Economics References Committee

Wendy Askew

At the request of Senator Canavan, I move:

That the following matter be referred to the Economics References Committee for inquiry and report by 24 November 2026:

The reasons behind the latest unprecedented cost blowouts in the Government's budget and its impact on inflation and interest rates, with particular reference to:

(a) the impacts of government budget blowouts on increasing inflation rates;

(b) the influence of high government spending and elevated inflation rates on the standard of living of Australians, including on:

(i) the affordability of housing,

(ii) the effective delivery of government services, and

(iii) the quality of public infrastructure, including roads and public transport;

(c) the extent that high government spending is increasing government debt;

(d) the factors that led to the largest budget blowout on record;

(e) the pressure that increasing inflation rates is putting on state government budgets;

(f) the influence that deteriorating economic conditions is having on the wellbeing of Australians; and

(g) any other related matters.

Question agreed to.

David Pocock

I seek leave to move an amendment to the motion as circulated in the chamber.

Leave granted.

I move the amendment:

After paragraph (b), insert:

(ba) the urgent need for tax reform to contribute to budget repair, to encourage growth and investment and to distribute the burden of taxation more fairly across the population, including consideration of:

(i) how to better balance the burden of taxation between labour income and income from assets;

(ii) the appropriate level of the capital gains tax discount;

(iii) reforming negative gearing in housing including consideration of ring-fencing or only allowing losses to be applied at the time of sale of property;

(iv) reform of the Fuel Tax Credit scheme to ensure that miners and fossil fuel companies do not receive a fossil fuel subsidy;

(v) improved resource taxation to ensure that all Australians benefit from Australia's mineral and resource wealth;

(bb) the potential for investment in home electrification to reduce the cost of energy and put downward pressure on inflation.

Question negatived.

Sue Lines

The question is that business of the Senate notice of motion No. 2, standing in the name of Senator Canavan, be agreed to.