Josh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Hansard source

We don't agree with these amendments, because we on this side of the House believe in lower taxes. Labor is only putting forward this amendment because they believe in higher taxes. Let's understand exactly what Labor is saying. They are saying to the millions of Australians who earn between $45,000 and $280,000 that they don't want to give them a tax cut.

They have in the shadow Treasurer, the member for Rankin, somebody who has never seen a tax increase that he doesn't like. He was a big fan of the mining tax, he was a big fan of the carbon tax and he was the co-architect, with the member for McMahon, of $387 billion of higher taxes. Those were taxes that would hit retirees, taxes that would hit superannuants, taxes that would hit family businesses and taxes that would hit income earners like the blue collar workers who the then Leader of the Opposition met in North Queensland during the election campaign.

We, on this side of the House, are doing everything we can to lower the overall tax burden. That's why we, on this side of the House, have a tax-to-GDP cap of 23.9 per cent. Today, it's 23.3 per cent. If the Labor Party got to implement their tax increases in full, their tax to GDP would have been 25.9 per cent. Labor would have been the highest taxing government in Australia's history.

For many people who were voting in the election on May 18, they knew that they would get tax cuts with the coalition and tax increases with the Labor Party. That was what was behind their decision. The Labor Party, having lost the election, have not learned anything. The Labor Party, having had their new Leader of the Opposition and shadow Treasurer embark on a listening tour across the country, have not heard anything. They haven't learned anything, and they haven't heard anything. What we have seen from the Labor Party is a continuation of their previous position in favour of higher taxes.

We, on this side of the House, put to the Australian people very clearly, at the budget and at the election, a plan for short-term relief and long-term reform. That's short-term relief that will see Australians who earn up to $126,000 get up to $1,080 in their pockets. If you're a teacher or a tradie—each earning $60,000—you will get $2,160 in your pocket when you put in your next tax return, if this legislation gets through the parliament. Now, that is very significant tax relief. Overall it's equivalent to two 25-basis-point rate cuts, and the Reserve Bank governor has said that this will boost household incomes, will boost economic activity and will be good for the economy.

The Labor Party have been tearing themselves apart in public view over their position or non-position on these tax cuts. The member for Wills and the frontbencher the member for Hunter have told everyone who is prepared to listen that they are in favour of the government's tax package in full. Then we heard Senator Katy Gallagher, in a train wreck of an interview, saying that she couldn't even make a decision as to Labor's position on this until she saw what the crossbenchers did. That level of uncertainty and that level of disbelief in lower taxes is not something you get from those on this side of the House. We believe in lower taxes. We have a plan for lower taxes. It's before the parliament today and it should be passed in full. (Time expired)

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