Elizabeth Watson-Brown (Ryan, Australian Greens) Share this | Link to this | Hansard source

I move:

That this House:

(1) notes the Government's Budget gives billionaires and politicians a $9,000 a year tax cut but delays cost of living relief for everyday people; and

(2) calls on the Government to scrap the stage three tax cuts that cost the public over a quarter of a trillion dollars, and instead spend this money providing immediate cost of living relief, through measures such as getting dental and mental health into Medicare and making childcare free.

There are many words I could use to describe the recent budget, some of which would likely get me thrown out of this chamber. But one that keeps coming to mind is 'demoralising'. After this recent election, I, like a lot of people, felt something I hadn't felt for some time: hope—hope about the future. But with this budget the government seems to be actively trying to crush people's hope, to demoralise people.

It's clear to everyone that we're headed for tough times, with inflation on essentials like we haven't seen for decades, unprecedented spikes in rent, rapid mortgage rises not seen since the nineties, energy bills set to jump 50 per cent, fuel costs continuing go through the roof and wages continuing to stagnate. This budget, despite being accompanied by great rhetoric, offers nothing to meaningfully address any of these issues. People will be worse off with this budget.

Since the budget, my team and I have had the chance to chat to a lot of locals in Ryan. At a doorknock we held in Upper Kedron last weekend, the mood was palpable. People are all worried about the cost of living rising, but they're giving up on the government helping. They think the major parties are as bad as each other, and their family will just have to suffer through it. Is this the kind of society we actually want—one where people are just resigned to their fate? That's what the current budget achieves.

Part of what is so demoralising about this budget is that, while people are getting no relief on their energy bills, Labor is going ahead with handing out over $9,000 a year in tax cuts for politicians and billionaires. While the government are pursuing a housing policy that will see the need for public housing increase, they're spending over a quarter of a trillion—a quarter of a trillion—dollars in tax cuts, the bulk of which will go to the wealthy. So, while the government refuse to offer meaningful support for people struggling, they are going ahead with these stage 3 tax cuts that actually turbocharge inequality and destroy our progressive tax system.

I don't want to sound all doom and gloom. There are solutions, but they require a little courage, and they're far from radical or impossible. They're all policies that have been implemented overseas or even in Australia's not-too-distant past. Capping energy bills; bringing dental and mental health into Medicare, and guaranteeing people can see a bulk-billing GP; implementing free child care for everyone; making public transport cheap or even free; raising the pension and lowering the retirement age; building enough public homes so that no-one is without a stable place to live—they're all actually achievable right now, and, combined, they would transform the lives of just about every Australian for the better.

Labor talks about not wanting to break election promises as an excuse to continue with these absurd cuts. Well, you either break the promise to back the stage 3 tax cuts or you break the promise to look after all Australians—the promise of a better future. You just can't do both. You either scrap these tax cuts and spend that money on helping people, or you keep tax cuts for the megarich and leave everyday people to fall behind.

I want to conclude with a point that I think is often overlooked in this discussion. There are plenty of people in my electorate of Ryan who earn over $180,000 who also want the stage 3 tax cuts gone. They understand that plugging that quarter of a trillion dollars into reducing inequality is more valuable to them than receiving an extra $9,000 that they actually don't need. They understand that invested in public services and support is good for everybody. What good is an extra $9,000 to someone on $210,000, when kids end up trapped in poverty and our society loses the opportunity to develop our amazing talents to the fullest? What good is that extra money when the government doesn't invest in reducing emissions and in building infrastructure to prepare us for climate change? Australians understand that a more equal society benefits everyone. The Labor government would do well to remember that too.

Mike Freelander (Macarthur, Australian Labor Party) Share this | Link to this | Hansard source

Is the motion seconded?

Stephen Bates (Brisbane, Australian Greens) Share this | Link to this | Hansard source

I second the motion and reserve my right to speak.

Daniel Mulino (Fraser, Australian Labor Party) Share this | Link to this | Hansard source

This motion offers the wrong prescription for immediate cost-of-living relief. First, this motion inaccurately makes the assertion that adjusting the stage 3 tax cuts would provide immediate cost-of-living relief. These tax cuts are not due to come in until 1 July 2024. They're already legislated and are incorporated into the budget. This motion, in suggesting that a tweak to those tax cuts would provide people with benefits in the intervening period, is making assertions about the way budgets work that are not correct. So the core element of this motion is an inaccurate reflection and should've been rephrased if this motion was going to be focused on cost of living.

Second, this motion suggests the wrong overarching approach given where we find the current economy. In its last budget the government suggests a three-pronged approach. First, it is to provide targeted and meaningful cost-of-living relief. We're responsible but not reckless, because we want to provide cost-of-living relief in a way that doesn't make battling inflation harder. Second, it targets investments in a stronger, more resilient, more modern economy. And, third, it begins the hard yards of budget repair.

