ABS Data Confirms Labor’s Cost of Living Crisis is Worsening Putting Pressure on Interest Rates

The Consumer Price Index released by the Australian Bureau of Statistic today shows inflation surged over Christmas, confirming that under Labor the cost of living is getting worse, not better for Australian families.

The data shows inflation accelerated to 3.8 per cent in December, leaving Australian households paying more at exactly the wrong time of year.

After nearly four years of Labor, Australians are paying more for everything:

  • Insurance is up 39 per cent.
  • Energy up 38 per cent
  • Rents up 22 per cent
  • Health up 18 per cent
  • Education 17 per cent
  • Food is up 16 per cent

Housing and rents are now a key driver of inflation, and Labor’s housing and migration settings are worsening supply pressures and feeding the cost of living crisis.

For families facing back to school costs, this is a serious blow. 

Parents are paying more for uniforms, textbooks, lunches, transport, groceries and power, while mortgage repayments continue to bite.

Opposition Leader Sussan Ley said the figures confirmed what families are feeling every day.

“Families are doing everything they can, but under Labor the cost of living is getting worse, not better,” the Opposition Leader said.

“This is not abstract economics, it is the weekly shop, the power bill and the mortgage, and families are paying more because this government refuses to get its spending under control.

“Every extra dollar families are paying at the checkout or on their power bill is a reminder that Labor has lost control of the economy.

“Hardworking Australians expect their government to ease pressure, not add to it, but under Labor the cost of living crisis is deepening.”

Deputy Leader and Shadow Treasurer Ted O’Brien said the ABS data showed inflation was being driven by government policy.

“While the Treasurer is desperate to shift the blame, there is no doubt this Jimflation crisis is homegrown,  Mr O’Brien said.

“With inflation in services and non-tradables both accelerating, the blame lies squarely with the government.”

“Government spending is growing 13 times faster than the Coalition budgeted for and has reached its highest level outside recession in 40 years. 

“This government is competing with everyday Australians for goods and services, pushing up the price of everything.

“This renewed inflation will further erode real wages, increase income tax burdens and add pressure to interest rates.”

The December quarter trimmed mean inflation figure, the measure the Reserve Bank watches most closely, jumped to 3.4 per cent, well above the Reserve Bank’s most recent forecast.

The Reserve Bank has already made clear that rate cuts are off the table and today’s result raises the real risk of another interest rate increase when the Board meets on Tuesday.

The average mortgage holder is already paying around $21,000 a year more in interest than under the Coalition, and that burden could rise even further.

After nearly four years of Labor, Australians were promised relief but are being asked to brace for more pain.

When Labor spends, Australians pay.

MC-55A Peregrine: a first-of-type capability strengthening Australia’s Defence

The first of four MC-55A Peregrine – Australia’s inaugural airborne Intelligence, Surveillance, Reconnaissance and Electronic Warfare (ISREW) aircraft – has arrived, marking a major milestone in strengthening the nation’s sovereign defence capability.

The Albanese Government is pleased to announce the first MC-55A arrived at RAAF Base Edinburgh, South Australia, late last week. Modelled on the Gulfstream G550 airframe and extensively enhanced by L3Harris Technologies, the MC-55A is a long-range, surveillance and reconnaissance aircraft designed to deliver multiple sources of intelligence in support of Defence operations.

This advanced capability reinforces Australia’s national defence posture and contributes to deterrence. Integrated within a focused and agile force, the MC-55A ensures the Royal Australian Air Force (RAAF) is ready to detect, disrupt, deter, and if necessary defeat threats – underpinning the Australian Defence Force’s (ADF) commitment to readiness and resilience.

The MC-55A will be a key component of Australia’s broader ISR enterprise, complementing platforms such as the P-8A Poseidon and MQ-4C Triton, and forming a critical link in the nation’s sovereign network of surveillance and electronic warfare assets.

