Sarah Henderson (Victoria, Liberal Party) Share this | Hansard source

I rise to take note of the government's refusal to address the acute pain it is causing Australians as a result of today's interest rate rise of 20 basis points. The cost for the average mortgage of $600,000 is an additional $100 a month, or $1,200 a year. Yet, when the Minister for Finance, Senator Gallagher, was asked what that average cost would be, she refused to answer the question. Senator Hume put that directly to her and raised the same question. She said it depended on the terms of the mortgage agreement.

When news of the interest rate rise broke during question time, it was like the emperor with no clothes—nothing to see here. There's nothing to see here because what we know now is that this is another very, very strong sign of this government's economic incompetence—its failure to run the economy. We heard those on the other side say, 'Oh, yes, we know Australians are disappointed.' Australians are more than disappointed; Australians have been betrayed. There have been 13 rate rises in less than four years. The price of economic incompetence by the Albanese Labor government is a nation going off the cliff.

There are debt and deficits as far as the eye can see, and for Senator Brown to talk about the surpluses is a joke. There are billions and billions of dollars of deficits facing this country. The country is $1.2 trillion dollars in debt, and we are seeing the worst living standards in this country for a very long time. Labor has presided over the biggest collapse in living standards in the developed world, while fuelling its addiction to spending. This spending is driving up the cost of living today and leaving that $1.2 trillion debt bomb for the next generation.

Australians have lived and breathed the cost-of-living crisis in this country as a result of this government. Insurance is up 39 per cent, energy is up 40 per cent, rent is up 22 per cent, health is up 18 per cent, education is up 17 per cent and food is up 16 per cent. Can you imagine all those young Australians right now who are desperately wondering how they're ever going to be able buy a house under this government.

This is the great Australian dream which has been destroyed by this government, and now this is another nail in the coffin. This has been something that's been taken up by economist Judith Sloan. What an insult that Labor, which used to care about working people, about supporting those who most needed the help of government, is now rolling out all these schemes which are not means tested. The five per cent deposit scheme—which, of course, was a very successful means tested program under us—is now being opened up to any Australian no matter how much money they have in the bank, or no matter how much money their parents have in the bank. We know that this scheme alone is driving up house prices.

The cost of living keeps getting worse under Labor and is not helped by government spending which is putting upward pressure on inflation. IFM Investors Chief Economist, Alex Joiner, has said 'the fiscal guardrails have come off' with spending now at its highest level outside of recession in 40 years. Even business groups, like ACCI, are calling on the government to cut spending. The average mortgage holder is already paying around $21,000 a year more in interest than they were under the previous, coalition government. Another interest rate hike is another nail in the coffin for so many Australians struggling to put food on the table, to pay the mortgage and to have that great Australian dream of homeownership. (Time expired)

Question agreed to.