Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Senator Sharma has submitted a proposal, under standing order 75, today, which has been circulated and is shown on the Dynamic Red:

After four years of the Albanese Labor Government, Australians have endured the biggest fall in living standards in the developed world, and this Easter too many families are asking not what they can buy, but what they must go without.

Is consideration of the proposal supported?

More than the number of senators required by the standing orders having risen in their places—

With the concurrence of the Senate, the clerks will set the clock in line with the informal arrangements made by the whips.

Dave Sharma (NSW, Liberal Party, Shadow Assistant Minister for Citizenship and Multicultural Affairs) Share this | Link to this | Hansard source

As Easter approaches, we have Australian households doing it tough not only because of the fuel crisis prompted by the conflict in the Middle East but because of what has happened over these past four years under the Albanese government. The truth is that Australians have endured the biggest collapse in living standards across the developed world in the past four years.

This is a tale of woe in the lead up to Easter. We have Australians working harder than ever, but they are worse off than ever. Australians are not earning any more, because real wages and real incomes are flat. More of what they earn is being taken from them by taxes. More of what they take home after the government has taken its cut in taxes has to go to service their mortgage and higher interest repayments. And what they are left with after all of this—after they've paid their tax and paid their mortgage—buys less because everything is more expensive. This is a toxic brew—no real-wage growth, high taxes, high interest rates, high inflation.

The best measure of this—the best measure that reflects Australia's lived reality right now—is the decline in Australia's real household disposable income per capita. This figure sounds archaic, but it measures what households are left with after government has taken its cut through taxes, after the bank has taken its cut through interest repayments and after inflation has taken its chunk. In Australia, real household disposable income per capita went down by seven per cent from mid-2022 to mid-2025, and it hasn't improved since mid-2025—a seven per cent decline in living standards over three years. The same period, across other advanced economies—Italy, France, Germany, Japan, Israel, the United States, Canada—has seen real household disposable income increase by six per cent. Australia is not part of a global phenomenon here; Australia is an outlier. Australia is the worst performer in the advanced world. Let's unpack each of these in turn.

Real wages—we have not seen them grow in four years. The wage price index has not kept pace with the consumer price index. Why? This is because productivity is going backwards—the result of stifling regulation, the result of heavy handed industrial relations interventions. Without productivity gains, you cannot have sustainable real-wage growth.

We've got taxes that are higher than ever. You will hear those opposite talk about cost-of-living relief through the stage 3 income tax cuts, but, if you look at what the government has been taking from people in income tax, it has grown massively. Personal income tax receipts were $242 billion in 2022. According to the latest estimates in MYEFO, in 2025-26 they'll be $325 billion. That is the government taking $83 billion more in income tax over the past four years—a 34 per cent increase. So you're not earning any more. The government is taking more tax, and now you're having to pay more to the bank because we have seen 14 interest rate rises here in Australia under this government, which means the decision the week before last by the Reserve Bank is adding to people's mortgage repayments and the decision last month by the Reserve Bank is adding to people's mortgage repayments. In fact, the cumulative total of all those RBA rate increases under this government means that an average mortgage holder is paying $27,000 more a year in interest rates.

Then we've got inflation, with prices high across the board, meaning that what you're left with, after the government has taken its cut—after your real wages have not moved, after you've paid more in interest—buys less. Electricity is up by 38 per cent, gas by 42 per cent, food by 16 per cent, child care by 14 per cent, insurance by 39 per cent and rents by 22 per cent.

If we had a serious government, they would have used these good economic times to restore our fiscal balance sheet and get our economic house in order. Instead, all they've done is tax more and spend more. If we had a competent government, they would have done more to prepare us for this fuel shock coming from the Middle East. And if we had a good government, they would have been up-front with the Australian public from day one about the problems we face, rather than having us wait with bated breath for a 7 pm press conference by the Prime Minister.

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

I rise to speak against this motion by Senator Sharma, and I want to start by saying that we know Australians are doing it tough. We've said it—I've said it—in this place over the past couple of weeks. The Prime Minister has said it. Colleagues have said it. And that's an important conversation for us to have. But I think what is actually reckless, to use the words of Senator Sharma, is when those opposite continue to not be up-front with the Australian people about the facts. So I'm going to share some facts here that might assist them, because I think we continue to see the reasons Australians in recent years and across recent elections have come to no longer trust the coalition on running the economy. We've seen the party who used to be trusted on managing the economy having lost that trust of the Australian people, and I think today is yet another example of why that is the case.

So here are the facts. Living standards grew by two per cent through to the December quarter last year. The latest OECD data shows that our living standards are growing at twice the average of major advanced economies. What is the coalition's record? When they were sitting on the government benches, what did Australians see? They saw a deliberate strategy of keeping wages low. They saw consecutive quarters after consecutive quarters of wages going down, inflation rising and a trillion dollars of debt. When we came to government in 2022, inflation had a six in front of it. And to talk about higher taxes is incredible to me—from a political party who took to the last election a plan to have higher taxes than Australians have under this Labor government. It is extraordinary.

