Shayne Neumann (Blair, Australian Labor Party) Share this | Hansard source

As I was saying before the adjournment debate, the Albanese Labor government has provided $23 billion in targeted relief, whether in child care, in housing, in TAFE, in medicine or in electricity bill relief. But those opposite opposed it in this chamber either in votes they cast or, indeed, in statements they made. Those opposite have no record in this term of actually supporting cost-of-living relief. In the member for Hume's contribution, almost no policy was announced in relation to the cost of living, whereas, in contrast, the bills before this chamber will address bracket creep, increase labour supply and increase the hours of work that Australians participate in, particularly women who are earning between $20,000 and $75,000 a year. I said before: look at how those opposite vote; look at what they say as well. If you listened to the contribution of the member for Hume, it was full of righteous unction, but, in reality, they're going to vote for this legislation. I noticed how few opposition members are on the speaking list for this debate. The Independents are plentiful on the speaking list, but there are hardly any members of the Liberal and National parties. You couldn't even get a soccer team. They can't even get that number to speak on this legislation. Maybe they're all rolling themselves back, as the Deputy Leader of the Liberal Party talked about rolling back this particular legislation and these changes. Maybe they're rolling themselves back into their offices. They can't bring themselves to be here to actually speak on this legislation.

The cost-of-living relief in this legislation is really important. It's about delivering a tax cut for every Australian taxpayer. It will provide more tax relief for more people to help with the cost of living and deliver a fairer go, particularly for people in my electorate, regional and rural Blair. The changes are about relief and reform. I've seen some media commentary from people, even those opposite, who seem to think that the only tax reform is giving those people who are wealthy a tax cut—that's the only tax reform, they seem to think. Every form of regressive taxation in this country is progressive in the minds of those opposite. Every single time, they'll want regressive taxation. If they can give those who are wealthy a tax cut, they're really happy. But, when it comes to people on middle and lower incomes, they baulk at tax relief. They want to roll it back—but reluctantly because they know that in their regional and rural Queensland seats, like Wide Bay, Dawson, Leichhardt, Capricornia, Maranoa and Wright, these measures are important. They know that 87 per cent of Queenslanders will do better under this legislation than the legislation that was passed five years ago during the Morrison regime.

We've found a better way to deliver tax cuts—a way that helps with cost-of-living relief, something that those opposite talk about but don't want to do anything about. We're addressing bracket creep. It's better for the economy and it's fairer. The legislation streamlines our income tax system. It cuts two rates and lifts two thresholds, which is the best way to provide tax relief for more Australians and return some of the bracket creep those opposite always like to talk about. They've spent the last couple of weeks talking about bracket creep, but this fiscal drag will be impacted by our legislation.

The reforms will ensure that from 1 July this year the 19 per cent marginal tax rate reduces to 16 per cent for incomes between $18,200 and $45,000. Those opposite were doing nothing on that—nothing to help those who needed it most. So don't cry your crocodile tears of concern about the cost of living for people who are battling, when you were going to do nothing for those on the lowest incomes. We're going to do something about it with this legislation. The 32.5 per cent tax rate reduces to 30 per cent for incomes between $45,000 and the new $135,000 threshold. The threshold above which the 37 per cent tax rate applies increases from $120,000 to $135,000, and the threshold above which the 45 per cent tax rate applies increases—for the first time in about a decade and a half, I might add—from $180,000 to $190,000. If those opposite were really fair dinkum about their stage 3 tax cuts, they would've brought them in during those wonderful Abbott-Turnbull-Morrison years that we see in Nemesis being played out so wonderfully, full of amity and love and respect for one another. I don't know how they have a caucus meeting, honestly, without having a fight. It's really quite astonishing, and we see it on full display on the ABC every Monday night. Their caucus meetings and shadow cabinet meetings must be fantastic, the way they fight amongst themselves. I would love to have been a fly on the wall when this particular thing was debated.

Our plan means that every taxpayer will get that tax cut this year. That's 13.6 million Australian taxpayers from 1 July, which is 2.9 million more that would've benefited under the coalition's stage 3 tax cuts from five years ago, and 11.5 million taxpayers, or 84 per cent of taxpayers, will receive a bigger tax cut. As I say, in my home state of Queensland it's 87 per cent—90 per cent in my electorate. Under our better plan, an average Australian worker on $73,000 a year gets a tax cut of more than $1,500, or $29 a week, which is more than $800 extra in their pocket every year than they would've received under those opposite.

A lot has changed since the stage 3 tax cuts were legislated five years ago, but not much in the mentality of those opposite, I can tell you. We've had a pandemic, wars, global conflicts, a global inflation spike and higher interest rates, and these events have put a lot of people under a lot of cost-of-living pressure. As the great economist John Maynard Keynes said—those opposite don't like him; they're more Milton Friedman people—when the facts change I change my mind; what do you do, sir? He was right. We've listened to our communities and responded to these changing economic circumstances, and we've found a fairer and more responsible way to ensure more people get a better tax cut to help ease the cost-of-living pressures they're under. This is the right thing for the right reasons.

