Simon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. Since being elected in 2022, the Albanese Labor government has announced more than $50 billion in off-budget spending, hidden away to contribute to a $49.3 billion deterioration to the budget bottom line—the worst in history that's now going to occur outside of a war or pandemic. The government's now promising to add billions more to off-budget spending. How can the government justify all of this off-budget spending while refusing also to rule out further election promises at a time when Australians are desperate to see inflationary pressures permanently fixed and interest rates come down in Australia like they are in the rest of the world?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) | Link to this | Hansard source

I thank Senator Birmingham for that question. It gives me the opportunity to remind those opposite that, in fact, debt is lower under us than it was under you. Of course, off-budget spending is something that still has to be financed, and I just would make the point that, in fact, as Senator Gallagher said yesterday, we inherited a debt higher than we currently have, and debt was $149 billion lower in 2023-24 than what was forecast at the election. And that is saving the nation about $80 billion in interest costs over the decade.

We were asked a question about off-budget spending. I assume the issue is debt, but, actually, we are, as a result of the budget position that we have established, ensuring that Australians are paying less in interest costs over the decade than would have been the case under him. But what is also interesting, if I'm asked about off-budget spending, is that we see that there is some suggestion that those opposite are looking at financing their risky, costly nuclear announcement off budget, but we're not quite sure. Let's remember that this is $600 billion worth of spending on the most expensive power that you can imagine, which will only deliver less than four per cent of the grid and will add $1,000 a year to your energy bills and take up to 20 years before it even starts delivering. And now they're saying, 'Actually, we do want to find it off budget. Well, we think we do,' thereby adding to debt.

Senator Birmingham, if you're so concerned about the fiscal circumstances, I invite you to tell the gallery how you are funding your risky, expensive, slow nuclear scheme.

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

Senator Birmingham, first supplementary?

Simon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) | Link to this | Hansard source

It's so kind of Minister Wong to wish to turn it into opposition question time and talk about opposition policies. But the Treasurer stated on Monday:

Despite the good progress we're making in the national numbers, we know that that doesn't always automatically translate to how people are faring or feeling in the economy.

Given that independent analysis shows real household incomes are unlikely to recover to even half of what they were before this crisis, can Australians ever expect to experience the good progress in their household incomes and personal finances that the Treasurer is boasting of?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) | Link to this | Hansard source

I'm very happy to take the question, but I'm not sure how it relates to the primary, which was about off-budget spending. I guess they wanted to get out of the nuclear off-budget story—

Murray Watt (Queensland, Australian Labor Party, Minister for Employment and Workplace Relations) | Link to this | Hansard source

Run away!

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) | Link to this | Hansard source

Run away from the story—the headline that says you're going to finance your risky, expensive, very slow nuclear scheme off budget. But I want to make this point about the cost of living and the Treasurer's response, particularly to the inflation figures. We know Australians are doing it tough. We know that there is a lot more work to do, which is why we are working to keep wages up, why we are working to provide tax cuts for all Australians and why we are working to deliver cheaper medicines and cheaper child care, and all of these things are priorities for the government. It is a good thing that we see monthly inflation is about a third of what we inherited at the election and around about a quarter of its peak. That is a good thing. And I would hope Senator Birmingham would say that is a good thing for Australians and their families.

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

Senator Birmingham, second supplementary?

Simon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) | Link to this | Hansard source

As we leave 2024, Australians are now grappling with the longest household recession in Australia on record—a fact that the government doesn't want to own up to—and living standards that are unlikely to recover to where they were prior to the inflation crisis until at least 2026 or later, all while the government continues to make more spending promises. Minister, Australians are poorer under this Labor government. When will the government take responsibility and fix the crisis that has driven Australian household incomes down in our country?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) | Link to this | Hansard source

What I'd say to Senator Birmingham is that this is a government that is working to bring down inflation, this is a government that is working to provide cheaper medicines, this is a government that is working to provide cheaper child care and, most importantly, unlike those opposite, this is a government that is working to lift wages. We do not think that the response to the cost-of-living crunch that Australians are experiencing is lower wages. That is always the Liberal way—a deliberate design feature of the Australian economy.

We want to keep real wages moving. We want to keep wages moving. What we have seen under this government is that wages are moving. I know that is not something those opposite support, but it is something that matters to wage earners around this country because a decent wage is the pathway to financial security.