Labor Senators' dissenting report

Introduction

1.1Australia, like most of the world, continues to experience increased inflation and consequential household budget pressure.These initial global causes of inflationary pressures – pandemic disruptions to global supply chains and Russia’s invasion of Ukraine – had and are having universal effect.[1]In Australia, they were aggravated by economic[2] , energy[3], housing[4], wages[5] , skills[6] , and healthcare [7] policy malaise and stagnation across the life of the former Coalition Government. By May 2022, this dearth of policy certainty and clarity left ordinary Australians exposed to a dire housing shortage[8], energy fuel uncertainty[9] , and a deficiency in access to crucial healthcare.[10]

1.2Since coming to office, the Albanese Labor Government has lifted Australia from this policy valley and is taking urgent steps to address the immediate inflationary crisis. The Government’s 2024–25 Budget will be carefully calibrated to the economic circumstances, striking the right balance between getting inflation under control, easing cost-of-living pressures, supporting sustainable growth and building fiscal buffers in an uncertain global environment.

1.3The Labor Government’s redesign of the stage 3 tax cuts will provide direct relief to households affected by the cost-of-living crisis without contributing to further inflation.[11]The committee heard that these tax cuts will make a real difference, ensuring that hard working Australians are keeping more of the wages they earn. In particular, the changes to stage 3 ensure low and middle-income earners will receive this much-needed lift to their budget given they are the taxpayers most affected by the cost-of-living crisis.[12]

1.4Policy strides in energy investment and emissions policy certainty have renewed investment and business confidence[13], with a clear economic pathway to easing the load on household budgets.[14]This has been supplemented with responsible direct action to deliver energy price relief through temporary coal and gas price caps[15] and bill rebates.[16]

1.5The Labor Government has made healthcare cheaper and more accessible for millions of Australians since coming to office. The largest ever increase to the Medicare bulk billing incentive has dramatically increased the number of bulk billed appointments.[17]Furthermore, the cost of vital medicines has been reduced[18] and 60-day dispensing is making a significant impact.[19]

1.6The Labor Government is also taking strong steps to ensure Australians have a safe, secure and affordable home[20]; through the development of the National Housing and Homelessness Plan, widening the National Housing Infrastructure Facility, striking a new National Housing Accord, and the Help to Buy and Regional First Home Buyer Guarantee schemes.

1.7The cost-of-living crisis that began before the 2022 Federal Election was compounded by the policy of the previous Coalition Government to intentionally limit wage growth[21], meaning that Australians could buy less with the money they earn.[22] Through the work of this committee, the Labor Government’s steps to deliver wage increases for some of the lowest paid Australians was noted as a real step to address working poverty after a decade of neglect.[23]Indeed, nominal wage growth has picked up to its highest rate in nearly 15 years.[24]

1.8In early 2023, this committee heard good news from the Reserve Bank of Australia (RBA) that the inflation crisis that began under the previous Coalition Government appeared to have peaked.[25]This improved outlook for Australians managing their household budget appears to have held true in the interim, moderating to two-year lows.[26]Inflation remains above the RBA’s target band of 2 to 3 per cent but is expected to moderate further, improving real wages and easing some of the financial pressure on households.[27]

1.9The committee heard repeatedly that there are no quick-fix or simple solutions to a cost-of-living crisis with its roots in global uncertainty and nearly a decade of policy failure. The Labor Government’s responsible cost-of-living policies are directly reducing inflation and took 0.5 of a percentage point off the Consumer Price Index in the year to the March 2024 quarter. The Australian Bureau of Statistics has repeatedly confirmed the Labor Government’s relief package has helped to take the edge off price pressures.

Economic Outlook

1.10The drivers behind Australia’s current cost of living circumstances are largely global and being experienced by other similar economies.[28]Dr Marion Kohler, Head of Economic Analysis Department, RBA told the committee:

Most advanced economies have experienced a large increase in inflation over the past year or so. A big driver of higher prices was unpredictable shocks to supply that affected many countries. Most notable are the pandemic disruptions to global supply chains and Russia’s invasion of Ukraine. In Australia we also had flooding on the east coast that affected supply here. Strong growth and domestic demand have also played a role in many countries.[29]

1.11Whilst the overall experience of recent inflation is shared, the drivers and structure of that inflation is slightly different. The committee heard that Europe, for example, has had a crisis disproportionately driven by energy price inflation.

1.12Australia’s inflation has had broad impact across almost all sectors of the economy. Early warning signs began in mid-2021, driven by COVID-19 related supply chain blockages. This translated to real world cost of living challenges after being exacerbated by the war in Ukraine, floods, fires, and domestic energy supply challenges.[30]

1.13The independent RBA responded to these inflationary pressures by steadily increasing the target cash rate over the course of 2022 and early 2023.[31]

1.14The widespread inflation across Australia has had a particularly harsh effect on vulnerable and low-income families. The impact of inflation varies depending on a household's capacity to cope with rising expenses.[32] This economic reality has been starkly illustrated by evidence from charities and food suppliers, revealing a growing number of employed Australians facing difficulties in affording food.[33]This trend is attributable to deliberate policies of wage stagnation implemented by the previous Coalition Government.

1.15The global economic forecast remains uncertain. Although there's an expectation for a soft landing, it remains far from guaranteed. Various factors such as the delayed impacts of monetary policy tightening, ongoing conflicts in regions like Ukraine and the Middle East, and challenges in China's property sector are exerting pressure on worldwide economic performance.[34]

1.16Despite facing difficult circumstances, the Australian economy has shown resilience and performed better than other major advanced economies, excluding the United States. Although inflation remains elevated, it has decreased to its lowest level in two years. The job market remains robust, with low unemployment rates and high participation rates. Real wage growth has started to pick up earlier than expected according to the Mid-Year Economic and Fiscal Outlook (MYEFO).[35]It is anticipated that the economy will regain momentum in the coming year as inflation eases and real household disposable incomes increase. According to the 2023–24 MYEFO, the Department of the Treasury (the Treasury) projects a moderation in economic growth to 1.75 per cent for the year before bouncing back to 2.25 per cent in 2024–25.[36]

Redesign of Stage 3 Tax Cuts

1.17In January 2024, the Labor Government announced a redesign of the stage 3 tax cuts legislated by the former Coalition Government. The redesign ensured that 13.6 million taxpayers will get a tax cut relative to the existing tax scales.[37]Of those 13.6 million, 11.5 million will get a bigger tax cut than they would have under the previously legislated stage 3 settings.[38]In effect, every Australian taxpayer will receive a tax cut on 1 July 2024, providing direct cost-of-living relief to Australian households.

1.18In contrast to the originally legislated stage 3, the Labor Government’s tax cuts will ensure this relief is provided Australians on low and middle incomes as well. As described above, the committee heard on multiple occasions that it is low and middle-income earners who are feeling the effects of the current cost-of living crisis most keenly.[39] This new package of tax cuts therefore is well targeted to provide much needed relief to this cohort.[40]

1.19Dr Steven Kennedy, Secretary of the Treasury told the committee:

One of the benefits of this redesign is that it lowers the effective tax rates for people who are more likely to respond to that lowering of the effective tax rate…from a policy perspective, it makes sense to focus on those groups when we think about cost-of-living pressures because they have the least ability to adjust.[41]

1.20Ms Laura Berger-Thomson, First Assistant Secretary, Personal and Indirect Tax and Charities Division of the Treasury, supplemented this evidence saying:

Looking at someone on average earnings, an average wage—and for this purpose we often use a measure of earnings called average weekly earnings, which is almost $73,000—someone earning that amount of money would get a tax cut of $1,498. That compares with $694 that they would have got under stage 3. So, it's $804 more.[42]

1.21Critically, witnesses made clear to the committee that the redesign of stage 3 was appropriate in the current economic climate because it would not have a material impact on inflation.[43]

1.22By reducing the first tax rate from 19 to 16 per cent, the Labor Government’s tax cuts produce a smaller increase in average tax rates for the first seven income deciles over the next 10 years. The Treasury explained to the committee that the changes reduce bracket creep more for these groups compared with the original Stage 3 and a no change scenario.[44]

1.23The committee also heard the significant impact the tax cuts would have on women with 90 per cent of women taxpayers receiving a bigger tax cut than they would have under the original stage 3.[45] This is of benefit not only to issues of gender equality but also to labour market participation more broadly.[46]

1.24Support for the tax cuts has been broad and conclusive. Witnesses from the community sector, social services and unions all voiced their appreciation for the change.[47]

1.25On the tax cuts Mr Fabian Webber, Youth Services Coordinator, Roseberry QLD said:

Yes. I think it will definitely have a positive impact. At Roseberry, one of the services that we have is our dignity hub in Gladstone. That's somewhere people can come and have a shower, wash their clothes and get a food parcel, a toiletry pack or personal hygiene items and that kind of stuff. We saw a 45 per cent increase in presentations to the dignity hub last year over the year before, and a significant rise in middle income people, so I think that those tax cuts should have a positive impact, especially on that cohort.[48]

1.26The tax cuts are good for middle Australia, good for women, good for helping with cost-of-living pressures, good for labour supply and good for the economy.