These tax cuts will benefit more Australians. Our tax cuts are good for middle Australia and they're good for women, particularly with participation. They're good for people who are doing it tough—nurses, police officers, electricians, shop assistants, those who work in child care and aged care and those who work in logistics and transport. They're good for the economy generally. For example, 5.8 million women, or 90 per cent of all women taxpayers, will receive a bigger tax cut. A person earning $100,000 a year will get a tax cut of $2,179, which is $804 more than they would've received under the coalition's tax cuts. Someone earning $40,000 will get a tax cut of $654, compared to nothing under the Liberal and National parties. We're giving a tax cut to every taxpayer in 2024, but the hard-working nurses, disability workers, aged-care workers, truck drivers and teachers will be getting more. Ninety-five per cent of these taxpayers will get a bigger tax cut. On top of that, young people, older Australians and people living in the regions will get a bigger tax cut.

These tax cuts are designed to provide cost-of-living relief to middle Australia. I will just say that those opposite represent some of the poorest electorates, particularly those from the National Party in Queensland, yet they listened in silence as the Deputy Leader of the Liberal Party talked about opposing this absolutely, fighting them in the hills and the valleys and fighting as hard as they could against these changes. But you know what? I guarantee she'll be sitting on the same side as all of the Labor MPs when it comes to this particular vote.

We're going to make a difference for a lot of people. That includes every taxpayer in my electorate of Blair. That's 80,000 taxpayers who will get an average of $1,380 in terms of a tax cut. Ninety per cent will be better off under our plan. It's no wonder it's had a positive response. I can tell you that, in my electorate office and when I've been doing mobile offices, we've had a very positive response to these tax cuts and these changes we're making. It builds on our first budget which delivered the first surplus in 15 years. These tax cuts deliver more relief. They're fiscally responsible. They don't add inflationary pressure. This is a responsible thing to do, and I know it'll go down well in Ipswich, the Somerset region and the Karana Downs area. It will be very, very important.

One of the other things that we are doing is we are introducing the Treasury Laws Amendment (Cost of Living—Medicare Levy) Bill 2024 to increase the Medicare levy low-income thresholds for 2023-24, which will benefit more than a million low-income Australians as well. This will ensure that people on lower incomes continue to pay a reduced levy rate or be exempt from the Medicare levy. That's a good cost-of-living relief and a practical thing to do. We're implementing the government's cost-of-living tax cuts and changes to the Medicare levy to ensure more people get more help when they are under pressure. At the same time, we're seeing inflation come down. We're seeing that, and the most recent figures are very encouraging, but there's more work to be done.

The advice from Treasury is clear. Our tax cuts will not add to inflationary pressures. They won't put pressure up on interest rates because they're broadly revenue neutral. The Reserve Bank has also said they don't expect the changes will have any impact on the inflation forecast. Treasury advice makes it clear that these tax cuts will return bracket creep, increase rewards for all Australians who choose to work and earn more, boost workforce participation and deliver a fairer share of tax relief for women and people on low and middle incomes. That's what Treasury says. That's not the Labor Party's talking points; that's what Treasury has found. Those opposite should have a look at that Treasury analysis. They hit the so-called holy trinity of simplicity, efficiency and equity when it comes to new tax policies.

These are simpler, lower and fairer taxes for middle Australia. It's an essential part of our economic plan, along with getting wages moving. Those opposite were worried about a-dollar-an-hour increase. The Prime Minister held that dollar up in question time today and during the campaign. Those opposite thought he was engaging in some sort of socialist endeavour—that the whole world was going to collapse and Marxism was going to happen if Labor won. What nonsense! We hear that sort of rhetoric from those opposite every time we put pressure to get wages going in industrial relations. You'd think that, all of a sudden, some kind of Communist dystopia was coming in this country from those opposite. A number of them use that sort of rhetoric when they're talking about the IR changes. Getting wages moving, particularly for people in the aged care sector and the childcare sector and those who were the heroes of the pandemic, is really important, but those opposite can't bring themselves to support any increase in the minimum wage or any wage. You know, they'll give us this thing that they're supporting cost-of-living pressures, but the moment we do something about it they oppose it. They oppose it in legislation or make public utterances about it.

We're providing meaningful cost-of-living relief in a responsible way that doesn't add to inflationary pressures. It's laying the foundation for a stronger, more resilient and fairer economy and retaining the progressive nature of our tax system which has been there a long time. Those opposite will vote for it, notwithstanding their protestations.

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