Raff Ciccone (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

The Senate will now consider a proposal, under standing order 75, from Senator Dean Smith, which is also shown at item 13 of today's Order of Business:

Dear President

Pursuant to standing order 75, I propose that the following matter of public importance be submitted to the Senate for discussion:

"The continued rise in inflation and the growing risk of another interest rate increase is placing further strain on Australian households and businesses facing cost-of- living pressures."

Regards

Senator Dean Smith

Is consideration of this proposal supported?

More than the number of senators requ i red by the standing orders having risen in their place s—

Excellent. We got there. With the concurrence of the Senate, the clerks will set the clock in accordance with the informal arrangements made by the whips.

Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Foreign Affairs and Trade) Share this | Link to this | Hansard source

The Senate chamber this afternoon is going to discuss the continued rise in inflation, the growing risk of another interest rate increase and the stress that that is going to put on Australian households and businesses who continue to face cost-of-living pressures under the Albanese government.

Nowhere are those pressures being felt more than in my home state of Western Australia. Just in the last few days it's been revealed that Western Australia is experiencing some of the fastest housing price increases anywhere in the country. House prices in metropolitan Perth have risen by 1.9 per cent in October. House prices national rose by just 1.1 per cent over the same period. This was the fastest monthly gain since June 2023 in Western Australia. This growth in housing prices, which is making it particularly difficult for young Western Australians to get into the market, continues to reflect supply continuing to lag behind demand, with advertised supply levels overs the four weeks to 26 October 18 per cent lower than average.

On an annual basis, Perth now has the third most bullish capital city market, with prices increasing by 9.5 per cent to a median value to $884,000. Some of those areas experiencing this high growth include: Albany, with a 22.2 per cent increase in housing prices; Manjimup, 15.5 per cent; Bellmont in Victoria Park, 13.6 per cent; Kwinana, 12.3 per cent; Armadale, 11.5 per cent; and Serpentine-Jarrahdale, 11.3 per cent. Anyone who knows about these suburbs and regional towns that I've just mentioned knows that these are modest places. But they are important places because they're often where first home buyers in Western Australia get a head start. Just compare that growth that we are experiencing in Western Australia with the national growth of just 5.6 per cent. Western Australia is experiencing the second strongest market overall, with prices up 13½ per cent over the last year.

Indeed, Cotality has said that another key driver behind these higher numbers has been the government's expanded five per cent deposit scheme. These inflationary and cost-of-living pressures aren't just affecting parents, and they're not just affecting grandparents. I've got some information here. Senators will be very familiar with the Raise Our Voice in Parliament campaign that many senators come into this chamber and contribute to. I want to thank Isabella and Isabella, who are in their mid-teens, for sharing with me their thoughts about teenage stress caused by inflation—

(Quorum formed) Thank you for the silence. I'm wondering whether Senator Grogan, the Labor senator from South Australia, would like to apologise to Isabella and Isabella for interrupting their contribution on teenagers impacted by inflation.

Raff Ciccone (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Senator Smith, please direct your comments through the chair. You know the rules.

Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Foreign Affairs and Trade) Share this | Link to this | Hansard source

Before Senator Grogan interrupted the contribution of Isabella and Isabella, who are in their mid-teens, and who have written to me to talk to me about the impact of teen—

Raff Ciccone (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Senator Grogan, a point of order?

Karen Grogan (SA, Australian Labor Party) Share this | Link to this | Hansard source

Senator Smith is casting aspersions in my general direction. It is well within my right to call for quorum when there is an insufficient number of people in the chamber.

Raff Ciccone (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Thank you, Senator. I don't think there is a point of order. But, again, Senator Smith, please make sure that you direct your comments through the chair. Also, let's focus back on the MPI, which I'm sure everyone is focused on in this place. I direct you back to the MPI, Senator Smith.

Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Foreign Affairs and Trade) Share this | Link to this | Hansard source

I'm about to make a contribution because Isabella and Isabella, both in their mid-teens, have written to me about the impact that inflation is having on the livelihoods of teenagers in our country. I'm disappointed that Senator Grogan and others thought it necessary—

Raff Ciccone (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Let's not reflect on other senators. Let's focus back on the MPI.

Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Foreign Affairs and Trade) Share this | Link to this | Hansard source

I don't think they'll be doing that again in a hurry. 'Teenage stress caused by inflation,' write Isabella and Isabella:

If you're like most teens of today, you may or may not have thought about your future, but those who have, realized the horrors they may face.

