at the moment, but that won't continue if they continue to interject. The House is going to settle. I'm just going to ask the Treasurer to return to the question.

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

When those opposite make comparisons with the major advanced economies, they never make the full comparison. We've got stronger economic growth and lower unemployment than most of the major advanced economies. We've got stronger jobs growth and less debt than all of the major advanced economies. Every one of them has had a negative quarter of growth, and we haven't had a negative quarter of economic growth. We're also strengthening business investment. We've got near record high labour force participation. We've got a lot going for us in our economy. Our objective is to maximise our strengths and address our challenges in the economy in our usual considered and methodical way.

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

The member for Cowper is now warned.

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

We know that there is more work to do across inflation, productivity and making our economy more resilient in the face of global economic uncertainty. That will be the focus in May, and we will not be distracted by the three-ring circus over there.

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

My question goes to the Treasurer. Yesterday in question time, the Treasurer referred to his responsibility, and actually refused to take responsibility for rising interest rates, by quoting AMP economist Diana Mousina. But today Ms Mousina told the AFR the Treasurer had cherrypicked her comments and that she, and I quote, 'Didn't say the government was not contributing to inflation.' Will the Treasurer apologise for misrepresenting Ms Mousina's comments?

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

Order! Member for La Trobe, the Treasurer hasn't begun his answer yet.

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

First of all, I think I've said a number of times now, through the course of this week and before that, that I take responsibility for all aspects of my job, including our part in the fight against inflation. I think I've made that very clear, and repeatedly so. When I quoted the economist that the shadow Assistant Treasurer is referring to, Diana Mousina, from her interview on the ABC on Tuesday morning, I was making two points very clear, and both of these points still stand.

First of all, there is not a unanimous view amongst economists, the view pushed by those opposite, and that remains the case. And, secondly, the quote that I used from the interview that she gave on Tuesday morning on the ABC reflects the factual point that what we saw in the economy in 2025 was public demand growth making a smaller contribution to demand in the economy and private demand growth making a bigger contribution to growth in the economy.

Now, I understand that those opposite are so desperate in their current political condition, but they cannot deny the fact that the story of the economy in 2025 was the faster-than-expected recovery in the private economy. If they don't want to take my word for it, then they should take the word of the Reserve Bank governor, who said, 'Growth in private demand has strengthened substantially more than expected.' The RBA governor said, 'Private demand is growing more quickly than expected.'

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

Order! The Deputy Leader's asked his question.

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

In the Statement on monetary policy: 'Private demand was much stronger than expected.' In the Statement on monetary policy: 'The near term upward revision is driven by private demand.' In the press conference: 'Private demand has turned out to be much stronger than we had been forecasting.' In the Statement on monetary policy: 'The contribution of public demand to year-ended GDP growth has continued to ease in recent quarters.' And that's the point that a number of economists have made. It's a point that I've made. It's not a political opinion. It's not an economic opinion. It's a fact in the national accounts released in recent times.