Matt O'Sullivan (WA, Liberal Party, Shadow Assistant Minister for Fisheries and Forestry) Share this | Link to this | Hansard source

I move:

That the Senate take note of the answers given by ministers to questions without notice asked by Liberal senators today.

What a 'come to Jesus' moment it was yesterday for the Treasurer of this country. It marked the day when the Treasurer's pantomime, this charade that he's been masquerading for the last four years, has finally come undone. It's come home to roost.

After deciding to raise the official cash rate, the RBA made an observation yesterday in its statement on monetary policy. We keep hearing from those opposite about what the statement actually said. Exactly what it said was that the fault of the circumstances that Australians are facing now with rising interest rates sits squarely with the people on that side over there, the Labor government. The RBA's statement said:

There are uncertainties about the outlook for domestic economic activity and inflation and the extent to which monetary policy is restrictive. On the domestic side, if growth in demand is stronger than expected, and growth in the economy's supply capacity remains limited, it is likely to add further to capacity pressures.

For those following along at home and wondering what all that means, the reality is that, because productivity continues to sit at record low growth rates, every time that the economy starts to get moving and starts to get going—just like a motorcar or a race car at the grid lines that's ready to start and is trying to get into gear—it's immediately held back by constraints, such as limited supply-side capacity, workforce shortages and restricted material availability.

These capacity measures mean that when demand rises supply cannot expand, because the economy cannot produce more. The RBA, the Treasury, the OECD and IMF all emphasise that productivity is the primary driver of long-run living standards and non-inflationary growth. As a result, this country is crying out for real economic reform. If yesterday did not make that obvious, frankly, nothing will.

The era of tinkering around the edges of economic reform is over. We need a government that is serious about economic reform. We need a government that is seriously looking at itself and the pressure that it is placing upon the economy because it is now—and it has been for quite some time, in fact—impacting upon Australians' ability to be able to make ends meet. We know that interest rates have a direct impact on the availability of free cash and an impact on a household's budget because those mortgages have gone up. It was disappointing news. Those families that are struggling with making ends meet yesterday received the most devastating news—that their bills and the cost of maintaining their homes and lifestyles have just gone up.

It is directly because of what this government is doing. The Treasurer is not serious about dealing with the matters that we know will seriously put downward pressure on the economy and would enable interest rates to go down and enable things to be stabilised and normalised. We know this government is not serious about tackling those things, because they're addicted to spending. They're addicted to spending your money. Taxes are your money. You've earnt it, Australians. You earnt that money, it's been given to the Australian government, they are not applying the restraint that is necessary to keep things under control, and we are seeing significant challenges. Remember that economic roundtable last year that resulted in absolutely nothing? Has anything good come out of that at all apart from just a nice, glossy brochure, a communique that was written long before the event even happened? This government is not serious about tackling economic reform. All they're serious about is putting out a nice brochure, a nice communique, without being prepared to tackle the things that matter.

While all that is happening, Australians are feeling the pain. While all that is happening, Australians are struggling to make ends meet. All they're wanting is a government that is prepared to take the difficult decisions, a government that is prepared to put their interests first rather than just following an ideology that is driving these decisions and impacting upon Australians. (Time expired)

Ellie Whiteaker (WA, Australian Labor Party) Share this | Link to this | Hansard source

The Liberal Party like to talk about how the government should control spending—or, as I think Senator O'Sullivan talked about, economic reform. But let's be honest about what that really means. What do the Liberal Party really want? Well, their record tells us what they really want. They don't want us to provide cost-of-living relief for Australians. They don't want us to invest in building the houses that we need to fix the housing crisis that they left our country in. They don't want us to make it more affordable for Australians to get into their own home. They don't want us to invest in Medicare and make it more affordable for Australians to see their GP. I could go on, and on, and on, because their record speaks for itself.

