Nat Barr has challenged a Labor cabinet minister for claiming the government has been able to help Australians with the effects of persistently high inflation.
Social Services Minister Amanda Rishworth was joined by Shadow Finance Minister Jane Hume on Wednesday’s edition of Sunrise after the Reserve Bank predicted high inflation will be a problem beyond 2026 .
But Rishworth argued that Labor had taken “responsible action” to raise wages so workers could cope with the cost of living crisis.
“I have to say it’s on a good trend,” he said.
But Barr noted that real wages were barely rising.
“I don’t think it really is,” he said.
“When you look at the numbers, real wages are increasing, but not at the same rate,” he said.
“That doesn’t sound good to people who say, ‘Why can’t I buy everything I can?'”
Sunrise presenter Nat Barr (right) slammed Labor Minister Amanda Rishworth (left) after she claimed the government had taken “responsible action” against the inflation crisis.
Inflation-adjusted real wages grew just 0.7 percent in the year to September, and while headline inflation has fallen, it is expected to rise again after $300 electricity rebates expire.
But Ms Rishworth suggested Australian workers would be worse off under the Opposition Coalition, which opposes Labor’s revival of multi-employer bargaining, where pay rises are copied across a workplace.
“The opposition criticized us, tried to block our changes that have caused salaries to change,” he said.
‘Australians would be worse off if the Coalition were in government because they would deliberately be putting further downward pressure on wages.
“We want them to increase and we also want to see increases in real wages, which we have been working for.”
A clearly frustrated Senator Hume responded to the Labor minister by saying it had been a “disastrous two and a half years” under the Labor government.
“If you feel poorer, it’s not in your head… You’re poorer,” he said.
‘Your disposable income… after inflation, after interest rates and after taxes has receded over the last two years.
“Basically, their standard of living has collapsed as well.”
Barr said Australians’ real wages had fallen almost five per cent since Labor took office in 2022 (file image)
Inflation under the Labor Party government hit a 32-year high of 7.8 per cent at the end of 2022, up from 6.1 per cent during the election, but has since moderated in the face of 13 interest rate rises.
Prime Minister Anthony Albanese used Parliament’s final sitting week of the year to defend his government, arguing it had inherited “a number of challenges” after winning the 2022 election.
“There was global economic uncertainty, a global rise in inflation and energy prices, inflation when we came to power was a six ahead and rising,” he said.
‘So now, instead of a six ahead and rising, inflation is a two ahead and falling.
‘We now have a million jobs that have been created under our watch, the gender pay gap is now at an all-time low, we have consecutive budget surpluses for the first time in almost two decades.
“If this reckless and arrogant opposition had had its way, things would have been worse.”
Headline inflation in September fell to a three-year low of 2.8 percent, but this was due to one-off factors such as the government’s temporary $300 electricity rebates and cheaper gasoline prices.
While the consumer price index is now within the Reserve Bank’s 2 to 3 per cent target, headline inflation is expected to rise again to 3.7 per cent by the end of 2025, after they expire. those energy rebates.
This would cause price pressures to continue beyond 2026.
Services inflation over the past year was particularly high: 4.6 percent.
The futures market and two of Australia’s big four banks, Westpac and NAB, do not expect any relief from the Reserve Bank until at least May next year, possibly after the election.
Australian borrowers are missing out on relief even though central banks have cut rates in the United States, the United Kingdom, Canada, the European Union and New Zealand this year.