Wages and Employment

1.27Ms Brianna Casey, Chief Executive Officer of Foodbank told the committee:

Fifty-four— that’s the percentage of food-insecure households in Australia with someone in paid work. A job is no longer a shield against a cost-of-living crisis. Five hundred thousand—that’s the number of households that will struggle to put a meal on the table tonight. These are households in my community, in your communities and in a growing number of communities. Why? Put simply, it’s because people’s incomes are not keeping up with their expenses. It’s that basic.[49]

1.28Reverend Stu Cameron, Chief Executive Officer, Wesley Mission/Wesley Community Services said:

Across our service providing crisis support we are seeing this right now: more first-time users. These are people who are employed and a double-income families seeking support for financial difficulties. This reflects the changing face of financial stress and poverty in our nation.[50]

1.29In March 2019, then Finance Minister in the former Coalition Government said that low wage growth was 'a deliberate design feature of our economic architecture'.[51]

1.30The impact of this decade long policy tragedy was felt when global pressures began to drive the prices of everyday goods up for Australian households. Multiple charities and food providers reported to the committee that they are seeing significantly increased numbers of working Australians seek assistance to put food on the table.[52]

1.31Witnesses told the committee that causes of wage stagnation were downward pressure on bargaining rights for workers[53], changes to worker/employer power dynamics over the last decade[54], and the increased notion of the gig economy.[55]A significant link was also drawn between union representation and healthy wage growth.[56]

1.32In relation to the Labor Government’s proposal to create multi-employer bargaining, Mr Tim Kennedy, National Secretary, United Workers Union said:

What the evidence shows is that countries which allow bargaining at various levels and give workers a say on the scope of the bargain have considerably higher rates of collective agreement coverage. If you have higher rates of collective agreement coverage, you have higher rates of pay. This basically means you start to deal with the cost-of-living crisis.[57]

1.33Any suggestion of wage growth driving Australia’s recent inflation was thoroughly debunked[58], with a demonstration that, after nearly a decade of intentional wage suppression, real wages had fallen to the same point they were under the previous Labor Government in 2009.[59]

1.34The current Labor Government has made it a priority to get wages moving again and increase workforce participation. As outlined in the Employment White Paper, Working Future, the Labor Government is focused on delivering sustained and inclusive full employment, promoting job security and strong sustainable wages growth, filling skills needs and building our future workforce, overcoming barriers to employment and broadening opportunity, and reigniting productivity growth.

1.35The convergence of decreasing inflation and improving wage growth has resulted in annual real wages returning to positive growths. Real wages, measured by the Wage Price Index and Consumer Price Index, increased by 0.1 per cent in the year leading up to the December quarter of 2023. This marks the first instance of positive annual real wage growth since the March quarter of 2021.[60]

1.36Critically, with regards to cost-of-living relief, analysis from the Treasury indicates that individuals in the lowest income quintiles have experienced the most robust wage growth. Over the year leading up to December 2023, wages in the lowest two wage quintiles increased by an average of 5.7 per cent, surpassing the average growth of 3.7 per cent observed in the highest three quintiles.[61]

1.37As described above, the stage 3 tax cuts redesign will also contribute to increasing women’s workforce participation.[62] Indeed, the adjustment to effective tax rates are broadly more efficient from a labour supply perspective.

1.38Dr Kennedy told the committee:

From a labour supply perspective, it's actually an improvement in the system: it is making it more efficient from a labour supply element.[63]

1.39The Labor Government continue their policy of encouraging sustainable wage growth, unwinding the intentional wage suppression of the former Coalition Government.

1.40The Labor Government continue their policy of cost-of-living relief for families and enabling workforce participation.

Energy

1.41Multiple witnesses and submissions confirmed that energy prices are a significant factor in cost-of-living pressures facing Australian households and businesses.[64]

1.42In December 2022, the Labor Government took immediate action to shield Australians from skyrocketing prices and announced an Energy Price Relief Plan. This consisted of a price cap on wholesale gas contracts of $12 GJ, a price cap for thermal coal in Queensland and New South Wales, implemented in partnership with those states, of $125/Tonne, and $1.5 billion in targeted energy bill relief for households and small businesses.

1.43It should be noted that, despite repeatedly calling for cost-of-living relief, the Coalition voted against this urgent help for millions of Australians. The Labor Government’s urgent response also sits in contrast to the Coalition approach on gas and energy policy which saw average gas prices increasing by 250 per cent between the 2019 and 2022 elections.

1.44The targeted energy bill relief in the form of consumer rebates was made available to more than 5 million households and 1 million small businesses. This relief was aimed at those most in need with those eligible including pensioners, veterans, seniors and other concession card holders, as well as recipients of the Carer Allowance, Family Tax Benefit, and anyone eligible for existing state and territory electricity concession schemes.[65]

1.45Dr Kennedy confirmed the effect the rebates had on prices and inflation:

Over the six months leading to December…the energy bill relief rebates reduced electricity prices by 11.9 percentage points—both reducing the pressure on inflation more broadly.[66]

1.46The Australian Energy Market Operator’s (AEMO) Q4 2023 Quarterly Energy Dynamics report confirmed that the Labor Government’s policies capping coal and gas prices correlated with lower wholesale prices.[67]

1.47Discussing the impact of the market intervention on electricity prices, Clare Savage, the Chair of the Australian Energy Regulator (AER), stated:

Well, last September, October [2022], we started briefing ministers on what we thought could happen to the electricity prices this year [2023], and so we started doing estimates of what we might have been deciding today. And at that time, those estimates ranged between 35 and 50 per cent. Most of them were between 40 and 50 per cent. So that was obviously very alarming; 40 to 50 per cent price increase is just horrific. So it's really good to see that all governments have intervened in both coal and gas markets and that has brought down the price expectations in the system, and so today's decision is more like 20 to 22 per cent…… 20–22 per cent is still a significant increase, but it is much much lower than it otherwise would have been.[68]

1.48Witnesses 'applaud[ed] efforts by the federal and state governments to rectify the total market failure'.[69]

1.49In addition to this direct action to alleviate the pressure of energy prices, the committee heard that the Labor Government’s action to transition Australia’s energy grid to renewables is also contributing to reliable energy and lower prices. There was an acceptance from witnesses of the need to transition to renewable energy and ensure our energy infrastructure can deliver reliable energy to Australian households and businesses in a low carbon economy.[70]

1.50Again, witnesses outlined that these issues have built up over an extended period of time, with one witness describing 'a decade of policy chaos' that dampened private investment and investment confidence, and left Australia exposed to a 'disproportionate impact of fossil fuel hyperinflation'.[71]

1.51Another witness outlined the missed opportunity that 'decade of chaos' the former Coalition Government created; if there had been expanded investment in renewables and energy storage, then when the war in Ukraine and global gas and coal prices increased, Australia would likely have seen less impact on prices for households and businesses.[72]

1.52Fortunately, since the 2022 federal election, the Labor Government has listened to experts and taken immediate steps to change the policy environment. Much needed certainty has been created with the reform of the Safeguard Mechanism, the Climate Change Act, and renewed support for the Australian Renewable Energy Agency and the Clean Energy Finance Corporation.[73]

1.53Mr Tim Buckley, Director, Clean Energy Finance told the committee:

There is definitely a solution in sight now that we have the clarity of an energy and climate policy that makes sense, that's aligned with the science, aligned with the economics and aligned with the interests of a sustainable economy in Australia. I think that will be great news for Australia. We are seeing very clear policy developments, whether that's the Safeguard Mechanism or the Climate Change Act. There are all sorts of programs. We've seen a reiteration of support for the Australian Renewable Energy Agency and the CEFC in order to drive and crowd in private investment.[74]

1.54The AER’s draft Default Market Offer (DMO) for 2024–25 drives home that this action is having a real-world effect. The DMO shows the retail energy bill benchmark stabilising and trending downwards.

