Jane Hume (Victoria, Liberal Party, Shadow Minister for Employment and Industrial Relations) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. Yesterday, the Prime Minister followed the coalition's lead and announced a temporary cut to the fuel excise—you're welcome! But, unlike the coalition, he couldn't point to a single dollar in savings to pay for it. The Reserve Bank has been very clear: Australia's inflation problem is home grown. Inflation is well above the target band, and increasing fuel costs will push it higher still.

Minister, how much will this unfunded decision add to inflation? Or has the Prime Minister not even bothered to ask?

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

Senator McKenzie, you interjected the whole time that Senator Hume was on her feet, and I found it very hard to hear her question. Questions need to be heard in silence, as do answers.

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

I thank Senator Hume for her question. I was asked about inflation. I can advise that Treasury estimates indicate that the excise cut could directly reduce headline inflation by around half a percentage point through the year to the June quarter of 2026. I would emphasise that, obviously, the reduction in the fuel excise that is being brought forward is temporary.

In relation to how this is to be funded, I note the boasting from the shadow finance minister—who looked to increase debt and increase deficits and increase taxes—that the coalition's policy was a more responsible policy. I would make the point that the position of the coalition, in relation to what they proposed on excise, was to make electricity bills more expensive, because, in an ideological approach to energy policy, their proposal was to cut the Cheaper Home Batteries Program.

There are around 300,000 Australians, including households and small businesses, who have installed a cheaper home battery. This permanently reduces power bills. It delivers real and lasting cost-of-living relief for families and businesses and benefits everyone by taking pressure off the electricity grid. I would make the point, Senator Hume—through you, President—that the so-called savings that you describe in fact would have ensured that more Australian households had higher energy prices.

Jane Hume (Victoria, Liberal Party, Shadow Minister for Employment and Industrial Relations) Share this | Link to this | Hansard source

Economists today have warned that the government's $2.6 billion fuel excise cuts will add to inflation and will put further pressure on interest rates, because there is not a single dollar of savings that goes alongside them. Is the Prime Minister aware that his version of this policy risks forcing the RBA to raise interest rates and keep them higher for longer? If he is aware, why is he happy to let Australian mortgage holders pay the price for his failure to find savings in the budget?

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

First, cost-of-living pressures have been a priority for this government since coming into government. I don't need to remind the former shadow finance minister that in fact the inflation challenge under the government of which she was a part was much, much higher. It is the case that Australians are having to deal with higher inflation and interest rates, and we are very conscious of that, which is one of the reasons why cost-of-living measures have been such a priority for our government. I would make the point that the former shadow finance minister was part of a party that voted against a great many of the cost-of-living measures that the government put forward, including tax cuts. It is quite remarkable to record for history the Liberal party opposing tax cuts, isn't it? (Time expired)

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

Senator Hume, second supplementary?

Jane Hume (Victoria, Liberal Party, Shadow Minister for Employment and Industrial Relations) Share this | Link to this | Hansard source

Minister, Australians are being forced to make difficult choices every single day, including whether they can afford to take their Easter holiday to be with family and friends. Why is it always the case that Australians are forced to make tough choices while the Prime Minister refuses to make any and only ever seems to make the inflation problem worse?

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

Why is it always the case that you oppose relief for Australian families? That's really the question that Australians were asking after the last election. The economic team that now runs the Liberal Party—Mr Taylor and Senator Hume—went to an election with bigger deficits, more debt and higher taxes and now has the temerity to come in and say, 'By the way, you need some savings.'

Michaelia Cash (WA, Liberal Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

You've been in government for four years.

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

Well, this was less than a year ago, Senator Cash, so you can't run away from the legacy of higher taxes, higher deficits and more debt as quickly as that. I know you want to put it in the rear-view mirror, but we all remember that this is the economic dream team that went to an election with higher taxes for the Liberal Party.