Tanya Plibersek (Sydney, Australian Labor Party, Deputy Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. Treasury has confirmed that the entire $42 billion stage 3 of the government's Personal Income Tax Plan goes to the top 20 per cent of income earners. How is it fair that, under this government, a banker from Vaucluse earning a million dollars will get a tax cut over $7,000 a year while a hospitality worker from Caboolture will only get a tax cut of $10 a week and will have their penalty rates cut as well?

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

The government's comprehensive personal income tax reform plan will, in the first instance, see Australians on lower and middle incomes—over 10 million in fact—getting a tax refund and over four million will get the full $530. And then, when the reform is complete, the marginal tax rate will be 32½c, from $41,000 all the way up to $200,000. What does that say to aspiration? What does that say to people who want to get a better job, who want to get a promotion or who want to work some more hours? It means that they will not be paying more and more tax with every extra dollar they earn.

I would say to the honourable member who asked the question: the person on $41,000 has aspirations to earn more, to do better, to get ahead. They want to do better.

Opposition Members:

Opposition members interjecting—

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

Look at the dismissive gestures from the opposition! The hospitality worker in Caboolture—

Ms Plibersek interjecting—

Ms Chesters interjecting—

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

The members for Sydney and Bendigo are now warned.

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

I assume the Labor Party would like that worker to earn no more than they are today. I'll tell you what—we're on the side of enterprise and aspiration. We want Australians to have every incentive to get ahead—

Ms Butler interjecting—

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

The member for Griffith is warned.

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

to have a go, to do better. We know that by 2024-25—

Ms Plibersek interjecting—

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

The member for Sydney has been warned. That's her final warning.

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

there will be many, many occupations—school principals or police superintendents, which are not normally regarded as being part of the millionaire, banker class of Vaucluse—that will be earning an income that gets up towards that $200,000 mark. What we want to be able to ensure is that for that part of the tax system, the income system, there is every incentive and no disincentive for people to do more, to have a go, to invest, to be ambitious, to aspire and to get ahead. The Labor Party members may seek to dismiss that in the contemptuous way the honourable member opposite did a moment ago. I say: shame on the Labor Party. They used to believe in workers getting ahead. They used to believe in giving people a hand. Nowadays they sound very much like a privileged elite that wants to keep the workers in their place.