Teenagers today are under more stress than ever, and two major reasons are work and inflation. With prices rising for food, transport, and even school supplies, many families are struggling.

Some teens are working part-time jobs, not just for spending money, but to help support their households.

This leaves less time for study, hobbies, or rest.

61% of teenagers who feel this way, also have a crippling fear of not being able to afford houses, food, clothing or transportation when they eventually move out, Fear of failure and leaving families suffering. 86.56% of 15-17 year olds have part time jobs and study full time—

in order to beat the ravages of inflation. These are not my views and not senators' views, but the contributions of two young ladies in their mid-teens.

Dorinda Cox (WA, Australian Labor Party) Share this | Link to this | Hansard source

When Labor came into government Australians were staring down a barrel of absolute economic mess that those opposite, the Liberals and Nationals, left behind—high inflation, rising interest rates and a trillion dollars of Liberal debt weighed down with waste, rorts and slogans. Those opposite left behind a budget riddled with pork barrelling and 'back in black' mugs, but not a single surplus. They left Australians with hollow promises and higher costs.

Today the facts tell a very different story. Under the Albanese Labor government inflation has more than halved. When we came to office it was at 6.1 per cent and climbing. Today it is around half of that, with around 3.2 per cent inflation through the year to September. Underlying inflation has been in the RBA's target band for three straight quarters. That's not just luck; that's responsible, steady, Labor economic management. Because of that progress, the Reserve Bank has cut interest rates three times this year. That means that a household with a $700,000 mortgage is saving about $330 a month. That's nearly $4,000 a year in savings. It's money in the bank and in the pockets of Australians.

While other countries have slipped into recession, Australia has stayed strong. We've brought inflation down without it costing jobs—something those opposite could never manage. But we know Australians have been doing it tough, and that's why we're delivering real, practical help with cost-of-living relief: tax cuts for every taxpayer, because Australians deserve to keep more of what they earn; energy bill relief, taking the sting out of power bills and helping families actually stay ahead; cheaper child care so parents can get back to work without wondering if it's even worth it; free TAFE, opening doors to new skills and better jobs without a mountain of debt; cheaper medicines, because no-one should have to choose between filling a script and feeding their kids; 50 more urgent care clinics so families can see a doctor or a nurse when they need one without a long hospital wait; and, as of 1 November, expanded bulk-billing so that all you need is your Medicare card, not your credit card, to see a GP. We've also cut student debt by 20 per cent for three million Australians. We've lifted the minimum wage up again, with an increase of 3.5 per cent. Those opposite had a deliberate policy of lower wages; we don't. We back fair pay and secure work, and these are practical, targeted measures that make life fairer and keep our economy strong.

When Labor are in government, we build; we don't cut. Yet the opposition still haven't learnt. The Leader of the Opposition recently told a right-wing think tank that she supports a smaller government and that the Commonwealth should do fewer things. Well, we all know what that means. That means cuts—cuts to Medicare, cuts to pensions, cuts to cost-of-living relief. They preach austerity but practise hypocrisy. This is the same mob who wanted $600 billion for nuclear reactors and taxpayer funded long lunches for their bosses. We haven't forgotten about that one. The coalition's big idea for the country was to make life harder for ordinary working Australians—and they call that fiscal responsibility. Australians call it what it is. It's a con. They ran on cuts at the last election, and the people of Dickson cut their leader, and the people of Australia cut their numbers in this place, because, when you run on cuts when Australians are doing it tough, Australians cut you out. This crew is so obsessed with cutting things that it might even cut up its coalition agreement next!

That's the difference between the Labor Party and the Liberals. While they cut, we build. We build stronger wages, fairer taxes and an Australia where no-one is left behind. The coalition of 'will-they won't-they' have zip to offer this country because they can't even thread the needle properly on most of the issues in this place. The Albanese government are focused on building an Australian future that is stronger, fairer and made to last.

Fatima Payman (WA, Australia's Voice) Share this | Link to this | Hansard source

In my community and across Western Australia, the cost of living remains, as it has for some time, a major issue. It is in times like these that we see the true character of our people. I've been blown away by the efforts of OzHarvest, Foodbank and SecondBite, who are working every day in WA to feed and support vulnerable people in our community. Recently I had the privilege of volunteering with OzHarvest as they crisscrossed Perth to bring food to those most in need. From collecting donated food at Woolies Riverton to delivering meals to the Australian Relief Organisation and Cannington Soup Kitchen, I felt so privileged to see the amazing work that this group does to support our community.

