Senator the Hon Michaelia Cash
Shadow Attorney-General
Leader of the Opposition in the Senate
Senator for Western Australia
4 March 2026
Channel 7 Sunrise
Topics: Petrol prices, inflation; War in Middle East
E&OE
Natalie Barr
Let’s bring in Housing Minister Clare O’Neil and Shadow Attorney-General Michaelia Cash. Morning to both of you. Clare, what is the government doing to protect Australians from this incoming crisis?
Clare O’Neil
Well, Nat, as you foreshadowed, a global conflict, or a conflict of this size is going to have an economic impact here in Australia. We’re four days on from the beginning of what’s occurred here, so there’s still a lot yet to be written about how this will affect Australia’s economy. What I do want Australians to know is that the first, second and third priority of our government is helping your family with the cost of living. We recognise that Australian families are under pressure, and that’s why we’ve consistently tried to do everything we can to help take some of that pressure off. Now that will continue as we see the effects of what’s happening in the Middle East wash through the Australian economy. One other thing I just mentioned that is, you know, global events occur. One of the things that we do see here in Australia is that we have a really resilient and robust economy. Yes, this will have impacts, but history shows that we are usually very resilient in the face of these pressures.
Natalie Barr
Yeah, well, history showed that Ukraine happened, and then we had what, I think I lost count, 12 or 13 interest rate rises. The cost of living went through the roof. It was really hard. Michaelia, how would you navigate this?
Senator Cash
Well, global events are real, but a competent Australian government ensures that at home, we’re able to absorb those shocks. That’s exactly what the Coalition did during its time in government, and why we navigated the COVID once-in-a-100-year pandemic, successfully. The issue we have here is Labor have destroyed the economy. They have kept inflation too high for too long. It’s now running January at 3.8%, they’re about to hit a trillion dollars in debt. So yes, global events are real. We can’t control what happens in the Middle East, but the government needs to take responsibility for the decisions that it has made that has resulted in an interest rate rise – that has resulted in inflation being too high now for too long, and sadly, as Michele Bullock has said, every meeting now of the Reserve Bank is a live meeting. But she says this every time she leaves a meeting that she tells the government, get your policies under control. Get your spending under control because it’s fuelling inflation. But sadly, this is a government, as we’ve just heard from Clare, very good with words, but fails to take responsibility for its own decisions that have kept inflation too high now for too long, while, Mum and Dad Australia pay a very sad price.
Natalie Barr
Clare, you’ve got a treasurer who said we need to cut, already foreshadowed that there will be cuts in this budget. Spending is high. History is showing that you’ve got Westpac economists that are saying petrol could go up $1 up to $3 a litre. The flow on effect of that could be hard. So how do you mitigate that for Australians already suffering?
Clare O’Neil
Well, Nat, I think you’ll remember that despite what Michaelia has said there, when we arrived in office, inflation was running at more than 6%, it’s now running at –
Senator Cash
Because of COVID, Clare, because of COVID.
Clare O’Neil
– incredibly, we’ve got incredibly low unemployment. If you don’t mind, Michaelia, I might be able to finish the sentence. We’ve got unemployment running very low across the country. And yes, of course, the economy faces economic pressures. That’s why our government has lowered taxes for every Australian, put in place additional supports for Medicare, cheaper medicines, cheaper child care, wage increases for people right around the economy. And I have to say these are things that Michaelia and her colleagues have opposed. Energy bill price relief, opposed. Tax cuts, opposed. And I just say respectfully to Michaelia, we’ve got a really significant global event that’s just happened here. Not everything has to be turned into a Labor versus Liberal competition.
Senator Cash
Your biggest problem Clare is you make excuses. All you’re doing Clare is making excuses.
Clare O’Neil
Hang on Michaelia. I do respect you. I do respect you, but I need to point out that not everything has to be a Labor versus Liberal contest. We have challenges – the Australian people
Senator Cash
No but it does have to be one where a competent opposition points out the failures of the government, and you have miserably when it comes to the economy.
Natalie Barr
Hang on, Michaelia, last, last –
Clare O’Neil
Michaelia, this works best when we’re able to both speak. So the point that I’m making is that there’s global challenges here. There’s obviously challenges facing our economy. The Australian people actually want us to work together to try to find solutions here. And I’d say to the Australian public, we’re doing everything we can to help your household budget while it’s under pressure, and we’ll continue to do that, whether Michaelia wants to come with us and put that, put that support in place or not.
Natalie Barr
Okay, let’s talk about the war. Clare, troops went into Iraq, they went into Afghanistan. In some cases, they lost their lives. If the White House picks up the phone and asks, Will we send our troops to fight this war?
Clare O’Neil
Well Nat, this is something that hasn’t been requested of the Australian Government. It’s not something that we are contemplating. That being said, what is going on in the Middle East is a very important incident. What was occurring in Iran was, you know, a regime that had been in place that was murdering and massacring tens of thousands of its own citizens. The extraordinary subjugation of women and girls in Iran was something that had been going on for far too long. And don’t forget that this was affecting us here in Australia, two incidents in 2024 where Iranian interests came onto our country here and tried to to hurt and harm Australians. So we do believe that this is an important thing that’s happening here with the US and Israel and what they’re doing in Iran, but it’s not something that Australia has direct involvement in nor do we intend to.
Natalie Barr
Michaelia, should Australia back our oldest ally no matter what? And what should that backing look like?
Senator Cash
Well, we very much support the decision and the actions of the United States and Israel, because they are ones that have obviously global effects. One of the most evil people in the world, a man who slaughtered his own people at home for years and years and years, but also exported global terror right here to Australian soil, is now dead, and that is a good thing. The time for talking was over. Talks have gone on for so long now, Nat, with this regime. What we need is behavioural change. There is no indication yet of a request for boots on the ground, and certainly President Trump has not indicated that that is what the US will be doing. But we certainly have a strategic role to play, Australia. First, in ensuring that our allies know we back them. Secondly, in ensuring that we can provide whatever intelligence that we can get for them over to them. But thirdly, at home here, strengthening the sanctions regime, if we need to, and perhaps most fundamentally, ensuring that Australians, but especially those who fled the regime to come here for a better life, know that they are protected here in Australia. So boots on the ground, not a question before the government. But certainly, do we have a role? Yes, and it is a strategic one.
Natalie Barr
Okay, thank you very much. We’ll see you next week.
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