Jane Hume Victoria, Liberal Party, Shadow Minister for Employment and Industrial Relations
2:54 pm
My question is to the Minister representing the Treasurer, Senator Gallagher. The Age today reports that a Labor MP told the Treasurer:
A lot of what we have done is throw cost-of-living relief at voters, which has an inflationary impact.
When does the government expect inflation to return to the Reserve Bank's target band?
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
2:55 pm
Thank you very much, Senator Hume, for the question. As you will remember, inflation, when we came to government, had a six in front of it and was absolutely galloping. I think it peaked at almost eight per cent, maybe 7.8 per cent, in December of 2022, and it has come down considerably since then.
Jane Hume Victoria, Liberal Party, Shadow Minister for Employment and Industrial Relations
It's not in the band, though, is it?
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
You need to take responsibility for the time that you were in government because a lot of the problems that we have been dealing with in our term in government—we've been dealing with the inflation challenge—
Unidentified interjection - Hansard doesn't record who said this
Hon. Senators:
Honourable senators interjecting—
Sue Lines President
Minister, please resume your seat. Minister McAllister, a point of order?
Jenny McAllister NSW, Australian Labor Party, Minister for the National Disability Insurance Scheme
Senators are interjecting. It's disorderly, and I can't hear Senator Gallagher.
Sue Lines President
I am trying my very best to get order in this place, Minister McAllister. I have called for order, particularly on my left. I'll remind senators the minister has the right to be heard in silence.
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
I was merely making the point that the concern about inflation from those opposite didn't seem to cover the period of time that inflation was galloping away when they were in government; indeed it continued to rise to its peak in the December 2022 quarter, from memory.
Since then, we have seen inflation come down considerably. Now, instead of having a six in front of it, it has a three in front of it. We have been very clear that that is too high, as has the bank, and they are doing what they do in terms of their role in bringing inflation back to band. We are taking our responsibility in relation to the decisions that we make around that.
Much of the cost-of-living support, which you also complain about and voted against, was done in a targeted way that didn't add to the inflation challenge in the economy. We took those decisions very carefully, acknowledging that people were under pressure and that the government had a responsibility to respond to that.
Jane Hume Victoria, Liberal Party, Shadow Minister for Employment and Industrial Relations
2:57 pm
Another Labor MP reportedly told the Treasurer:
Small business is doing it very tough and we aren't doing enough for them.
Does the government accept that higher inflation and the resulting higher interest rates are putting further pressure on small businesses, including through higher borrowing costs?
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
I think if you'd listened to my answer to the two questions that I've taken this week about some of the challenges facing the Australian economy, you will—
Unidentified interjection - Hansard doesn't record who said this
Opposition Senator:
An opposition senator interjecting—
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
Well, I doubt it—you will have heard that there are substantial challenges affecting the global economy which are having—
Unidentified interjection - Hansard doesn't record who said this
Opposition Senators:
Opposition senators interjecting—
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
If you over there want to run the economic argument that nothing that's happening in the world, including a land war in Europe and a war in the Middle East, has an impact back here, you go away and run that argument. I don't think anyone will believe you. There are substantial challenges in the global economy. We are seeing advanced economies with an inflation challenge. Many are dealing with the same pressures we are here. We will continue to take responsibility, and we will continue to do so in the decisions that we make.
Jane Hume Victoria, Liberal Party, Shadow Minister for Employment and Industrial Relations
2:59 pm
Labor MPs have reportedly raised concerns with the Treasurer about inflation, interest rates and living standards. One has said that the government is 'making enemies' with its capital gains tax changes. If the government's own MPs are 'getting quite worried' about the direction of the economy, why shouldn't Australian families be worried too about Labor's tax and spend agenda?
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
Well, I think what the Australian community see is a government that takes—
Bridget McKenzie Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development
What about your backbench?
Sue Lines President
Minister Gallagher, please resume your seat. Seriously, Senator McKenzie, you need to come to order. Minister Gallagher, please continue.
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
The government takes responsibility for the challenges we see across the economy, makes decisions in the national interest whether it be about cost-of-living help, whether it be about savings in the budget, whether it be lowering the interest rate on the debt that we inherited from those opposite who, again, let that gallop away—just like you let inflation gallop away—
Sue Lines President
Order! Minister, please resume your seat. I've just called Senator McKenzie to order. That doesn't mean, Senator McGrath, that it's your opportunity to interject, being rude and disorderly. Minister, please continue.
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
That's why we support tax cuts when you vote against them. That's why we support wage increases when you voted against them. So you come in here and cry your crocodile tears about being worried about Australian households, when you've done nothing in this chamber to help any Australian household with the decisions that you have made and that you are responsible for. We will continue to make decisions in our country's economic interests and acknowledge that people are under pressure at the same time, and we will continue to respond to that.
Penny Wong SA, Australian Labor Party, Minister for Foreign Affairs
I ask that further questions be placed on the Notice Paper.