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

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

The Government's toxic taxes and economic mismanagement making life harder for everyday Australians.

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—

Kevin Hogan (Page, National Party, Deputy Manager of Opposition Business in the House) | Link to this | Hansard source

We've all spent the last four or five weeks in our communities. My colleagues—and it's been great to see them again on this side of the chamber—have all, without exception, been saying to me that, as we walk our high streets with our retail businesses, as we go to shopping centres, as we walk around our industrial estates and as we go to sporting events, everyone is telling us that they are doing it really tough. In fact, some of them are saying their cost-of-living pressures and the pressures on their houses, their budgets or their small business have never been so tough. That's what we are hearing unanimously, the length and breadth of this country, of how tough small businesses are doing it and how tough families are doing it with their budgets.

What is this prime minister doing in response to this, besides making crass remarks about Kylie Minogue and the Japanese prime minister—it was atrocious—and not apologising for that? Besides doing that, what is the Prime Minister and this government doing around these extreme problems that businesses and houses and housing budgets have? We know what they're doing about this. Just three months ago, in the budget, when all these things were happening, their solution to cost-of-living pressures for households and family businesses was to do a few things, and they all included raising taxes. Why would that side of politics think that raising taxes is good for families and good for budgets for small business when times are tough? Because it's just in their DNA. They can't think of any other way except to take hard earned money off other people so they can spend it.

What this has meant is we now have one of the highest capital gains taxes in the world. I'll repeat that: we now have one of the highest capital gains taxes in the world. What that side of politics has done is it has changed the risk-reward ratio in this nation. It used to be that, if you had a business, if you started a business and took a bit of a risk, you got the reward. That's what's driven this country for hundreds of years—you take the risk and you keep some of the reward. Well, that has now changed. Young entrepreneurs and entrepreneurs in this country now know that you take the risk and that side, the Albanese Labor government, will take the reward. That's now how this is working.

Now, you might ask: What's their thinking? How would they arrive at that type of mentality and that type of thought process? Good question—I've asked that myself. Do you know what I've come up with as the answer to why they think like that? It's because not one of them, or certainly not, when you look at the Prime Minister and the Treasurer—neither of those people nor a lot on that side have ever worked in private enterprise. The Treasurer's and the Prime Minister's first jobs, outside of politics, were—wait for it—for a Labor minister. Their work record is: work for a Labor politician, work for a Labor minister, and then become a Labor MP. So they don't get it; they don't understand it. It's a DNA thing. A lot of people on this side understand what it means to work in private enterprise and to own or start your own business, when paying your salary and, indeed, the salaries of other people is up to your entrepreneurship. But those opposite don't understand it—they don't get that—which is why they thought raising taxes was a good idea.

The other one, obviously, was the increased taxes on trusts. Again, they wouldn't understand, because they've never done it. Over 350,000 small businesses in this country operate under trusts, so they are now paying higher taxes.

We have a shortage of housing; we have a shortage of homes being built in this country, so, of course, they think it's a good idea to raise a tax, or put a tax, on negative gearing in this country. They also thought it was a good idea—when you're building some units, or building some apartments, a lot of people buy off the plan. A lot of that is done through self-managed super funds. They've banned them from doing that and leveraging into that, because, again, they just don't understand.

I'll repeat this, and I've said this before in this chamber. Not only have they done this—we can argue about the merits of why we think that's bad policy, and we'll reverse those policies. But the other shame about this is that they deceived. Every single person who's here right now, just remember—you deceived your communities and you deceived the Australian community. You said you wouldn't do this. Not only have you done this but, before the election, as the Prime Minister—he's on the record as saying he would not do this, and the deceit of that will not be forgotten.

Well, the good news is that, on this side of the chamber, we understand the pressures on family budgets and we understand how small business works, or how business works, and that's why we have given a pledge for the tax-back guarantee. Now, what is the tax-back guarantee? We know what bracket creep is. Inflation is out of control in this country too because of this government, so people are going into higher tax brackets as they go into higher wage ranges. We have guaranteed that we will increase the tax ranges and increase bracket creep levels so that people don't pay higher taxes. That will be worth over $1,000 for the average household after four years, after we get into government and bring this in—a real tax cut, something that that side of politics just doesn't understand.

The other thing that's happening—I have children; a lot of us have children. Some know people or have family members or friends who just can't afford—or there are not enough houses in this country being built. And it's been really exacerbated over the last five years. One of the reasons why the housing crisis has been exacerbated over the last five years in this country is that, in the first two terms, after six years of this government—we're coming up to the fifth year—it is projected that two million people will have arrived in this country. When you have two million people arrive with a net overseas migration and you're not building the houses for that amount of people, shock, horror, gasp—rents go up. Shock, horror, gasp—there's less housing supply for people, and rents have gone up. Again, the good news is that, on this side of the chamber, we understand that issue, and our policy will be to tie migration to new housing being built. We understand that and we will limit it to that.

