Luke Howarth (Petrie, Liberal Party, Shadow Minister for Defence Industry) Share this | Hansard source

I rise to talk on this treasury laws amendment bill—cost-of-living tax cuts, as Labor call it. What a shame, how disappointing is it that I have to rise to speak on this, given that the Labor Party promised at the last election that they would keep stage 3 tax cuts. The previous speakers, all three of them over there, right in front of me, including the members for Robertson and Higgins, were elected based on a lie, an absolute lie. The Prime Minister stated clearly that stage 3 tax cuts would be there. They would be there—100 per cent.

Keep talking, member for Robertson. We will be in your electorate, champ, and yours, member for Higgins—I was down there the other week. The reality is that this Prime Minister can't lie straight in bed. He and the Treasurer, Jim Chalmers, said in a media release on 26 July 2021, 'An Albanese Labor government will deliver the same legislated tax relief to more than nine million Australians as the Morrison government.' That's what they said. The Treasurer, Mr Chalmers, put that out with the Prime Minister:

An Albanese Labor Government will deliver the same legislated tax relief to more than 9 million Australians as the Morrison Government.

The member for Robertson, the member for Higgins and others were elected based on that commitment on 26 July 2021. Then they come in here and try to justify this lie to their electorates. I mean, give me a break!

Seven News also reported on the election day, 21 May 2022, that 'Stage 3 tax cuts are legislated under the previous government and they're locked in, according to the Leader of the Opposition, Anthony Albanese.' That's what Seven News reported. Post-election, the Prime Minister, Anthony Albanese, in June 2022, said:

… they are legislated, and one of the things that people have a right to believe, is that when a politician makes a commitment before an election, they keep it, and I intend to do just that.

That's what the Prime Minister said. That's what the Australian people need to know. The people of Petrie, the people sitting up there in the gallery: this is your Prime Minister. This is what he said before the election. This is what he said plenty of times after the election. Now he comes in here and breaks that promise.

Mark my words, this bill is a seven per cent increase for some people on their tax—$70 on every thousand—and 15 per cent for some people, increases based on legislation, and they're giving a measly three per cent for people under 45 grand. Anyway, we'll come back to that.

Let's keep going. On 11 November 2022 on Seven News, the Prime Minister, Anthony Albanese, said, 'My word is my bond,' and, 'We said during the election campaign that we would maintain the position that had already been legislated. I've always been a man of my word, and I believe that, when you go to an election and you make commitments, you should stick to them.' That's what the people of Robertson and the people of Petrie heard from the Prime Minister—that he would stick to these election commitments.

Again, a journalist said to him, after he was elected—not that long ago—'Stage 3 is absolutely locked in.' Prime Minister Anthony Albanese: 'Yes.' Journalist: 'There are no circumstances under which you would seek to roll back stage 3?' Prime Minister Anthony Albanese: 'No, no circumstances.' He didn't say, 'Maybe some circumstances.'

The Prime Minister should not have to break an election commitment to deal with a cost-of-living crisis that he and his government have created. That fact is that what they're delivering here is diddly squat. That's what it is. It's $804, when most people in my electorate have seen their expenses go up by $8,000. We'll come back to that.

My speech today for the people of Petrie is a little bit about 1) integrity—I've outlined that the Prime Minister has none, which is very clear from his quotes and his commitment before the election; 2) Stage 3—the reality of who gets what; 3) Cost of living under this Labor government is woeful; and 4) what lies will this government tell next? What will they come after next, and what will that mean to you?

The reality is that in my electorate of Petrie 12,272 people will get nothing; they have no income. They might be retired; they might be students; if they're over 18—12,272 people will get nothing. There are 46,000 people that earn between $18,200 and $45,000. There are 55,000 people that earn between $45,000 and $135,000. They will get a further $804 tax cut from what the coalition had already legislated.

When I say 'legislated', right now, on this day, in Australia, the law of the land is that from 1 July, for those who earn between $45,000 and $200,000, the income tax rate will be 30 per cent. Most people think that's alright, because they think, 'If I'm earning a dollar, I'm happy to pay 30c and keep 70c.' That was the purpose of getting rid of the 37 per cent tax rate. But these people are bringing that back, another seven per cent for many people in my electorate—thousands of people. In fact, 2.1 million people in Australia will see tax hikes from the Albanese Labor government.

They're increasing their tax. If they earn $135,000 to $190,000, they're increasing their tax by seven per cent. The rate on income tax will go from 30 per cent, which is law today, to 37 per cent. Seven per cent is $70 on every thousand in the middle of a cost-of-living crisis, in the middle of a homelessness issue. Homelessness, since this government has been elected, has probably doubled—we won't find out until the 2026 census.