Operated by Number 10 Squadron, the MC-55A Peregrine will be based at RAAF Base Edinburgh, South Australia.

the Deputy Prime Minister and Minister for Defence, the Hon. Richard Marles MP:

“The introduction of the MC-55A Peregrine represents a significant step forward in strengthening Australia’s ability to monitor and protect its strategic interests, including key maritime approaches.

“This capability will integrate seamlessly with allied and partner systems, enabling the Air Force and ADF to share intelligence with security partners like the United Kingdom and United States – reinforcing our collective security and enhancing regional stability.”

Minister for Defence Industry, the Hon. Pat Conroy MP:

“This investment strengthens Australia’s sovereign intelligence, surveillance, and electronic warfare capability and ensures our Defence Force is prepared for the challenges of tomorrow.”

Chief of Air Force, Air Marshal Stephen Chappell DSC, CSC, OAM: 

“The introduction of the MC-55A to Air Force’s fleet will ensure we have a critical enabler for advanced ADF capabilities and, as identified in the 2024 Integrated Investment Program, provide important intelligence information to support ADF missions.  

“The MC-55A Peregrine is more than an aircraft—it is a strategic capability that reinforces our ability to protect national interests in an increasingly complex security environment.”

Strengthening partnerships with Pacific Island Leaders

Today, we welcome Solomon Islands Prime Minister Manele, Tongan Prime Minister Lord Fakafanua, Palaun President Whipps and the Secretary General of the Pacific Islands Forum (PIF) Baron Waqa to Australia for a meeting of the PIF Troika in Brisbane.

The Albanese Labor Government will strengthen our commitment to backing Pacific-led climate solutions by investing a further $550 million for the Australian Infrastructure Financing Facility for the Pacific (AIFFP).

At the invitation of the PIF Secretariat, Minister Bowen will join the PIF Troika, consisting of the current PIF Chair (Solomon Islands), incoming Chair (Palau) and outgoing Chair (Tonga), to discuss progress on arrangements for a special pre-COP hosted in the Pacific.

Minister Bowen will sign a Memorandum of Understanding on a Renewable Energy and Climate Partnership with Tonga, and meet with President Whipps to discuss climate solutions and progress of the Palau-Australia Renewable Energy Partnership.

Minister Wong will welcome Lord Prime Minister Fakafanua for his first visit to Australia since his election as Prime Minister in December 2025, and since Australia and Tonga committed to elevate our partnership through the Kaume’a Ofi agreement.

Minister Wong will also meet with Prime Minister Manele to discuss Australia’s commitment to our economic, development and security partnership with Solomon Islands.

In discussions with President Whipps, Minister Wong will confirm Australia’s support for Palau to deliver a successful and impactful PIF Leaders meeting later this year.

The AIFFP, Australia’s major critical infrastructure provider, is already delivering 58 projects across 11 countries, including ports, airports, renewable energy infrastructure and undersea cables. For more information visit: The Australian Infrastructure Financing Facility for the Pacific (AIFFP)

Foreign Minister Penny Wong:

“Australia is backing Pacific-led climate solutions – investing in the Pacific Resilience Facility and in new energy partnerships.

“At a time of major global uncertainty, Australia’s additional $550 million investment will deliver further critical infrastructure projects, with a particular focus on digital infrastructure development.

“As a founding member of the PIF, Australia is a reliable partner for the Pacific, working to shape a peaceful, stable and prosperous region.”

Climate Change and Energy Minister Chris Bowen

“We are bringing the world to the Pacific to see climate impacts and solutions through the COP process.

“Climate action remains the greatest lever to protect the livelihoods, security and wellbeing of the people of the Pacific.

“Today Australia and Tonga strengthened our collaboration on renewable energy and climate action, delivering on Pacific priorities to cut emissions while cutting the cost of energy.”

GREENS SAY THINGS WILL ONLY GET WORSE WITH NEW COAL AND GAS AS AUSTRALIA SET TO BE THE HOTTEST PLACE ON EARTH TODAY AND RECORD TEMPERATURES TO HIT VICTORIA

The Greens are calling for an end to new coal and gas projects as record temperatures are set to hit Victoria today and Australia is forecast to be the hottest place on earth.

