'I never took my time for granted': retiring Labor MP

Departing MP Michelle Ananda-Rajah described her time in parliament as "character building". (Lukas Coch/AAP PHOTOS)

Holding back tears after her seat was scrapped in a boundary distribution, first-term Labor MP Michelle Ananda-Rajah says she never took her shortlived time in Australia's parliament for granted. 

The medical doctor made her valedictory speech after her Melbourne seat of Higgins was scrapped in a redistribution by the Australian Electoral Commission. 

In a heartfelt farewell, Dr Ananda-Rajah described her time in federal parliament as a "character building chapter".

"I can confidently say that I never took my time here for granted," she told parliament on Monday.

"When elected in 2022, I knew that politics had a shelf life. But I didn't expect mine to be this short, well before my best by date."

She said it had been an "honour to serve this community and to serve in this Labor government".

Pointing to fraying social cohesion in Australia due to conflicts overseas, Dr Ananda-Rajah urged the community to remain united.

"Our allegiance is first to each other," she said.

"Sectarian grievances should not be imported nor amplified here. Leave them at the door.

"That stuff is combustible. We need to learn to disagree agreeably, not with 32 characters."

Other retiring MPs, including coalition backbenchers Nola Marino, Mark Coulton, and Rowan Ramsey, were also set to give farewell speeches to parliament on Monday.

As parliament sits for its final fortnight of the year, both parties already have one eye on a likely May election.

The Albanese government wants to secure support for housing, electoral donations and education reforms, while Opposition Leader Peter Dutton is focusing on voters "struggling in the suburbs".

An election earlier than May appears to be off the agenda after the prime minister and Treasurer Jim Chalmers indicated parliament would return in the new year.

A woman is seen shopping for meat at a Coles supermarket
The election is likely to be fought on cost-of-living issues.

Mr Albanese and Dr Chalmers have both reaffirmed the government's intention to deliver a budget in March.

The treasurer unveiled a plan to force businesses to accept cash for payment of groceries, fuels, medicines and other essentials. 

An exemption will apply to small businesses when the mandate is introduced in 2026.

Mr Dutton labelled the move a distraction, predicting the election would be fought on cost-of-living issues.

"The prime minister has made a deliberate decision to go with the elites, and he's left behind people who are struggling in the suburbs," he told Sky News.

"People are really shaking their heads realising that it's tough now after just two and a half years, and how much worse it would be if they had to suffer three more years of the Albanese government."

Federal Opposition Leader Peter Dutton
Peter Dutton says people struggling in the suburbs have been left behind.

Dr Chalmers insisted the government was working to alleviate cost-of-living pressures without increasing inflation.

"From budget to budget, we try and do the best we can for people, recognising the pretty substantial fiscal constraints that we have," he told reporters in Canberra.

Opposition finance spokeswoman Jane Hume urged the government to reduce public sector spending so that more cost-of-living relief could be delivered.

"We're calling for a national cabinet to come together and work out how public sector spending can be appropriately addressed at not just federal level, but state levels as well," she told AAP.

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