1.55Furthermore, AEMO’s Q4 2023 Quarterly Energy Dynamics report highlights the increased share of renewables in the grid when discussing the sale in wholesale energy prices:

Record generation from grid-scale renewables and rooftop solar is triggering wholesale energy prices and greenhouse emissions to fall, according to AEMO’s latest quarterly analysis of Australian energy markets.

The Quarterly Energy Dynamics report for the last quarter of 2023 shows that new records are being set for the amount of renewable energy being fed into the grid, reducing the reliance on traditional coal-fired generation.

1.56The committee heard repeatedly that not only are renewables the most cost-effective option in transitioning to a clean energy system[75], but specifically that the Coalition’s plan to rely on nuclear energy does not make sense as a plan to ensure reliability and deliver price relief.

1.57Dr Cahill, Chief Executive Officer of the Next Economy told the committee:

Currently—and I've spoken to people about this in the industry—from an emissions point of view, if you're looking at emissions reduction, it makes sense to keep nuclear going in countries that already have it because they're not producing emissions currently. In Australia the challenge is that we don't have a workforce or an industry set up to be able to service that industry currently. It is expensive and it takes a long time to build a nuclear power plant. So from a climate perspective, in which most people are raising this as an issue, it doesn't actually make sense. And it is way more expensive than renewable energy plus storage. So from that perspective, it doesn't make sense.[76]

1.58Indeed, the lifting of legislative prohibitions on nuclear energy was investigated in depth by the Senate Standing Committee on Environment and Communications in 2023 which concluded the following:

It is the committee’s view that there is no basis for lifting the legislative prohibitions on nuclear energy for civilian use for a multitude of reasons. …

Point one: nuclear energy is expensive. Australia has access to plentiful, affordable, and readily available renewable technologies. The latest CSIRO GenCost report into the cost of electricity generation based on technology type found that firmed renewable energy was the cheapest option for Australia, while nuclear technology was the most expensive.

…

Point two: next generation nuclear technology is unproven. The committee notes that many proponents of establishing a nuclear industry in Australia promote small modular reactors (SMRs). However, SMRs remain an unproven technology and, globally, there are no commercially operational SMRs. It is clearly not possible for Australia to develop a nuclear power sector with SMR technology which is not commercially available.

Point three: assuming the technology were currently commercially available—given the very considerable lead time that would be involved in establishing a new nuclear industry in Australia—by the time one was established, its contribution to the electricity market would likely be negligible given Australia’s projected 83 per cent uptake of firmed renewables by 2030. Beyond cost and commercial availability, ARPANSA advised the committee that it would take between 10 to 15 years to have an operational nuclear plant in Australia.

…

Point four: nuclear power is inflexible. The energy output of nuclear power plants lacks the flexibility required to meet the needs of a modern electricity market. Proponents of nuclear energy often point to concerns about the baseload capacity of renewable energy. However, the committee received evidence that baseload power reflects an outdated and inflexible model that is no longer suited to modern and dynamic electricity grids which require two-way power flows, due to changes in demand and in generation. As such, firmed renewables are much better suited to the load profiles of modern electricity grids which require greater flexibility. …

Point five: nuclear carries inherent and consequential safety risks. The committee acknowledges the concerns raised by submitters and witnesses in relation to the safety and environmental concerns linked to the production of nuclear energy, including uranium mining. The health and safety of the workforce and the public, including First Nations communities, is essential. …

Point six: a number of submitters raised an issue close to the hearts of many Australians—water scarcity. Nuclear power plants require significant volumes of water from uranium mining and processing, through to reactor cooling. The necessity of locating nuclear power plants near sea water would likely mean the construction of nuclear reactors near densely populated areas and would create additional environmental and security risks. These concerns add to the conclusion that establishing a civil nuclear industry in the drought-prone country of Australia is untenable.

Point seven: pursuing a civil nuclear industry creates potential and unnecessary national security risks. The establishment of a civil nuclear energy industry in Australia could generate regional and global unease due to perceived links between civil nuclear industries and nuclear weapons proliferation, as well as opening the possibility of nuclear reactors being the target of hostiles. Australia continues to be an international advocate of nuclear non-proliferation and the committee supports Australia’s ongoing participation in the Nuclear Non Proliferation Treaty, as well as the international and bilateral nuclear safeguard agreements it has ratified.

Point eight: there is no social license to support the establishment of a civil nuclear industry in Australia. There is a long history of public support for the prohibition on civil nuclear power in Australia, and this support is ongoing. A significant majority of Australians are not comfortable with the prospect of having nuclear power plants, or the radioactive waste they produce, in their backyards. Overwhelmingly, Australians recognise the importance of transitioning to a secure and sustainable energy future, and firmed renewables are the key to achieving that future.[77]

1.59Another aspect of policy having a direct impact on household energy costs is the impact of energy efficiency in housing. The Australian community responded to the dearth of policy under the former Coalition Government by significantly investing in rooftop solar, where they could afford to do so.

1.60Multiple witnesses spoke of the need to improve access to sustainable energy efficient homes, and the significant impact that an energy efficient house can have. Mr Joel Dignam, Executive Director, Better Renting stated that:

The energy efficiency issue in housing is really central when you talk about cost of living. When housing costs more, people end up in poorer quality homes.

They often have higher power costs. This doesn't just mean that they're paying more for energy; it often means that they're cutting back on energy altogether, which can mean that they're in quite unhealthy indoor temperatures. This is a big concern with heatwaves and also in winter.[78]

1.61There was broad support for energy efficiency investment, from multiple submissions and witnesses.[79] The Labor Government is significantly investing in ensuring better efficiency of households, including a $125 million investment with the Clean Energy Finance Corporation and the Commonwealth Bank to encourage green home construction[80], and agreement to update the National Construction Code to require Nationwide House Energy Rating Scheme equivalent of 7 stars in new houses and apartments.[81] The broader Household Energy Upgrades Fund administered by the Clean Energy Finance Corporation[82] will deliver $1 billion of finance for retrofitting homes to improve energy productivity, including the use of clean energy technology, with innovative financial products designed to assist renters and strata properties.

Healthcare

1.62Australia is lucky to have one of the best healthcare systems in the world, ranking highly on key indicators relating to health outcomes, equity and access.[83]However, 10 years of neglect under the former Coalition Government has left the system in a poor state, unable to meet the needs of Australians struggling with the current increased cost of living. The Labor Government has taken significant steps to strengthen Medicare and the healthcare system as a whole that are providing tangible and meaningful changes to all Australians.

1.63On 1 November 2023, the Labor Government provided funding to Medicare to triple the bulk billing incentive.

1.64Dr Higgins, President, Royal Australian College of General Practitioners told the committee:

…investment in primary care has resulted in a reversal of the trajectory of gap costs for our patients, especially in our rural and regional areas, as bulk billing increased significantly in areas such as Tasmania and regional Queensland. This demonstrates that targeted funding and supporting areas for the vulnerable has results.[84]

1.65This testimony is supported by data showing the increase in bulk billed GP appointments. Since the tripling of the bulk billing incentive came into effect on 1 November 2023, the GP bulk billing rate has risen by 2.1 per cent.[85] This equates to 954 000 additional bulk billed GP visits[86], ensuring greater access to affordable healthcare for Australians. This initiative is particularly felt by the most vulnerable and therefore those most likely to feel the burden of cost-of-living pressures: children under 16, pensioners and healthcare card holders.[87]

1.66The Labor Government is also delivering cost-of-living relief through cheaper medicines. In January 2023, the maximum cost of a prescription on the Pharmaceutical Benefits Scheme (PBS) was lowered to $30 from $42.50, in the largest cut to the co-payment in the 75-year history of the PBS.[88]

1.67With regards to the real-world difference this is making to Australians’ lives Ms Clarke, Policy Advisor, Asthma Australia told the committee:

In terms of the co-payment, we did have consumers tell us that it has changed—it was reduced quite substantially, so, yes, it has altered their available income.[89]

1.68Again, the data is clear in its support of this assertion. Since the reduction in the co-payment on prescriptions in January 2023, over 27 million cheaper scripts have been dispensed, equating to savings of over $319 million.

