Brian Mitchell (Lyons, Australian Labor Party) Share this | Hansard source

I rise today to speak on the Treasury Laws Amendment (Cost of Living Tax Cuts) Bill 2024 which implements the government's cost-of-living tax cuts for middle Australia. This legislation delivers a tax cut to every taxpayer in Lyons, to every taxpayer in Tasmania, to every taxpayer in Australia from 1 July. I'm proud to be a member of a government that recognises the economic realities of 2024, which are different to those that were around five years ago, and I'm proud to be part of a government that listens when people tell us family budgets are under pressure. The government understands cost-of-living pressures are in front of Australians right now, and it is determined to take action to relieve those pressures. Labor's fairer and better tax relief plan delivers for every single taxpayer. Every single one of Australia's 13.6 million taxpayers get a tax cut—11.5 million get a bigger tax cut, and 2.9 million low-income Australians, who wouldn't have received any tax cut at all under the Liberals, also get a tax cut under Labor. In his speech the shadow Treasurer mentioned how the government was apparently dividing Australians. Well, when the majority of Australians are getting a bigger tax cut, you're not dividing Australia; you're bringing it together, with bigger tax cuts for more Australians.

This legislation from 1 July 2024 will reduce the 19 per cent tax rate to 16 per cent for incomes between $18,200 to $45,000, reduce the 32.5 per cent tax rate to 30 per cent for incomes between $45,000 and the new threshold of $135,000, increase the threshold at which the 37 per cent tax rate applies from $120,000 to $135,000 and increase the threshold at which the 45 per cent tax rate applies from $180,000 to $190,000. This means Australians earning the average annual wage of $73,000 receive a tax cut of $1,504. That's $800 better off than under the Liberal plan. It's more than double!

In my electorate of Lyons, 46,000 taxpayers receive a tax cut averaging $1,279, and 40,000 get a bigger tax cut than under the Liberal plan. Overall, nine in 10 Tassie taxpayers get bigger tax cuts under Labor than under the Liberals. It's a no-brainer. The vast majority of Tasmanians are better off under Labor's tax cut plan than under the Liberals' stage 3.

This is so important, because I know many of my constituents have been doing it tough—like Josh from Bridgewater. He's a young man, married and raising a young family with his partner. Both Josh and his wife work full time and recently purchased a home. Josh contacted me to let me know that, as a mortgagee and a father, he's very aware of the pinch that is being felt across the country by many working families. Another of my constituents is Ruth, a grandmother from Cressy, who was concerned about how cost-of-living pressures might impact her grandchildren as they grow up and look to pursue educational and employment opportunities and save to buy a home. As their local member, I've shared these concerns with my Labor colleagues, and they've shared their concerns with me. It was clear action had to be taken, and I thank the Treasurer, the Minister for Finance and the Prime Minister for being so willing to listen and for acting so decisively. I know it was a difficult decision to change the government's position, but it was the right decision for the country, made for the right reasons. As a result of this decision, millions of Australians are going to be better off. I was thrilled to be able to head back to my electorate last week and tell Josh, Ruth and all my constituents that the Albanese Labor government had listened to them and was taking immediate action.

I also want to shout out to my friend Lyn, who's been talking to me about the need for reforming stage 3 for some time. I held the government line about the fact that we'd said what we said. But she's right. They needed to change. They have changed—we are changing them, and millions are going to benefit as a result. So well done, Lyn, for sticking by your principles there.

In the days after the government announced its tax cuts plan, I hosted the Treasurer at a steelworks in my electorate, and I thank Steve and the team at Haywards for their hospitality. It was great to talk to the guys in the workshop—and they were all guys—including a new batch of apprentices, and let them know how Labor's tax relief plan will benefit them. Nearly nine in 10 steelworkers get bigger tax cuts under Labor than under the Liberals.

If you think that's high, Deputy Speaker, listen to this. For nursing support and personal care workers—there are 80,000 of them—98 per cent are better off. For primary school teachers—170,000 of them—98 per cent are better off. Workers in aged care and disability care, 150,000 workers—97 per cent are better off. Child carers, are 97 per cent better off. Chefs—97 per cent are better off. Registered nurses, truck drivers, secondary school teachers, welfare support workers and receptionists—97 per cent are better off. Storepersons, accounting clerks, retail managers and commercial cleaners—96 per cent are better off. Sales assistants, call and contact centre customer service managers, general clerks, checkout operators and office cashiers—95 per cent are better off. Office managers—94 per cent are better off. Sales representatives, contract program and project administrators—93 per cent are better off. Miscellaneous labourers, waiters and motor mechanics—91 per cent are better off under Labor's tax cut plan than under the Liberal's stage 3. Yet the shadow Treasurer had the hide to stand in this place and say that the Labor government is dividing Australian workers. What an absolute joke!

