Carol Brown (Tasmania, Australian Labor Party, Shadow Assistant Minister for Infrastructure and Regional Tourism) Share this | Hansard source

Labor supports the Treasury Laws Amendment (2021 Measures No. 4) Bill 2021. There are six Treasury measures in this bill, a number of schedules implementing budget measures from the last two budgets. The most substantial measure is the one-year extension of the low- and middle-income tax offset for the 2021-22 financial year, in schedule 6, at a cost of $7.8 billion. The offset provides a tax offset of up to $1,080 for individuals with low-to-middle incomes. At a time when the nation is experiencing a global pandemic and the related effect on the economy, this will be a welcome benefit to individuals and families who have been stretched over the past year. This is only a temporary measure though. We know that there are Australians who are struggling. Labor supports this measure because it puts more money into the pockets of Aussies doing it tough. Tax relief for low- and middle-income Australians is not only fairer but also more effective than tax relief for high-income earners, because of their higher propensity to spend. Simply put: recipients use the funds to secure the extras they need—from groceries to household goods, to clothing and to much-needed repairs—which helps stimulate the economy.

At the same time as this temporary measure for an estimated 10.2 million taxpayers who will benefit from the extension of the offset, this government persists with the permanent tax cut for some of Australia's highest income earners. Labor knows that when it comes to tax relief in the budget, priorities should be given to those who need it most.

Schedule 3 implements the 2020-21 budget measure to provide a targeted exemption for granny flats from CGT events that occur on entering into, varying or terminating formal written arrangements under which an older person or a person with a disability acquires, varies or disposes of a granny flat interest. The creation of a formal arrangement that could incur capital gains tax consequences has meant that families have preferred informal agreements regarding granny flat property or dwelling-sharing arrangements. This measure seeks to avoid the capital gains tax events occurring with formal written arrangements when an older person or a person with a disability acquires, varies or disposes of a granny flat interest. This change goes some way to reducing the risk of exploitation for older and vulnerable Australians.

The other schedules in the bill cover a fringe benefits tax exemption to support retraining and reskilling at a cost of $9 million over the forward estimates; the extension of the operation of the junior minerals exploration incentive for a further four years from 2021-22 at a cost of $39 million over the forward estimates; amendments to the way ASIC and the product intervention regime works to address unintended outcomes; and ensuring that the unique circumstances of COVID-19, where New Zealand sports team and staff may have to spend more time than usual in Australia, do not have an adverse tax impact with regard to determining whether income derived in such competitions is taxable in Australia. Although the bill extends the low- and middle-income tax offset, it makes sense to consider the wider context of this bill. As my colleague the member for Rankin said in the other place, the Morrison government is one of the two highest taxing governments of the last three decades, with the Howard government being the other.

COVID is the pandemic that, of course, none of us wanted, but, in it, we have an opportunity to reassess the way we have done things in the past. It is a chance to build back better. The government so far has failed to take this opportunity. I commend the bill to the Senate.