Mr MARK HODGES (Castle Hill) (14:30): I move:

That this House:

(1)Calls on the Government to provide additional cost‑of‑living support to assist families who continue to suffer hardship due to increasing costs of living.

(2)Notes the failure of the Government to help families and businesses suffering from rising cost‑of‑living pressures.

(3)Condemns the Government for its lack of support to reduce the pressures on the household budget.

The failure of the Minns Government to reduce cost-of-living pressures impacting society has been addressed on many occasions in this House. The continual failure of Government to address the cost of living is the reason the Opposition has to move this motion. It is in the hope that Government members will finally understand that our communities are suffering. SEC Newgate's most recent Mood of the Nation report of September 2024 said that 41 per cent of Australians were experiencing financial difficulties in paying bills and covering basic expenses. By moving the motion, it is the hope of my community—and perhaps of all communities—that the Government will take some action because it understands that people are suffering.

Communities are suffering anxiety and depression as a result of the financial mismanagement of the Minns and Albanese governments. Throughout the term of the Minns Government, the media has commented on numerous occasions about the cost-of-living pressures facing our community. There is little doubt that the media hopes the Government will listen and take action. Sadly, the Government has not been listening. If the Government understood the issues, it would have taken action to reinstate some of the wonderful cost‑of‑living measures introduced by the former Government such as Active Kids, Creative Kids, First Lap and Back to School vouchers and others.

It has been 18 months since the Minns Government was elected. Over the past 18 months, the policies of the Minns and Albanese governments have resulted in price rises to basic cost of living items. Food and non‑alcoholic beverages are up 5.8 per cent; alcohol is up 9.81 per cent; housing is up 7.35 per cent; health costs are up 5.1 per cent; education costs are up 6.35 per cent; and financial insurance costs are up 9.93 per cent. That final figure is prior to the most recent Health Insurance Levies Amendment Bill 2024 being passed, which will no doubt greatly increase the cost of insurance.

On 5 March 2024 The Daily Telegraph reported on the cost of running school canteens. It reported that an analysis of 20 schools across Sydney and regional New South Wales shows that prices rose between 10 and 50 per cent for schoolchildren. This is caused by the Minns Government. The most expensive meat pies are found in North Kellyville. I understand the member for Kellyville will make a contribution, and he may talk about how the cost of pies have increased in his electorate. Interestingly, there is a record privatisation of school canteens. Over 500 public school canteens are now operated by independent private contractors. This Government says it does not like privatisation, yet it is allowing school canteens to be privatised at record levels, and communities are suffering a significant amount.

On 6 November The Daily Telegraph reported, "What planet are they on?" Presumably it was talking about the Minns Government because families are bearing the brunt of soaring bills in groceries. Fairfield single mum Norma Lopez‑Perez said she is under greater financial pressure than ever before. She said, "Every single item has been increasing in price." That obviously puts a lot of pressure on people like her. As I said, health insurance is also increasing. On 24 October 2024 Private Healthcare Australia released a media statement about the Government's Health Insurance Levies Amendment Bill. Its CEO said:

This policy is a kick in the teeth for the millions of people in NSW who are contributing to their own healthcare in a cost-of-living crisis …

The Government’s unwillingness to engage with the amendment—

which were opposed by the Opposition—

shows the tax is all about raising money from people with health insurance for general revenue to fix the government's budget black hole.

Small businesses are also hurting. There is a record number of small businesses who are in fact going bust. One of the problems for small businesses is red tape. This morning the Minister for Small Business made a comment during question time. Though most of his comments were indecipherable, one of the comments he made was, "What the business community wants is a cut through red tape." Of course that is right; red tape compliance costs money. The 2024 Small Business Conditions Survey reported:

82% of small businesses said that red tape is having either a major or moderate impact on their operations.

…

50% of small businesses said they were spending more time and money on red tape then they were 12 months ago.

So what is the Minister for Small Business doing? Obviously nothing. He knows businesses need to have red tape sorted out, but he is obviously doing nothing because businesses are telling him that they are doing more than they were 12 months ago. Prior to the last election one Coalition commitment was to appoint a Small Business Commissioner to slash red tape, and it would have done that. Perhaps the Minns Government might want to have a look at that policy and help small businesses rather than hinder them.

