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Senate · Tuesday 3 February 2026

Official Hansard for this day (APH) · Read this debate on OpenAustralia

At a glance

Senators debated the Reserve Bank of Australia's decision to raise interest rates and the government's response to rising inflation. Liberal senators argued that excessive public spending and poor economic management were driving up costs and debt, while Labor senators defended their record on healthcare, tax cuts, and wage increases. The debate highlighted contrasting views on whether the government was effectively supporting households or exacerbating the cost of living crisis through fiscal policy.

Outcome

The motion was agreed to.

Summary in reported speech - not a transcript. AI-generated, so check the official record before quoting.

How the debate unfolded

Opened the debate

Hume argued that the interest rate increase would cost an average mortgage holder with a $600,000 loan an additional $100 per month, or $1,200 annually. Hume attributed the rise in inflation and subsequent rate hikes to excessive public spending by the Labor government, which she claimed was fuelling demand in the economy. Hume criticised the Treasurer for deflecting blame onto consumers for holiday spending rather than accepting responsibility for fiscal policy. Hume further asserted that the government was running persistent budget deficits, pushing national debt towards $1.2 trillion and burdening future generations.