The 45 per cent rate will now increase to cover those on $190,000 to $200,000. They went to the election promising a 30 per cent rate. Instead, on that $10,000, they're going to take $1,500 back off them. That's the reality. When I talk to people in my electorate that earn under $45,000, I explain to them that their tax rate is 19 cents on the dollar. Their first $18,200 is tax free. Then it's 19 cents on the dollar from $18,200 to $45,000. Most people say: 'That's fair. I'm happy to pay my 19 cents and keep 81 cents.' But what this government is doing, to be tricky, to be smart, to try to give everyone a big $804 tax cut, is saying 'We're going to reduce your tax to 16 cents.' Alright, you're going to reduce it to 16 cents, but that wasn't the tax rate that was the big issue. Most people are happy to pay 19 cents. What the government won't tell those in Petrie and those in the gallery and others is that they'd already taken $1,500 off most people that earn under $120,000, after they came to government. In May 2022, when the election was on, the low-income and middle-income tax offset delivered $1,500 to most people earning under $120,000 in their tax return. So, you rock on up to your accountant and get $1,500 back. Guess what happened last year with this mob? That's gone now. That's all gone. So, people were having to pay, in some cases, additional dollars, having to pay the ATO more money, and in other cases they had a measly little tax return when they were expecting $1,500 more.

The Albanese Labor government want to tell you: 'We're reducing the 19 cents to 16 cents. You'll get $804, but we've already taken $1,500 off you. So you are $700 worse off there. Then the cost of living has gone through the roof, which everybody knows about. Groceries are up by nine per cent. Housing costs are up by 12 per cent and people are homeless under this mob. Electricity bills are up by 20 per cent, when another Albanese Labor government promise was that they would reduce your electricity bills by $275—instead they've gone up 20 per cent with all their renewable energy rollout. Those that own a home or have to insure a car know that insurance is up by 22 per cent. How much longer do you want to put up with this bloke? You need to toss out the Albanese Labor government come the next election. You want to cook a barbecue or heat your shower with gas? It's 27 per cent up. That's not a little bit—it's a lot more than $804, because that's all you're getting.

Every single person in Australia needs to know that any that tax cut they receive on 1 July this year is because of the former coalition government. Do you think this mob would give you any tax cuts if it wasn't for the coalition government and what we had legislated? All they're doing is using con, spin and trickery. You can't believe a word that the Treasurer says, what the Prime Minister says or what the Minister for Finance. I forgot about the Minister for Finance in the Senate, Senator Katy Gallagher. On 6 January—less than a month ago—the journalist says, 'Minister, can you guarantee that all workers, even those on the highest income will get their full stage 3 tax cut from 1 July?' Minister Gallagher, leader in the Senate along with Minister Wong, said, 'Well, our position on the tax cuts hasn't changed.' They were doing this work back in November. This woman is in cabinet. She's either lying or she doesn't know what is going on. 'They're legislated,' says Minister Gallagher. 'They're due to come into effect from 1 July this year. The parliament passed them in the last term.' Stephen Jones, the Assistant Treasurer opposite, on 29 November said, 'We are always looking at ways to find savings in the budget and we're looking at that, but there has been no consideration on stage 3 tax cuts.' You could go through every single one of them, and you can't believe a word they're saying. You cannot believe them.

To the backbenchers opposite, in their first term and all excited to be here: Guess what? You got elected on the back of a lie. Don't bother telling your electorates everyone's bet better off, because, if you were honest, you'd say: 'We're giving you 804 bucks. Your cost of living has gone up by $8,000. We've removed LMITO. And for any other tax cut you've got, you can thank Scott Morrison'—or the member for Cook, I should say—because that's the reality. These tax cuts were delivered by the coalition. They were meant to kill bracket creep.

All the public servants here that are on $200,000 a year—guess what? All their housing costs have gone up, too. We're not going to forget them. You were meant to get a tax cut, and this mob has taken it back off you. They're increasing your tax by seven per cent if you earn over $135,000 and by 15 per cent if you earn over $190,000. And you want this guy in! Get rid of him! Honestly, they're no good and they want to keep people down. That's the reality of this government. They want to keep people down. They do not want to have people aspire to do more with their lives. That is the absolute reality.

Bracket creep was very important to get rid of. The former coalition government was completely removing the 37 per cent rate. A member opposite—I think it was the member for Bennelong—got up yesterday and said: 'People earning $200,000 and people earning $45,000 are all paying the same rates of tax. That's not fair. We're bringing back the 37 per cent rate.' That guy got elected on a lie as well. What he didn't tell you is that someone earning $199,000 on the current law of the land that kicks in on 1 July pays $30,000 more tax than someone earning $99,000. He forgot that inconvenient point!

It is sad that we have to be here to debate this, because this is a blatant lie from the Albanese Labor government. In my 10 years in parliament, I've told the truth. I've been straight with people. When people look me in the eye when I'm out and about in the Petrie electorate, around Redcliffe or North Lakes or Griffin or Deception Bay or down in Brisbane City Council, I tell them the truth. They ask me; they get a straight answer. This mob looked down the barrel and just completely lied. To every single one of these backbenchers who gets up and does a speech: you can keep telling yourself that, but the reality is that you've been elected under a lie. We won't forget it. We will continue to make sure that we hold this mob to account.

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