Michelle Ananda-Rajah (Higgins, Australian Labor Party) Share this | Hansard source

People are doing it tough. From renters, pensioners, working families and early to mid-career professionals to tradies, single parents and essential workers, all are facing persistent pressure on their household budgets. When young people are leaving Higgins because they can't make the rent, when families are moving for the same reason, when mortgage holders are near their limit, when people are sleeping in cars in Higgins, and when we are seeing an uptick in domestic violence amongst people being seen at our maternal and child health centres, you know we need to act. If this is happening in Higgins, just imagine how much worse it is right around Australia. There is not one reason to course correct but, in fact, 26 million reasons to do so.

Our decision to change the stage 3 tax cuts was not made lightly. It was done in response to persistent and sustained pressure on household budgets, despite us throwing a slew of medicines at the problem, like cheaper child care, cheaper medicines, energy relief, more bulk billing, urgent care clinics, increases to income support payments and fee-free TAFE.

Our $23 billion cost-of-living package across two budgets has helped, but it is clear that people need more relief. The original stage 3 tax cuts were legislated in 2018, when the world looked very different. Who could have anticipated an inflationary storm triggered by a global pandemic and linked to generous government support, disrupted supply chains and not one, but two, global conflicts.

This cost-of-living problem has proven to be more stubborn than we hoped for, demanding that we do more. Labor's tax cuts will deliver more bang for buck at a time when people are under sustained pressure. On 1 July, the Albanese government will be delivering a tax cut for every Australian taxpayer. A total of 13.6 million Australian taxpayers will be receiving a tax cut, and 85 per cent of taxpayers will be getting a bigger tax cut under our plan compared to Scott Morrison's plan.

Every taxpayer in Higgins—around 85,000 people—will receive a tax cut. Nearly three in four workers in Higgins will receive a bigger tax cut under our plan compared to the previous one. The average tax cut in Higgins will be $2,059. That is huge. The average Australian wage earner on $73,000 per year will receive a tax cut of $1,504, which is more than $800 extra in their pocket each year than they would have received under Scott Morrison's plan.

Among the biggest beneficiaries are women. That is music to my ears in a government that is 53 per cent women. We walk the talk. All women will receive a tax cut, but 90 per cent of working women will receive a bigger tax cut under Labor's plan compared to Scott Morrison's plan. You can't comment on or talk about gender equality without actually supporting women's economic development, and these tax cuts certainly do that. On average, all 6.5 million women taxpayers would receive an average tax cut of $1,649 compared to $1,278 under the previous stage 3 tax cuts.

Treasury estimates that Labor's tax cuts will boost workforce supply, particularly for women. I have walked around Higgins and I've seen women with extraordinary professional qualifications who are currently languishing at home. Why? Because they are basically working part-time. It's not worth their time to increase their hours due to the current tax regime. These changes will encourage more women to step up into the workforce at a time when businesses are desperate for skilled workers.

We have, as you know, had the worst productivity in the last six decades. It was absolutely moribund under the Liberals. Having more workers with appropriate skills that the economy needs will be a real shot in the arm for productivity. This just makes good economic sense.

Treasury expects an increase in workforce supply of around 930,000 hours per week, more than double the previous stage 3 cuts. There are many women in Higgins who are going to get— (Time expired)

Debate adjourned.

House adjourned at 22:00

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