Question Time AU

Matter of Public Importance

Cost of Living

Senate · Tuesday 3 February 2026

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

At a glance

The Senate debated a matter of public importance regarding the worsening cost of living, triggered by the Reserve Bank of Australia's decision to raise interest rates for the 13th time under the current government. Opposition members argued that persistent inflation and higher mortgage costs were direct results of the government's excessive spending and policy failures, particularly in housing. Government senators countered that their measures, including tax cuts and healthcare reforms, were alleviating pressure on households and that the budget position had significantly improved since they took office. Crossbench members highlighted specific housing supply issues and called for structural changes to tax incentives like negative gearing. The debate concluded with the motion being put to a vote.

Outcome

The motion was put to a division and passed with 37 votes in favour and 24 against.

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

How the debate unfolded

Opened the debate

Paterson moved the urgency motion, arguing that the government's reckless spending was driving inflation and forcing interest rate increases. Paterson cited economists who attributed rising prices to record-high public expenditure, noting that average households were paying significantly more on mortgages than when Labor took office. Paterson highlighted specific examples of wasteful spending, including renovations to a Greens party room and costs associated with the electric vehicle tax scheme. Paterson contended that the government was shifting blame to international factors while domestic fiscal policy remained loose.

Votes during this debate

Division 11: Cost of Living Passed 37–24