The other big pressure and the other thing causing issues for houses and businesses in this country is the inflation rate. I want to give you some core inflation rates, which strip away volatile fuel costs. I want to give you the inflation rates of a few countries: Australia, 3.6 per cent; France, one per cent; Japan, 1.6 per cent; Italy, 1.6 per cent; Canada, two per cent; Germany, 2½ per cent; UK, 2.6 per cent; and US, 2.6 per cent. What does that say? We have one of the highest inflation rates in the world. It's not me saying this. Prominent economists are saying that is the result of this government's reckless spending. It's not me saying it; that is economists saying it. Again, the pressure that puts on higher grocery prices and on budgets is astronomical.

The other thing I want to talk about, because we can't forget this, is a big part of cost-of-living prices: the energy costs in this country. We remember, when you talk about deceit, that this prime minister said on numerous occasions—I think 90 times—that he was going to lower your energy bill by $250 per year. That should have come in by now, because that was going to be five years after they got elected. That should be by now. The average energy bill for the average family has gone up more, closer to $1,000, rather than down by $250. Again, that is deceit from this government. Why is that? That is the net zero 2050 folly of this government. The net zero 2050 policy of this government is putting pressure on energy prices in this country and risking the energy reliability of our transmission system. I remind everyone opposite that, when you're talking about carbon emission reductions, the three biggest emitters in the world—China, the US and India—are not signed up to net zero 2050. Why do I say that? Because Australia emits just over one per cent of carbon emissions, yet this government, in ideological folly, is risking the energy transmission system of this country and forcing prices to be higher because of that folly.

I'll just finish very quickly. This is a government that is out of touch. This is a government that is arrogant. But we have the policies of linking migration to housing and the cost-of-living measures that we will bring in to make life better for this out-of-touch, arrogant government.

Emma McBride (Dobell, Australian Labor Party, Assistant Minister for Mental Health and Suicide Prevention) | Link to this | Hansard source

Let's deal with the claim. Let's deal with the topic of this matter of public importance straight up. Nothing could be further from the truth. I've been self-employed. I've worked in the private sector. My colleague has worked in the private sector. So many here have worked in the private sector. On this side of the House, we understand the economy, we understand our society and we're working to protect all Australians. We believe in building an economy that works for everyone, not just those at the top. We believe in easing cost-of-living pressures so Australians can keep more of what they earn and afford more of what matters to them and their families. And, on this side of the House, we believe in fiscal responsibility.

Good economic management is not measured by slogans or scare campaigns. It's measured by whether jobs are being created, whether wages are growing, whether bulk-billing is growing, whether medicines are cheaper and whether a government is prepared to make decisions needed to secure Australia's future. On every one of those measures, the Albanese Labor government is delivering. Just five days ago, S&P Global reaffirmed Australia's triple A credit rating. At a time when many countries are facing economic uncertainty and fiscal pressures, it's a recognition that Australia has a government managing the economy responsibly, making disciplined decisions and maintaining confidence in our nation's finances.

Global economic pressures are real. The impacts of global inflation surge, international conflict, supply-chain disruptions and economic uncertainty have been felt right around the world, and it would be deceitful of those opposites to not acknowledge that Australian families have felt those pressures too. The question is not whether those challenges exist; the question is how governments respond. Do you provide meaningful relief while maintaining fiscal discipline? We've managed the budget responsibly. We've been able to provide real cost-of-living relief and another tax cut that those opposite opposed—another tax cut just now for Australian taxpayers. When the budget is managed responsibly, we can provide real cost-of-living relief while keeping the nation's finances strong.

We've delivered, as I said, tax cuts for every Australian taxpayer, and Australians will receive another round of tax relief next year. That's real relief for workers and families. As a pharmacist, I'm particularly proud of our cheaper medicines reforms. This is real reform. In my electorate of Dobell alone, those reforms have saved local residents around $16.6 million. That's $16.6 million. The last time medicines cost $25 on the PBS was in 2004, more than 20 years ago, early in my career as a community pharmacist. We've frozen the cost of PBS medicines at no more than $25 and $7.70 for concession card holders. We've already saved Australians around $2.9 billion in out-of-pocket costs because of that freeze, and we've added or expanded more than 400 medicines to the PBS. That's real cost-of-living relief. As Diane from Noraville in my electorate said—and she's an aged pensioner—this really helps when you're a pensioner. This really helps. This is real cost-of-living relief. This is money staying in the pockets of Australian families, pensioners and patients. We've expanded paid parental leave. We've increased the minimum wage. We've strengthened Medicare. We've made urgent care clinics a permanent part of our health system. We've done all of this while reducing debt and helping bring inflation under control.

That is what responsible economic management looks like. It doesn't look like scare campaigns. This is what responsible economic management looks like. Let's compare that with the record we inherited.

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

You were going so well!

