Bill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. New research by the ANU published in today's media reveals that, when the government's tax plan is compared to Labor's, the government's plan leaves twice as many households worse off compared to Labor's plan, and that those who are worse off are those who can least afford it. Why is the Prime Minister targeting ordinary Australians who can least afford the government's plan?

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

What the government is doing is fully funding the National Disability Insurance Scheme—something that the Labor Party used to believe in. The Labor Party used to be committed to it. The Labor Party used to argue that every Australian should pay a contribution towards the NDIS, and so they increased the Medicare levy by half a per cent. They used to support that measure; they called upon us to support it and we did.

Jim Chalmers (Rankin, Australian Labor Party, Shadow Parliamentary Secretary to the Leader of the Opposition) Share this | Link to this | Hansard source

Now you want to give a tax cut to the top end.

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Rankin.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

Now we have this hypocrisy, this inconsistency, this cheap politics. It is seen as such by three-quarters of the Leader of the Opposition's own shadow cabinet, and it exposes him for the political animal that he is—focused only on the tactics of the moment, regardless of the national interest.

Jim Chalmers (Rankin, Australian Labor Party, Shadow Parliamentary Secretary to the Leader of the Opposition) Share this | Link to this | Hansard source

Tell us about your tax cut for the top.

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Rankin is warned!

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

The Leader of the Opposition wants to talk about tax, so let us talk about tax. He is proposing that the half a per cent increase would come in at $87,000. That is what he said. He said that was very fair. Let us take an example. Let us consider Mary, an experienced midwife in New South Wales. She earns $87,000. Under Labor's policy, if Mary earned an additional dollar she would begin paying an additional half a per cent on her entire income. So, on the additional $1 that Mary earns, she would pay an additional $435.39 in tax. That is an effective marginal tax rate of 43,539 per cent.

Jim Chalmers (Rankin, Australian Labor Party, Shadow Parliamentary Secretary to the Leader of the Opposition) Share this | Link to this | Hansard source

She pays for your plan, you fool!

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Rankin will leave under 94(a).

The member for Rankin then left the chamber.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

Indeed, under Labor's policy Mary will suffer a $500 pay cut for a $1 pay rise. Under Labor's policy, a person with a taxable income of $86,500 would have a total tax liability of $21,390, leaving $65,110 after tax. But, with a taxable income of $87,001, they would have a total tax liability of $21,997, resulting in an after-tax amount of $65,004. This is the slipshod politics of envy—no economics, no equity, no judgement. No wonder Australians recognise this Leader of the Opposition is unfit to be Prime Minister of this nation.