Jana Stewart (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Can the minister please update the Senate on the work the Albanese government is doing to ease the cost-of-living pressures for all Australians?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I welcome Senator Stewart back and congratulate her on beautiful Ari, whose company we've had the pleasure of since her return. Welcome back.

The Albanese government understands that cost-of-living pressures are a major concern for all Australians. We understand that it's not easy for households right now. When I look at how other countries are faring, I think Australia is positioned well to ride out this economic uncertainty and some of the shocks that we're seeing. I'm a member of the government's economic team, and we are working hard every day to make sure that Australian challenges with inflation do not become worse. We are cleaning up after the wasted decade of the previous government, which had a record of inaction or—worse—failure, including with more than 20 failed energy policies. We saw a decade of wasted opportunities and wrong priorities that left Australia with falling real wages, cost-of-living pressures and $1 trillion of debt, without an economic dividend to show for it.

We have an economic plan that is a direct and deliberate response to the challenges facing the economy right now, including cost of living. One of the very first acts of this government was to successfully argue for the minimum wage to keep pace with inflation, an outcome which has helped around 2.7 million Australians see their incomes increase. Our first budget focused on responsible cost-of-living relief that didn't put extra pressure on inflation, which is an important thing, and we're working hand in hand with the RBA as they undertake their tightening cycle on interest rates. We've got cheaper child care, we're expanding paid parental leave and we've had cheaper medicines since 1 January. We're putting resources into affordable housing and getting wages moving again. These are the concrete steps that we have put in place in just the first few months.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Stewart, first supplementary?

Jana Stewart (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Can the minister update the Senate on the practical measures that the government has been taking to support households?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Stewart for the supplementary question. There are some things that we are experiencing in this economic environment that are out of the government's control, such as the ongoing war in Europe and the ripple effects of the pandemic, but there are also things that are within our control, and the government is focused on those. As I said in the previous answer, we're making medicines and child care cheaper and, of course, providing relief to householders facing those rising energy costs, which the Senate dealt with in December last year. Let's not forget, because we won't ever forget, that those opposite voted against it. The money that will flow to households to help with their energy bills, you voted against. It was how the Senate stood up and provided that support to households, and the opposition tried to block it. We have focused on growing the economy the right way so that Australians can benefit from good skills, get good jobs and have good wages. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Stewart, second supplementary?

Jana Stewart (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Can the minister update the Senate on initiatives that have already started to have a direct impact on households and easing cost-of-living pressures?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Wages are beginning to move again thanks to the government putting bargaining back in the hands of workers, which, again, those opposite opposed. You opposed the energy price relief and you also opposed sensible changes to improve the bargaining framework so that workers could get pay rises. It is no surprise after a decade of wage stagnation, a deliberate design feature of their economic architecture—let us never forget that—that wage increases were stuck at two per cent or worse. We're already seeing wages starting to move, nudging just above three per cent.

But we get that households are still doing it tough. We understand that, and the government's job is to look at where we can provide sensible cost-of-living relief without adding to inflation. That is the defining challenge as we put this budget together. The May budget will continue our focus on the cost of living, including providing that household assistance for energy bills by working with the states and territories, which you opposed. (Time expired)