Claire Chandler (Tasmania, Liberal Party) Share this | Hansard source

The Albanese government's economic mismanagement has left the Australian economy in a very tricky position. We had national accounts data out today which confirm just how tricky that position is, and I will go into that in my contribution today. But I want to frame it within the context of what we are looking at currently.

The Albanese Government's is sitting on a trillion-dollar debt bomb and have zero plans to start repaying that debt. We found from the data that was released today in the national accounts that public demand is at an all-time record share of the economy at 29 per cent. Last financial year, government spending increased four times as fast as the rest of the economy. This financial year, government spending is still increasing twice as fast as the rest of the economy. There is no question that the Labor government is pouring inflation fuel on the debt fire and have no plan to start repaying that debt. They have no plan to reduce the level of government debt to a point where younger Australians, myself included, won't be paying it back with high taxes, if not now then later in our working lives.

Like I said, the Australian Bureau of Statistics today released the national accounts data for the December quarter 2025, the official snapshot of how our economy is actually travelling. Not long after those figures came out, the Treasurer, Dr Chalmers, fronted up to the media. But, listening to that press conference, I did note he barely spent a minute talking about the numbers themselves. He pivoted pretty quickly to talk about other issues of concern. He said in that press conference that stronger, broader growth provides the best foundation to deal with what's coming at us. That sounds reassuring. But he focused on the headline figures, not on what is actually going on underneath.

Here in this chamber today, I want to look a little closer at those numbers that the national accounts are flashing up at us, because they are a very clear warning of the cost-of-living pressures that Australians are facing. These numbers reflect that this financial pressure has not passed, but the government doesn't seem to be paying attention to that. The household saving ratio climbed to 6.9 per cent in the data released today, which is the highest since September 2022. This isn't the behaviour of confident households; it is the behaviour of families who are putting money aside because they're unsure about what lies ahead. Higher mortgage repayments? We've seen plenty of those under this government. Higher rents? Again, plenty of that under this government. Rising cost of insurance? Again, an awful lot of that under this government. And there's ongoing global uncertainty.

Spending tells the same story. Household spending rose just. 0.3 per cent in the quarter. Discretionary spending ticked up 0.4 per cent, helped along by various sales, like Black Friday and Boxing Day, towards the end of last year. But spending on essential goods and services grew only by 0.2 per cent. So, yes, Australians spent a little bit during the sales, as they are well within their rights to do. Overall, growth in consumption is remaining modest, and the rate of savings is rising. Again, that tells us that confidence is fragile. Just look at energy costs. The ABS reports that out-of-pocket spending on electricity, gas and other fuels fell sharply.

But, in the data in the national accounts today, the ABS makes clear that this was largely due to government rebates which were recorded as government expenditure in the national accounts. That distinction matters because, when government pays part of the bill, the underlying cost hasn't disappeared; it has just shifted. This relief today doesn't necessarily mean lower structural costs tomorrow, and we've certainly seen that in the energy market since the Albanese government has been in charge. We cannot forget that relief measures manage a symptom; structural reform fixes the actual problem. If electricity remains expensive to produce and deliver, no amount of short-term assistance is going to fix the underlying problem. If housing supply remains constrained, rents will remain elevated. If productivity growth remains weak, wages cannot sustainably outpace inflation.

As I said from the outset, the Albanese Government's economic mismanagement has left our economy in a very delicate position. Even before the conflict we have seen in Iran this week, inflation and interest rates were rising and forecast to rise further. Whatever impact that crisis has on the economy— (Time expired)