Angus Taylor (Hume, Liberal Party, Shadow Treasurer) Share this | Hansard source

I rise to speak against this motion moved by the member for Ryan to repeal the legislated stage 3 tax cuts. Make no mistake, any decision to reverse the stage 3 tax cuts would impact millions of Australians—in fact, it would impact more than 59,000 Australians in the member's own electorate of Ryan. I'm sure there are some very strong feelings about that there. The stage 3 tax cuts mean the vast majority of Australians will keep at least 70c of every dollar they earn. Upon full implementation of the plan we legislated in government, around 95 per cent of taxpayers are expected to face a marginal tax rate of no more than 30 per cent, so it's sending a really strong signal to Australians to get out there, build businesses, build careers, take risks and have a go. You couldn't send a clearer signal: 70c in the dollar. Of course, if they do, they can use that simple rule of thumb for those earning between $45,000 and $200,000, and they're going to keep that 70c in the dollar.

The stage 3 tax cuts deliver to all individuals earning more than $45,000. They weren't introduced in isolation—this is very important to understand—they're part of a broader legislated tax package that, when fully implemented, will deliver income tax relief for 12.5 million Australians. That in total would mean: a hairdresser earning $60,000 would pay $1,455 less in tax every year from 1 January 2024; a teacher earning $70,000 would pay $1,705 less; an executive assistant earning $80,000 would pay $1,955 less in tax every year from mid-2024; a research scientist on $90,000 would pay $2,340 less; and a qualified diesel mechanic earning $100,000 would pay $3,040 less in tax from the middle of 2024.

We know that the Australian Greens have never supported these tax cuts. To be fair to the Greens, at least they have been consistent, unlike the Labor Party. Labor went to the last election with an ironclad commitment. In their election platform they said, 'We will deliver the legislated stage 3 tax cuts.' It's on page 11, for those wanting to check. It is there in black and white. The Prime Minister and the Treasurer told Australians these tax cuts would be delivered. They said it in the lead-up to the last election—no asterisks, no footnotes, no fine print. It was an ironclad commitment. But we've seen over the recent weeks a lot of kite flying from those opposite on this issue, and it should concern all Australians that the Labor government has lost interest in this pledge.

It has lost interest in this pledge, and we know from interviews with the Treasurer before the budget that this discussion is being led with the Prime Minister's support. At this point, it seems like it's only a matter of time until the Treasurer starts unwinding the stage 3 tax cuts, finding a way to ditch the next election commitment on their long list of election commitments that they are trying to get rid of. But it's important to remember it is legislated. It's also important to remember that, over the coming years, as we battle inflation and high interest rates, we also need to set up the economy for longer-term growth. We need to make sure that the supply side of the economy is strong, and, of course, that will help to address inflation.

Sadly, what we saw in the budget was deficits getting wider and $115 billion in extra spending, the exact opposite of what we need in order to battle inflation and rising interest rates. In fact, we know that this has left the Reserve Bank carrying the can to reduce the impact of inflation through higher interest rates. Sadly, any move to walk away from these stage 3 tax cuts will be a broken promise of incredible magnitude. If they do, we will hold them to account. There is no greater marker of values in this term of parliament than what will happen to taxes.

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