Simon Birmingham (SA, Liberal Party, Minister for Finance) Share this | Hansard source

I thank Senator Ayres for his question. The budget papers do set out the impacts of what we are seeing are global shocks and disruptions in relation to pressures on inflation in Australia and right around the world. The aftershocks of COVID-19 that are causing disruptions to global supply chains, but most notably the terrible, tragic war that Russia is inflicting upon Ukraine at present, have had enormous implications for inflationary pressures right around the world. Those opposite may not want to acknowledge the fact that oil price spikes are a real inflationary factor, but they are a real inflationary factor.

Senator Ayres spoke about the change in relation to inflation figures since the previous budget. Of course, since the previous budget we have seen huge spikes in oil prices, which have a very direct impact in relation to there being higher inflation. Our government is responding to the pressures that Australians face. We're responding in terms of providing a 22c a litre reduction in the fuel excise. We're lowering petrol prices for Australians while this spike is in place, while the world moves through these terrible difficulties caused by what's happening in Ukraine. We're providing additional support to low, middle, fixed income Australians. Why are we able to do that? We're able to do it because our government has created a strong economy that has got more Australians in jobs, a strong economy that has provided a stronger budget position. That is enabling us to have lower deficits, lower debt, but also provide additional support for Australians when they need it—additional support for Australian households, motorists, farmers and businesses to ensure they get the help that they deserve. (Time expired)