Last week I met with three WA family and domestic service providers here in Canberra—Ngala, Amity Health and White Ribbon—who told me that poverty and the housing crisis are preventing women from leaving abusive relationships and are trapping families in the cycle of abuse. This is not just a matter of economics or global uncertainty; a failure of government policy has had its part to play in causing this crisis. Fundamental to this is the fact that the government does not have the data to make proper decisions on poverty policy. In Australia, millions of people, including 761,000 children, are living below the poverty line, and, despite that, there is no universal definition of income poverty. How can the government begin to address a crisis that they cannot see or grapple with, because they do not have the data to inform the development of policy? The cost of living won't fall unless this government stops tinkering around the edges and engages in real, holistic reform.

Andrew Bragg (NSW, Liberal Party, Shadow Minister for Housing and Homelessness) Share this | Link to this | Hansard source

This matter of public importance highlights the great problem that the Australian people have. That problem is that they have a government that is uninterested in their own economic challenges and has been callous and cruel by declaring victory in the war on inflation and by declaring that the government has undertaken tax reform. We have got a country with a very sick economy. We have inflation rising above the band. You have got a budget with its backside out of its pants. You have got very flat capex and rising unemployment. We hear the government literally reading out their speeches that have been prepared for them by other people. I note that very few of the speeches from the government benches are genuine speeches; they're usually just read speeches. Apparently, down at Labor headquarters they're giving dictation. In the dictation that they receive—

Deborah O'Neill (NSW, Australian Labor Party) Share this | Link to this | Hansard source

On a point of order: I'm wondering if the senator is straying a little into reflecting on members in the chamber. I draw your attention to the comments.

Dorinda Cox (WA, Australian Labor Party) Share this | Link to this | Hansard source

Thank you. It is not a point of order but a debating point, and I'm sure you will be able to make a contribution on that. I will give the call back to Senator Bragg.

Andrew Bragg (NSW, Liberal Party, Shadow Minister for Housing and Homelessness) Share this | Link to this | Hansard source

I thank Senator O'Neill for that. I appreciate her interest in these matters. (quorum formed) It is very clear that the government does not have much of an economic agenda, and the reason that the central casting people are giving these talking points to the government about their economic record is very telling. I imagine what it says is that the Australian people should be very grateful to live in the world's greatest economy and should every day do a big thank you to Dr Chalmers, as he styles himself, for the magnificent economy he has created with rising unemployment, rising inflation, low levels of investment and an economy in which 85 per cent of the jobs created last year were in the non-market sector.

So we have a very sick economy in Australia. If you're in a small business, you know that. Many millions of Australians know the economy is not well. Things are not so good. So the bragging from the government that they have created the world's best economy is grating beyond belief. That is why the government established a roundtable after the election—because they had no policies. They had a policy to have a meeting in Canberra, in the cabinet room. Very democratic to have meetings in the cabinet room—a very Labor approach. Having a meeting in a small room with no air in the middle of Canberra gives you great capacity to hear from the real people. Fantastic. So they had this meeting, and after that meeting—

Very sensitive, aren't they? Another sensitivity. We've have touched a nerve! Very interesting. Very telling. Thank you very much for those interjections.

They had the meeting in the cabinet room, and the outcome we've had so far from that meeting is nothing. Nothing has changed. We have a government still rudderless, without any economic policies that will improve employment and reduce inflation, and so we are rudderless. Inflation now is biting. We see it in the housing space. We see it in the first month of the five per cent deposit guarantee scheme, which has driven the biggest monthly increase in house prices in living memory, according to all the independent agencies who monitor this. Why is that? Well, the answer is that if you increase demand in a supply-constrained market, you get higher prices. You know what? The Australian people are smarter than Labor imagined they are, because they understand that. They understand that these gimmicky posts on social media, these unbearable posts from the Labor government members, saying they have solved the housing crisis with their five per cent guarantee scheme, is a cruel hoax. People are not stupid. They know that a government that has failed to build houses but opens up a government insurance scheme to everyone, including the children of billionaires, is a cruel hoax and a con. That is what we are seeing now in the inflation numbers.

We have high inflation, we have rising unemployment, we have a sick economy and we have a Treasurer that is doing a victory lap, saying he has created the world's best economy. It is beyond grating and beyond embarrassing. The government ought to do a better job for the Australian people.