The Victorian town of Ouyen is expected to hit 49 degrees, which would set a new record for Victoria while Melbourne is forecast for 45 degrees. 

With a total fire ban, regional communities are anxiously watching for new fires as an out of control fire burns in the Otways. 

Meanwhile over the last 9 months, Victorian Labor approved 5 new coal and gas projects. Labor cleared fossil fuel giant ConocoPhillips to start drilling the Otway Basin early last year, and hit gas in November.

Labor continues to fast-track new fossil fuel projects in Victoria. In December alone, the Allan Labor government opened parts of Gippsland and the Otways for gas drilling, a day before the Albanese government opened five new areas for offshore exploration.

The Greens say with Labor opening up new coal and gas projects, we should expect to see more extreme heat days and unpredictable weather. 

Acting Leader of the Victorian Greens, Sarah Mansfield. 

“Every week since the start of this year, Victorians have experienced a catastrophic climate event. In my electorate, along the Great Ocean Road the same communities have faced devastating fires, floods, and now fires again. Yet just offshore from them last month, Labor has approved multiple new gas projects in the Otway Basin. Labor’s disconnect is astounding.


“It’s unconscionable that Labor is continuing to approve new coal and gas. What we’re experiencing is what climate scientists have warned us about for decades – it’s terrifying that those warnings have become our reality, and with Labor’s new coal and gas projects in the pipeline, things will only get worse. 

“Meanwhile, the fossil fuel corporations who are causing this are being allowed to rake in billions while CFA volunteers risk their lives to protect communities and we’re left to clean up the mess. It’s completely unjust.

Ministers must answer why Social Services keep breaking the law

Today’s Commonwealth Ombudsman Report finding that Services Australia and the Department of Social Services has been non-compliant with social security law regarding child support for the past six years shows a Department which has learned nothing from Robodebt and is seemingly incapable of administering the law.

As the Ombudsman notes in their report today, “Knowingly and deliberately not complying with the law was at the heart of Robodebt.”, yet the Government has persistent issues with following social services law, often to the harm of welfare recipients.

Last year, two separate Commonwealth Ombudsman inquiries and an external review from Deloitte could not assure the lawfulness of the Targeted Compliance Framework, under which over a hundred thousand welfare payments are withheld from recipients every month under the system known as ‘mutual obligations’. 

Despite Labor Ministers being unable to assure the lawfulness of the mutual obligations system, the government continues to suspend vast numbers of payments each month (learn more).

The Government was also forced to introduce legislation last year to retrospectively legalise the collection of over $1 billion of welfare debts after it was found that the method used to calculate debts for years was unlawful.

Regarding the child support law issue raised in the Ombudsman’s report, the Greens have sought a briefing from the government on legislation planned to be introduced to the Parliament in February.

Senator Penny Allman-Payne, Greens spokesperson for Social Services:

“This will be the second time in just six months that the government has sought to rush through retrospective laws to cover the fact they can’t administer the welfare system legally.”

“Labor can’t even say if a core part of their welfare system is lawful, yet they continue to use that system of ‘mutual obligations’ to unlawfully suspend over a hundred thousand welfare payments from people who need them every month.”

“How can anyone trust that our welfare system is being administered correctly and fairly when the government keeps on breaking its own laws, and can hide it for six years?”

“When families on income support break the rules, they get the book thrown at them, but when the government does it it’s like it never happened.”

“Robodebt showed us what happens when the government breaks its own laws without consequence, and it’s clear the Department has not learned its lesson.”

“It’s time Labor took responsibility for their own Departments and brought them in line with the law, including abolishing the unlawful mutual obligations system now.”

International Holocaust Remembrance Day

On International Holocaust Remembrance Day, we pause to reflect on an act of inhumanity so vast and horrific, it is almost beyond reckoning. Yet reckon with it we must.

As we give thanks for all who survived, we hold on to the memory of the victims. We hold on to all those names, all those faces, all those stories. And, even with the passing of so much time, we are haunted by the terrible truth that they add up to six million.