1.69In addition to reducing the cost of prescriptions, the introduction of 60-day dispensing of key medicines means fewer trips to the GP for patients with stable, ongoing health conditions.

1.70On the impact of 60-day prescriptions, Ms Hardy, Director of Policy and Advocacy, Arthritis Australia said:

Medicines is one of the biggest costs that we hear about from people with arthritis, and all the consumers that we spoke to were really supportive of it.[90]

1.71Ms Shakespeare, Deputy Secretary, Health Resourcing Group, Department of Health and Aged Care discussed the way in which this initiative is targeted:

The medicines reform that I've mentioned, to allow people with stable chronic illness to receive more of their medicine through a single co-payment under the Pharmaceutical Benefits Scheme, is specifically targeted at supporting people with chronic illness to ensure that they can afford their medicines and use the medicines that help them to effectively manage their illness.[91]

1.72The reform to introduce 60-day prescriptions was first recommended in 2018 by the Pharmaceutical Benefits Advisory Committee but was not acted upon by the former Coalition Government.[92]As a result, Australians with chronic conditions lost a total of $1.6 billion in potential savings.[93]

1.73The Labor Government continue their policy of strengthening Medicare, reversing the damage caused by 10 years of neglect under the former Coalition Government.

Housing

1.74Housing was outlined as a fundamental element of cost-of-living challenges for the Australian economy. Multiple witnesses reported that, at its core, Australia has a housing supply shortage[94] and more specifically an affordable housing supply shortage.[95] The result is that it is harder for Australians to buy their first home, and harder and more expensive for Australians to find a rental. The proportion of Australians in rental accommodation has grown, and the proportion of owner occupiers has fallen.[96]

1.75Witnesses spoke of a crisis that has been emerging and growing for decades. When pressed however, expert witnesses were only able to name one Commonwealth Government initiative under the former Coalition Government that attempted to address housing affordability.[97] Indeed, certain schemes, such as the former Coalition Government’s HomeBuilder scheme, had a 'deleterious effect on affordability', because the way it was framed 'created a rush' and created 'supply chain issues of its own'.[98]

1.76Several witnesses referenced the negative impact of the former Coalition Government’s scaling down of effective affordability schemes such as the National Rental Affordability Scheme (NRAS).

1.77In contrast, witnesses acknowledged the pace with which the Labor Government is taking action on housing affordability and supply, with legislation introduced to the Parliament before the end of 2022.[99]

1.78Specific mention was made by business[100], community groups[101], and governments[102] of the importance of the Housing Australia Future Fund (HAFF).

1.79In their submission to the Senate inquiry into the HAFF Bill 2023, the Australian Housing and Urban Research Institute was clear:

The Australian Government is to be commended for the pace and ambition of the legislative agenda being pursued through this legislative package, and for moving not only to directly respond to the housing crisis, but to work in partnership with other tiers of government, community sectors and industry in addressing these complex housing system challenges seen across the nation.[103]

1.80Peak organisation, National Shelter, called the HAFF legislation the 'most critical housing legislation to be brought forward for the past ten years'.[104] The Brotherhood of Saint Laurence was similarly unequivocal saying 'social housing supply is inadequate, and the HAFF will increase supply'.[105]

1.81The Labor Government’s Help to Buy scheme has also been applauded as a responsible, non-inflationary measure to 'level the playing field for first-home buyers and help arrest the decline in home ownership among poorer Australians of all ages'.[106]

1.82Finally, the Labor Government is also working to boost construction of rental housing, introducing tax incentives to encourage investment and construction in the build-to-rent sector.[107] A model that has been used successfully overseas to increase housing supply, build-to-rent developments are specifically designed to be rented out rather than sold to individual buyers. Attracting more investment into housing will support an ambitious national effort to build 1.2 million new, well-located homes over five years from 1 July 2024.

1.83The Labor Government has committed more than $25 billion in new housing investments over the next decade and will continue to work closely with all levels of government to ensure more Australians have a safe, secure and affordable place to call home.[108]

1.84Once again, in contrast to this the wholistic approach outlined above to improve housing supply, the Coalition’s First Home Super Buyer scheme is a reckless and personally detrimental policy proposal. Superannuation exists to deliver income in retirement, and to relieve the future tax burden of funding the Aged Pension. Depleting its balance depletes an important personal investment that improves the standard of living and wealth of people in retirement.

1.85Moreover, this proposed scheme in fact stands to increase house prices and worsen affordability overall while making it harder for low and middle income earners with average super balances to compete with high income earners with larger super balances. This, in an environment where, the committee heard repeatedly, low and middle income earners are feeling cost-of-living pressures most keenly.[109]

1.86The Senate support the Labor Government’s agenda to improve housing affordability for first-home buyers by passing the Help to Buy legislation without delay.

1.87The Senate support the Labor Government’s agenda to introduce tax incentives in the build-to-rent sector.

1.88The Coalition abandon its ill-conceived First Home Super Buyer scheme that will exacerbate Australia’s housing affordability challenges.

Climate Change

1.89Witnesses across the hearings, and in submissions, drew a link between the increased effects of climate change, and the need to plan for them. Witnesses representing low-income and vulnerable households reported being among the hardest hit by climate related disasters.[110] Witnesses on behalf of industry[111], grocery[112], and agriculture[113] reported that climate disasters impacted supply chains and consequently prices for consumers.

1.90Energy Consumers Australia reported that in their regular survey of 2000 households and 500 small businesses, respondents do not see cost of living and action on climate change as things that they expect to be traded off against each other.[114]

1.91Ms Cassandra McCarthy, Corporate Affairs, Glencore Australia, in her commentary on the last decade, stated:

I think it's fair to say that in a number of critical policy areas there has been a level of instability.[115]

1.92Mr Paul Harker, Chief Commercial Officer, Woolworths Supermarkets also stated:

I think with anything that requires structural change, obviously having a level of certainty for what people [are] actually driving towards is very helpful. The industry knowing collectively what they're trying to do and the time frames they going to do it in, and being able to work with some level of certainty around what that is, is helpful.[116]

1.93The need to take meaningful action on climate change was recognised by multiple witnesses and submissions.[117] It was clear that the business community was in favour and supportive of the Labor Government’s legislated emissions reduction target.[118]

1.94The loud and clear message was that business and investment confidence in Australia has suffered from a decade of instability in 'a number of critical policy areas', including climate and emissions policy.[119]

1.95The election of the Labor Government, and the legislative agenda since the election, have ended that policy instability, through mechanisms such as the legislated climate target and reformed Safeguard Mechanism. Innes Willox, Chief Executive of national employer association Ai Group, on the passage of the Safeguard Mechanism reforms said:

After all the political gyrations of recent years and recent months, the legislation delivers a measure of much-needed certainty that Australia is serious about both its emissions goals and the centrality of competitive industry to achieving them. Maintaining and building our competitiveness is crucial both to our prosperity and our ability to deliver a net zero emissions economy.[120]

1.96Jennifer Westacott, Chief Executive of the Business Council of Australia, also said on the passage of the Safeguard Mechanism reforms:

Make no mistake, this is critical progress towards securing a transition that delivers new jobs and new opportunities.

We welcome the passage of this legislation and the adoption of key elements of the Business Council’s plan to reach net zero emissions.