We should be really clear about what the Liberal Party means when they talk about the economy. They've got a lot of nerve lecturing us on the economy when they left us with inflation at 6.1 per cent and rising. Their legacy was higher spending, no savings and bigger deficits. In fact, they went to the election with promises of: bigger deficits; more debt; extraordinarily, a plan to increase taxes for every taxpayer compared to Labor's plan; and a plan to leave taxpayers, ordinary Australians, with a bill for expensive nuclear reactors because the private sector wouldn't invest in them. We are focused on the cost of living, and they are focused on themselves.

Minister Gallagher has said it in this place, the Treasurer has said it and I said it in here yesterday, too. There's no doubt inflation remains higher than we would like, and we have been honest about that. We know that Australians are doing it tough. But inflation is much lower than it was at its peak under the Liberals and much lower than what we inherited.

The data shows that the inflation challenge is a mix of temporary factors, like the end of energy rebates and an increase in travel costs and spending over summer, in addition to persistent pressures in areas like housing. These are not easy challenges to tackle. We've seen, right around the world, that inflation doesn't always moderate in a straight line. But we are committed, as a government, to doing what we can to help Australians who are under pressure. That's why we won't give in to the Liberal Party and we won't roll back our plans for more bulk-billing or more tax cuts for every taxpayer, or cheaper medicines. We'll continue to back higher wages and we'll continue to slash student debt—all policies that those opposite oppose, and all policies that those opposite would propose that we stop spending money on.

A government senator: Shame!

It is a shame. It is absolutely a shame.

MYEFO showed us that the budget is more than $233 billion better than we inherited when we came to government, and we found more than $114 billion in savings. That is responsible economic management under our government. It is the only midyear update on record that has delivered a better bottom line every year of the forward estimates—less debt in every year of the forward estimates and net policy decisions that improved the bottom line. They are the facts that the Liberals choose to ignore, time and time again.

They like to talk about experts. The IMF has recently endorsed our fiscal strategy, saying it has been effective and describing the fiscal stance as 'broadly neutral'. And the OECD has recently said there has been 'a modest tightening of fiscal policy'. So, there you have it.

We understand that Australians are still under pressure and facing cost-of-living challenges. That is why our government is committed to continuing to roll out responsible cost-of-living relief. We are committed to that hard work of responsible economic management. And we will not give in to the Liberals on the other side who are too busy focused on fighting each other and not focused on finding real solutions for ordinary Australians.

Leah Blyth (SA, Liberal Party, Shadow Assistant Minister for Stronger Families and Stronger Communities) Share this | Link to this | Hansard source

Well, those opposite seem to think the opposition here is responsible for spending, which is news to us and I'm sure news to all Australians, because it is literally the responsibility of government to manage their budget. This government is addicted to spending, and when they run out of money they come after more of yours, because, at the end of the day, the government can only spend your money. The government has no money of its own. There is only what it collects from the taxpayer. So, when they stand over there and lecture us on all the things they are delivering for Australians, mark my words, Australia: you are paying every cent of that. When they talk about the discounts they're giving on student debt, let's remember: student debt went up because inflation was out of control. So they've caused a problem and then they've come along and said: 'Have I got the solution for you! You can actually pay to solve our own problem.'

That is the problem with this government, people of Australia. They are causing problems and then trying to solve them with your hard-earned money. So, to all the tradies out there, to all the people who didn't go to university: you've actually paid for those student debts to be reduced because inflation was high because government spending is out of control. And I'm with you, Australia. I am sick and tired of this government blaming everybody else for the economic settings in our country. Australians want a government that is going to deliver the houses they are spending billions of dollars not building. They want a government who is going to deliver static conditions for them to be able to rely on the fact that their mortgage isn't going to increase, as it did yesterday, by $100 a month.

Here in Australia right now, everyday families and households are paying about $23,000 a year more in interest on their mortgages. Let that sink in for a moment: an extra $23,000 that everyday families are having to find, on top of rising electricity bills, on top of rising insurance premiums and on top of increasing grocery bills. When those opposite get up and say, 'We know Australians are doing it tough,' do they? I'm not sure that they do, because not only are everyday families doing it tough but it is pretty insulting, when they're watching—I'm sure there aren't that many people who are interested in watching this—and sitting there and being told constantly, time and time again by their government that everything is just fine and they are the most amazing economic managers of the Australian economy. It is like a slap in the face.