Deborah O'Neill (NSW, Australian Labor Party) Share this | Link to this | Hansard source

I'm glad I was in the chamber for that last contribution because it's hard not to hear the sort of glee at the hope that there might be bad economic signs on the horizon for the Australian people. That's the only thing they're hanging onto. The ridiculous description that we just heard from Senator Bragg, who is from the great state of New South Wales, is selling the whole country down the river instead of standing up with pride for what Australia has achieved and for the future and opportunities that lie ahead for Australians.

They didn't elect the opposition. They didn't elect the shameful, disrupted Liberal-National coalition at war with itself. They actually rejected the coalition whose economic plan at the last election was for higher taxes, lower wages, bigger deficits and more debt. Australians said no to all that that coalition had on offer. They rejected it wholeheartedly. They delivered 94 seats to Labor in the House and a strong and growing team here in the Senate. That is a great outcome for the country because, despite the miserly view, the down-in-the-mouth, who-kicked-the-dog attitude of those sitting on the opposition benches, the reality is the Albanese Labor Government in fact has a strong economic record.

Senator Dean Smith has put this motion before us today—a matter of public importance. Let's think about the last time that Senator Smith's coalition government was in office. In that period of time, inflation was high and rising. Today, after a period of government under the steady hand of the Albanese Labor cabinet and its members, we have inflation that is low and stable. Underlying inflation sits at three per cent, squarely within the Reserve Bank's target band, and headline inflation has been lower for several consecutive quarters. We need to keep it that way, and to achieve that was absolutely no easy feat. It took careful and disciplined management to steer a very narrow path supporting Australians, keeping unemployment low and steadily bringing inflation back to the target, because Australians need to keep their jobs. That's our connection to our future not just for ourselves but for our families and our communities and, particularly in regional areas, for regional economies.

The reality is that Australians have done it tough, and this Labor government understands that and has stood shoulder to shoulder with our fellow Australians. We know that people continue to feel pressure, but the contrast with those opposite couldn't be clearer. Senator Smith and his colleagues have been very, very long-term advocates for deep cuts—cuts to the budget, cuts to services and cuts to the supports that help everyday Australians make ends meet. Their prescription for inflation is the same old tired ideology of austerity, and we know that if they had their way, Australians would be poorer. Many, many more would be unemployed, and they would simply dress it up in highfalutin economic language and call it fiscal discipline. I tell you what it really is. It's hurting ordinary Australians. That is what they do every single time they come into government. It's not responsible economics.

If the motley collection of ideology and grievance that calls itself the coalition were serious at all about supporting Australians, they would have backed the measures that this government delivered. But they said no to energy bill relief. They said no to cheaper childcare. They said no to cheaper medicines, and they said no to a stronger Medicare. There's real pressure on people who want to be able to get to see a doctor, and taking the pressure off people's budgets so they can see a doctor when they need to is a massive effort from this government. From last week, the government began to deliver the single biggest investment in Medicare since its creation, and this is real, real cost-of-living relief. It helps families to see a doctor without worrying about the bill, and it keeps inflation down by reducing out-of-pocket costs. We are stretched to make sure that we get a 90 per cent bulk-billing rate by 2030, and it's already begun.

Tyron Whitten (WA, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

I thank Senator Dean Smith for once again bringing this important issue to the attention of the Senate. Inflation hit 3.2 per cent in the September quarter, up from 2.1 per cent in June driven by electricity prices jumping 23.6 per cent over the year as rebates ended in Queensland, Western Australia and Tasmania. They were nothing more than a Labor trick, a sleight of hand, to hide their economic ruin running into an election. But the facade of good fiscal management could only hold up for so long. It's time to pay the piper. The net zero chickens have come home to roost.

Energy isn't the only thing driving up inflation. Housing has hit the roof, thanks to Labor's insane policy choices. Labor's high immigration levels are flooding the housing market with housing up 2.5 per cent for the quarter and 4.7 per cent for the year—miles ahead of the headline inflation rate. This doesn't even include the soaring cost of buying established homes, ballooning under Labor's ill-conceived five per cent deposit scheme. Nor does it include the cost of interest on the ever-larger mortgages that the next generation is lumped with. No sooner had the kids signed up for 95 per cent of a million-dollar mortgage than they are staring down the barrel of a rate rise.

Under normal economic conditions, inflation is usually accompanied by a boom in the economy, where people are doing so well demand fuels prices and rates are brought up to take some of the juice out of the market. That's not what we're seeing here. Unemployment is up. Thousands of Australians are losing their jobs while costs skyrocket. Labor brags about Australians getting a pay increase. It won't be enough. Labor has landed the RBA in the disastrous position of facing rising employment and rising inflation. Make no mistake. Labor has driven the crisis with their disastrous policies, and we are just seeing the beginning of this market sabotage. One Nation knows what needs to be done.