After more than a decade of uncertainty and equivocation employers now have certainty about our emissions targets and how we’re going to get there.[121]

1.97Witnesses before the committee explained that newfound stability in Australian energy and emissions policy under the Labor Government has enabled long-term, nation building, job creating investment in Australia.[122] Mr Arron Wood, Executive General Manager, Industry Development, Clean Energy Council said:

That policy certainty of a legislated climate target saw a real uptick in the confidence of our membership domestically but also globally. We have a lot of the big global clean energy players as well. Things like the Rewiring the Nation fund, for example, are critical. In the announcement of those legislated climate targets, with that target of 82 per cent renewable energy by 2030, these sorts of things allow companies, which are making investment decisions which might be 10 years out, to have the sort of certainty we need.[123]

1.98The Senate support the Labor Government’s agenda to ensure emission reduction and clean energy investment, to take meaningful action on climate change whilst providing confidence to the business community.

Grocery Prices

1.99The committee heard repeatedly from community organisations that there has been an increase in people presenting for assistance, particularly for food.[124]Of particular concern, was the evidence given that of those presenting for assistance, many were doing so for the first time and came from households with a steady income.[125] Rising grocery prices were consistently pointed to as a pressure that households are experiencing and indeed organisations such as Consumers Federation of Australia encouraged investigation of the causes of this rise.[126]

1.100In response to this highly concerning situation, the Labor Government has announced a suite of measures to investigate supermarket pricing practices and conduct.

1.101Firstly, a review by Dr Craig Emerson of the Food and Grocery Code of Conduct is underway. The interim report has stated that the Code should be made mandatory and should include civil penalties to ensure supermarkets are held properly accountable.[127]

1.102Second, the Labor Government has tasked the Australian Competition and Consumer Commission (ACCC) with undertaking a 12-month inquiry into supermarket pricing. The ACCC will examine factors influencing the pricing of groceries along the supply chain, including the difference between farmgate prices and supermarket prices.[128]

1.103Third, the Labor Government has provided funding to consumer group CHOICE to produce quarterly reports on retail grocery prices, comparing differences between retailers and highlighting those charging the most.[129]

1.104Finally, recently announced reforms to Australia’s merger rules will boost competition and productivity in our economy leading to fairer prices for consumers.[130]

1.105The Labor Government continue their policy of holding major supermarket chains to account for the prices they charge on groceries.

Education

1.106The Labor Government’s actions to address the cost-of-living crisis also extend to the education sector. Witnesses painted a picture that Australia is in the midst of a critical skills shortage, inherited from the former Coalition government, that stands to put the country’s future prosperity at risk.

1.107Ms Constable, CEO, Minerals Council of Australia highlighted this issue in the mining industry:

We don't have access to the engineers, tradespeople and geologists that we need for the industry. They all impact. Not having those particular skill sets means we will not be able to produce the next mines and the critical minerals that are going to be required to get us to things like net zero by 2050. What does that mean for cost of living? When we can't get access to that next generation of skills, we're not able to put forward the next lot of technologies and we're not able to get the skill sets that are going to produce mines that are really critical for Australia.[131]

1.108The Labor Government is taking steps to address this gap. On 1 January 2024, the landmark five-year National Skills Agreement between the Federal Government and State and Territory Governments came into effect. This $30 billion combined investment in vocational education and training includes $12.6 billion from the Commonwealth.[132]With the right skills, more Australians will have greater earning capacity. By investing in people, the Labor Government is investing in a more efficient economy and a higher quality of life for all Australians. Again, this stands in contrast to the former Coalition Government, who despite being faced with a growing critical skills shortage failed to deliver a national skills agreement with any state or territory or any other meaningful action to address the crisis.

1.109Additionally, working with states and territories, the Labor Government’s Fee-Free TAFE initiative is making immediate inroads to addressing this skills shortage. The enormous uptake of enrolments demonstrates what a critical difference this makes to Australians looking to undertake training. As at 31 December 2023, over 355 000 students have enrolled in a Fee-Free TAFE course, against a target of 180 000.[133] These numbers reflect the sentiment expressed by one witness that 'the fee-free TAFE has been amazing'.[134]

1.110The Australian Education Union (AEU) discussed in a submission to the inquiry how Fee-Free TAFE is relieving the burden of cost-of-living pressures:

With the introduction of Fee-Free TAFE places, the AEU is of the view that this has helped to ease the cost of living pressures for many Australians who are seeking to enrol in vocational education to gain qualifications that will lead to sustainable and meaningful employment…A skilled and qualified workforce leads to workers earning higher incomes and securing ongoing and permanent employment ensures that workers are able to invest in their futures in relation to housing affordability and cost of living[135]

1.111In recognition of the difference Fee-Free TAFE is making, an additional 300 000 places are being made available from 2024 to 2026, providing cost of living support for Australians choosing to study in priority skills need areas.[136]Further acknowledging the need to boost skilled workers in the construction and housing sector, the Labor Government has announced an additional $88.8 million in the 2024–25 budget for 20 000 additional Fee-Free TAFE and VET places to increase workers in this pipeline.[137]These investments support more people to find secure well-paid work while improving the housing supply and resulting housing affordability.

1.112The Labor Government has also recognised the need to focus on education and skills training in regional and remote Australia to meet the needs of the future economy. As demand for certain skills shift and new job opportunities arise, many of these jobs will be in the regions. This imperative speaks to the Labor Government’s investment in Regional University Study Hubs where $66.9 million will go towards building 20 new Regional Study Hubs and up to 14 new study hubs in outer suburbs.[138]

1.113Most recently, the Labor Government announced the establishment of a Commonwealth Prac Payment to support students undertaking mandatory workplace placements required for university and vocational education and training qualifications.[139] This practical support will help to ease cost-of-living pressures experienced by students studying to be a teacher, nurse, midwife, or social worker. It will also assist in reducing care and teaching workforce skills shortages identified in the Labor Government’s Employment White Paper and assist more students to commence and complete their studies.

1.114Lastly, the Labor Government has also announced that in its 2024–25 budget, it will cut the student debt of more than 3 million Australians. In response to the Australian Universities Accord, the Government will cap the HELP indexation rate to be the lower of either the Consumer Price Index (CPI) or the Wage Price Index (WPI) with effect from 1 June 2023.[140]This is yet another example of the measures the Labor Government is implementing to ease pressure on Australians.

1.115The Senate support the Labor Government’s agenda to make education more affordable and accessible in Australia.

1.116The Senate support the Labor Government’s agenda to address Australia’s critical skills shortage.

Women’s Economic Empowerment

1.117Removing barriers to labour market participation, narrowing the gender pay gap, and reducing cost-of-living expenses are vital to women’s economic empowerment.

1.118Submitters told the committee that access to high-quality affordable education and care is a critical enabler for many parents, particularly women, to participate in paid work.[141] Except for rental and mortgage costs, childcare is the second largest expense to the family budget.

1.119Supporting parents and women is an important investment in Australia’s future. The National Association for Prevention of Child Abuse & Neglect submitted that neuroscience very clearly shows that children benefit when there is a reduced load on parents, including financial stress. Policies like paid parental leave and increasing parenting payments have the power to reduce pressure on families and increase the time and capacity for support family relationships.[142]

1.120Recognising the universal benefits of giving children access to early education and more opportunity for women to participate in paid work, the Albanese Labor Government’s Cheaper Child Care reforms were implemented in July 2023. This delivered a $4.5 billion increase to childcare subsidy rates and reduced the cost of early education and care for around 1.26 million Australian families.[143]

1.121Community Early Learning Australia welcomed the changes made by the Labor Government including increasing the childcare subsidy to 90 percent, ending ParentsNext, and restoring payments to single parents with children aged over 8 years old.[144]

1.122St Vincent de Paul Society reflected on the inaction of former Coalition Government in supporting women with rising childcare and household costs and further welcomed this Labor Government’s childcare initiatives:

The 2023-24 Budget has provided some relief to households, and we commend the Government for this action. It has been many years since we have seen any serious commitment to addressing growing inequality in Australia. However, more needs to be done. We welcome eligibility criteria for Parenting Payment (Single) being increased from eight to 14 years for the youngest child, and the abolition of the ParentsNext program.[145]

1.123National Bank Australia reported that women experience much higher levels of financial stress than men and Professor Preston highlighted the importance of the tax system to alleviate financial pressures faced by women, especially elderly women.[146]

1.124Ms Berger-Thomson, First Assistant Secretary of the Treasury reiterated the benefit of the Labor Government $1649 tax cut (on average) for women and their economic empowerment:

Typically women are more likely to be secondary income earners, and income earners tend to be more responsive to changes in after-tax wage in terms of their labour market participation.

