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

The government will oppose these amendments. Under our plan, once fully implemented, those who earn more will continue to pay more. In fact, at the end of the seven-year phase-in period of our income tax relief plan, by 2024-25, the top one per cent of income earners will pay slightly more in terms of the proportion of all income tax revenue generated. The top five per cent will pay about the same. The top 20 per cent will continue to pay about 60 per cent of all income tax generated; they're paying about 60 per cent of all income tax generated now and will pay about 60 per cent of all income tax generated in 2024-25. If we don't do this, essentially bracket creep will push more and more middle-income earners into the higher tax brackets, leaving them worse off. That is what you call bracket creep, which is a drag on the economy, which weakens the economy over time and is essentially what undermines aspiration if left unaddressed. That is why we need to ensure that this legislation is passed in full.

The CHAIR: We're dealing with amendment No. 1 on sheet 8689. At the conclusion of this count we will deal with schedule 2. The question is that the amendment be agreed to.

The CHAIR: The question is that schedule 2 on sheet 8689 stand as printed.

Question agreed to.