Gordon Reid (Robertson, Australian Labor Party) Share this | Hansard source

From the outset, I want to thank the member for Fraser and the member for Curtin for the civilised debate that was conducted in the last half an hour. I think that that's the way this chamber should be conducted. But there was a member previous to that, raising their voice and using political posturing and rhetoric against our dynamic economic policy, and I was really saddened and disappointed by some of the statements made by the member for Petrie just earlier. The member was disappointed in Labor's dynamic economic policy in this Treasury Laws Amendment (Cost of Living Tax Cuts) Bill 2024. The member was disappointed that this legislation will give every Australian taxpayer a tax cut. This is alongside the major cost-of-living policies and initiatives that the Albanese Labor government has put in place since we were elected in 2022. I am talking about things like cheaper child care. The member for Dobell is here in this chamber at the moment. Across the Central Coast, we talking about nearly 14,000 families who are going to be benefiting from our cheaper childcare policy. We look at the tripling of the bulk-billing incentive. We have had major increases in our bulk-billing rates on the Central Coast, including an additional 10,000 visits to the GP. Bulk billing was in decline prior to that and now it is on the road to recovery. To the opening of the bulk-billed urgent care centres, they are completely bulk-billed for every human being who walks through the door and that is how it should be in Australia with our health care.

The member for Higgins also brought up something which I can definitely relate to—that is, when the circumstances of a patient who may present at a hospital change then you need to adopt your clinical priorities and also your clinical treatment plan, as I know other members in the chamber he would know. For example, if a patient comes into the emergency department hypotensive—low blood pressure—you don't stand there with your hands in your pocket; you give them IV fluid. Or take for example a patient with an infection. You have started some antibiotics, whether that be through a drip or in a tablet. If you get some testing back and find that that bug is resistant to that antibiotic, you change the antibiotic. Alternatively, if you have a patient with kidney failure, renal failure, stop or adjust the medications that are cleared by the kidneys. These are simple clinical examples. These are examples I use every day when I'm practising in the emergency department, and the same can be said here.

This is a dynamic policy that will help every single Australian, every single Australian. It gives every single Australian a tax cut, it helps with their cost of living and it also let's them have more of what they earn in their own pockets. The federal Labor government is laser focused on helping reduce the cost of living for all Australians, not just some. This week we have introduced Labor's tax cut legislation which will provide tax cuts and cost-of-living relief from 1 July. These tax cuts will deliver relief that is fiscally responsible and that does not add to inflationary pressures. Our tax cuts, as I have said multiple times now, in the tree minutes that I've spoken mean that every Australian taxpayer will receive a tax cut, especially helping low- and middle-income Australians the most. It is a plan for tax relief and it is a plan for tax reform.

These tax cuts are not just good for low- and middle-income Australians. They are good for women, they are good for helping with cost-of-living pressures, they are good for labour supply, they are good for the economy and, most importantly they are good for the people of Robertson on the Central Coast. That's right, all 66,000 taxpayers in my electorate of Robertson on the New South Wales Central Coast will receive a tax cut. Of these 66,000 hardworking taxpayers, 56,000 people will receive a greater tax cut with Labor's plan compared to what was originally legislated by the former Morrison government. On average, taxpayers in Robertson will receive a tax cut that is equal to approximately $1,580, and 85 per cent of taxpayers in Robertson will now be better off under Labor's plan. This is relief that will assist single parents, couples and families managing growing living pressures right across our beautiful region.

Around 83 per cent of taxpayers in New South Wales will receive a bigger tax cut thanks to our economic plan. When the former coalition government legislated its stage 3 tax cuts five years ago, the world was a very, very different place before a once in a 100-year pandemic, persistent inflation, higher interest rates, two conflicts and global uncertainty put Australians under more sustained cost-of-living pressures. When the circumstances change, changing policy is the responsible thing to do and that is exactly what this government, this side of the House, is doing. The change of policy may not have been the easiest decision but it is the right decision to make for the circumstances that we are in. Cost of living is a significant issue for our community on the Central Coast. A competent government listens and adapts to make things better when needed. Addressing cost-of-living pressures is my No. 1 priority, and, when economic circumstances change, the right thing to do is adapt your economic policy.

Labor's tax cuts will mean 13.6 million Australian taxpayers will receive a tax cut from 1 July, and 2.9 million Australian taxpayers will also now receive a tax cut thanks to Labor's plan, compared to what was legislated under the former Morrison government five years ago. If you look at how the Australian people are receiving our tax cuts plan in the media—and I've been out doorknocking and phone banking—you'll see that 62 per cent of Australians support our plan for bigger tax cuts for more Australians, not just some. The Liberals and the Nationals and those in the media will do everything they can to undermine our plan, but the reality is that this is good and responsible economic policy that will help all Australians with the cost of living.