There is a range of factors that go into women's labour force participation. Women are making decisions more often than men about whether they work rather than stay at home to look after young children. For those reasons, they're more responsive. There are a couple of reasons. The first is that, to the extent that women are more likely to work part time, there's more of an opportunity for them to increase their hours. For people working part-time, it's harder. If we're talking purely about that increase in hours, you get a bigger effect when you have more people working part time. But the decisions that they're making about childcare and family finances—it's for those reasons they have a large effect.[147]

1.125On other barriers to economic and financial equity for women, Professor Preston shared her research on the disparity of superannuation balances of men and women, which showed a 60 per cent gender gap in the mean superannuation balances of women and women aged 18–64. She recommended reforms to the superannuation system including paying superannuation on paid parental leave.[148]

1.126To reduce the barriers to economic independence and empowerment for women, the Labor Government announced alongside the release of the Working for Women strategy it will pay superannuation on the government-funded Paid Parental Leave (PPL) from 1 July 2025.[149]Paying superannuation on PPL is another key step to prioritise gender equality, better value care work, and help close the superannuation gap.

1.127Minister for Social Services, the Hon Amanda Rishworth MP, said:

Paying superannuation on PPL is another key step to prioritise gender quality, better value care work and improve women’s workforce participation.[150]

1.128Alongside Labor’s tax cuts and key investments in Cheaper Child Care, women’s safety, women’s health, Parenting Payment Single, and workplace relations reform, the Labor Government continues to focus on women’s economic security and independence as part of its economic plan.

1.129A stronger paid parental leave system is good for families and good for the economy. On the Labor Government’s performance in managing the economy, tackling inflation, and balancing fiscal restraint, Mr Yeaman, Deputy Secretary from the Department of Treasury told the committee that:

The government’s measures - such as electricity prices, childcare and the increase in the Commonwealth Rent Assistance, are having direct downward impacts on measured Consumer Price Index now while inflation is highest.

…

We think there are some reasons it’s helping to bring inflation down in the near term in both a measured specific way in terms of those specific measures.[151]

Conclusion

1.130In conclusion, the Labor Government's comprehensive strategy to tackle the pressing cost-of-living crisis stands as a testament to its commitment to the welfare of all Australians. Through a balanced yet ambitious approach, the Government has crafted policies that are not only responsible but also significantly impactful.

1.131While numerous, the recommendations put forth by the Coalition in this Cost of Living Inquiry fail to meet the gravity of the situation. Relying on ideological stances rather than tangible actions, these proposals do little to address the overarching challenges faced by Australians. They lack the foresight to tackle structural issues within the economy, crucial for securing Australia's long-term prosperity. As stewards of the nation's well-being, it is imperative that we prioritise solutions that are forward-thinking, wholistic, and genuinely transformative, ensuring a brighter future for generations to come. It is our belief that this is precisely what the Albanese Labor Government is delivering with its actions to address cost-of-living pressures.

Senator Karen Grogan

Member

Senator Jana Stewart

Member

Footnotes

[1]Dr Marion Kohler, Head of Economic Analysis Department, Reserve Bank of Australia, Committee Hansard, 1 February 2023, p. 10.

[2]Mr Greg Jericho, Policy Director, Centre for Future Work. The Australia Institute, Committee Hansard, 3 February 2023, p. 17.

[3]Mr Tim Buckley, Director, Climate Energy Finance, Committee Hansard, 3 February 2023, p. 19

[4]Dr Michael Fotheringham, Managing Director, Australian Housing and Urban Research Institute, Committee Hansard, 2 February 2023, p. 49.

[5]Mr Jericho, Committee Hansard, 3 February 2023, p. 17.

[6]The Tax Institute, Submission 46, p. 5.

[7]Combined Pensioners and Superannuants Association, Submission 53, pp. 7–9.

[8]Ms Fiona Caniglia, Executive Director, Q Shelter, Committee Hansard, 3 February 2023, p. 23.

[9]Mr Matt Grudnoff, Senior Economist, The Australia Institute, Committee Hansard, 3 February 2023, p. 19

[10]Headspace National Youth Mental Health Foundation Ltd, Submission 35, p. 8.

[11]Dr Steven Kennedy, Secretary, The Treasury, Committee Hansard, 9 February 2024, p. 9.

[12]Dr Steven Kennedy, Secretary, The Treasury, Committee Hansard, 9 February 2024, p. 9.

[13]Mr Grudnoff, Committee Hansard, 3 February 2023, p. 19.

[14]Mr Mark Weaver, General Manager, Industrial Competitiveness and Strategy Branch, Department of Industry, Science and Resources, Committee Hansard, 3 February 2023, p. 19.

[15]Ms Ineke Redmond, Acting First Assistant Secretary, Macroeconomic Conditions Division, Treasury Committee Hansard, 4 August 2023, p. 14.

[16]Dr Kennedy, Committee Hansard, 9 February 2024, p. 7.

[17]Dr Deveny, Committee Hansard, 1 February 2024, p. 47.

[18]The Pharmacy Guild of Australia, Submission 15, p. 1.

[19]Dr Higgins, Committee Hansard, 1 February 2024, p. 49.

[20]Dr Fotheringham, Committee Hansard, 2 February 2023, p. 45.

[21]Mr Jericho, Committee Hansard, 3 February 2023, p. 17.

[22]Dr Kohler, Committee Hansard, 1 February 2023, p. 10.

[23]Dr Kohler, Committee Hansard, 1 February 2023, p. 10.

[24]Submission of the Australian Government, Fair Work Commission, Annual Wage Review 2023-24, 28 March 2024, p. 7.

[25]Dr Kohler, Committee Hansard, 1 February 2023, p. 11.

[26]Submission of the Australian Government, Fair Work Commission, Annual Wage Review 2023-24, 28 March 2024, p. 2.

[27]Submission of the Australian Government, Fair Work Commission, Annual Wage Review 2023-24, 28 March 2024, p. 2.

[28]Dr Kohler, Committee Hansard, 1 February 2023, p. 10.

[29]Dr Kohler, Committee Hansard, 1 February 2023, p. 10.

[30]Dr Kohler, Committee Hansard, 1 February 2023, p. 10.

[31]Dr Kohler, Committee Hansard, 1 February 2023, p. 11.

[32]Dr Kohler, Committee Hansard, 1 February 2023, p. 10.

[33]Ms Brianna Casey, Chief Executive Officer, Foodbank, Committee Hansard, 1 February 2023, p. 27.

[34]Submission of the Australian Government, Fair Work Commission, Annual Wage Review 2023-24, 28 March 2024, p. 5.

[35]Submission of the Australian Government, Fair Work Commission, Annual Wage Review 2023-24, 28 March 2024, p. 6.

[36]2023–24 Mid-Year Economic and Fiscal Outlook.

[37]Ms Laura Berger-Thomson, First Assistant Secretary, Personal and Indirect Tax and Charities Division, Department of the Treasury, Committee Hansard, 5 February 2024, p. 17.

[38]Ms Berger-Thomson, Committee Hansard, 5 February 2024, p. 17.

[39]Mr Jason Ware, Chief Operating Officer, Children, Youth and Families, Anglicare Southern Queensland, Committee Hansard, 1 February 2024, Brisbane, p. 14; Ms Liz Giles, Group Manager, Social and Community Services, Anglicare Southern Queensland, Committee Hansard, 1 February 2024, Brisbane, p. 14.; Ms Kate O’Hara, Chief Executive Officer, Foodbank WA, Committee Hansard, 26 September 2023, Perth, p. 11; Dr Kennedy, Committee Hansard, 9 February 2024, p. 18.

[40]Dr Kennedy, Committee Hansard, 9 February 2024, p. 18.

[41]Dr Kennedy, Committee Hansard, 9 February 2024, p. 18.

[42]Ms Berger-Thomson, Committee Hansard, 5 February 2024, p. 17.

[43]Dr Shane Johnson, First Assistant Secretary, Macroeconomics Analysis and Policy Division, Department of the Treasury, Committee Hansard, 5 February 2024, p. 19.

