Take Note Debate

Housing, Interest Rates, Economy

Senate · Wednesday 4 February 2026

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

At a glance

Senators debated the government's economic management following a Reserve Bank of Australia decision to increase the cash rate. Liberal senators argued that excessive government spending and low productivity were driving inflation and housing shortages, while Labor senators defended their fiscal record and cost-of-living measures. The debate highlighted contrasting views on whether the government was responsible for economic pressures or if structural reforms were needed. Labor senators cited budget savings and international endorsements of their fiscal strategy. The motion was agreed to without a recorded vote count.

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

Matt O'Sullivan (Western Australia) (Liberal Party) Liberal WA

O'Sullivan argued that the Reserve Bank of Australia's recent statement placed blame for rising interest rates on the Labor government's failure to implement economic reform. O'Sullivan claimed that low productivity and limited supply-side capacity were preventing the economy from expanding without causing inflation. O'Sullivan asserted that the government was addicted to spending and had failed to deliver meaningful outcomes from previous economic roundtables. O'Sullivan contended that the government's policies were directly impacting households' ability to manage rising mortgage costs and living expenses.

Ellie Whiteaker (Western Australia) (Australian Labor Party) ALP WA support

Whiteaker argued that the Liberal Party's proposed economic reforms would involve cutting cost-of-living relief and housing investment. Whiteaker stated that the government had inherited high inflation and larger deficits from the previous administration. Whiteaker highlighted that the Mid-Year Economic and Fiscal Outlook showed significant budget improvements and savings. Whiteaker noted that international bodies like the IMF and OECD had endorsed the government's fiscal strategy as effective and broadly neutral.
Leah Blyth (South Australia) (Liberal Party) Liberal SA oppose

Blyth argued that the government was causing economic problems through excessive spending and then using taxpayer money to address the resulting issues. Blyth claimed that families were paying an additional $23,000 annually in mortgage interest due to government policies. Blyth stated that the government was failing to meet its target of building 1.2 million homes by mid-2029. Blyth asserted that the government should take responsibility for rising inflation and declining living standards rather than blaming external factors.
Dorinda Cox (Western Australia) (Australian Labor Party) ALP WA support

Cox argued that the government was focused on addressing housing supply and cost-of-living pressures through responsible economic management. Cox claimed that the opposition had built only 373 homes during their decade in government. Cox highlighted specific measures such as the five per cent deposit scheme for first-home buyers and investments in Medicare. Cox stated that the government had found $114 billion in savings and was committed to continuing these efforts.
Dave Sharma (New South Wales) (Liberal Party) Liberal NSW oppose

Sharma argued that the government had failed to predict the return of inflation, which had risen from 3.4 per cent to 3.8 per cent annually. Sharma claimed that Australia was unique among developed economies in raising interest rates while others were cutting them. Sharma cited OECD and AMP economists who stated that government spending was too high and needed to be reduced to lower inflation. Sharma asserted that real wages were forecast to decline in the first half of the year due to persistent inflationary pressures.

Opened by

Matt O'Sullivan (Western Australia) (Liberal Party)

Liberal

Speeches

5 speeches, 4 other contributors

Topics

Budget & Economy Cost of Living Housing

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About Senate debates

The Senate debates bills, motions, matters of public importance and the answers given in Question Time. Senators from all parties and the crossbench take part, and a minister or the minister representing them usually replies for the government. Summaries are in reported speech, not transcripts; always check the official record before quoting.