Let's be honest. Families here are struggling. That's if you can afford a house. If you can afford a house, you're finding $23,000 a year more. For those that are in the rental market, every single time they are going to try and find a rental home—let's remember we've had the largest surge in our population since the 1950s. You are lucky if you can find a rental home. It's amazing if you can get into the housing market, but, if you can't and you're looking for a rental, good luck trying to find one. The billions of dollars that this government is spending on not building homes is not doing anything to ease that pressure at all.

Labor has promised to build 1.2 million new homes by mid-2029. So far, they are well short on this target, and they are a quarter of the way through their own timeline. It's fair to say that for families and everyday hard-working Australians, who are just trying to make ends meet, who are just trying to make their mortgage repayments and who are just trying to find a rental house to live in, there is no ease in sight. All those opposite want to do is stand there and talk about what the Liberal Party did years ago. They've been in government. They're in their second term. It's time they took responsibility for the state of our economy, for the rising inflation, for the rising interest rates and for the lowering of our living standards for the first time in living history. (Time expired)

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

Welcome back to question time in the Senate. Finally we see those opposite turn up and ask some decent questions that Australians are really concerned about. I think it's pretty rich for those on the other side to stand on their feet, come in here and lecture the government, saying that we're not doing enough. You have not backed everything that we've brought to this chamber.

Sarah Henderson (Victoria, Liberal Party) Share this | Link to this | Hansard source

That's what you were doing. It's been three years.

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

Senator Henderson, you point to the other end of the chamber.

You may want to join, hand in hand, with the Greens down there. That's what they've done in the ACT. They're building a coalition.

Slade Brockman (WA, Deputy-President) Share this | Link to this | Hansard source

Senator Wong?

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

Senator Henderson persistently interjects, even when you call her.

Slade Brockman (WA, Deputy-President) Share this | Link to this | Hansard source

Senator Wong, I had called Senator Henderson to order. Interjections are always disorderly, Senator Henderson.

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

Cost-of-living measures are not a new thing. They didn't just start this week. Australians have been dealing with them, and our government have been very, very focused on that. We've heard Senator Whiteaker, who is my colleague and my friend from Western Australia, talking about the cost-of-living pressures. What we saw is that question time today kicked off with a question from the housing spokesperson, Senator Bragg, to Senator Wong, our leader of the government here, about the important issue that is housing here in Australia. It is the thing that Australians are focused on, and that's because 373 homes are all that the opposition built in a decade. It is the role of government, as Senator Wong told Senator Bragg, to ensure that there is supply of housing in the market. That's what our government is focused on. It's not a race to a Sky interview to get your grabs, to get your social media hits up. This is about ensuring that Australians are front and centre and the focus of what we do as a government, and that's what the Albanese Labor government are focused on.

Minister Gallagher went through the housing agenda after a question from the crossbench, from Senator Waters, in relation to our tax policy settings. They haven't changed. We didn't change our spots or our position or our relationships in the break. We are still addressing the intergenerational issues that have arisen, and they are about supply—putting more housing supply into the market.

Through our economic management measures, as I think Minister Gallagher mentioned, we found $114 billion in savings in the budget. We know that there are issues with the budget. We know that we need to address those in the best way they can be addressed. It should definitely not be in the shape that we inherited from the opposition. We on this side of the chamber continue to be responsible economic managers.

Minister Ayres responded to the question that was asked by another colleague of mine, Senator Payman from Western Australia, in relation to housing and the five per cent deposit. I know that Western Australians—young people and young people with families—have accessed that five per cent deposit for housing. It is something that is making a difference.

Their credibility when they come in here—we are addressing the cost of living, with cheaper medicines, bulk-billing, our largest investment in Medicare, cutting student debt and all of the things that matter to Australians and all of the things that they have told us will make a difference to the cost-of-living pressures that they have. We are getting real wages moving again.