The bottom line is this Government is doing precious little to help our community. It is failing our community, which is experiencing rising costs of living and expenses. Members opposite are doing absolutely nothing to help them and they should be ashamed. They should introduce policies that will help our community. Perhaps they might want to have a look at some of the policies we had to help the community such as Active Kids, Creative Kids and First Lap vouchers. We are moving into the Christmas period and families are hurting. Many families will not be able to spend money on normal Christmas goods and dinners because of members opposite. They are not helping our communities, and I can assure them that at the next election the communities will punish them at the ballot box. I know that because my community is telling me that every single day of the week. I ask members to support the motion so we can send a message to this bad Minns Government to let it know that it cannot continue to behave in the way it has been behaving.

Mr DAVID MEHAN (The Entrance) (14:37): The Government acknowledges the genuine challenges people across this State are facing in trying to keep up with the cost of living. I thank the member for Castle Hill for moving the motion. He has eloquently articulated the challenges being faced by our community. It is a shame, though, that his colleagues on that side of the House did not turn their minds to cost-of-living pressures when they had a chance to. We heard a lot about what they were going do, but they did not do it. I will make a couple of points. First, inflation was not a problem when those opposite came to government in 2011, but it was certainly a big problem inherited by this Labor Party when it came to government in 2023. This Government is constrained by the largest debt ever passed from one government to another in the State's history. We are dealing with both the debt and the cost of living as we try to improve the circumstances of the people of this State.

The Minns Labor Government understands those struggles and has responded with carefully targeted policies to help households manage their costs, while being cautious with government spending to avoid adding fuel to the fire. That is what makes the motion so foolish. This Government has done far more to help the people of New South Wales with cost-of-living support than those opposite ever did. All they talk about is what they were going to do.

My second point is that the 2024-25 budget allocated $8.7 billion in targeted assistance, specifically aimed at helping families and individuals to handle the rising cost of living. It is not "what we were going to do"; it is what is actually being done on the ground. We have helped 40,000 people to buy their first home. We are helping families pay their energy bills, in concert with our Commonwealth colleagues, who have collectively enabled us to lower energy bill costs for every household across the State. We have capped tolls. That was a huge endeavour and commitment by this Government. Today the Premier spoke about how toll relief has eased cost-of-living pressures on families in Western Sydney. The Government has incentivised doctors to bulk-bill more. It has changed payroll tax arrangements in this State, again working in concert with the Commonwealth to improve bulk‑billing rates across the country—rates that collapsed under those opposite and their colleagues in the Commonwealth Parliament.

We are helping families with young children to get fee relief for the cost of pre-school. My friend mentioned back-to-school vouchers. Let us talk about vouchers, because that is interesting. On 22 June 2022 Damien Tudehope, the shadow Treasurer in the Opposition these days, made it clear that the back-to-school voucher was a one-off voucher. It was not a continuing voucher. It disappeared with the change of government. The Minns Labor Government is supporting families with permanent relief with the means-tested Creative Kids and Active Kids vouchers so that, each year, eligible families will be entitled to $50 twice a year for active and creative activities in their area.

The ASSISTANT SPEAKER (Mr Jason Li): Opposition members will come to order.

Mr DAVID MEHAN: I have heard members opposite say, "Bring it back." Are they going to bring it back? Ben Fordham spoke to the Leader of the Opposition about it on radio on 29 January 2024. Ben Fordham said:

So the vouchers are back if you're in power?

The Leader of the Opposition said:

Well, the vouchers will be back. At the moment, three years down the track, I don't know what the budget is going to look like.

Ben Fordham said:

So you're not even promising to return them?

The Leader of the Opposition said:

Well, I'm not going to promise three years out what the budget, what the labor budget will look like. But what I'm saying is, at the moment, we wouldn't have squandered money on a union wage deal that, again, Chris Minns breached his promise on. He promised at the election that all these wage deals would be funded by productivity offsets. It wouldn't cost the taxpayer 1cent. And instead, we're looking at a $9 billion blow out in the budget over the next four years.

Those opposite are not promising to bring back Active Kids vouchers—or any other vouchers, for that matter. I segue to wages. I want members to digest that this Government's wages policy is fully funded. Minister Houssos undertook a comprehensive expenditure review. There is $13 billion worth of savings reaped from the budget that we inherited from those opposite. The Government is investing in the cost-of-living measures that I have spoken about, but also in public services. A 10.5 per cent wage rise is baked into the budget over the next three years for our hardworking public servants across the State—more if bargaining savings can be found.