The Australian people are not silly. They understand good economic policy when they see it, and they are supporting our plan. But don't just take it from me. Australian National University professor Ben Phillips said of Labor's tax cuts: 'Very much the support now is across the board rather than just at the very top. So that's good in terms of workforce participation, and it's also good in terms of cost-of-living relief. I think overall it's a fairer package.' Australia Institute Executive Director Richard Denniss said, 'Anthony Albanese's decision to recast Scott Morrison's 2018 tax cuts to suit the economy of 2024 is the biggest and most honest piece of tax reform in Australia for decades.'

Across Australia, the people who will benefit the most from our tax cuts are those in our communities such as nurses, teachers and truck drivers, where 95 per cent will now receive a bigger tax cut from 1 July. Essential workers, who we rely on every day to care, to teach and to supply our communities, were hit hard during the pandemic, and now they can expect a bigger tax cut under Labor's responsible economic policy. I am proud to say that there are many other Australian workers who will be better off under this legislation than they would have been under the legislation five years ago.

Ninety-seven per cent of Australia's 150,000 aged-care workers and disability carers will now receive a greater tax cut. Ninety-seven per cent of Australia's 310,000 registered nurses will now receive a greater tax cut. Ninety-six per cent of Australia's 100,000 commercial cleaners will now receive a greater tax cut. Ninety-seven per cent of Australia's 140,000 early childhood educators will now receive a greater tax cut. Our plan will also see those taxpayers earning $45,000 or less receiving a tax cut. This was not the case under those opposite.

This change will significantly boost the take-home pay of Australians on modest incomes and people working part time. These are Australians who might be studying at university, single parents and older Australians, who will all now be better off under the plan that is being implemented by the Albanese Labor government. For a family on an average household income of around $130,000, with one partner earning $80,000 and the other earning $50,000, their combined tax cut will be over $2,600, which is about $50 a week and $1,600 more than they would have got under the old plan.

Don't just take it from me. Last week I was doorknocking in my electorate right across the area but in particular in the areas of Avoca Beach and Umina Beach as well. The No. 1 issue that was being raised with me was the cost of living and the pressures being faced by families on the Central Coast. That is why the federal Labor government is giving all Australian taxpayers a tax cut and providing a bigger tax cut to low- and middle-income earners.

The opposition and those in the media will say that our plan to give all Australians a tax cut and bigger tax cuts does not address bracket creep. According to Treasury, this is not the case, and those opposite and in the media would benefit from reading the Treasury advice that has been made public. If they are unable to find that advice, please email my office and I will send you a copy. It says that our plan distributes the future impact of bracket creep more evenly. Our tax cuts deliver a better, more progressive tax system which addresses bracket creep. Further, Treasury estimates that our tax cuts will increase labour supply by around 930,000 hours per week, which is more than double the labour supply impact of the former coalition government's plan, and our tax cuts will boost productivity and strengthen the Australian economy. On Labor's tax cuts, Westpac's economic spokesperson, Luci Ellis, said:

While the changes this week alter the distribution of the benefits, the macroeconomic impact of this—relative to the package as originally announced—is marginal. We do not expect that this will affect the RBA's view of the inflation outlook or the future path of the cash rate.

In other words: Labor's tax cuts will not add to inflation, and the RBA expects the inflation rate to continue to fall and to return to the target band, which is in line with Treasury's forecasts.

The federal Labor government is building on the existing cost-of-living relief measures that we have implemented since we were elected in 2022. I touched on some of them earlier in my speech, but let's go through them again, because they are all relevant to this speech and to some previous. They include making it easier to see a doctor, through Labor's Medicare urgent care clinics. These are bulk-billed walk-in clinics with extended operating hours—if you're too sick for the GP and not sick enough for the emergency department—to take pressure off our hospitals. It's a signature policy and a signature initiative that would only have been possible under an Albanese Labor government. We delivered energy bill relief, assisting eligible Australians with their energy costs; cheaper child care, helping one million Australian families afford early childhood education and care; fee-free TAFE, ensuring hundreds of thousands of Australians can afford to upskill and get well-paid jobs; cheaper medicines, by reducing the price of PBS medications; an increase in rental assistance, increasing it to its highest level in 30 years; and an expansion and strengthening of paid parental leave.

The federal Labor government will continue to help reduce the cost of living for all Australians. I am pleased to be part of a mature, competent federal government that is governing for all Australians, not just some. We are making the necessary reforms to position Australia on strong foundations and we're not leaving any Australians behind. I want to thank the Prime Minister, Anthony Albanese, for his leadership and conviction, making the right decision in the challenging circumstances that are affecting our country, affecting my state and affecting our electorates. I also want to thank the Treasurer, Dr Jim Chalmers, for his work ensuring Labor's tax cuts are equitable and deliver the greatest cost-of-living relief for middle Australia.

See this speech in context