But, on our watch, the story is different. We have had stronger wage growth and rising living standards that Australians did not see under the former government. We brought inflation down from its peak. We've had eight consecutive quarters of annual wage growth, the longest period in more than a decade. Annual nominal wages have grown by above three per cent for 14 quarters in a row, the highest streak in more than 15 years. Come July, every Australian worker will see another tax cut delivered by the Albanese government, and they'll get another one next year, too. I say it again: those opposite took to the last election a plan to not deliver those tax cuts. If those opposite had won the election in May last year, Australians would be paying more tax today than they are under this government.

We saw no evidence of good economic management from those opposite when they were in government. We certainly saw no effort on their behalf to raise the living standards of ordinary Australians. Our government is committed to helping Australians get ahead. Our government is committed to making sure Australians can earn more and keep more of what they earn. We have seen record investment from this government in helping Australians meet the cost of essentials, whether it's making sure that Australians can access cheaper medicines, whether it's making sure that more Australians can see the GP for free or whether it's cutting student debt. We fought hard for wage rises for some of our hardest working Australians, such as aged-care workers and childcare workers, and this week our government has come out asking for the Fair Work Commission to increase the wages of minimum-wage workers.

This is the work of a Labor government that is absolutely committed to helping Australians when times are tough. We know that people are under pressure, and that's why we are doing something about it, while still finding savings in the budget. We are delivering tax cuts for every taxpayer. We are delivering cheaper medicines. We are slashing student debt and we are backing higher wages. We are committed to doing the work that those opposite showed they were simply not up to doing when they were last in government.

Paul Scarr (Queensland, Liberal Party) Share this | Link to this | Hansard source

Perhaps one of the most damning facts of all is that the level of consumer confidence in this country is the lowest it's been for 50 years. That really is a damning statistic. One of the fundamental obligations of a federal government is to provide the Australian people with confidence—confidence to employ their fellow Australians, to spend and invest money and to live their lives as they deserve to in our beautiful country—and yet the level of confidence in Australia is at its lowest level in 50 years. We're actually hearing that from everyday Australians, certainly from those in my home state of Queensland.

It's hard for the Australian people to have confidence in the Labor government, because of the mixed messages the Labor government has been giving with respect to the supply of oil during this oil crisis. As the number of petrol stations that were running out of fuel of different types increased, from 600 to 700 to now over 800, we had Minister O'Neil last week—it's hard to believe this—saying that there was more fuel supply in Australia than there was before the crisis. What sort of parallel universe is Minister O'Neil living in? I don't know if she's changed her position. I'm certain she won't be quoted in the Prime Minister's address this evening. I'm sure he won't be quoting Minister O'Neil in that regard.

Dave Sharma (NSW, Liberal Party, Shadow Assistant Minister for Citizenship and Multicultural Affairs) Share this | Link to this | Hansard source

Australians have never had it so good!

Paul Scarr (Queensland, Liberal Party) Share this | Link to this | Hansard source

Absolutely not. At the same time, we have farmers who are sleeping next to their equipment because they're concerned people are so desperate for diesel that they'll come onto their property and take it. How did we get into this situation? It's quite extraordinary.

As Senator Sharma correctly observed, the fact of the matter is that probably one of the best indicators of the standard of living of average Australians is household disposable income—that's how much income people have in their pockets to spend on the things they need—and in real terms, after considering the impact of inflation, there has been a seven per cent decline in household disposable income, from mid-2022 to mid-2025, and it just keeps going down under the Labor government. There is no-one the Labor government can blame except themselves. And, at the same time as real household disposable income has been declining by that material amount—this is quite extraordinary—we've seen an increase in income tax paid by the Australian people, from $242 billion in 2022, which is an extraordinary figure in itself, to $325 billion. That's an increase of $83 billion in three years. I think, Senator Sharma, 36 per cent—

Dave Sharma (NSW, Liberal Party, Shadow Assistant Minister for Citizenship and Multicultural Affairs) Share this | Link to this | Hansard source

Thirty-four per cent.

Paul Scarr (Queensland, Liberal Party) Share this | Link to this | Hansard source

Thirty-four percent—thank you. It is a 34 per cent increase in three years. That's extraordinary.

So there's this wave of income tax revenue, this tsunami of income tax revenue, that the government has been receiving, but, at the same time, it's been spending like a drunken sailor, and we have this huge inflationary impact which is hurting the Australian people and has fed into the 14 interest rate increases we've had under the Labor government. Earlier today, I quoted from the chief economist at Westpac, who's predicting an extra three interest rate increases for the balance of the year. Interest payments are $27,000 a year more for Australians with an average mortgage—an extra $27,000 in interest payments under Labor, paid by an average Australian family with a mortgage. It's an extraordinary amount. Inflation keeps going up. Australians are just being hit from all sides in a cost-of-living crisis. We're getting these mixed messages from the Labor government, and the Prime Minister has the audacity to give a national address after parliament rises.

