Jane Hume Victoria, Liberal Party, Shadow Minister for the Public Service
2:51 pm
My question is to the Minister representing the Treasurer, Senator Gallagher. In April 2022 the Treasurer said that Australians were experiencing 'a triple whammy of skyrocketing costs of living, falling real wages and rising interest rates'. That was said April 2022. Isn't it true that since the Treasurer made this statement the cost of living has risen even further, that interest rates are even higher and that real wages have gone backwards faster?
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
2:52 pm
It did finish abruptly. I was waiting for a bit more on that too.
Unidentified interjection - Hansard doesn't record who said this
Government Senators:
Government senators interjecting—
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
No. It's no criticism.
Honourable senators interjecting—
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
It was no criticism
Government senators interjecting—
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
Such sensitive souls! I didn't mean it as a criticism. It was a surprise, that's all. It was just a surprise, and I'll leave it at that. The shadow minister refers to comments made by the Treasurer in April 2022, when interest rates started going up under the former government because that was the quarter where inflation was at its highest—under the former government. I'm just reminding you, Senator Hume, that the largest quarterly increase in inflation was under your government. The Reserve Bank had to respond then and start lifting interest rates, which is what they have done. We on this side of the chamber accept that many thousands of Australians are doing it tough right now. We accept that, which is why our job has to be completely focused on the measures that we can take to make a meaningful difference in people's lives without adding to the inflation challenge in the economy. We accept that life is harder for people—
Jane Hume Victoria, Liberal Party, Shadow Minister for the Public Service
On relevance, President: I asked about the cost of living rising further, interest rates being higher and real wages going backwards faster.
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
The shadow minister also asked me about wages, and I'm surprised because those opposite, who deliberately put wages down, fail to acknowledge all of the steps that we have taken to get wages moving in an inflationary environment—I accept that—where we do see CPI staying higher than we'd like for longer than we'd like, and that's impacting real wages. But we are determined to get real wages moving again, as you have seen from the aged-care decision, as you've seen from our industrial relations reforms— (Time expired)
Jane Hume Victoria, Liberal Party, Shadow Minister for the Public Service
2:54 pm
Last week, Australians were delivered devastating news of another interest rate rise by the Reserve Bank. Rates are now at the highest they've been since the Labor government was last in power, in 2011. Inflation is growing faster than for 15 members of the G20, and the ABS data shows that domestic inflation is growing faster than trade exposed inflation. Minister, doesn't the data now show that Australia's rate of inflation is more of a Labor problem than a global problem?
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
2:55 pm
No, it doesn't. I don't think the Treasurer or I have made a secret of the fact that the inflation challenge is the biggest challenge that we are focusing on the in the economy. It's staying higher than we would like for longer than we would like. And we are responding to that in the areas where the government has a job to do, which is to, as I said, roll out the cost-of-living relief measures; $23 million have been rolled out over the last two budgets. It's to get the budget in much better shape—which we have done, which you fail to recognise—through our savings measures. And, in fact, that goes back to the last question I just answered. Remember, robodebt was a budget savings measure. Where we find actual savings to return to budget, you hounded people who were living on income support payments to bolster your budget bottom line. That's what you did. (Time expired)
Jane Hume Victoria, Liberal Party, Shadow Minister for the Public Service
2:56 pm
Last week's analysis of OECD data in the Australian Financial Review shows that Australians have experienced the biggest fall in living standards of any advanced economy and that this has happened in the last 12 months under Labor. Does the minister think that it is acceptable for Australians' real household incomes to have fallen faster than any other advanced economy?
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
What I don't think is acceptable is that those opposite have opposed every single cost-of-living measure that we have brought to this place to actually deal with some of those pressures that households are feeling.
Unidentified interjection - Hansard doesn't record who said this
Opposition Senators:
Opposition senators interjecting—
Sue Lines President
Minister, please resume your seat. Order on my right! Senator Hume, a point of order?
Jane Hume Victoria, Liberal Party, Shadow Minister for the Public Service
On relevance: I asked a very specific question about whether it was acceptable for real household incomes to have fallen faster than in any other advanced economy, and the minister answered a completely different question.
Penny Wong SA, Australian Labor Party, Minister for Foreign Affairs
The minister was asked for an opinion about what was acceptable. I can understand why Senator Hume doesn't want the house to remind her about what she voted against, but that is relevant to the cost of living.
Simon Birmingham SA, Liberal Party, Shadow Minister for Foreign Affairs
On the point of order, previous rulings by past presidents have indicated that, while glancing references to the positions of oppositions or previous governments may be relevant, ministers should not, when they are answering a question, go directly to the position of previous governments or the position of oppositions. This minister did, when she rose to her feet, go instantly not to talking about the government, not to responding to Senator Hume's question but instead to answering about the opposition. The minister should be drawn to the question when she does that.
Sue Lines President
Thank you, Senator Birmingham. The minister had just gotten to her feet. I will continue to listen carefully to her answer. Minister, please continue.
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
I think you can see from the decisions that we've taken as a government that we do believe that we needed to take decisions to address some of their cost-of-living pressures. That's my answer to the question. So energy bill relief, cheaper child care, more Medicare bulk billing, cheaper medicines, boosting income support payments, boosting Commonwealth rental assistance, investing in skills through our fee-free TAFE policy, building more affordable homes, expanding parental leave, getting wages moving again—all of these things are in recognition—
Sue Lines President
Minister, please resume your seat. Senator Hume, a point of order?
Sue Lines President
Senator Hume, the minister is being relevant to the question. Minister, please continue.
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
The point I make through announcing that list of measures is that, through these decisions, the government acknowledges that we have a job and a responsibility to ease pressures on households where we can, in light of the inflation challenge. That is precisely why our $23 billion cost-of-living package is so comprehensive. I would remind those opposite again that they opposed most of it.