Emma McBride (Dobell, Australian Labor Party, Assistant Minister for Mental Health and Suicide Prevention) | Link to this | Hansard source

I'll take that interjection. Let's compare that with the record that we inherited. When Labor came to office real wages were falling, inflation was surging, housing approvals were going backwards, business investment was weak, and budget deficit stretched years into the future, despite those mugs. Did you have one of those? Did you have one of those mugs, Michael? Did you have one of those mugs?

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

It was the golden age of democracy.

Emma McBride (Dobell, Australian Labor Party, Assistant Minister for Mental Health and Suicide Prevention) | Link to this | Hansard source

'The golden age of democracy,' I hear! Australians would say otherwise, and they did at the ballot box. Budget deficit stretched years into the future, and debt had doubled even before the pandemic. That was the reality. Despite the mugs and the slogans and the scare campaigns, that was the reality.

Since you asked, four years later, we've created 1.25 million jobs and—you'll be pleased to know—with around five out of every six of those jobs created in the private sector. This is how we're going now. We've delivered the lowest average unemployment rate of any Australian government in half a century. This is how we're going now. Real wages have grown in eight of the last 10 quarters. The national minimum wage has increased by more than 30 per cent, and I know, in communities right across the country, particularly for workers in aged care and in early childhood, the real difference that has made for parents and communities, including the early educators that I met at Glenning Valley early learning just on Friday, who are making a real and genuine difference to families.

Business investment is stronger, and housing investment is stronger, but responsible economic management is not only about dealing with today's challenges. It's about preparing Australia for tomorrow. Nowhere is that responsibility clearer than in housing. We know that there is an intergenerational housing challenge facing this country. Too many Australians are working hard, doing everything right and still finding homeownership increasingly just out of reach. We could ignore that challenge. We could leave it for somebody else, like those opposite did. We could pretend that the market will somehow fix itself, but that wouldn't be good economic management. That wouldn't be responsible leadership. Leadership is addressing structural problems when they emerge and preparing for the future, and that is exactly what our government is doing.

Before our reforms, when a first-time buyer turned up at an auction—and everyone has seen them in their communities across the country—they weren't just bidding against another buyer. Too often, they were bidding against a tax system that tilted the playing field against them. That's why we're reforming negative gearing. The current system is not working well enough for Australians, not working well enough for young Australians and not working well enough in communities like mine on the Central Coast of New South Wales.

Negative gearing concessions have done little to boost new housing supply, with around 83 per cent of investor lending flowing into existing homes rather than into new construction. By limiting negative gearing incentives to new housing, we're making sure that tax concessions support the construction of additional homes, of new homes, rather than simply driving competition for existing stock. It means that investment is still supported but those incentives will help build the homes that Australia needs. That's a fairer approach. That's good economic management. That's a smarter approach.

These reforms are about building a stronger country, a fairer Australia and a more sustainable economy. They sit alongside our efforts to boost housing supply, reduce barriers to construction and help more Australians, particularly young Australians, achieve the dream of homeownership. Real economic management is not about avoiding difficult decisions. It's not about blaming others. It's not about mugs. It's about good economic management. It's about taking the difficult decisions. It's about supporting Australians in communities like mine and right around the country. It means tackling challenges, not pretending they don't exist. It means delivering change, not making excuses. And it means delivering real outcomes, not delaying decisions.

It means delivering an economy where hard work is rewarded, where opportunity is shared and where every Australian, wherever they live and whatever their postcode, has the chance to get ahead. That is what this government is doing. That is what Labor governments do. That is what responsible economic management looks like, and that is exactly what the Albanese Labor government will continue to deliver.

I'll finish with Dorothy from Glenning Valley in my electorate, who wrote to me. This is what she said:

It has always been Labor governments who see this country through its roughest times and provided protections for those that need it most whilst building the foundations for all social benefits.

That is what our government is doing. That is good economic management.

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

This matter of public importance debate is on the government's toxic taxes and economic mismanagement making life harder for everyday Australians. It's brought to you by the member for Page, who represents a regional electorate. Like anybody who represents a regional electorate, they would know just how tough country people are doing it at the moment. But it's not just in the regions; it's right across this wide, brown land. I happen to like the member for Dobell, and she is the Assistant Minister for Mental Health and Suicide Prevention. She is the Assistant Minister for Rural and Regional Health. They are very important portfolio areas, and I genuinely wish her every success.

But unfortunately—and it's not her fault, by the way—one of the very first things that this Labor government did was change the distribution priority areas for doctors, and that led to the departure of many of our fine general practitioners to the coast and to other peri-urban areas where they had plenty of doctors. Unfortunately, that has led to a rural health crisis.

Real wages are falling. They genuinely are. People have less money in their pockets now to spend, less disposable income than before this really tawdry government came into office in May 2022. You only have to look at policies such as the widows tax, which is just cruel and unnecessary, and the private healthcare rebate being axed for over-65s. Then you have the algorithms determining aged-care assessments for older Australians. What is it that this government has against aged Australians—people who have paid their taxes, people who have done so much to make this country what it is today? We've got a government that says it cares but is turning its back on older Australians. It's not right, it's not fair and it has to change.

