Katy Gallagher (ACT, Australian Labor Party, Shadow Minister for Finance) Share this | Hansard source

by leave—I move amendments (1) and (2) on sheet 8684 together:

(1) Schedule 2, page 5 (before line 4), before item 1, insert:

1A Clause 1 of Part I of Schedule 7 (table dealing with tax rates for resident taxpayers for the 2018 -19, 2019 -20, 2020 -21 or 2021 -22 year of income)

Repeal the table (including the note), substitute:

(2) Schedule 2, page 6 (before line 1), before item 3, insert:

2A Clause 1 of Part III of Schedule 7 (table dealing with tax rates for working holiday makers for the 2018 -19, 2019 -20, 2020 -21 or 2021 -22 year of income)

Repeal the table, substitute:

This amendment seek to bring forward one element of stage 2 of the government's tax package. I have spoken in my second reading speech about this. Briefly, it recognises that the economy needs a boost now, so it supports stage 1 of the tax cuts. It ensures that there is a tax cut for every worker in this parliamentary term. It is responsible in the sense that, yes, it will cost more in the short term. We are aware that the government is forecasting a surplus of just over $7 billion. Bringing forward the lifting of the tax bracket from $90,000 to $120,000 in this financial year would have a budget impact in the order of $3.6 billion, but it would certainly—based on the current projections of the government and the Treasury—ensure that there was a surplus maintained. It is being responsible. It ensures that there is a tax cut for every worker in this parliamentary term.

At the moment, if this amendment doesn't get up, we will only see low- and middle-income earners, through the tax offset, getting an actual tax cut. The rest of the working people in Australia will have to wait until 2022-23 for this change to come into effect. Of course, it is longer for those outside of stage 2. We would urge those who do care about the economy and who do recognise that the economy needs stimulus now to recognise that this amendment would assist on that front and that it would ensure that there is a tax cut for every worker. For those who aren't going to support this, they will be voting against a tax cut for every worker in Australia if they do not support this amendment by the opposition.