After a decade of not just delay but just damn neglect from those opposite, their hypocrisy is deafening—to stand in this chamber and say that we are not doing the job and we are not up for the challenge in relation to inflation, managing the budget and ensuring that we find those savings. That is something we take very, very seriously.

Our government continues to work across all these areas to ensure we are making the investments, whether it's in housing, health, aged care or disability. These are all areas that we know affect Australians, and we are doing the work. Unlike those opposite, we are focused on fighting for Australians, not fighting each other.

Dave Sharma (NSW, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

Two thousand and seventy dollars per year—that's the answer to the question that Senator Gallagher was not able to answer. That's the answer to the question 'How much will an average mortgage holder'—at least in my home town of Sydney—'pay each year in additional interest because of the RBA's cash rate rise?' Anyone who's got a mortgage would have got an email from their bank this afternoon saying that their mortgage rate was going up and to click on a link, or maybe they put it in the email itself, saying, 'This is how much your payments are going to change each month.' I did. It came in during question time. The fact that the Minister for Finance, Senator Gallagher, is not prepared to level with the Australian public and tell them how much this decision is going to cost them speaks volumes, I think.

We heard from this government not long ago that the inflation challenge was behind us. The Treasurer, Dr Chalmers, said just over a year ago, in January 2025:

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

We heard the Prime Minister, Anthony Albanese, say in July 2025:

… we have turned the corner there with inflation …

Neither of these statements has been proven to be true, because inflation is back. It's back in a big way, and that is why the Reserve Bank had to raise rates when it met on Tuesday. We've seen inflation in Australia go from 3.4 per cent on an annualised rate on the November figures to a 3.8 per cent annualised rate on December figures.

It is a uniquely Australian phenomenon that inflation is rising. In other major economies throughout the developed world, inflation is coming down. In the United States, it's 2.7 per cent and falling; Japan, 2.1 per cent and falling; Canada, 2.4 per cent and flat; the eurozone, two per cent and flat; Germany, 1.8 per cent and falling; and the UK, 3.4 per cent and falling. Every other OECD economy has inflation coming down, but in Australia it is going up. That is why—again, almost entirely alone amongst developed economies—interest rates are having to go up in Australia. Nearly every other central bank around the world—there's the exception of Japan; I'll acknowledge that—is cutting interest rates. Their last two movements have been down. In Australia we're putting interest rates up. What is the reason for that? It's straightforward—and you don't need to take our word for it; you can take any number of other people's words for it: the economy is running too hot because government spending is too high.

Just a few minutes ago, we heard Senator Whiteaker cite the IMF and the OECD as expert bodies in this area. Well, last month, in January 2026, the OECD said, 'A tighter fiscal stance is needed to avoid adding to inflationary pressures.' This was just before the inflation figures came out. Well, that tighter fiscal stance has not been forthcoming. Inflationary pressures have been added to and the Reserve Bank is now having to raise rates. The AMP's chief economist, Shane Oliver, said, 'The best thing that Australian governments can do to help bring down inflation would be to cut government spending back to more normal levels'—because government spending is not at a normal level. Federal government spending is at an unprecedentedly high level, 26.9 per cent of GDP in the last budget paper. That is the highest it's ever been outside the pandemic in 40 years.

We've seen again, in the last budget papers, that government spending has been growing at four times the rate of the economy. When government spending is growing at four times the rate of the economy, it is competing for a fixed supply of resources—whether it's land, labour or capital inputs—with the private sector. That's why you've got more money chasing the same amount of goods, prices are being pushed up and the private sector is being crowded out. That is what is happening in the economy. The Reserve Bank has had no choice but to raise rates in those circumstances.

We did just hear from Senator Cox, boasting about real wages. If she actually looked at the RBA's statement on monetary policy that accompanied their decision yesterday, she would have seen that they have laid out, quite starkly, that real wages will decline in the first half of this year. That's because inflation is actually forecast to go even higher, peaking in the middle of the year. It's not going to be back in the RBA's target range until at least June 2027, and not until the midpoint, which is six months later—which means there is no interest rate relief in sight.

Question agreed to.