Let's focus on the first of those prongs: providing targeted and immediate cost-of-living relief. As the Treasurer has said, reducing inflation is the No. 1 macroeconomic priority at this point. That is the dragon that we need to slay. Inflation is insidious. It harms people on low and fixed incomes the most. As Keynes said, 'There is no subtler, no surer means of overturning the existing basis of society and the economy. If not dealt with, it can become entrenched.' The way to deal with inflation is not to spray cash around in a way that would make the RBA's job of bringing down inflation harder. That would actually hurt the very people that we are trying to help. What the government has done, when it comes to this first prong of our strategy, providing meaningful cost-of-living relief, is firstly to make fair and responsible structural improvements to the tax base, and, secondly, a five-point cost-of-living relief plan.

The government's structural improvements to the tax base include implementing our election commitments to ensure that multinationals pay their fair share of tax by limiting tax deductions. We are holding large companies to account through transparency. The multinational tax integrity tax package will produce around $1 billion over the forward estimates. In addition, we are extending a number of existing ATO compliance programs. By taking stronger action on tax compliance through this package the government will improve its tax position by $3.7 billion over the forward estimates. Together, the tax measures introduced in this budget are estimated to improve the budget bottom line by $6.5 billion over the four years from 2022 to 2023.

Of course, over the longer term there is more work to be done. As the Treasurer and the Prime Minister have indicated, there is a conversation to be had. But this is a material and meaningful step and one that is appropriate given the scale of the challenge that we face. In conjunction with that, in conjunction with a measured and meaningful improvement in the tax base, this government has put in place a number of cost-of-living measures that are targeted, that are affordable, that have a meaningful impact on those most affected and that will not put extra pressure on inflation.

They include making child care more affordable for more than 1.2 million families. They include cutting the cost of medicines for around 3.6 million Australians—the largest reduction in costs for the PBS in decades. They include expanding the Paid Parental Leave scheme to reach 26 weeks in July 2026. They include a housing accord that will be a long-term strategy for massively boosting social and affordable housing. And they include getting wages moving again. Getting wages moving has been the first and, I would argue, the most significant short-term and immediate means by which we have provided cost-of-living relief to the most vulnerable—a 5.2 per cent increase in the minimum wage, a significant increase in pay for aged-care workers which is long, long overdue.

This government is putting in place measures that are targeted, that will not add to inflationary pressure and that are the right measures for the economy.

Stephen Bates (Brisbane, Australian Greens) Share this | Link to this | Hansard source

Poverty charges interest. There is perhaps no greater example of this in our healthcare system than a visit to the dentist. If you can't afford a filling today you will need to pay thousands of dollars more for a root canal in six months time—and I know this because of very recent lived experience. Earlier this year I noticed a toothache. I got an appointment at the local dentist and was told I needed a root canal on the problem tooth and a filling on another one. I knew this was going to be very expensive, even with private healthcare cover, which itself is a substantial expense on a former retail worker's wage. And expensive it was: around $3,000. My other option: have the tooth pulled out at a fraction of the cost. I sat in the dentist's chair thinking that my income and savings were about to decide whether or not I was able to keep my teeth in my head.

I'm not alone in this experience. Stories like this are true for countless Australians. People are forced to choose between raiding their savings and keeping their teeth. The problem tooth was so painful that I decided I had to address it first and leave the filling until I could save up enough money again. Flash forward to July and I go back to the dentist. I now have the funds to get the filling done, but I am told it's too late. In the absence of proper treatment, what was originally just a filling had now turned into another root canal. If I had the funds to have paid for both procedures up-front I would have saved myself money but, as a result of the barriers on my income, what should have been a cheaper procedure turned into another $3,000 one, all because I did not have the funds at the time that I needed them. The only reason I was able to afford a second root canal was being elected to this place. If I had not seen an increase in my income I would now be missing this tooth. This is a reality that Australians face every single day.

Medicare should not stop at your teeth, and economic class should not be a barrier to essential dental health care. It should not take getting elected to parliament for Australians to be able to afford the most basic healthcare services. Everyone in this country should be entitled to health care, including dental care, as a fundamental right.

The Greens were able to secure free dental care for kids under Medicare back in 2012, and it's time for a Labor government to work with us again to provide this vital healthcare service to all Australians regardless of their age. It is estimated that each year roughly 40 per cent of Australians skip going to the dentist because of the cost. Poor oral health doesn't just lead to tooth decay; it also leads to serious or even life-threatening infections, an increased risk of heart disease and complications with pregnancy. These consequences mean more trips to hospitals, putting even further pressure on our already overburdened and underfunded hospital system.