Finally, I turn to the budget itself and talk about the budget position. The budget puts it all together. When it comes to cost-of-living support and action on inflation, the answers are in the budget. The main answer to members opposite, when talking about inflation pressures and what the Government is doing, is expenses growth. The Government inherited an expenses growth of 9.7 per cent from those opposite. In the 2022-23 forward estimates, 9.7 per cent was the trend that the Government inherited. The Government has got it down to 1.7 per cent in the forward estimates for the next four years. Revenue is at 3 per cent or so. That is a sustainable budget position but, more importantly for today's debate, it is a position that takes pressure off inflation across the whole State. It means that there is a sustainable budget for the people of New South Wales that targets cost‑of‑living support for those who need it the most while investing in public services. The motion should be rejected.

Mr MATT CROSS (Davidson) (14:44): I am proud to contribute to debate on the motion moved by the member for Castle Hill. I bet there is a bit of debate in the Chamber about whether the member for Castle Hill is one of the best members for Castle Hill. I do not know what the member for Kellyville would think about that, but he is one of the best members for Castle Hill. The member moved an important motion about what many in our communities are talking about. They email me, they contact me, about the rise in the cost of living. The rising cost of living is highly concerning. It has impacted the entire economy. There are three paragraphs to the motion. The second paragraph particularly gets my interest. It says:

(2)Notes the failure of Government to help families and businesses suffering from the rising cost of living pressures.

The member for The Entrance gave me a wonderful segue into what I want to talk about, which is government expenditure, particularly government net debt. An interesting book was released by none other than Princeton University Press. I am sure we all know some alumni from Princeton University. The book is called The Fiscal Theory of the Price Level, written by John H. Cochrane. It is a comprehensive account of how government deficits drive inflation. It says:

Where do inflation and deflation ultimately come from? The fiscal theory of the price level offers a simple answer: Prices adjust so that the real value of government debt equals the present value of taxes less spending. Inflation breaks out when people don't expect government to fully repay its debts.

That is the theory from Princeton University Press, but what has been said in commentary in the media? Earlier this year, in February, Shane Wright wrote an interesting article inThe Sydney Morning Herald headlined "States' debt to hit $600 billion, putting pressure on inflation". He wrote:

The Victorian and NSW governments are driving a state borrowing binge, double the size of the federal government's borrowings, that one of the world's key ratings agencies warns is adding to inflationary pressures across the economy.

The article goes on to mention S&P Global. It says:

... the combined debt carried by the states and territories would this year reach $600 billion for the first time in Australian history.

That is driving inflation, which is driving higher cost-of-living pressures. I turn to the New South Wales budget—the Labor budget. It says that in 2023-24, in Labor's first budget, there was $96 billion of net debt, which is 11.9 per cent of the gross State product [GSP]. In 2024-25, there will be $110 billion of debt. It has increased. There is also an increase in the percentage of GSP, to 12.8 per cent. I could go on and on about that. By 2027-28, New South Wales will hit the highest level of debt recorded in the history of the State, at $139 billion, with an increase in the percentage of GSP of 14.2 per cent. The largest amount of net government debt ever recorded in New South Wales is happening under the Labor New South Wales Government. That debt is causing higher inflation. If the Minns Government wants to do something about cost of living, it needs to get in control of its budget—it has completely lost control of the budget—and reduce its net debt.

Mr GREG WARREN (Campbelltown) (14:48): Yet again, we see a motion from those self‑appointed "superior intellect" yet sanctimonious drones, otherwise known as the New South Wales Liberal Party. Ludwig van Beethoven had a better chance of hearing the message that the people of New South Wales sent to the Liberal Party at the last election. Those opposite ran the joint into the ground. They flogged everything off. They would sell their own mothers. It is an absolute, classic joke, yet again and again they stand up in the Chamber and provide us with the opportunity to tell the people of New South Wales about the dramatic failings of the Liberals and The Nationals. They accumulated record debt of over $182 billion. They privatised everything—$72 billion of public assets were sold off. Chris Minns was right on 7 May last year when he said:

We've seen what 12 years of privatisation of our electricity network, ports and toll roads has done – it's led to people having to pay higher prices to pay for services they used to own. This ends this week. Under Labor there will be no more privatisation of our essential assets.

Mr Ray Williams: Point of order: I am loath to take a point of order because this is such an important debate, but the member has strayed very far away from the motion, which is about the cost of living. Mr Assistant Speaker, you need to bring him back to the motion at hand.

The ASSISTANT SPEAKER (Mr Jason Li): There is no point of order.

Mr GREG WARREN: Privatisation has a direct economic impact on the cost of living.

Mr Ray Williams: There is a motion before the House—

The ASSISTANT SPEAKER (Mr Jason Li): There is no point of order.