We've had 15 interest rate rises. As was told to us today by the Leader of the Opposition in question time, mortgage holders have to find $29,000 more each year to pay off their mortgages than they did prior to this Labor government coming to office. Where is the equity of that?

Tonight is census night. I have a bit of experience with these census days and nights. In 2016 the response rate by households was in fact 95.1 per cent; that's pretty good. But 95 per cent of households are probably now of less value than they were before the last budget. And do you know why? Because of the capital gains tax reforms that Labor said it wasn't going to do—and then on budget night we saw the Treasurer, the member for Rankin, introduce them. It's caused so much hardship and harm for those people wanting to put a roof over their heads. For those people who already have a roof over their heads who invest in themselves and their futures, the government's pulled the rug from underneath them. Don't take my word for it; there are plenty of others saying precisely the same thing.

When it comes to regional Australians, we think of the farmers. In the budget, $191.6 million was taken out of feral pest management practices. That now means pigs, wild dogs, rabbits, mice and anything else you care to name that are killing sheep and taking away the profits of farmers are going to be running rampant thanks to this tawdry government.

Then we get to water buybacks. Even though we're heading towards a trillion dollars worth of debt, this government found it necessary to buy $430 million more of water from irrigators, from productive use, from farming use and from food and fibre production. And what are they going to do? Flush it down the mouth of the Murray. That's what this Labor government does.

I probably don't have time to talk about the $5,000 allied health cap for our veterans. But what do Labor do? They just say, 'We'll consult.' They should have consulted before the budget. They should have consulted on the widows tax. They should have consulted on the veterans allied health cap. It's simply not fair. It's simply not right. But it's so typical of this Labor government that never sees a toxic tax it doesn't want to introduce, that doesn't tell people before the budget what they're going to do and then implements things in the budget.

Ali France (Dickson, Australian Labor Party) | Link to this | Hansard source

This MPI is quite the irony from those opposite. If you want to talk about making life for the everyday Aussie harder, look no further than yourselves. Your record on delivering practical measures to help everyday Aussies day to day is quite simply appalling. I'm going to list a few of the greatest hits. Who can forget robodebt. Who can forget the great bulk-billing freeze for three years, which made going to the doctor much more expensive for everyday Australians. Who can forget that wage growth literally flatlined under the coalition; in fact, you described it as a deliberate design feature of your very poor economic management. Who can forget cuts to TAFE when we are literally in a trade crisis now because you cut TAFE to the bone. When you talk about making life more difficult for everyday Aussies, you should literally look in the mirror.

You also opposed our tax cuts. We've all just had a tax cut, on 1 July—and you voted against that tax cut. You also opposed pay rises for minimum-wage earners. You built a measly 373 social and affordable homes in your time in government over a decade—unbelievable! All in all, you've basically just left it up to us to help everyday Aussies with the cost of living and with getting ahead, and that's exactly what we're doing.

The Albanese Labor government are committed to improving life for everyday Aussies and we are actually doing it in spades—cheaper medicines, more bulk-billing, cheaper child care, $2,800 in tax cuts next year, 30 per cent off batteries, pay rises for low-paid workers, 20 per cent off HECS, free TAFE, now expanded paid prac, six months of full Paid Parental Leave.

We know housing is a massive challenge facing Aussies, especially younger Australians and first homebuyers, and we're actually listening. They've been telling us as MPs for many years that it's been getting harder and harder, and we're actually delivering some change that will help them. We've delivered the five per cent deposit scheme, so first-time buyers only need a five per cent deposit and single parents only two per cent. I think we're up to about 280,000 first homebuyers who've taken advantage of that scheme.

Our recent budget delivered tax reforms to make it easier for people to buy their first home by putting limits on negative gearing, which obviously supports more first homebuyers entering the housing market and will increase the number of actual owner occupiers in the housing market. We've brought the dream of homeownership back within reach, not just for investors but for everyday Aussies. We didn't stop there.

Our budget also introduced the working Australians tax offset, an additional tax cut of up to $250 for working Australians straight back into their pockets. This is going to benefit over 13 million Australian workers—a tax cut that those opposite voted against. The tax cuts that we've introduced and the final one, the one next year, will add up to about $2,800 back into the pockets of everyday Aussies. As well as the tax cuts, we've introduced a $1,000 instant tax deduction for workers, which will result in an average of about $200 a year for 6.2 million Aussie workers.

Over on this side of the House, we are very much focused on making life easier for everyday Aussies by focusing on measures to ease the cost-of-living pressures. We have demonstrated that over and over and over again. I just keep on repeating: 20 per cent off HECS, cheaper child care, cheaper medicines, more Medicare. This is what making life easier for Aussies actually looks like.

