Jerome Laxale (Bennelong, Australian Labor Party) Share this | Hansard source

I thank the member for Curtin for bringing this important matter of public importance to parliament today, providing us all with the opportunity to talk about the significant tax reform that our government has undertaken in our two short years in office.

Unlike the former government, we recognise the importance of reform—but also reform to make our tax system better. As members would be aware, we have clear, stated priorities on tax reform. We've said we want to make super concessions fairer and more accessible. We want to ensure that multinational corporations contribute their rightful share to our tax system. We have reformed the petroleum resource rent tax, projected to increase tax receipts by $2.4 billion. We have enhanced tax compliance measures, which Treasury estimates will bring $9.1 billion back into the tax system. We've also ensured that build-to-rent housing has become an infrastructure asset class, reducing the tax rate from 30 per cent to 15 per cent to encourage the construction of rental homes to help ease the housing crisis. We've also nearly doubled the capital works tax deduction depreciation rate for build-to-rent projects from 2.5 per cent to four per cent—again, to boost housing supply. And we've also used the tax system to incentivise small businesses to invest in renewable energy, with a 20 per cent bonus tax deduction for investments of up to $100,000 for investments on battery storage, solar power and energy-efficient appliances. As noted by members before me on the government side, we've introduced tax reform to reduce the cost of zero emissions vehicles.

To the member for Curtin and others who have spoken today on this matter, I'd say that, in less than two short years, that's pretty significant tax reform. Of course, there's one more, and it's a pretty big reform. Few people have been talking about it. Introduced in the parliament this week, we have legislation to reform the tax system to implement Labor's cost-of-living tax cuts from 1 July. These fairer, better cost-of-living tax cuts, aimed squarely at middle Australia, represent yet another piece of tax reform that this government has put before the parliament.

I take umbrage at those who say that these cost-of-living tax cuts are just tinkering around the edges, because they're not. The reality is that, if this legislation doesn't pass, from 1 July we are set to see the end of the progressive income tax system. From 1 July, if this legislation isn't passed, someone who earns $45,000 will pay tax at the same rate as someone on $200,000. That is the reality, unless this legislation goes through. To imply that Labor's tax changes aren't reform is an incorrect characterisation of what is currently law in this country. Our tax reforms will address bracket creep by adjusting income brackets up the scale—the first change to some brackets since the last time Labor was in power, in 2008. Importantly, they will deliver a tax cut to every single taxpayer in a fairer and more progressive way, and we're doing this because Australians have asked us for help. Australians have asked us to do better, and we are.

Since I came to this place, in May 2022, I've had countless conversations with constituents across my electorate of Bennelong about Scott Morrison's stage 3 tax cuts. Broadly, they have consistently wanted the government to re-examine the tax cuts to ensure they meet the needs of the Australian people. Roslyn from Macquarie Park told me that, even though she and her husband were set to benefit from Scott Morrison's tax cuts, she would rather see that money go towards people who need it more. Alan from—

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