Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Hansard source

No, I cannot confirm that. You should not believe something just because the shadow Treasurer says so. This government, in our second major income tax relief package for hardworking families, has again prioritised low- to middle-income earners as well as continuing to address bracket creep, as well as continuing to simplify our tax system with a view to incentivising and rewarding hardworking Australians. This is very important.

The good senator asked me about the tax burden at the lower income end. Somebody on $30,000 a year gets a 10.6 per cent tax cut as a result of the income tax relief package that this government has put forward, whereas somebody on $200,000 gets a 0.2 per cent tax cut. Somebody on $30,000 a year will be paying $2,142 in tax whereas somebody on $200,000 will pay $67,000 in tax—$2,142 versus $67,097. The point is, our tax system is highly progressive and, once our plan has been legislated in full, the top five per cent of income earners in Australia will continue to pay one-third of the income tax revenue generated in Australia.

We on this side of the chamber understand that it is entirely appropriate and economically important to incentivise, encourage and reward aspiration. Of course, it is entirely appropriate and important for the future economic success of all Australians, including and in particular low- and middle-income earners, to ensure all Australians have the right incentive to work— (Time expired)