That most infamous of numbers falls across the decades like a shadow. It holds within it the immense multitudes of Jewish lives and futures stolen with a pitiless cruelty that remains scarcely fathomable in its evil. 

Consider all that the Nazis and their allies and enablers robbed from the world. All the energy and inspiration. All the talent and potential. All the dreams and aspirations. All the love. Entire family lines ended, communities torn apart. Lives upended, uprooted and changed forever. 

In the coldness of its calculation and the vicious discipline of its execution, the Holocaust was a ruthless campaign of extermination targeting a people simply because of who they were.

Yet the Jewish people still stand, proud and resilient, bolstered by the great foundations of identity, tradition, community and faith. 

More than eight decades since the liberation of Auschwitz-Birkenau, we repeat the vow: Never again. 

We repeat it because Jewish people should never have had to know such pain again. Yet, as we have been so horrifically reminded by the 7th of October atrocity carried out by Hamas and last month’s terrorist attack at Bondi Beach, the darkness that underwrote the Holocaust is a darkness that still dwells in too many hearts.

The Australian Jewish community found hope and safety in our country after the Holocaust. The Jewish community is part of our Australian story, and to the even greater future that is within our reach.

Just as we embraced Jewish refugees fleeing the Holocaust, we wrap our arms around the Jewish community now.

The safety, freedom and hope that Australia represented to the Jewish community is something we must all commit to protect.

Australia stands against antisemitism because it stands in opposition to all we are as a country, the nation we have built together over generations with care and compassion.

On this most solemn day of remembrance, we join you in our shared humanity. And together we tend the flame of memory, ensuring its glow will live on in the hearts of future generations.

SINGLETON BYPASS on track TO OPEN IN 2026!

The Singleton Bypass is on track to open to traffic later this year, with construction teams back from the break and hard at work, delivering an extraordinary project for the Hunter.

The project is being delivered with a $560 million investment from the Albanese Labor Government and a $140 million investment from the Minns Labor Government.

This region-changing project will take 15,000 vehicles a day off Singleton’s main street, improving travel times, freight efficiency and safety for local and interstate motorists, allowing them to avoid five sets of traffic lights.

The eight kilometre bypass starts near Newington Lane in the south and rejoins the highway just past Magpie Street in the North. The project features a full interchange at Putty Road and connections to the New England Highway at the Southern and Northern ends and at Gowrie.

A host of major milestones were achieved in 2025, with crews opening two bridges which allowed trucks to shift material within the project corridor, without going through the CBD, helping to reduce the impact of construction traffic.

Construction of all six bridges is now nearing completion, including the largest on the Hunter Floodplain, which is 1.6km long.

The bridge construction has involved the installation of 435 girders and 207 bridge piles and pouring of 161 concrete columns and 78 concrete bridge decks. Only the finishing works remain, including the installation of safety rails, deck joints, placement of asphalt, noise walls and safety screens.

Road pavement construction has recently commenced across the corridor.

To date, a total of 500,000m³ of earthwork material has been placed across the project alignment, equivalent to 200 Olympic sized swimming pools of material.

Construction activities continuing in early 2026 include:
drainage and earth works
continued pavement construction including asphalting and line marking
the relocation and connection of water, electrical and sewer services
the construction of interchanges, and
the start of landscaping.

The bypass is expected to be open to traffic in late 2026, weather permitting.

Federal Minister for Infrastructure, Transport, Regional Development and Local Government Minister Catherine King:

The 1,300 workers on this project are making some incredible progress, and I know Hunter motorists, and anyone regularly passing through Singleton, can’t wait to enjoy smoother, safer and more reliable journeys when the bypass opens later this year.

It’s one of the many projects across NSW being delivered by the Albanese and Minns Labor Governments together that will be a real game-changer for the community.”

NSW Minister for Roads Jenny Aitchison:

I am delighted to be able to say for the first time that Singleton Bypass will be open to traffic this year!

The bypass is going to make a massive difference for road users across the Hunter.

We are ensuring mums and dads spend less time in traffic and more time with their family.