Andrew Willcox (Dawson, Liberal National Party, Shadow Assistant Minister for Manufacturing and Sovereign Capability) | Link to this | Hansard source

Well, Australians are living in a Labor-created cost-of-living crisis and those opposite are congratulating themselves that the RBA governor held the rates today, but the reality of it is, under those opposite's watch, the interest rates have increased 15 times. During the break, when a lot of people were sunning themselves and doing whatever they were doing, travelling overseas, I spent the time in the electorate speaking to my people. I was at pop-up offices and coffee catch-ups and markets.

Anika Wells (Lilley, Australian Labor Party, Minister for Sport) | Link to this | Hansard source

Same!

Andrew Willcox (Dawson, Liberal National Party, Shadow Assistant Minister for Manufacturing and Sovereign Capability) | Link to this | Hansard source

And you were doing the same. That's excellent. Well done. It's good to see you were not travelling.

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

Let's stop taking the interjections.

Andrew Willcox (Dawson, Liberal National Party, Shadow Assistant Minister for Manufacturing and Sovereign Capability) | Link to this | Hansard source

Under those opposite, the interest rates have been way too high for way too long. Inflation has been high. The current rate of inflation is 3.8 per cent. The target rate is 2.3 per cent. Labor have lost control of the budget and they've lost control of the whole of the economy. Instead of spending all Australians' money, the Prime Minister needs to be spending some time pulling his Treasurer into gear rather than making crude comments about Kylie Minogue and crude gestures about the Prime Minister of Japan. The Prime Minister is making everyday Australians' lives harder with his toxic taxes and economic mismanagement, and now he's demeaning women. So I ask the Prime Minister to apologise to the Prime Minister of Japan, apologise to Kylie Minogue and apologise to all the women of Australia.

While he's at it, the Prime Minister should also apologise to all Australians because under Labor Australians have experienced the biggest collapse of living standards in the developed world. And, folks, it's going to get worse. This budget has the highest tax take of a budget ever. High spending is Labor's way, and this is then pouring petrol on the inflation fire. And what happens with inflation? When you have inflation, your borrowing power, your buying power, every bit of money that you earn—you can't afford to buy as much. It's that simple. Those opposite are also going to drive debt over $1 trillion. In this budget we've seen broken promises on negative gearing, capital gains tax, trusts, and we've seen more and more toxic taxes added. But the Prime Minister never took these to the election. I've never seen anything that Labor's not happy to tax. They're happy to tax everything from the cradle to the grave. And why? Because of their insatiable appetite to spend.

Another crushing blow to all the young people is that thousands of young Australians were actively enticed to buy their first home under the federal five per cent deposit scheme, taking on 95 per cent of debt. Young couples across the community stretched every single dollar so that they could get their foot on the property ladder, trusting this government was offering them a genuine leg up to homeownership. They signed contracts and took on heavy bank loans in good faith, believing that the market would remain stable and that their hard-earned deposit was safe. But, after encouraging these young buyers to max out their debt, Labor whacked them with toxic taxes on housing and investment, crashing entry-level valuations and trapping homeowners into negative equity.

But Labor's suite of toxic taxes doesn't stop there. It's a direct assault on aspiration, locking young Australians out of the exact same financial opportunities that were afforded to older Australians and whacking heavy new taxes on housing, on savings investment and family small businesses, making it almost impossible for young people to build long-term wealth, to buy a home or to start local businesses. Instead of rewarding hard work and supporting ambition, Labor is penalising Australians and effectively pulling up the ladder on every Australian.

The coalition has a plan to fix the economy and protect our way of life.

Anne Urquhart (Braddon, Australian Labor Party) | Link to this | Hansard source

Labor is helping Australians earn more and keep more of what they earn, while the Liberals' record tells us they would leave people behind. The opposition's criticisms are a hollow political attack from a desperate party that wants Australians to forget its record. When the Liberals were last in government, they kept wages low as a deliberate design feature of their economic policy. They left Medicare under pressure, failed to deliver serious relief for families and presided over years of cost-of-living strain, without a plan for everyday working people. Now, from opposition, they are again trying to talk down the economy and talk down the support going to everyday Australians.

Labor's reforms are about helping workers keep more of what they earn, supporting young people to buy their first home and making the tax system fairer. Only Labor will deliver higher wages. Labor has backed pay rises for workers every year since coming to government. Since 2022, the minimum wage has gone up by more than $9,000 a year. This year, almost 2.7 million Australians on the minimum wage or modern award wages are receiving another pay rise, backed by this Labor government. It matters in electorates like my own. It means more money in the pockets of cleaners, retail workers, hospitality workers, carers and people doing essential jobs right across Braddon. Labor believes the people who work hard should be able to get ahead. Every taxpayer is better off under Labor.

Labor is delivering tax cuts for every taxpayer. For the average worker, that means around $2,800 more in their pocket each year. Labor's first tax cut began on 1 July 2024, a second cut was introduced in July 2026, and another will be introduced from July 2027. Workers will also be able to claim a $1,000 instant tax deduction without receipts from the 2027 tax year, and, from the 2028 tax year, the new working Australians tax offset will deliver a permanent $250 cut to workers' tax bills. As a note to those opposite, this is what helping people keep more of what they earn actually looks like.

