Dr CHALMERS (Rankin—Treasurer) (14:49): What a great addition the member for Swan is to our team, from the great state of Western Australia. The member for Swan knows, and we know, that Australians are under pressure. But, more than acknowledging that fact, we are doing something about it, and three facts go to this. When we came to office, real wages were falling at almost 3½ per cent. Now they're growing again. Inflation in quarterly terms was 2.1 per cent when we came to office; it's now 0.6 per cent. When we came to office, monthly inflation had a six in front of it; now it has a three in front of it. We'll get another monthly figure tomorrow. The monthly figures, as we know, are a bit less predictable, a bit more volatile and a bit less reliable than the quarterly figures. Whether the number ticks up a little bit or ticks down a little bit tomorrow, the direction of travel is very clear. We know that inflation is down substantially since its peaks in 2022, but we know that people are still under pressure. We know that we're making welcome and encouraging progress in the fight against inflation, but inflation is still higher than we'd like. That's why our approach to inflation and to wages is so important. We don't have an inflation problem in our economy because the lowest paid Australians are earning too much. We see decent wages growth as part of the solution to cost-of-living pressures, not part of the inflation problem. That's why we think cost-of-living help and tax cuts should be in addition to, not instead of, a decent pay rise for minimum wage workers. Our cost-of-living policies are designed to put downward pressure on inflation. The ABS says we took about half a percentage point off inflation last year as a consequence of our cost-of-living policies that those opposite voted against. Mr Taylor: How much did prices go up, Jimmy? Dr CHALMERS: I am asked by the shadow Treasurer right on cue. I'm very fortunate. He asked me about prices. Since the middle of last year electricity prices have gone up about 3½ per cent. If they'd had their way when they voted against our plan, electricity prices would have gone up more than 18 per cent. When they voted against our cost-of-living help, they voted for higher inflation in our economy. Because of our efforts, inflation is coming down and wages are going up. This helps ensure that people earn more and keep more of what they earn. This is more important than ever in uncertain times, with our economy slowing, with consumption flat and with uncertainty in the world. That's why the focus on the next budget shifts a little bit, but not a lot. It doesn't shift away from what is responsible and what is affordable, but it recognises that we've got this inflation challenge but we've also got a growth challenge in our economy. Our fiscal strategy will shift a little bit as well, as we have a bigger emphasis on investment in the drivers of future growth in the economy. There will still be a primary focus on inflation, but not a sole focus on inflation. The reason why the first two budgets were successful is that they were aligned with the economic conditions, and the third one will be as well.