[44]Ms Berger-Thomson, Committee Hansard, 5 February 2024, p. 17.

[45]Ms Berger-Thomson, Committee Hansard, 5 February 2024, p. 17.

[46]Ms Berger-Thomson, Committee Hansard, 5 February 2024, p. 17.

[47]Dr Emily Porter, Senior Research Fellow, Work and Economic Security, Brotherhood of St Laurence, Committee Hansard, 1 February 2024, Brisbane, p. 8.; Mr Daniel Crotty, Head of Inclusion, Brotherhood of St Laurence, Committee Hansard, 1 February 2024, Brisbane, p. 9.; Mr Scott Brown, Executive Director, Research and Policy, Queensland Council of Social Service, Committee Hansard, 1 February 2024, Brisbane, p. 17; Mr Kennedy, Committee Hansard, 1 February 2024, Brisbane, p. 39; Ms Correnna Haythorpe, Federal President, Australian Education Union, Committee Hansard, 1 February 2024, Brisbane, p. 44.

[48]Mr Fabian Webber, Youth Services Coordinator, Roseberry QLD, Committee Hansard, 1 February 2024, p. 17.

[49]Ms Casey, Committee Hansard, 1 February 2023, p. 28.

[50]Reverend Stu Cameron, Chief Executive Officer, Wesley Mission/Wesley Community Services Committee Hansard, 1 February 2023, p. 29.

[51]Katherine Murphy, ‘Linda Reynolds stumbles on wages growth in TV interview’, The Guardian, 10 March 2019 available: https://www.theguardian.com/australia-news/2019/mar/10/linda-reynolds-stumbles-on-wages-growth-in-tv-interview (accessed 9 May 2024).

[52]Ms Casey, Committee Hansard, 1 February 2023, Sydney, p. 27; Ms Karen Dare, Chief Executive Officer, Community Queensland Ltd, Committee Hansard, 3 February 2023, p. 25; Ms Kellie Wishart, Chief Executive Officer, CareNet, Committee Hansard, 1 March 2023, p. 2.

[53]Professor Alison Preston, Submission 58, p. 3.

[54]Dr Cassandra Goldie, Chief Executive Officer, Australian Council of Social Service, Committee Hansard, 1 February 2023, p. 50.

[55]Dr Goldie, Committee Hansard, 1 February 2023, p. 50.

[56]Mr Jericho, Committee Hansard, 3 February 2023, p. 17.

[57]Mr Tim Kennedy, National Secretary, United Workers Union, Committee Hansard, 1 February 2024, p. 44.

[58]Mr Kennedy, Committee Hansard, 1 February 2024, p. 44.

[59]Mr Kennedy, Committee Hansard, 1 February 2024, p. 44.

[60]Australian Bureau of Statistics, Wage Price Index, December 2023; ABS, Consumer Price Index, December 2023.

[61]Submission of the Australian Government, Fair Work Commission, Annual Wage Review 2023-24, 28 March 2024, p. 7.

[62]Ms Berger-Thomson, Committee Hansard, 5 February 2024, p. 17.

[63]Dr Steven Kennedy, Secretary, Department of the Treasury, Committee Hansard, 9 February 2024, p. 9.

[64]Mr Paul Harker, Chief Commercial Officer, Woolworths Supermarkets, Committee Hansard, 1 February 2023, p. 21.

[65]The Hon Jim Chalmers MP, Treasurer, the Hon Anthony Albanese MP, Prime Minister of Australia, and the Hon Chris Bowen MP, Minister for Climate Change and Energy, ‘Energy rebates to ease pressure on households and small businesses’Media Release, 9 May 2023 (accessed 9 May 2024).

[66]Dr Steven Kennedy, Secretary, Department of the Treasury, Committee Hansard, 1 February 2024, Canberra, p. 7.

[67]Australian Energy Market Operator, Quarterly Energy Dynamics Q4 2023 (accessed 9 May 2024).

[68]Clare Savage, Chair of the AER, Radio National, ABC, 15 March 2023.

[69]Mr Buckley, Committee Hansard, 3 February 2023, p. 19.

[70]Ms Lynne Gallagher, Chief Executive Officer, Energy Consumers Australia, Committee Hansard, 1 February 2023, p. 56; Mr Ben Barnes, Acting Chief Executive, Australian Energy Council, Committee Hansard, 2 February 2023, p. 1; Mr Luke Menzel, Chief Executive Officer, Energy Efficiency Council, Committee Hansard, 2 February 2023, p. 21-23; Mr Arron Wood, Executive General Manager, Industry Development, Clean Energy Council, Committee Hansard, 2 February 2023, p. 24.

[71]Mr Buckley, Committee Hansard, 3 February 2023, p. 19.

[72]Mr Grudnoff, Committee Hansard, 3 February 2023, p. 19.

[73]Mr Buckley, Committee Hansard, 3 February 2023, p. 19.

[74]Mr Buckley, Committee Hansard, 3 February 2023, p. 19.

[75]Mr Buckley, Committee Hansard, 3 February 2023, p. 19.

[76]Australian Energy Regulator, Default market offer prices 2024-25, Draft determination, (accessed 9 May 2024).

[77]Report of the Senate Standing Committees on Environment and Communications, Environment and Other Legislation Amendment (Removing Nuclear Energy Prohibitions) Bill 2022, August 2023, pp. 63–66.

[78]Mr Joel Dignam, Executive Director, Better Renting, Committee Hansard, 3 February 2023, p. 35.

[79]Mr Joel Dignam, Executive Director, Better Renting, Committee Hansard, 3 February 2023, p. 35; Uniting Vic.Tas, Submission 2, p. 2; Brotherhood of St. Laurence, Submission 34, p. 3; and, Government of South Australia, Submission 65, p. 7.

[80]The Hon Chris Bowen MP, and Senator the Hon Jenny McAllister, Assistant Minister for Climate Change and Energy, ‘Joint media release: $125 million investment to help Australians buy energy efficient homes’, Media release, 5 March 2023 (accessed 9 May 2024).

[81]Senator the Hon Jenny McAllister, Assistant Minister for Climate Change and Energy, ‘Building Ministers support new home energy efficiency standards’, Media Release, 26 August 2022 (accessed 9 May 2024.

[82]Clean Energy Finance Corporation, ‘Household Energy Upgrades Fund’, 2024 (accessed 9 May 2024).

[83]Dr Nicole Higgins, President, Royal Australian College of General Practitioners, Committee Hansard, 1 February 2024, p. 48.

[84]Dr Nicole Higgins, President, Royal Australian College of General Practitioners, Committee Hansard, 1 February 2024, p. 48.

[85]The Hon Mark Butler MP, Minister for Health and Aged Care, ‘Bulk billing slide stopped thanks to Albanese Government’, Media Release, 29 April 2024 (accessed 9 May 2024).

[86]The Hon Mark Butler MP, Minister for Health and Aged Care, ‘Bulk billing slide stopped thanks to Albanese Government’, Media Release, 29 April 2024 (accessed 9 May 2024).

[87]Dr Nicole Higgins, President, Royal Australian College of General Practitioners, Committee Hansard, 1 February 2024, Brisbane, p. 49.

[88]The Hon Mark Butler MP, Minister for Health and Aged Care, ‘Cheaper medicines and more bulk billing’, Media Release, 27 November 2023 (accessed 9 May 2024).

[89]Ms Clarke, Policy Advisor, Asthma Australia, Committee Hansard, 1 February 2024, p. 59.

[90]Ms Hardy, Committee Hansard, 1 February 2024, p. 59.

[91]Ms Shakespeare, Deputy Secretary, Health Resourcing Group, Department of Health and Aged Care, Committee Hansard, 23 June 2023, p.11.

[92]Ms Shakespeare, Deputy Secretary, Health Resourcing Group, Department of Health and Aged Care, Committee Hansard, 23 June 2023, p. 11.

[93]Ms Shakespeare, Deputy Secretary, Health Resourcing Group, Department of Health and Aged Care, Committee Hansard, 23 June 2023, p. 11.

[94]Dr Michael Fotheringham, Managing Director, Australian Housing and Urban Research Institute, Committee Hansard, 2 February 2023, Melbourne, p. 42.