Ralph Babet (Victoria, United Australia Party) Share this | Link to this | Hansard source

I rise in support of this matter of public importance—of course I do. Why wouldn't I? The relentless rise in inflation and the looming threat of another rate hike are crushing Australian households and businesses. Last week's CPI data was a rude awakening. Property rates and charges have surged 6.3 per cent, the steepest increase since 2014, thanks to the bureaucrats who are obsessed with climate strategies and diversity officers instead of potholes and bins. Electricity is up a staggering 23.6 per cent in just the last year. In a nation that is overflowing in coal, gas and uranium, we should have the cheapest power in the world, yet we get rorted. This isn't a cost-of-living crisis. It's a cost-of-government crisis. Every new layer of red tape, every green dream and every bloated department drives prices higher. Inflation isn't random. It's the invoice for government waste.

Jacinta Nampijinpa Price (NT, Country Liberal Party, Shadow Minister for Defence Industry) Share this | Link to this | Hansard source

Cast your mind back to 2023. In February that year, Treasurer Jim Chalmers had his essay of more than 5,000 words published in the Monthly. The Treasurer wrote about wanting to 'build a better capitalism'. It was classic doublespeak, of course. What the Treasurer and the Prime Minister have wanted from day one is to move Australia away from a free-market economy and towards a state directed and controlled economy. Labor has embraced the same statist ideas that have devastated economies and people wherever they've been implemented.

That's why Australia is in such an economic mess today. That's why instead of cost-of-living pressures going down, Australians will likely soon be hit by yet another interest rate rise. If the RBA decides to lift interest rates, it'll be the 13th rate rise Australians have experienced under this Labor government. Consider what we've seen under Labor. We've seen record government spending. Our economy will soon be burdened with $1.2 trillion of debt for the first time. We've seen the bloating of the Public Service. Australia's public sector workforce is now one of the largest in the world on a per capita basis. We've seen an appetite for government intrusion into the lives of Australians. Labor has enacted some 5,000 new regulations. We've seen interference across the economy—interference through Labor's environment, industrial relations and industry policies. It's no wonder that the economy is shuddering to a halt. It's no wonder that under Labor Australians are paying 15 per cent more for food, 19 per cent more for housing, 15 per cent more for health and 39 per cent more for insurance.

If there's one area of Labor's policy agenda that's contributing to economic decline more than anything else, it's Labor's energy policy. We used to be a competitive economy because we believed in affordable and reliable power. But under Labor's reckless renewables-only push this government is making power unaffordable and completely unreliable. Labor has turned its back on coal and gas. It refuses to lift the ban on nuclear power because it knows nuclear power will be commercially viable, as it is in more than 30 other countries around the world. Instead Labor subsidises renewables to give renewables the appearance of being competitive. Chris Bown is engaging in one of the most scandalous cons ever attempted on the Australian people.

Dorinda Cox (WA, Australian Labor Party) Share this | Link to this | Hansard source

Senator Nampijinpa Price, just a reminder to refer to those from the other place by their correct title.

Jacinta Nampijinpa Price (NT, Country Liberal Party, Shadow Minister for Defence Industry) Share this | Link to this | Hansard source

Certainly. But Australians of course aren't mugs. Every power bill they receive exposes the truth. Under Labor Australians are paying 40 per cent more for electricity. When energy prices skyrocket, it costs more to grow food, more to manufacture goods and more to run homes, businesses and factories. Energy costs are having an inflationary impact across Australia. We need affordable and reliable energy, but we won't get that with a net zero target.

Australia contributes just over one per cent of global emissions. Reaching net zero could cost a staggering $7 trillion to $9 trillion by 2060, as estimated by independent experts. Net zero will impoverish and deindustrialise our nation to achieve an emissions reduction target that, in an Australian context, will not alter global temperatures a single iota. Labor's overbuild of renewables and enforcement of draconian emission reduction policies are only going to cause more harm. Power bills will continue to climb. More businesses will close, and more industries will move offshore. A public greenlash has started, just as it came in Europe and America. It's time the government started putting Australians first. It's time Labor prioritised affordable and reliable energy. It's time to end the net zero nonsense and restore common sense, if we're serious about turning our economy around.

Dorinda Cox (WA, Australian Labor Party) Share this | Link to this | Hansard source

The time for that debate has now expired. I shall proceed to the consideration of documents.