Matt Keogh (Burt, Australian Labor Party, Minister for Veterans’ Affairs) Share this | Hansard source

Labor is delivering a tax cut for every Australian taxpayer. Just think about that for a moment—every Australian taxpayer. That's some 13.6 million people. Every person who pays tax in Australia will get a tax cut this year when they lodge their tax return. This means 82,000 people in the electorate of Burt will receive on average a $1,489 tax cut. In practice, that will mean 87 per cent of the people in our community will be better off under Labor's tax cuts.

Labor's tax cuts build on our targeted cost-of-living relief, and importantly they don't add to inflation. We are taking real action to respond to the pressure Australians are under here and now. I know that rents are rising in our community. House prices have been going through the roof. Groceries at the checkout are costing more. A lot of people in our community are doing it tough. Thanks to this legislation, an average Australian taxpayer will now be getting a tax cut of $29 a week, which is more than double what they would have been getting under the former Liberal-National government's plan.

We've been listening. I've been listening. You've shared your concerns with me, and I get it. The economic reality we're facing is very, very different to how it looked five years ago. When the Liberal-National government legislated its stage 3 tax cuts five years ago, the world was a very different place. Since then we've had a once-in-a-century pandemic, persistent inflation, higher interest rates, two conflicts and global uncertainty. When circumstances change, changing policy is the right thing to do. That's why I'm proud to stand here today to speak on this legislation, lowering taxes for all taxpayers. Yes, the government's position has changed, but good government isn't about doing what's easy, it's about doing the right thing. We've found a better way. As I explained to somebody the other day, if I promised my son Nicholas that I would play Lego with him, but then my other son Benedict breaks his arm, should I make Benedict wait while I play Lego before I take him to the hospital, or should I make sure that I attend to that emergency?

Labor's tax cuts are all about doing the right thing for the right reasons. It's about putting people ahead of politics. We've changed our position and we've changed it for the better. Because it's not just our community who will be better off; it's everyone. Ninety-seven per cent of aged care workers in our community will be better off under Labor's tax cuts. Ninety-eight per cent of primary school teachers in our community will be better off. Chefs, nurses, truckies, mechanics, the list goes on—all will be better off.

Our community is excited about the action the Albanese Labor government has taken to ease the cost-of-living pressures. Under these changes taxpayers earning less than $45,000 will now receive a tax cut. They wouldn't have received anything under the previous government's plan. This will significantly boost the take-home pay of Australians on lower incomes and people working part time.

Graham got in touch with me saying we're on the right track. He told me he's been on the same $80,000 wage for a decade, and it's the only income he and his wife have been living on. He says that this tax cut will soften the grief. Margaret got in touch saying thank you, and made the point that Labor's plan is far more equitable than what the Liberals had proposed. Stephen says, 'Good luck with the tax cuts. They are popular with the workforce.' It would be unparliamentary for me to quote the rest of his message of support.

Every member of the Australian Defence Force and every public servant in the Department of Defence will receive a tax cut under Labor's tax plan. Those who have and who continue to serve our nation will this year take home more of what they earn through a tax cut. A soldier who is in the first few months of training at Kapooka earning just over $56,000 a year will receive a tax cut of $1,089. An army captain posted into infantry based up in Darwin will receive a tax cut of $2,880. A member of the Public Service working for Defence on a salary of $71,343 will receive a tax cut of $1,463. They will all keep more of what they earn, and so they should.

Labor's tax cuts are good for all Australians, and that includes older Australians. There are half a million taxpayers between the ages of 65 and 69. On average they will receive a tax cut of $1,731 a year. All 344,000 taxpayers over the age of 75 will receive a tax cut of about $1,726 a year. Labor's tax cuts will help all workers, whether they're in their first job or in the twilight years of their careers, with all 1.5 million taxpayers under the age of 42 to receive more than $1,000 in their tax return.

Labor's tax cuts build upon our earlier cost-of-living assistance initiatives. We've worked with the WA Labor government to bring down energy bills, making turning on the air con on those 40-plus degree days that we've had this summer more affordable. We've made child care cheaper, which is getting more families back to work. We've increased rent assistance to soften the blow of skyrocketing rents. We've expanded bulk billing, tripling the incentive payment to make accessing a bulk-billing GP easier. People in our community are gaining the skills they need for good jobs through our fee-free TAFE courses. We've got wages moving again, making sure people are better paid for the work that they do.

Our No. 1 priority is addressing cost-of-living pressures, and that's precisely what we are doing through our tax plan that sees all taxpayers paying less tax. I commend the bill to the House.

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