Peter Khalil (Wills, Australian Labor Party) Share this | Hansard source

I am going to talk about tax—tax policy and tax cuts—because this is what this debate is all about. It's a very important debate, and I want to acknowledge the member for moving this motion because the cost of living remains the No. 1 concern of voters across the country. Many members of my community in Wills and of other electorates across the country have been struggling for the past few years with the cost of living. It's crunch living standards that have made ordinary working people worse off, and it's important to remember that this wasn't by accident. For 10 years we had a coalition government that squeezed ordinary Australians through raising taxes to their highest levels in over 30 years—that's a fact—and gouged hard-earned money from many in my hardworking community. This is coupled with, to quote former finance minister Mathias Cormann, a 'deliberate' policy to keep wages low, which has held our country back and left ordinary people behind.

Members will recall, I'm sure—the member for Kennedy will recall this—when former Treasurer Joe Hockey was dismissive and, in his entitled tone, talked about lifters and leaners, reflecting a sentiment synonymous with the coalition and their utter indifference to ensuring we look after working people and develop a tax system that is fair and also encourages aspiration. Given this frankly embarrassing record of supposedly being the party of low tax, which they are the opposite of—the highest taxes in 30 years—it is galling to hear the crowing from the coalition on tax and cost of living now that they're in opposition, when they did nothing about it for 10 years.

I'm pleased to say that this government, the Albanese government, has a very different approach. We have an ambitious tax reform agenda, and the cost-of-living tax cuts we delivered are a key part of that. These cost-of-living tax cuts were aimed at Middle Australia. They were aimed at building the foundations for a better future. Our tax changes mean that, in my electorate of Wills, 78,000 taxpayers received a tax cut on 1 July. An additional 2.9 million Australians who were excluded under Scott Morrison's plan now share in the tax cuts the Albanese Labor government has delivered, because we moved the bulk of those tax cuts to Middle Australia—to low- and middle-income earners, not the top five per cent or the top one per cent. Our changes to the coalition plan have also meant that 85 per cent more people in my electorate of Wills will be better off.

These tax cuts also have an eye to the future. Under the government's plan, the average taxpayer will pay approximately $22,000 less of their income in tax over the next decade. That's money back in their pocket that they can use for the cost of living. This will also increase the labour supply and add to the efforts of both the RBA and the government to ensure inflation returns to target. These ambitions, coupled with the government's policy to stimulate wages, are aimed at ensuring Australians are better off.

Beyond the cost-of-living tax cuts, the government's reform agenda is all about making the tax system fairer. This includes ensuring that multinational companies pay their fair share of tax. It's also about ensuring that superannuation concessions are fairer and more affordable. It's about ensuring that reforms of the petroleum resource rent tax ensure that offshore LNG companies deliver more of their profits to the Australian people rather than to offshore investors. And it's about improving tax compliance to ensure individuals and businesses who follow the rules are not disadvantaged by the unfair practices of those who do exploit the system.

Ultimately, the Albanese Labor government's cost-of-living tax cuts are good for Middle Australia. We know that. They're good for women, they're good for helping with cost-of-living pressures, and they're good for the economy. Treasury advice shows that these tax cuts will not add to the inflationary pressures and will contribute to ensuring that inflation returns to target. The Labor government introduced these tax cuts because it recognises the economic realities of 2024 and the world that we're living in today. Australians are under pressure right now and deserve a tax plan that responds to the challenges they are now facing. That's why the tax cuts are going into their pockets. Gone are the days when the coalition deliberately kept wages low. This government, the Albanese Labor government, is committed to ensuring Australians can earn more and keep more of what they earn.

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