Labor is delivering cost-of-living relief by strengthening Medicare and cutting the cost of medicines. In Braddon, Medicare urgent care clinics are now open in Devonport and Burnie, giving people free medical care. There are now 19 GP practices in Braddon that bulk-bill all patients, and around 95 per cent of patients are seeing a doctor for free with the bulk-billing incentive. Labor has also cut the price of prescription medicines, with most scripts now costing no more than $25, or just $7.70 for people with a Commonwealth concession card. That is practical cost-of-living relief for people who need it most. Those opposite should go and talk to those people, who need it most.

Labor is helping families, parents, young people and first home buyers. Our five per cent deposit scheme is helping young people buy their first home sooner, with extra help for single parents and guardians, who may be able to buy with a deposit as small as two per cent. Labor is also making the tax system fairer so first home buyers have a better chance against investors.

From 1 July 2026, parents welcoming a new baby or adopting a child can access 26 weeks of government-backed paid parental leave, with superannuation now paid on that leave so those people are not left behind. Family tax benefit payments are increasing too. Support payments have also gone up for young people who are studying, looking for work or caring for others. These are real measures that help people manage their budgets and plan for the future.

The choice is very clear. When the opposition throws around slogans about toxic taxes and economic mismanagement, Australians should see it for what it really is: hollow criticism from a party with no plan to lift wages, no plan to strengthen Medicare, no plan to make medicines cheaper and no plan to help families keep more of what they earn. The Liberals had their chance, and Australians remember that—low wages, household pressure and weaker services. Only Labor will protect everyday Australians by backing better pay, cutting taxes, strengthening Medicare, making medicines cheaper and supporting the families that need it most.

Melissa Price (Durack, Liberal Party) | Link to this | Hansard source

I rise to speak in support of the MPI moved by the member for Page. It is a fact that, under Labor, Australia has experienced the worst collapse in living standards in the developed world, and it is a fact that inflation is still running out of control, well above the Reserve Bank's target band. It is not just key economic indicators telling us that Labor's economic mismanagement is making life harder for regional Western Australians; it is those very people—in their thousands—telling me in their own words that Labor is making life worse for them, not better.

Throughout the Pilbara, during the winter recess, I heard directly from many regional Western Australian families, mothers and grandmothers in particular, who are worried about their children's future. In every conversation I had with a mother, the same themes and concerns came up: How will my child be able to afford a home? How will they be able to build wealth? How will my child be able to afford to have children themselves? These are the concerns of everyday Australian families. They are struggling under the weight of Labor's higher taxes and high inflation and interest rates—the end of aspiration—and working harder for less.

We, in this place, must remember that we are not just making decisions for the next three years; we are making decisions for at least the next 30 years. On this side of the House, we understand this responsibility and we accept the honour of this.

Our plan will fix the economy and protect our way of life for generations to come, so that our children can have the same, or better, opportunities to get ahead as past generations had. For too long, governments of both sides have merely looked only to the next election—often, creating policies merely to win votes, not to secure Australia and our future. Only the coalition has the leadership, the team and a plan to fix our economy and protect our way of life. Our priorities—lower taxes, cheaper power, less migration, more homes and putting Australians first—are the change that our country needs. While Labor voted again for higher taxes—earlier, only today—on this side, we are committed to bigger and better tax cuts every single year, under our tax-back guarantee, ending Labor's thief-in-the-night inflation tax by indexing tax brackets to inflation.

Let's face it: this government has failed on housing policy. Homeownership is no longer in reach, and it's the primary concern of many parents, right around the country. We have fewer homes and higher rents, and confidence in the market has been smashed under this Prime Minister.

As the party of aspiration and everyday Australians, the Liberal Party will put homeownership at the centre of the Australian dream again. We'll do this by capping migration at the number of homes built, to try and fix the 400,000 housing shortfall we have experienced under this government. Australia is simply not building enough homes—that is clear—and the situation is not going to improve while the member for Grayndler is sitting in the Prime Minister's chair. Instead, I support—and I think my colleagues here, on this side of the House, support—a $5 billion housing infrastructure fund to help build up to 400,000 new homes; the five per cent deposit scheme being reserved for Australians only; slashing red tape, to cut the cost of a new home by $70,000; scrapping Labor's housing bureaucracy; and repealing Labor's housing taxes.

So my message to all Australians is this. This is not as good as it gets, and I'm not going to cop it and neither should you. I'm fighting to put you first, to establish a future generation fund to pay down Labor's trillion dollars of debt, because the last thing I want is for your children and your grandchildren to inherit this economic mess that is being created by those sitting opposite.

