Fiona Phillips (Gilmore, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. How is the Labor government lowering taxes for Australian workers? What obstacles are standing in the way?

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

Thanks to the member for Gilmore not just for the question but for voting for a tax cut for every single one of her 64,000 taxpayers in that wonderful part of the world that she represents. Last night the parliament passed the government's tax cuts from the 2025 budget. Those tax cuts are now law. Because of our tax cuts, the average benefit is $50 a week, including those top-ups in the budget. This means that the first rate of tax now is the lowest that it's been in half a century. What that means for Australians is that more Australians are working, earning more and keeping more of what they earn because of this Labor government. It was part of a broader package of cost-of-living relief which was one of the centrepieces of Tuesday night's budget.

This morning on radio and then on TV, the shadow Treasurer made a stunningly stupid admission. He said that, if those opposite win the election, they will legislate to increase income taxes for every single Australian taxpayer. As far as we can tell, this is unprecedented. It has never happened before that an alternative government has gone to the people and said, 'Elect us and we will jack up income taxes for every single taxpayer.' I can't imagine they are happy about this up the back. That's why they are pretending to read and looking at their shoes once again—because this confirms beyond any doubt that, if they win the election, Australians will earn less and keep less of what they earn. It makes it absolutely crystal clear that Australians will be worse off if those opposite win the election. And it's now not just us saying it; it's the shadow Treasurer saying it as well.

As a consequence, they would increase tax-to-GDP, they would increase average tax rates, they would give back 'no bracket creep' and they'd harm participation. This will haunt them for every single day of his election campaign because this renders anything else the Leader of the Opposition says tonight absolutely meaningless. It sets up a very simple choice in this election, and it springs from the budget we released on Tuesday, the reply we will hear tonight and what the shadow Treasurer said this morning.

This election is about a very simple choice: this Labor Prime Minister and this Labor government cutting taxes and helping Australians with the cost of living or that opposition leader and that coalition clown show jacking up income taxes and making people worse off. The shadow Treasurer has admitted as much today.