In fact, the Australian Dental Association has estimated that the avoidable costs to our country of poor oral health exceed $800 million each year. With pressure on our hospital system, costs of living spiralling out of control and many Australians in regional and rural areas not even being able to access public dental care, bringing dental care into Medicare is the path forward.

The independent Parliamentary Budget Office costed the Greens policy of bringing dental care into Medicare at $77 billion over the next decade. This figure absolutely pales in comparison with the $254 billion being given away through the stage 3 tax cuts. It is estimated that the top one per cent of earners in this country will reap at least 65 per cent of the wealth from these tax cuts. Meanwhile, middle and working class Australians are told, yet again, that the government just can't afford to make their lives easier. Well, we can afford it. It simply involves a shift in priorities: to value access to essential healthcare services over the need for further tax cuts to the wealthy.

Bringing dental care into Medicare would be a once in a generation reform that would give millions of Australians access to quality and affordable—even bulk-billed—dental care. It would be a legacy that has the potential to dramatically improve the lives of people across this country regardless of their background—to put more money into their wallets to spend on themselves and their families. It would create a truly universal healthcare system. Your bank balance should not determine how many of your teeth you get to keep. It is well beyond time that we ditch the stage 3 tax cuts and bring dental into Medicare.

Angus Taylor (Hume, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

I rise to speak against this motion moved by the member for Ryan to repeal the legislated stage 3 tax cuts. Make no mistake, any decision to reverse the stage 3 tax cuts would impact millions of Australians—in fact, it would impact more than 59,000 Australians in the member's own electorate of Ryan. I'm sure there are some very strong feelings about that there. The stage 3 tax cuts mean the vast majority of Australians will keep at least 70c of every dollar they earn. Upon full implementation of the plan we legislated in government, around 95 per cent of taxpayers are expected to face a marginal tax rate of no more than 30 per cent, so it's sending a really strong signal to Australians to get out there, build businesses, build careers, take risks and have a go. You couldn't send a clearer signal: 70c in the dollar. Of course, if they do, they can use that simple rule of thumb for those earning between $45,000 and $200,000, and they're going to keep that 70c in the dollar.

The stage 3 tax cuts deliver to all individuals earning more than $45,000. They weren't introduced in isolation—this is very important to understand—they're part of a broader legislated tax package that, when fully implemented, will deliver income tax relief for 12.5 million Australians. That in total would mean: a hairdresser earning $60,000 would pay $1,455 less in tax every year from 1 January 2024; a teacher earning $70,000 would pay $1,705 less; an executive assistant earning $80,000 would pay $1,955 less in tax every year from mid-2024; a research scientist on $90,000 would pay $2,340 less; and a qualified diesel mechanic earning $100,000 would pay $3,040 less in tax from the middle of 2024.

We know that the Australian Greens have never supported these tax cuts. To be fair to the Greens, at least they have been consistent, unlike the Labor Party. Labor went to the last election with an ironclad commitment. In their election platform they said, 'We will deliver the legislated stage 3 tax cuts.' It's on page 11, for those wanting to check. It is there in black and white. The Prime Minister and the Treasurer told Australians these tax cuts would be delivered. They said it in the lead-up to the last election—no asterisks, no footnotes, no fine print. It was an ironclad commitment. But we've seen over the recent weeks a lot of kite flying from those opposite on this issue, and it should concern all Australians that the Labor government has lost interest in this pledge.

It has lost interest in this pledge, and we know from interviews with the Treasurer before the budget that this discussion is being led with the Prime Minister's support. At this point, it seems like it's only a matter of time until the Treasurer starts unwinding the stage 3 tax cuts, finding a way to ditch the next election commitment on their long list of election commitments that they are trying to get rid of. But it's important to remember it is legislated. It's also important to remember that, over the coming years, as we battle inflation and high interest rates, we also need to set up the economy for longer-term growth. We need to make sure that the supply side of the economy is strong, and, of course, that will help to address inflation.

Sadly, what we saw in the budget was deficits getting wider and $115 billion in extra spending, the exact opposite of what we need in order to battle inflation and rising interest rates. In fact, we know that this has left the Reserve Bank carrying the can to reduce the impact of inflation through higher interest rates. Sadly, any move to walk away from these stage 3 tax cuts will be a broken promise of incredible magnitude. If they do, we will hold them to account. There is no greater marker of values in this term of parliament than what will happen to taxes.

Ross Vasta (Bonner, Liberal Party) Share this | Link to this | Hansard source

There being no further speakers, the debate is adjourned and the resumption of the debate will be made an order of the day for the next day of sitting.