MATTERS OF URGENCY

Senator O'SULLIVAN (Western Australia—Deputy Manager of Opposition Business in the Senate) (17:37): I thank Senator Collins for bringing this important urgency motion before us today. Despite all the promises and announcements, it is clear that this government is failing to deliver the relief that Australian families need from this relentless cost-of-living pressure that they are all under.

The economic mismanagement of this government is astounding, and it's been felt right across Australia. In my home state of Western Australia, the West Australian reported a story last week about the economic pain that's been felt by one couple in Perth. This couple pays about $2,450 per month towards the mortgage for their two-by-one villa.

Another rate rise this month would likely add at least $50 to that figure. This is how they put it: Why should we bear the brunt of bad management? Surely there are better ways and more meaningful ways in the long term to try to sort this wild inflation out.

Well, they're right. They shouldn't be bearing the brunt of the bad management of this government. Unfortunately, more economic pain is coming for households, and nothing this government is doing is doing anything at all to alleviate it.

Labor Party luminary Bill Kelty was spot on when he said that real wages have fallen by five per cent. He said: Real wages are not improving in any significant way—they're falling. Well, that's true.

You only had to visit the state electorate of Secret Harbour during the recent by-election to know just how unimpressed voters are with the smoke and mirrors and the economic tricks that are presented by this government. They know that every time they buy groceries, fill up their car or pay for things they are seeing the impact of inflation that's more than it should be.

With oil again reaching $110 a barrel at one point in overnight trade, these voters know that even more pain is coming and that another interest rate rise is likely. Financial markets today have already priced in an 84 per cent chance that rates will go up later this month. The voters in Secret Harbour know that when the Treasurer says workers should be happy because their wage share is increasing but their real wages are falling it's just ridiculous.

Bill Kelty was also right when he said it's ridiculous and it's insulting. I've been saying for quite some time in this place that if this government does not get fair dinkum about national productivity Australian families will continue to see their standard of living decline. The government has two jobs: break inflation and fix productivity.

Australians are working harder than ever, yet too many families are finding it harder and harder to get ahead. Every extra dollar spent on groceries, fuel, electricity or mortgages is a dollar that cannot be spent on building a better future for themselves and their families. After four years of promises, Australians are entitled to ask: where is the plan to genuinely reduce those cost-of-living pressures?

Temporary rebates and headline announcements are no substitute for long-term economic reform. Australia cannot spend its way out of inflation, nor can it regulate its way to prosperity. The key to restoring living standards is higher productivity, lower inflation and stronger economic growth.

Businesses need confidence to invest, workers need opportunities to advance, and families need relief from the relentless cost-of-living increases. But the warning signs are flashing red. The latest NAB monthly business survey found business confidence remains well below its long-run average, while business conditions have fallen into negative territory for the first time in six years.

Businesses are telling this government that higher costs, weaker demand and economic uncertainty are making it harder to invest, grow and enable Australians to employ more people. Australians deserve an economic plan that rewards effort, encourages enterprise and lifts those living standards. Until this government gets serious about tackling inflation and improving productivity, households will continue to fall behind.

Australians expect better from this government. They expect more from this government, and they are demanding more and better performance from this government. The PRESIDENT: The question is that the urgency motion as moved by Senator Collins be agreed.