Carol Brown (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

I rise to oppose this MPI brought by Senator Sharma. It's actually an interesting debate that we're having here today, not because of what has been brought forward by Senator Sharma but because of what is missing from the motion that has been brought by Senator Sharma. Those opposite want the people to forget what this government inherited when we came to government in 2022, and they want people to not factor in what is happening in the world today—a serious conflict that has disrupted countries all around the world. They want to pretend that the government has stood still while households have been under pressure. The contribution that I was just listening to never mentioned, as far as I heard, anything about the war in the Middle East.

But it is a good time, and it's opportune—and I thank Senator Sharma for the opportunity—to talk about the facts. The facts, when Labor came into office, were that inflation was rising; wages had been kept low—deliberately kept low as part of the federal coalition government's plan for workers in this country; Medicare had been weakened year after year after year while those opposite were in government; and too many Australians had been told they were on their own. I won't even go into robodebt and what they thought about people who were on social security.

Since then, the Labor government has focused on something simple but important—that is, helping people now and rebuilding the systems that they rely on. That is why every taxpayer has received a tax cut, with another coming in July. It is why minimum-wage and award-wage workers have seen pay rises worth more than $9,000. It is why we have expanded paid parental leave and made sure that super is paid on it. It is why we are cutting student debt by 20 per cent, with average savings of around $5,000. And it's why we're backing paid prac for students training for essential jobs. If anyone in the coalition had been out talking to university students about paid prac, they'd know how popular it is but also how absolutely needed it is. Those things are extremely important—and that is not doing nothing. That is a government making choices to assist Australians. It's making the choice to rebuild the systems that the former coalition government had weakened.

The same is true in health. The cost of living is not just what happens at the checkout; it affects whether you can afford to see a doctor or fill a prescription. As I said, we've strengthened Medicare. We've also expanded bulk-billing and opened Medicare urgent care clinics right across the country. In my home state of Tasmania, those clinics are now up and running and making a difference to people, to families. They're up and running in Bridgewater, Burnie, Devonport, Kingston, Launceston and Sorell, with two clinics in Hobart, giving people access to seven-days-a-week urgent care close to their home. And, of course, as of 1 January, PBS medicines are now $25 or less. That matters to people trying to hold the household budget together.

This government cares about Australians, and we'll continue to support them. (Time expired)

Leah Blyth (SA, Liberal Party, Shadow Assistant Minister for Defence Infrastructure) Share this | Link to this | Hansard source

I rise to support this matter of public importance from my fellow senator, Senator Sharma. It is extraordinary to sit here and listen to the contributions from those opposite. I think it's fair to say that they are gaslighting the Australian people. After four years under this Albanese government, Australians are going backwards. You only have to go out there and speak to someone at the grocery store or at the school gate and they will tell you that their life is much worse now than it was four years ago. Around the kitchen table, they will tell you that they are struggling to pay their electricity bills and they are struggling with the cost of insurance. We've just heard Senator Brown prattle off all the urgent care clinics and what they're doing with Medicare. Today people have had to put up with increases in their private health insurance premiums, on top of what is happening with the cost of fuel. To sit here and listen to those opposite tell us that everything is absolutely fine and Australians have never had it so good absolutely makes me feel sick.

Australians are going backwards. Material income is down by seven per cent. Those opposite say we've had record wage growth in Australia, but how is that keeping pace with inflation? Inflation means families have less money in their pockets to spend on the things that they want to do. Instead of sitting around thinking, 'What are we going to do with the kids this Easter? Are we going to catch up with family?' families are asking themselves, 'What can we cut this Easter?' They cannot afford to take the family road trip or buy Easter eggs for the kids, because of the rising cost of groceries and the rising power prices. This is a result of very poor policy choices by this government.

We have had 14 interest rate rises under the Albanese Labor government, and I think it's fair to say there is more to come. And this was all before the conflict in the Middle East began. Things were already challenging for the Australian people. We already had a cost-of-living crisis, and now, on top of that, Australian families are having to put up with a fuel crisis in our country. We will probably see more interest rate rises in Australia this year. We have sticky inflation. Senator Scarr mentioned that this government is spending like a drunken sailor, and it is. We are headed towards $1 trillion in debt. That is about $50,000 per minute in interest payments that the Australian taxpayer is picking up the bill for, and there is no stopping this government's spending. Inflation will stay higher for longer, we will have significant issues in our economy and we will see our living standards go backwards. The only reasons we aren't in recession are that they not only are spending like drunken sailors but have opened the floodgates to migration here in Australia. The only reason we are not in a recession is the number of people they are bringing into the country to prop up those numbers. That is having an impact then on housing for Australians. That is having an impact on accessing hospitals and medical services. It's having an impact on everyone's back pocket.

I think it's fair to say that the policy choices that this government is making are driving Australia into the ground. It is breaking the back, quite frankly, of hardworking Australians. That's what it's doing. When Labor spends, it is the Australian people who pay the price. That's the bottom line here: Labor will keep spending. They will keep gaslighting the Australian people and telling them that everything is fine, but, when Australians go to get their groceries and pay that grocery bill, when Australians have to pay their rent and when their mortgages keep going up and have gone up for the 14th time, I think it's fair to say that the Australian people have had enough. It's time for this government to, as it's asking the Australian people to do, balance the books and live within its means.

Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Order! The time has expired for that motion.