We are cutting five sets of traffic lights, and ensuring Singleton locals can reclaim their CBD – with 15,000 fewer vehicles passing through it each day.

This is a win-win outcome for Singleton residents, visitors and freight operators.”

Member for Hunter Dan Repacholi:

The bypass will ease congestion and improve safety for the more than 25,000 vehicles that use this section of the New England Highway every day.

The town is already enjoying a taste of the benefits the Singleton Bypass will bring, with project haulage trucks using two new bridges enabling them to avoid CBD streets.

The completion of this project will absolutely transform the town centre, improving amenity and safety for Singleton while delivering enhanced journey reliability and travel time for vehicles using the New England Highway.”

Appointment of Australia’s Ambassador to the United States of America

The Federal Opposition welcomes the appointment of Greg Moriarty AO to take on the role of Australia’s Ambassador to the United States. 

The Liberal Party has always stood for a strong alliance with the United States and Mr Moriarty has a proven track record of advancing Australia’s national interest under both Labor and Liberal governments. He has served Australia in a distinguished career spanning diplomatic appointments and key roles in Australia’s defence and intelligence communities.

In this period of global uncertainty a strong alliance with the United States of America is more important than ever. Mr Moriarty is a safe pair of hands to advance Australia’s interest, build this relationship and ensure AUKUS reaches its full potential.

Maitland to welcome 25 new citizens on Australia Day

Member for Maitland, Jenny Aitchison, will today welcome 25 new citizens to the local community as part of Maitland’s Australia Day commemorations. They join thousands of people across the country who will become Australian citizens today.

The ceremony, being held at Maitland’s iconic Town Hall, will mark an important milestone for new Australians who have chosen Maitland as their home, celebrating inclusion, respect and a shared responsibility for the future of the community.

Australia Day citizenship ceremonies bring together people from all over the world, alongside those fortunate enough to have been born in Australia, to reflect on the values that underpin the nation and the contribution each person makes to their local community.

Member for Maitland, Jenny Aitchison said:

One of the most enjoyable and humbling parts of my role as the local Member is being part of our citizenship ceremonies.”

Today we stand together with people from all corners of the world who have chosen to make Australia, and Maitland, their home.”

Australia has often been called the Lucky Country, but what truly makes us lucky is the people who live here and the way we look out for one another.”

Becoming an Australian citizen is a proud milestone for individuals and their families, and it strengthens our whole community.”

Our newest citizens bring with them skills, experiences and stories that enrich Maitland and help shape our shared future.”

Maitland is a community that shows up for each other in good times and challenging times.”

That spirit of care, resilience and contribution is what defines us, and it is what our newest citizens are now part of.”

Ambassador the the United States

The Albanese Government will recommend to the Governor-General that Mr Greg Moriarty AO be Australia’s next Ambassador to the United States of America.

Mr Moriarty is uniquely experienced to take forward the Australia-US alliance. He has unsurpassed credentials across Australia’s international policy from his senior roles in the Australian Public Service, including Secretary of the Department of Defence since 2017.

Mr Moriarty has served overseas in a number of posts, including in the Headquarters of the United States Central Command in the Persian Gulf during Operations Desert Shield and Desert Storm.

He was Ambassador to Indonesia from 2010-2014 and Ambassador to Iran from 2005-2008. Earlier he served in Papua New Guinea, and as Senior Negotiator of the Peace Monitoring Group on Bougainville.

In 2015, Mr Moriarty was appointed as Australia’s inaugural Counter Terrorism Coordinator in the Department of the Prime Minister and Cabinet.

Mr Moriarty has held senior positions in the Office of the Prime Minister, as International and National Security Adviser, and later as Chief of Staff, to then Prime Minister Malcolm Turnbull.

At the Department of Defence, Mr Moriarty has overseen an historic increase in the Defence budget under the Albanese Government, as well as the implementation of the National Defence Strategy in response to the Defence Strategic Review.

He has also led the Department working with counterparts in the United States and the United Kingdom in the development and implementation of AUKUS.

We again thank the Hon Dr Kevin Rudd AC for his service.