[95]Dr Tom Alves, Head of Development, Australian Housing and Urban Research Institute, Committee Hansard, 2 February 2023, Melbourne, p. 46.

[96]Dr Michael Fotheringham, Managing Director, Australian Housing and Urban Research Institute, Committee Hansard, 2 February 2023, Melbourne, p. 41.

[97]Dr Michael Fotheringham, Managing Director, Australian Housing and Urban Research Institute, Committee Hansard, 2 February 2023, Melbourne, p. 49.

[98]Dr Michael Fotheringham, Managing Director, Australian Housing and Urban Research Institute, Committee Hansard, 2 February 2023, Melbourne, p. 49.

[99]Dr Michael Fotheringham, Managing Director, Australian Housing and Urban Research Institute, Committee Hansard, 2 February 2023, p. 49.

[100]Master Builders Association, Answers to Questions on Notice, p. 2.

[101]Australian Catholic Bishops Conference, Submission 17, p. 4.

[102]Government of South Australia, Submission 65, p. 9.

[103]Australian Housing and Urban Research Institute, Submission 14 to Economics Legislation Committee inquiry into Housing Australia Future Fund Bill 2023 [Provisions] and related bills, p. 1.

[104]National Shelter, Submission 21 to Economics Legislation Committee inquiry into Housing Australia Future Fund Bill 2023 [Provisions] and related bills, p. 1.

[105]PowerHousing Australia, Submission 6 to Economics Legislation Committee inquiry into Housing Australia Future Fund Bill 2023 [Provisions] and related bills, p. 4.

[106]Gratten Institute, Submission 8 to Economics Legislation Committee inquiry into Help to Buy Bill 2023 and the Help to Buy (Consequential Provisions) Bill 2023 [Provisions], p. 2.

[107]Department of the Treasury, Build-to-rent tax concessions, 2024 (accessed 9 May 2024).

[108]Jim Chalmers, Treasurer, Joint Media Release with Julie Collins, Minister for Housing, 9 April 2024, available: https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/media-releases/building-more-affordable-rental-homes (accessed 9 May 2024).

[109]Dr Steven Kennedy, Secertary, Department of the Treasury, Committee Hansard, 1 February 2014, p. 7.

[110]Ms Caniglia, Committee Hansard, 3 February 2023, p. 30.

[111]Mr Loydell, Committee Hansard, 1 February 2023, p. 8.

[112]Mr Paul Harker, Committee Hansard, 1 February 2023, p. 23.

[113]Mr Bulmer, Committee Hansard, 2 February 2023, p. 56.

[114]Ms Gallagher, Committee Hansard, 1 February 2023, p. 53.

[115]Ms McCarthy, Committee Hansard, 1 February 2023, p. 6.

[116]Mr Harker, Committee Hansard, 1 February 2023, p. 23.

[117]Mr Harker, Committee Hansard, 1 February 2023, p. 23.

[118]Ms McCarthy, Committee Hansard, 1 February 2023, p. 5.

[119]Ms McCarthy, Committee Hansard, 1 February 2023, p. 6.

[120]Mr Innes Willox, Chief Executive Officer, Ai Group, Safeguard reforms: now the real work begins, 30 March 2023, https://www.aigroup.com.au/news/media-centre/2023/safeguard-reforms-now-the-real-work-begins/ (accessed 9 May 2024).

[121]Business Council of Australia, Getting on with the transition report, 30 March 2023, available: https://www.bca.com.au/getting_on_with_the_transition (accessed 9 May 2024).

[122]Mr Wood Executive General Manager, Industry Development, Clean Energy Council, Committee Hansard, 2 February 2023, pp. 25–26.

[123]Mr Wood, Committee Hansard, 2 February 2023, pp. 25–26.

[124]Ms Brianna Casey, Chief Executive Officer, Foodbank, Committee Hansard, 1 February 2023, Sydney, p. 28.

[125]Ms Liz Gilles, Group Manager, Social and Community Services, Anglicare Southern Queensland, Committee Hansard, 1 February 2024, p. 14; and, Ms Brianna Casey, Chief Executive Officer, Foodbank, Committee Hansard, 1 February 2023, p. 28.

[126]Consumers' Federation of Australia, Submission 62, p. 3.

[127]The Department of the Treasury, Release of the Interim Report of the Review of the Grocery Code of Conduct, 8 April 2024 (accessed 9 May 2024)

[128]Australian Competition and Consumer Commission, ‘ACCC to examine prices and competition in supermarket sector’, Media Release, 25 January 2024, (accessed 9 May 2024).

[129]The Hon Jim Chalmers MP, Treasurer, the Hon Anthony Albanese MP, Prime Minister of Australia and the Hon Andrew Leigh MP, Assistant Minister for Competition, Charities and Treasury, ‘Government to launch ACCC inquiry into supermarket prices’, Media Release, 25 January 2024 (accessed 9 May 2024).

[130]The Hon Jim Chalmers MP, Treasurer, ‘Merger reform for a more competitive economy’, Media Release, 10 April 2024, (accessed 9 May 2024).

[131]Ms Tania Constable, Chief Executive Officer, Minerals Council of Australia, Committee Hansard, 26 September 2023, p. 47.

[132]The Hon Brendan O’Connor MP, Minister for Skills and Training, ‘Up to $30 billion in funding unlocked from today in National Skills’ Media Release, 1 January 2024 (accessed 9 May 2024).

[133]The Hon Brendan O’Connor MP, Minister for Skills and Training, ‘Up to $30 billion in funding unlocked from today in National Skills’ Media Release, 1 January 2024 (accessed 9 May 2024).

[134]Mr Fabian Webber, Youth Services Coordinator, Roseberry Qld, Committee Hansard, 1 February 2024, p. 13.

[135]Australian Education Union - Federal Office, Submission 177, p. 2.

[136]The Hon Brendan O’Connor MP, Minister for Skills and Training, ‘300,00 additional Fee-Free TAFE places to help with cost of living pressures’, Media Release, 1 January 2024 (accessed 9 May 2024).

[137]The Hon Brendan O’Connor MP , Minister for Skills and Training, and the Hon Julie Collins MP, Minister for Housing, ‘Joint media release: Growing Australia’s Construction Workforce to Build More Homes’, Media Release, 8 May 2024 (accessed 9 May 2024).

[138]The Hon Jason Clare MP, Minister for Education, and Senator the Hon Anthony Chisholm, Assistant Minister for Education and Regional Development, ‘Ten new Study Hubs for regional Australia’Media Release, 25 March 2024 (accessed 9 May 2024).

[139]The Hon Brendan O’Connor MP, Minister for Skills and Training, ‘Cost of living support for teaching, nursing and social work students’, Media Release, 6 May 2024 (accessed 9 May 2024).

[140]The Hon Jason Clare MP, Minister for Education, and the Hon Brendan O’Connor MP, Minister for Skills and Training, ‘Cutting student debt for more than three million Australians’, Media Release, 5 May 2024 (accessed 9 May 2024).

[141]Community Early Learning Australia, Submission 90, p. 1.

[142]National Association for Prevention of Child Abuse & Neglect, Submission 101, p. 5.

[143]The Hon Jason Clare MP, Minister for Education, and the Hon Anne Aly, Minister for Early Childhood Education, ‘Delivering better early education’, Media release, 25 October 2022, (accessed 9 May 2024).

[144]Community Early Learning Australia, Submission 90, p. 2.

[145]St Vincent de Paul Society National Council, Submission 77, p. 1.

[146]National Australia Bank, Submission 38, Attachment 2, p. 2.

[147]Ms Laura Berger-Thomson, First Assistant Secretary, Department of the Treasury, Committee Hansard, 5 February 2024, pp. 17–18.

[148]Professor Alison Preston, Submission 58, p. 9.

[149]Professor Alison Preston, Submission 58, p. 21.

[150]The Hon Amanda Rishworth MP, Minister for Social Services, ‘Paying super on Government Paid Parental Leave to enhance economic security and gender equality’, Media Release, 7 March 2024 (accessed 9 May 2024).

[151]Mr Luke Yeaman, Deputy Secretary, Macroeconomic Group, Department of the Treasury, Committee Hansard, 4 August 2023, p. 17.