James Paterson (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. This morning, the ABS confirmed that inflation rose to 3.8 per cent in the 12 months to October, an increase from 3.6 per cent in September and higher than forecast. This follows confirmation from the RBA earlier this month that they expect headline inflation to rise to 3.7 per cent and remain high across 2026. Minister, how much more evidence do you need before you admit that the government's policy settings are resulting in higher prices for Australians?

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

I thank Senator Paterson for the question. I think, if Senator Paterson is concerned at inflation which was flat in the month of October, he would have been absolutely mortified at inflation when they were last in government, when, of course, headline inflation was 6.1 per cent and climbing.

Opposition Senators:

Opposition senators interjecting—

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

Well, I'm merely drawing a comparison to the inflation rate that we inherited when we came to government, which was 6.1 per cent, and climbing, at that time, and of course we know it peaked at eight per cent or so in the December quarter of that year.

Yes, inflation is higher than we would like, but it is much, much lower than we inherited, and that is a fact. Not only have we got inflation down; we've seen jobs grow; we've seen unemployment remain historically low; we have got wages moving again; we've started to repair the budget; and, at the same time, we've provided Australians with cost-of-living relief to assist them when inflation was higher than we would like—all measures, I would point out, that those opposite criticised at the time; many, they voted against, and, indeed, continue to criticise when they talk about the expenditure of the budget. When they criticise the expenditure of the budget, the decisions we have taken, they are decisions around indexing the pension, making sure that single parenting payment goes up, looking at Commonwealth rent relief and making sure that we were able to provide energy bill relief when electricity prices have been high—all of that is what they refer to when they say, 'Labor has spent too much money.' What they are saying is: Labor has spent too much on you—on your energy bills, on Medicare, on housing, on— (Time expired)

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

Senator Paterson, first supplementary?

James Paterson (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

Today's ABS release also states: 'Electricity costs rose 37.1 per cent in the 12 months to October.' Does the minister acknowledge that the Albanese government's policy of net zero has totally failed and Australian households and businesses continue to pay higher and higher energy bills?

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

Senator Paterson has been in this place for a while now, so he will, of course, remember the fact that they had 23 energy policies, and couldn't land one of them, and that 24 out of 28 coal-fired power stations announced their closure when you were in government. And what was your response? Nothing—

Hon. Senators:

Honourable senators interjecting—

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

Order! Order across the chamber.

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

Head in the sand. 'Nothing to see here. Let's do nothing. Let's do nothing about creating the energy grid, the energy system, that Australians need. Let's fight over climate change internally'—which, might I say, continues to this day. Where is Senator Bragg? He got everything he wanted, we hear—got everything they wanted when they walked away from net zero.

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

Minister, please resume your seat. Senator Paterson?

James Paterson (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

President, on direct relevance: I'm not sure what Senator Bragg has to do with a 37.1 per cent increase in electricity prices—on your watch; you're in government.

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

Senator Paterson, the minister is being relevant. There have been a lot of interjections and, as you know, the minister is entitled to take interjections, so I suggest that you try and get the left-hand side of the chamber to be quiet.

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

On energy bills, specifically, when we have recognised that there have been price increases, we've sought to assist households with energy bill relief and small business with energy bill relief, and those opposite voted against it.

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

Senator Paterson, second supplementary?

James Paterson (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

Deloitte Access Economics partner Stephen Smith said the Reserve Bank finds itself in the trickiest spot, facing accelerated inflation and softening economic growth. Minister, your out-of-control spending is causing higher inflation and higher interest rates, and we have softening growth. Isn't it now clear that the government has failed to live up to its promise that life will be cheaper under Labor?

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

The spending that you criticise, Senator Paterson, is for things like investments in paid parental leave, energy bill relief, support for apprentices, support for households to transition to and implement batteries, paid pracs for nursing teaching, social work, midwifery, boosts to Medicare, more choice and support for Australian women when it comes to health care, the $20,000 instant asset write off, our housing programs, our aged care, wage increases and our support for early childhood education and care. These are the things that those opposite are criticising when they talk about spending. We have repaired the budget, we have delivered two surpluses, and we have lowered the debt and the interest on that debt. All at the same time, as we fought against you every step of the way, we have introduced all of those measures to help the Australian people.