Jane Hume (Victoria, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Minister Wong. On 29 January 2025, the Prime Minister enthusiastically endorsed his treasurer when he said:

The worst of the inflation challenge is now well and truly behind us.

A year later inflation is now at 3.8 per cent, well outside the Reserve Bank's target band and higher than in every major advanced economy. Indeed the Prime Minister's finance minister, just 25 minutes ago, said that the job is not yet done. Australians were promised relief. Instead they're facing higher prices, higher interest rates and falling living standards. Minister, was the Prime Minister's treasurer wrong then, or is he wrong now?

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

I first welcome Senator Hume back to the Senate and back to Senate question time. It's good to see you back.

Michaelia Cash (WA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source

When did she leave the Senate? She's not Canadian.

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

He's enjoying that far too much. Senator Hume, inflation remains higher than we would like. The Treasurer and Senator Gallagher have been upfront about that. We are upfront about that. I would make this point: it is certainly lower than the peak that existed and much lower than that which we inherited. I think you as a former shadow finance minister would know that: when we came to government, inflation was much higher, and it is at a much lower rate now than it was when we came to government.

It is relevant, Senator Ruston, because it is pointing out where inflation has gone. But we have been upfront, Senator Hume, about inflation being higher than we would like. As you would have heard the Treasurer and Senator Gallagher speak about yesterday and today is that the data shows the inflation challenge is a mix of temporary factors but also persistent pressures in areas like housing and temporary factors like the end of energy rebates, and increases in travel costs and the like.

I'd make the point in relation to housing that obviously one of the ways you can deal with pressure in the housing market is to add to supply, which is why I reiterate the comments I made earlier to Senator Bragg about the position he has taken your party to which is to oppose all investment in housing supply by the government. (Time expired)

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

Senator Hume, first supplementary?

Jane Hume (Victoria, Liberal Party) Share this | Link to this | Hansard source

Minister, under Labor government spending is growing at its fastest rate, outside of a recession, in nearly 40 years. Every credible economist will tell you that government spending is adding to inflationary pressure, forcing the Reserve Bank to keep interest rates higher for longer. When this was pointed out the Treasurer, he said that those economists were making political comments. Minister, why won't the Prime Minister hold this Treasurer responsible for the fact that his spending is making the Reserve Bank's job harder? (Time expired)

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

I'll make two comments on that. First, in relation to the SMP and the decision of the Reserve Bank, the statement made clear that the pressure on inflation is coming from private demand. So your question is predicated on an inaccuracy. Second, Senator—I hesitate to do this, but I think that question does invite it—I would remind you that you were a shadow finance minister who went to the election with a plan far higher taxes, larger deficits and more debt. This was the position that you and the shadow Treasurer—was that Mr Taylor?—this team set out to the Australian people a coalition fiscal strategy for the election that was for higher taxes, larger deficits and more debt.

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

Senator Hume, second supplementary?

Jane Hume (Victoria, Liberal Party) Share this | Link to this | Hansard source

Minister, Australians are poorer today than they were four years ago. Under Labor, we've experienced the largest decline in living standards in the developed world, and it's no coincidence that it's your policy positions that have caused this. Minister, is the Prime Minister sorry or even aware that Australians are poorer under Labor?

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

Not only is the Prime Minister aware but he has been absolutely focused, since he was elected, on doing all that he can, as we all have, to address the cost-of-living pressures that Australians feel. Senator, can I remind you about how many of those cost-of-living measures you opposed? I mean, you come in here now and talk about cost-of-living pressures—you have no credibility, Senator.

You have no credibility on this, Senator, nor does your party or your parties, because you consistently, individually and collectively, opposed cost-of-living measures that we sought to bring in in order to address the pressures that Australians face. You opposed them. I think we all understand that inflation is a challenge, and we are working to do what is required to get inflation down. (Time expired)

President, I ask that further questions be placed on the Notice Paper.