On 24 January, just two weeks ago, the deputy opposition leader stated:

… when this legislation hits the parliament will fight it, we will fight it all the way …

She said:

I'm digging in along with my colleagues and our leader Peter Dutton to fight this fight really, really hard.

She went on to say later that day, weirdly:

We're not prepared to give up on this and we know that hardworking Australians who deserve to keep more of their money don't want us to give up on this.

That's even though every single hardworking Australian gets a tax cut under Labor and the vast majority of hardworking Australians get a bigger tax cut under Labor than under the Liberal plan, as I've just enunciated.

The deputy leader wasn't alone. The shadow Treasurer, the bloke who kept secret a wholesale power price rise until after the election, added his two cents too. He said: 'Of course we're going to try to stop it. The move away from the stage 3 tax cuts will not be something we can support.' But a move away from the stage 3 tax cuts is now absolutely something that the shadow Treasurer is going to support, because the Liberals have apparently decided to support the government's legislation—not that you'd know it from all the hot air they've been circulating.

The shadow Treasurer delivered an absolutely unhinged speech earlier, long on rhetoric and short on facts. If the Deputy Leader of the Opposition and the shadow Treasurer truly believe their stage 3 plan is superior to Labor's tax cut plan, they should do the honourable thing and not vote for our plan. They should stand up in this House and defend their stage 3 plan and tell nine in 10 Australian workers why they deserve less than half the tax cut Labor is delivering, just so one in 10 Australians—high-income earners, including politicians—can double their tax cut. Under the Liberals, politicians get a $9,000 tax cut; an average worker's is around $800. Under Labor, politician's tax cuts are halved, but average workers' tax cuts are more than doubled. I'm proud of that. If the member for Farrer and the member for Hume really believe politicians should double their tax cut but average workers should halve theirs, they should come into this place and explain why that is better for the country. They should come in here and vote against Labor's plan. But if they are not prepared to do that then clearly they agree with the government that our tax cut plan is superior to their stage 3 because it delivers bigger tax cuts for more Australians. And it doesn't add to inflationary pressure and it doesn't put any extra strain on the budget.

Speaking of the budget, in his speech the shadow Treasurer signalled that he would flatten the tax scales if he were ever given opportunity to be Treasurer. He didn't tell the House how much that would cost the budget, but I can say that it would be billions. He didn't say how he was going to pay for it; it's absolutely economically irresponsible. He was the worst energy minister the country's ever had. Certainly, if he were ever to get his hands on the Treasury he would be the worst Treasurer that the nation will be likely to see. If they're voting for Labor's tax cuts, we really have to ask what all the noise has been about over the past week or so from the opposition benches. It's just been the same old negative Liberal politics. Even when they're going to vote yes, they're saying no.

Of course, Labor's tax cuts are on top of the measured and targeted action already put in place by the Albanese Labor government when it comes to the cost of living.

We have delivered on cheaper child care, cheaper medicines, more bulk-billing, more paid parental leave, energy bill relief, the biggest rate boost to rent assistance in 30 years, fee-free TAFE and unashamed support for higher wages after a decade of the Liberals keeping wages deliberately low. These are all real, practical measures that are already easing cost-of-living pressures. Our tripling of the Medicare bulk-billing incentive has resulted in 360,000 additional bulk-bill visits to GPs in just two months. Tasmanians alone have saved about $1 million in GP gap fees over November and December. In my electorate, bulk-billing has gone up five per cent.

We have also commissioned an independent review of the food and grocery code to investigate allegations of price gouging. We want to make sure the code is working to give farmers and families a fair go on grocery prices. We have enhanced the work bonus for age pensioners and eligible veterans by providing new entrants with a starting income bank balance and retained the higher work bonus maximum cap to provide more choice and flexibility to participate in the workforce.

I mention this because I've had a lot of positive feedback on this specific change from working pensioners and Lyons, like Mick from Old Beach, who told me recently how helpful the increase to work bonus had been, enabling him to earn more before his pension was affected.

Today we have directed the Australian Communications and Media Authority to make it mandatory for telcos to provide financial hardship assistance to all customers experiencing difficulties paying their bills, including prioritising keeping customers connected. I mention all of these things because the tax cut bill before the House today is one of a suite of measures this government is taking to address the cost-of-living pressures Australians are facing.

The Albanese Labor government's cost-of-living tax cuts for middle Australia are all about putting more money back into household budgets. We want Australians to be able to earn more and to keep more of what they earn. We are getting on the job that we were elected to do—providing good stable decent government that always puts the national interest first and that is just what we are doing. I commend the bill to the House.

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