Mr GREG WARREN: We have seen the privatisation agenda of members opposite. We cannot ignore the economic facts that have directly correlated to the cost-of-living crisis for the people of New South Wales. I do not know where members opposite have been for the past decade, because this has been bubbling away. I will talk about what this Government is doing. We have the Portable Rental Bonds Scheme and stamp duty concessions for first home buyers. We have increased rebates for energy, easing energy costs for families. We have introduced fee relief for young children in preschools. We have introduced a $60 weekly cap on tolls—toll roads that members opposite sold off for the private sector to profit from. Members opposite talk about us having union mates. Yes, we have union mates, but we are on the side of the worker. We do not care whether somebody is part of a union or not. If they get out and have a go, then NSW Labor and particularly the Minns Government has their back. We will always stand up for those who cannot stand up for themselves. Therefore, I move:

That the motion be amended by omitting all words after "House" and inserting instead:

(1)Notes that the Government is providing additional cost-of-living support to assist families who continue to suffer hardship due to increasing costs of living.

(2)Notes that recent rising cost-of-living pressures were made much worse by a wage cap that resulted in real wages going backwards in New South Wales between 2011 and 2023.

(3)Condemns the previous Liberal-Nationals Government for leaving the largest ever budget deficit handed over from one New South Wales Government to another.

They are the three key points about the economy in New South Wales. Members opposite are immune to it, and that is why they will stay in their rightful place on the Opposition benches for a long time to come.

Mr RAY WILLIAMS (Kellyville) (14:52): I delight in being able to contribute to debate on this very important motion. I assure the House that I will remain within the realms of the motion, which is about cost‑of‑living pressures. I will not stray into things that Labor members would prefer to talk about that have absolutely nothing to do with the motion. I imagine that the reason they do not want to talk about the cost‑of‑living pressures in New South Wales is because things are getting quite dire. We heard comments yesterday by the Minister for Housing that she believes a reasonable amount of rent for a two-bedroom unit in Sydney is about 200 bucks. I think that was her response. The Minister for Housing is out of touch with how hardworking families are doing at the moment because the cost of living is excessive.

I highlight a few facts and figures. New South Wales is behind every State in this country. I said a long time ago when we were on the front benches that Labor would do everything it could once it got back into government to make New South Wales number eight again. It only took 18 months. Under the previous Liberal‑Nationals Government, New South Wales led on every level. We had two successive triple-A credit ratings and our budget was in check. At the time of the 2018-19 budget, we had net negative debt of $11 billion. That means our budget was in surplus as far as the eye could see and we had $11 billion in the black to spend. Then COVID hit and we drifted into uncertain and unsure times, and we assisted many businesses and people to stay employed throughout those costly times.

We also put in place several measures—I sat around the Cabinet table, and I am happy to give up these confidences—like the Active Kids and Creative Kids rebates, First Lap vouchers, and Back to School vouchers. Those initiatives were put in place because families were doing it tough. Contracts for toll roads were originally introduced by the previous Labor Government, every one of them, apart from WestConnex and NorthConnex. Every one of those privatised roads was built by the private sector and contracted by the private sector under former Labor governments. We followed on and wrote additional contracts to those when we were in government. We knew we could not adjust those contracts and we had to abide by the terms of the contracts, but one thing we could do was provide cost-of-living measures to help families. Things are absolutely dire. Our housing Minister believes a two-bedroom apartment will cost "a couple hundred bucks" to rent. The Labor Government must be so embarrassed by the Minister's comments at a time when families cannot put food on the table, go to the doctor or rent a two-bedroom unit, which costs on average $750 a week in New South Wales.

Ms KAREN McKEOWN (Penrith) (14:57): I acknowledge that many families are doing it tough in my community. Inflation is making the already difficult task of managing a household budget even tougher. That is why this Government's efforts have focused on helping with the cost of living while avoiding putting pressure on inflation. My colleague from The Entrance talked about the programs in this Government's budget. It is important to list what we have done to help people with the cost of housing, the cost of energy, the cost of sending kids to preschool and the cost of road tolls.

Housing is one of the largest financial burdens families face, and this Government has introduced key initiatives to provide relief. For renters, a new Portable Rental Bonds Scheme is being developed, allowing renters to transfer their bond when they move instead of having to pay a new bond up-front. For aspiring home owners, there has been a substantial increase in support. The Government has made it possible for anyone purchasing a first home under $800,000 to pay no stamp duty at all, and homes up to $1 million qualify for a concession. Since July 2023 more than 40,000 first home buyers have benefited from significant stamp duty savings, averaging more than $20,000. That is in contrast with the former Government's requirement that first home buyers must choose between an up-front stamp duty or being shackled with a lifetime land tax.