To those regional Western Australians hurting under this government's economic mismanagement, and those worried about their children's future: I hear you, and so do my colleagues. We know that Labor is making you poorer, not richer. The coalition is determined to have the policies for the next election and beyond. We're going to make our country a place where dreams do come true, where owning a home is possible and where hard work and ambition are rewarded. (Time expired)

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

At a time when Australians are really under pressure, it is on the government to deliver real change. And that is what we've been focusing on. It's about delivering economic reforms that are about making Australia stronger and fairer for working Australians, making health care more affordable, making housing more accessible and making our tax system more equitable. The solution to the struggles and challenges faced by the Australian people is not a return to distortionary tax settings that made housing a faraway dream for generations of Australians—distortions that privileged investors over people looking for a roof over their head.

Now, we've taken on the difficult task not for political ease—we can all attest to that. We've done it because it's the right thing to do, because we have to think for the long-term: 'What is right for working Australians? What is right for the country?' It's certainly not to divert investment from productive assets, from productive businesses, into existing housing—a situation that has seen the price of those houses quadruple over only a couple of decades, making the great Australian dream a nightmare for young people, who knew it just wasn't for them anymore, because we had a coalition government that spent 10 years finding every single excuse to kick the can down the road on every single challenge facing our economy and society.

On energy, it's a whole lot of do nothing—a bunch of pamphlets. Then we've got the challenge of housing affordability. Nothing about that either—'Let's keep those 1990s distortions that have made the system even worse.' On energy, on productivity, on wages, they could not do anything to address the challenges. Why? Because they were afraid of showing a little bit of political courage and they were afraid of telling their backers that things had to change, because it's all too hard and because they were too busy fighting themselves rather than fighting on behalf of the Australian people to make a real difference.

So we inherited a declining energy system where we had less reliable coal-fired power plants being increasingly relied upon and no real pathway for a 21st century energy grid that would provide businesses and housing with the affordable energy they need. Then they have the gumption to come into this chamber and propose more of the same—more kicking the can down the road. They say, 'Sweat the coal assets.' That's code for keeping prices high while we then go and adopt the single most expensive form of energy to ensure that high power prices are entrenched for the long term. It is absolutely outrageous.

This government is about making a real difference to people's lives, and I see it in my own electorate of Deakin. We've seen the number of 100 per cent bulk-billing practices double. We've seen cheaper medicines save just people in my electorate about $20 million. We've seen 1,000 people in Deakin being able to get into their first home because of the support through the five per cent deposit scheme. We saw 20 per cent of student debt cut for about 20,000 residents in my electorate of Deakin. That is real cost-of-living relief.

Whenever we talk about cost-of-living relief, you'll never find a group more keen to oppose it than the Liberal Party. They'll come here and express outrage, but they'll never back real cost-of-living relief. They've never met a wage increase that they agree with, because we know that wage suppression, keeping wages low, was a deliberate design feature of their economic architecture for nine years. They oppose cost-of-living relief. They oppose higher wages, which means that Australians are paying more and earning less, every single time. Those structural challenges simply continue to go unaddressed because it was all too hard.

This is just a repeat of history. I remember the last time the coalition started holding up blue pamphlets with slogans in them. They said, 'Oh, we'll get rid of the debt.' They got into office and doubled it before COVID. They had the little action contract they signed, saying, 'We're going to end the waste and we're going to pay back the debt.' They did neither, because they're not willing to do the hard work. They're not willing to bring about the real change that our society and our economy need to actually change Australian people's lives for the better. That is a tough job.

We're also making sure that Australians are set up for success in the future, assisting small business with loss carry-back, with about $3.8 billion of tax improvements for small business. We're cutting red tape as well, cutting compliance costs by about $540 million a year, making sure that productivity rises, because we know that is the key to success. It's the way we get inflation down, and it's how we ensure that Australians continue to improve living standards. But this is tough, long-term work. It's not slogans. It's not simple alliteration. It's not making a speech that sounds like a really dull version of a Dr Seuss book. You have to more than rhyme your way into prosperity. It takes real work. It takes real work and real change. And it means grasping the nettle, doing the hard stuff and really keeping an eye and the focus on making sure that the lives of Australian people continue to improve over time, taking on the challenges of our day and setting ourselves up for success.

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

Somewhere tonight, a family will sit down at the kitchen table with the bank statements and work out what they will go without this month. This is the reality under this government. Nothing the Reserve Bank did this afternoon changes that. A rate hold is not relief. The Reserve Bank has shown once again it has no confidence in this government, holding interest rates at a 15-year high. Sixteen rate rises later, Australian families are paying the price. Synonymous with Labor governments, those opposite have lost control of the economy. They have run out of money and they are coming after yours. This is felt harder in regional South Australia than almost anywhere else. Every loaf of bread and every litre of diesel carries the cost of the road it travelled on.

All Australians are paying for this government's incompetence, and they've had enough. Unlike the coalition, it is clear that those opposite have no plan to fix the economy. Last year, the Prime Minister and Treasurer proudly declared that we had 'turned the corner' on the battle against inflation. Well, if that was a corner, it's the longest corner in living memory. Inflation is still at 3.8 per cent—way above the Reserve Bank's target, and still at a 15-year high. The only thing that has turned is the story from the Labor Party.

