‘Smug’ Albanese celebrates Coalition chaos as the Reserve Bank prepares to hike interest rates

Anthony Albanese has repeatedly mocked the chaos inside the former Coalition as the Reserve Bank prepares to overshadow the formal return of Parliament with an expected Tuesday rate hike, putting further pressure on Labor’s economic agenda.

After a summer break which saw his government face sustained criticism for resisting a royal commission into the Bondi Beach terror attack, the Prime Minister returned to Canberra clearly revelling in the former coalition’s ongoing leadership turmoil.

Addressing Labor colleagues for the second time this year, he couldn’t resist multiple jabs at his opponents thanking his own team both on and off camera for their continued unity.

He contrasted Labor’s discipline with reality TV-style drama among the Liberals and Nationals with leadership tensions and confusion over the future status of the Coalition.

“I note that Married At First Sight begins tonight and it’s a bit like that with the relationships on the other side,” he said.

“You know they’re going to end badly. You know there’s going to be cheating involved and they’re going to be not truthful to each other and, you know, that’s what we’re seeing played out in real time.”

Labor and Liberal insiders acknowledge that the continuing leadership instability in the Opposition is allowing the government to escape scrutiny for rising inflation and revelations of a $57 billion hole opening up in the budget since last year’s election.

Liberal powerbroker and key Sussan Ley ally Alex Hawke thought Mr Albanese was being “very smug” to start the official parliamentary year.

“I would urge Mr Albanese to stop watching MAFS and to tune in the governor of the Reserve Bank, because that’s what Australians will be watching tomorrow,” he said, referring to the central bank’s imminent decision on interest rates.

“If we have a rates rise after his Treasurer Jim Chalmers has told Australians the worst of the inflation crisis is over, well, he’s kidding himself. He should stop watching reality TV and get back to his job.”

Markets and the major banks are overwhelmingly expecting an interest rate rise on Tuesday after inflation last week came in unexpectedly hot.

More than half of Australians surveyed by strategy firm Talbot Mills, which advised Labor during the election, think rates will be higher over the next year than they are now. Just 12 per cent thought they would go down.

“That expectation means any political fallout is largely baked in, rather than coming as a shock,” David Talbot told this masthead.

“People are smart enough to differentiate between what is and isn’t within Government control. What matters is that Government is listening to voters’ concerns about cost of living pressures and seen to be lending a hand.”

The RBA board’s decision will land in the middle of Question Time on Tuesday, posing a challenge to Mr Albanese and Dr Chalmers if it does push up costs for mortgage holders.

“We know that there are real cost-of-living pressures still there in our economy — that’s why we have plans to actually do something about it,” Mr Albanese said on Monday.

He also foreshadowed that the May budget will “look towards significant reform” to do even more.

Dr Chalmers told Nobel prize-winning economist Joseph Stiglitz in a new interview for The Monthly that the government was “impatient but not impetuous” to pursue reforms.

“We’ve got a lot to do, but change needs to be explained and bedded down and locked in over time,” the Treasurer said.

On the other side of the chamber, Ms Ley will be feeling the hard stares of her colleagues, nearly half of whom think Angus Taylor could do a better job.

Her response to the interest rate decisions is also under scrutiny as her allies argue for the party to concentrate on taking the fight to Labor and focusing on things that matter to Australians, not on themselves.

Frontbencher Julian Leeser said it would be “a tough day for many Australians” while Senator Maria Kovacic laid the blame squarely at the Government’s feet.

“Australians have been suffering under a cost-of-living crisis under this Government for the last four years,” she said.

“This has got nothing to do with a spike in Christmas expenditure. This has got to do with the fact that this Government does not know how to run the economy.

“When things go well, Treasurer Chalmers says it’s because of his good work. When things don’t go well, like this increase in inflation, Treasurer Chalmers says, oh no, it’s not our fault. Give me a break.”

Whether it’s Ms Ley or shadow treasurer Ted O’Brien leading the attack during Question Time, the Government will be sure to segue to the performance of Mr Taylor in the economic role during the previous term, as a taster of the flaming they’ll offer if he does become leader.

The resumption of Parliament also offers Labor further opportunities to needle the woebegone Liberals and Nationals.

Unless they can reform the Coalition before 2pm, the Liberals will lose questions to a crossbench that equals their size, and the seating arrangements become an awkward proposition for whips Aaron Violi and Michelle Landry.

Labor’s Leader of the House Tony Burke has decided to alternate questions between the Liberals and crossbench, giving them about five apiece.

“It had never occurred to me that when Barnaby Joyce went to the crossbench, that the entire National Party would move to the crossbench with him,” he said.

An imminent defection being hyped up by One Nation as a “significant announcement” will provide another sideshow outside the chamber since leader Pauline Hanson is still banned from the Senate.

Speculation ran wild on Monday about who the “star recruit” would be, ranging from former Liberal Cory Bernardi, past Nationals renegade Colin Boyce, and on to current United Australia Party Senator Ralph Babet.

“Why doesn’t he just tell us? Who cares? Let’s just stop this charade,” said Nationals Senator Matt Canavan who remains a close friend of One Nation defector Barnaby Joyce.

At least by the end of the week, the tax on tap beer should be frozen, providing small relief for those who want to rejoice or drown their sorrows.