Energy costs are also a major expense for households. This Government has responded by increasing energy rebates. The Family Energy Rebate and the Seniors Energy Rebate increased to $250, while the Low Income Household Rebate and the Medical Energy Rebate increased to $350. For those with life support needs, rebates can now be as high as $1,639 per equipment type. These measures are a direct response to rising energy prices, offering immediate financial relief to households and helping them afford essentials without the fear of falling behind. The Government is also supporting families with young children by continuing preschool fee relief. Parents and carers of children aged three to five in community preschools can receive up to $4,220 per year in fee relief, while those in eligible long day care centres can access up to $2,110 per year. Over 200,000 children across our State will benefit directly from that fee support this year alone. The investments aim to ease the pressures on family budgets while ensuring that our children have access to valuable early childhood education—something every parent wants.

For those commuting in Sydney, tolls are another significant expense. It is a fact that we are the most tolled city in the world. The Labor Government has capped tolls at $60 per week, a policy launched in January this year and funded by a $561 million investment over two years. The cap is benefiting over 720,000 motorists, putting real money back into the pockets of daily commuters, including residents in my electorate of Penrith. It is galling to come into this Chamber and see those opposite—who spent 12 long years in government continually undermining and suppressing the wages that people rely on to pay their bills—now crying crocodile tears and moving hypocritical motions such as this. How disingenuous. Shame on them.

Mr JORDAN LANE: I seek leave to make a contribution to the debate.

Leave not granted.

Mr MARK HODGES (Castle Hill) (15:01): In reply: I thank the members who contributed to debate: the member for The Entrance, the member for Davidson, the member for Campbelltown, the member for Kellyville and the member for Penrith. I also thank the member for Ryde for attempting to add to the debate. I am sure he would have made an excellent contribution and pointed out all the problems of this Government, which has continued to fail our community. The debate is really about the fact that the community continues to suffer. We are coming into the Christmas period and many members of my community are telling me—and no doubt many members of your community in Strathfield are telling you, Mr Assistant Speaker—that they are suffering from the rising cost of living. They are suffering because the cost of housing is going up.

Members opposite are not doing anywhere near enough. Community members are telling me that the Government is doing absolutely nothing at all to help them. The cost of schooling has gone up. The Government is doing precious little to help our community. It has lost control of the budget with its wages policy. As the member for Davidson correctly indicated, forward estimates show that under this Government in 2027-28 the State will have the highest net debt it has ever had. There will be $139.5 billion of net debt. Clearly, Government members do not know how to manage the budget. Historically, only Liberal-Nationals Coalition governments have been able to manage the budget—and they will continue to do so. The Government does not know how to solve the matter. When those opposite came to government, our communities were doing very well with all the vouchers that we made available to help them, particularly during COVID. There was First Lap, Active Kids, Creative Kids—to name a few. Those opposite stated that what the shadow Treasurer said in the upper House in June last year—

Mr David Mehan: He made it clear they were not funded.

Mr MARK HODGES: The reality is that those opposite are in government. The fact of the matter is they need to take a stand, protect communities and make the lives of our community members a lot better. But they are failing to do that. They have consistently failed to do that historically. Communities are suffering because of their behaviour. I ask them to reconsider their policies and to help the community.

Ms Charishma Kaliyanda: My community got nothing for 12 years, so do not come into the Chamber and tell us we are worse off now.

Mr MARK HODGES: It is not just me saying it. Members of the press and the community know that those opposite are letting everyone down.

The ASSISTANT SPEAKER (Mr Jason Li): Members will come to order. It is turning into a shouting match. The Clerk will stop the clock. I prefer to be relatively relaxed in these sorts of debates and allow a bit of banter. But if members behave in a disorderly manner, I will be more strict—which I think detracts from the fun of debate. I encourage members to relax so the debate does not get out of control.

Mr MARK HODGES: This is what happens whenever Government members know they are in the wrong. They speak up. They interject. The real problem is that the community is suffering. Everyone in this House wants community members to have better life. We on this side of the House have policies. Those opposite have none.

The ASSISTANT SPEAKER (Mr Jason Li): The member for Castle Hill has moved a motion, to which the member for Campbelltown has moved an amendment. The question is that the amendment be agreed to.

The House divided.

Ayes50

Noes35

Majority15

 

 

 

Amendment agreed to.

The ASSISTANT SPEAKER (Mr Jason Li): The question is that the motion as amended be agreed to.

The House divided.

Ayes50

Noes35

Majority15

 

 

 

Motion as amended agreed to.