Australians have been hit with 16 rate rises under this government—the most recent, in May—and not one came off today. That is what happens when a government spends too much and loses control of the economy. Since Labor was elected, Australians have had the biggest fall in living standards in the developed world. The budget is now forecast to be in deficit for a decade, and debt is about to pass one trillion dollars, because Labor cannot manage money; they can't run an economy. The only thing they know how to do is tax—and they're taxing everything.

Labor's toxic taxes are an assault on aspiration. A young Australian gets ahead by buying a house, putting away money, investing it or starting a business. Well, Labor is taxing every single one of them.

Then there is the widow tax. Labor failed a simple test when the parliament last sat. They had the chance to scrap it, and they voted to keep it. This is a tax that hits Australians at the worst possible time. Those opposite created the mess. They were warned about it, and they voted against fixing it. If the government agrees the widow tax is wrong, then there is no excuse for delay. Scrap this cruel tax, and scrap it now.

On housing, Labor has delivered a trifecta of failures: fewer homes, higher rents and confidence in the market smashed. Labor's own budget forecast that these tax changes will mean 35,000 fewer homes. This country is still building 30,000 fewer homes a year than when the coalition was last in office. This is basic supply-and-demand economics. Those opposite haven't heard of it. Tax something and you get less of it—there is your first lesson.

The coalition has a plan. We will lower taxes by axing every one of Labor's toxic taxes and introducing a tax-back guarantee. We will deliver cheaper power by scrapping net zero and making this country an energy superpower, like it was in the past. Not only will we cap migration to housing supply, but we will build more homes. We will put Australians first, establish a future generations fund, pay down the debt and deliver the nation-building infrastructure our regions have waited on for years.

Australians aren't asking for much. They are asking for a government that can manage money so that living standards can be restored. The choice at the next election will be clear: a coalition government with a plan to fix the economy, restore our living standards and protect our way of life, or a Labor government that has failed this country at every corner.

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

Before I talk about how the Albanese government is managing the economy, let's consider the economic record we inherited from the coalition in 2022. For almost nine years, the coalition claimed to be the party of responsible economic management, yet, when the coalition left office, they had failed to deliver a single final budget surplus during their entire nine years in government. Then, straight after ousting the coalition, in the 2022-2023 financial year, the Albanese government delivered a $22.1 billion surplus—the first budget surplus in 15 years. Under Labor, Australia's debt is almost $200 billion lower than what we inherited. That is what strong economic management looks like.

Labor is building a stronger, fairer and more secure future for Australia. We are tackling major structural challenges, like our housing crisis, head on. We are taking a responsible approach to managing the economy while investing in the areas Australia needs most.

We are reducing the tax burden for over 13 million workers and supporting 75,000 more Australians into the housing market. Our government has focused on finding savings and reducing waste rather than simply increasing taxes or cutting essential services, which tends to be the basic approach of those opposite. The reality is that those opposite have no alternative vision or credible policy on anything, which is precisely why the Australian people have lost confidence in them.

Responsible economic management means making sure taxpayers' money is being used where it can have the greatest benefit. A strong economy should improve the lives of ordinary Australians. That is why our government has introduced a range of cost-of-living measures. These include tax cuts for every Australian taxpayer, cheaper medicines and an expansion of free health care available in communities all over Australia. Our government's tax cuts have been designed to provide ongoing relief rather than be a temporary payment. This means millions of Australians can keep more of what they earn and use it to support their families, pay bills or spend their money in local businesses.

Another major strength of our government's economic strategy is our investment in Australia's future industries. Through our Future Made in Australia agenda, the government is investing in renewable energy, critical minerals, clean manufacturing and other emerging industries. We are doing this because Australia has enormous opportunity. We have some of the world's best renewable energy resources and huge reserves of critical minerals that are essential for batteries, electric vehicles, renewable technologies and modern manufacturing. This means more Australian jobs, more investment and potentially more export opportunities.

Our government is also investing heavily in infrastructure. Major investments in roads, rail, housing, energy and regional infrastructure help create jobs in the short term while improving Australia's productivity in the long term. Our government is also investing in skills and education. Programs such as free TAFE are helping Australians gain qualifications in areas where our economy needs workers. This is an important economic investment because Australia's future prosperity depends on having a highly skilled workforce.

The Albanese government has also taken action to strengthen wages. Since coming to government, we have backed higher wages for nearly three million of Australia's lowest paid workers every year—something those opposite would never do. Labor has also delivered the lowest average unemployment rate of any Australian government in half a century. Labor understands that we need to invest, plan and prepare for Australia's future. We are focused not only on the here and now but also on what Australia will look like in 10, 20 or 30 years, and that's why we're investing in clean energy, infrastructure, education, housing, skills and Australian manufacturing. These are the foundations of a modern and competitive economy. We're investing in a fairer Australia and in Australia's future. We live in the best country in the world, and Australia has enormous economic potential, and that's why we want our economic growth to be shared by all Australians both now and into the future.

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

This discussion has now concluded.