Paul Scarr (Queensland, Liberal Party, Shadow Minister for Immigration) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Minister, yesterday the Reserve Bank of Australia announced a decision that many struggling Australian families had feared but hoped wouldn't happen—a large interest rate rise. Yesterday, you did not know how much—or you refused to tell us how much—your government's interest rate rise would increase monthly repayments for someone with a $600,000 mortgage. Minister, how much more a month will the government's interest rate rise cost hardworking Australians who have a $600,000 mortgage?

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

I'm going to answer in the same way I answered yesterday, which is that it depends on a range of factors. I will leave it to Senator Scarr to work out the various scenarios if he chooses to do so. Our focus is on supporting households while they deal with cost-of-living pressures across the economy.

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

Yet Australians are still doing it tougher.

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

We recognise that people are under pressure. When we have brought measures to this chamber to support households with those pressures, what has happened over on the other side? What has happened, Senator Cash? You have voted no every single time, whether it be on energy bill rebates, housing investments or some of the investments we've done in health on cheaper medicines. Remember how they fought tooth and nail to make sure that we couldn't allow people to have 60 days prescribing to actually pay half the price of medicines? 'Oh, no. You're not allowed that. We want you to pay twice as much as you should'—that was the position over there. So I am not going to be lectured by Senator Scarr and others about how to support households when inflation is higher than we would like.

We on this side get that households are under pressure, and that's why all of us turn up to work every day not to fight each other in a race to the Sky interview room but to actually think about our constituents, the people that we were sent here to serve. That's what we are doing. Every single day that's what this group does. We talk about how to help people, and we watch in shock and horror as you tear each other apart. We cannot believe it—the indulgent exercise that we have witnessed for the last month or so as you tear each other down while we are turning up to work every day to make sure we look after people and do everything we can to help them at this point in time.

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

Senator Scarr, first supplementary?

Paul Scarr (Queensland, Liberal Party, Shadow Minister for Immigration) Share this | Link to this | Hansard source

Queenslanders will note that there was no answer to that question. Minister, how many more interest rate rises will hardworking Australians with a mortgage have to endure before you realise that your government's failure to reduce spending is causing this problem?

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

I think the people of Queensland are looking at you lot and are shocked, frankly, at the way you are behaving. I think that's what they'll be thinking right now.

I think it's clear from Senator Scarr's question that he hasn't read the Statement on monetary policy which was released yesterday alongside the bank's decision. If he had, he would have read the analysis that the bank put out about what they see as the most significant drivers of pressure on inflation in the economy, and he would have seen that, according to the bank, the upside surprise has been in the area of private demand. And, in fact, government spending doesn't feature as part of that. We will continue to do what we have done after inheriting inflation accelerating at six per cent and rising when you left government. It is much lower than that now, but the job is not done.

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

Senator Scarr, second supplementary?

Paul Scarr (Queensland, Liberal Party, Shadow Minister for Immigration) Share this | Link to this | Hansard source

Senator Scarr had read the statement, and he'd also read all the views of the expert economists as well. When will you say sorry to families who will lose their homes because Labor's policies are keeping interest rates higher for longer?

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

I do like Senator Scarr in the third person; thank you for that. The answer to that question is similar to the one I gave to the first question. We on this side of the chamber recognise that people are under pressure, and that's why we're doing something about it. We're not just acknowledging it; we're doing something about it. There are tax cuts for every taxpayer coming in July this year and next year. We've got our bulk-billing incentive. We've got the cheaper medicines that you opposed. You go and explain to a roomful of Australians why you wanted them to pay double for their prescription every month. Why did you take that position and then come in here and say you've got concerns about people under pressure? We're doing something about it. There are cheaper medicines. We're backing higher wages and we've cut HECS debt by 20 per cent. There are a range of actions underway by this government to deliver cost-of-living relief for Australian households.