Here is Senator Paul Scarr, Senator for Queensland. Good morning, Sir. Good morning, Tim. How are you? And welcome back for the new year.
Tim Webster
Yeah, you too. Lovely to chat with you again. A busy week for you — all sorts of things happening at the party level — but more importantly for the country, the latest ABS figures confirm what we already knew: under the current government, the cost of living is going through the roof.
Senator Scarr
Exactly, Tim. I’m glad you led with that question, because these are the issues that really matter to Australians. Inflation has gone up, and that puts pressure on the Reserve Bank to lift interest rates tomorrow. That would be another body blow for families who are only just holding on as they service their mortgages.
Tim Webster
And just a reminder for listeners — these aren’t luxuries we’re talking about. Insurance, energy, rent, health, education, food — all up. These are essentials, not luxuries.
Senator Scarr
Absolutely, Tim. These are the basics of life. People are coming out of Christmas, many with credit‑card debt. Families with kids are buying uniforms, school shoes, everything needed to get ready for the school year. We’ve got a wonderful local community organisation helping families with donations so their kids can get back to school properly equipped. People are really struggling with those essentials — housing, food, clothes — the things you can’t cut back on.
Tim Webster
Everyone’s assuming the Reserve Bank might sit on its hands, but if we see a rate rise tomorrow, that’s more pain for mortgage holders. And while I’ve got you — immigration is still front of mind for our audience. Anyone who suggests immigration doesn’t add to the pressures we’re experiencing… well, Paul, that’s just nonsense.
Senator Scarr
Well, the latest figures we’ve received — for the year ending 30 June 2025 — show net overseas migration at 306,000. That’s still 90,000 a year above the rate before the COVID‑19 pandemic. Ninety thousand higher.
Tim Webster
Yes, and we’ve got to find homes for people, and the infrastructure needed to support them. I’ve had emails saying, “Immigration isn’t the problem.” It might not be the only problem, but it’s definitely part of it.
Senator Scarr
Absolutely. You’ve got the housing supply issue — and as we’ve discussed so many times, we’re building fewer homes today than we were five years ago. Tens of thousands fewer. So there’s that pressure on housing, plus the pressure on infrastructure. Many of your listeners will be feeling it on their morning commute. And then there’s government services — hospital beds, school classrooms. All of that comes under pressure. And the federal government has no plan whatsoever to deal with these pressures. None. The other point, Tim, is that the latest analysis shows there are more people on temporary visas than ever before, and they’re staying longer. People who should be leaving at the end of their visas are entering the appeals system and staying for years. It’s not sustainable.
Tim Webster
It’s got to be a risk. I have to ask: you’re back tomorrow — are you expecting any kind of leadership trouble within the Liberal Party this week?
Senator Scarr
Look, I’m not sure. To be frank, no one has declared anything. Parliament resumes tomorrow, and it’s a two‑week sitting period. But the most important meeting this week isn’t the Liberal Party room — it’s the Reserve Bank of Australia. That’s what Australians want us focused on.
Tim Webster
Indeed. Thank you, mate. Good to have you back for the new year. We’ll talk again next week.
