Karen Grogan (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. From 1 July this year, the Albanese Labor government will deliver a tax cut for every Australian taxpayer. I know that Australians in my home state of South Australia have had it tough for the last couple of years, with cost-of-living pressures persisting. Can the minister inform the Senate about how many more Australians will benefit from the Albanese Labor government's tax cuts?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Grogan for the question. Yes, I am very pleased to confirm to the Senate that the Albanese Labor government is delivering a tax cut for every Australian taxpayer, commencing on 1 July. Labor's new tax cuts will make a real difference to 13.6 million Australians. Our tax cuts have been deliberately and carefully designed to provide bigger tax cuts for middle Australia, to help with those cost-of-living pressures while at the same time making the tax system fairer. We know that many Australians are under pressure right now and deserve a tax cut, including those living in Senator Grogan's home state of South Australia, where 89 per cent of South Australian taxpayers will get a bigger tax cut.

We've found a more responsible way to ensure more people get a bigger tax cut to help ease the pressure they're under. Under our plan, working Australians will keep more of the wages they earn, and we are proud to be delivering this significant economic reform which helps to increase labour supply in crucial industries, such as the care economy, which will need more workers in the future, with female labour supply expected to increase by around 0.4 per cent. Our tax cuts deliver a bigger benefit to more than 90 per cent of taxpayers in in-demand occupations such as teachers, nurses, aged-care and disability carers, and childcare workers. Importantly, building on the first budget surplus delivered in 15 years, our tax plan delivers more relief to more people in a way that is fiscally responsible and doesn't add to inflationary pressures. Treasury's advice makes it clear that our tax changes will not add to inflation pressures because they are broadly revenue neutral, and our changes also mean that every Australian taxpayer will receive a tax cut this year.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Grogan, a first supplementary?

Senator Thorpe, come to order!

The:

Senator Thorpe, order! Senator Grogan, first supplementary?

Karen Grogan (SA, Australian Labor Party) Share this | Link to this | Hansard source

Thank you, Senator Gallagher. That's very helpful. Eighty-nine per cent is significant for South Australia. It's clear that these tax cuts have been designed to offer greater relief for middle Australia, addressing cost-of-living pressures and ensuring a fairer tax system. Can the minister outline how the adjustments to tax rates and thresholds will deliver a bigger benefit for more Australians?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Thank you—

Lidia Thorpe (Victoria, Independent) Share this | Link to this | Hansard source

How is it fair giving politicians a tax cut in this place?

Sue Lines (President) Share this | Link to this | Hansard source

Resume your seat, please, Minister.

Lidia Thorpe (Victoria, Independent) Share this | Link to this | Hansard source

How is that fair?

Sue Lines (President) Share this | Link to this | Hansard source

Senator Thorpe, I've called you to order about four times. That's three times too many. You are being disrespectful to me and to this chamber. Minister Gallagher, please continue.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Grogan for the supplementary question. Our tax reform package has been carefully designed to improve the financial wellbeing of Australians, particularly those in low- and middle-income brackets. From 1 July, the adjustments to tax rates and tax thresholds will deliver broader and more support to Australian taxpayers. We're reducing the 19 per cent rate to 16 per cent for incomes between $18,200 and $45,000, and we're reducing the 32½ per cent rate to 30 per cent for incomes up to $135,000, amongst other changes. This provides taxpayers with broader cost-of-living relief than under arrangements previously in place, especially those on low and middle incomes, who are more vulnerable to cost pressures. Our plan is projected to benefit over 13.6 million taxpayers, ensuring that a vast majority, including those in critical sectors—such as those in your home state, Senator Grogan, in education and health care—will see an increase in their take-home pay.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Grogan, a second supplementary?

Karen Grogan (SA, Australian Labor Party) Share this | Link to this | Hansard source

We know that Australians are continuing to do it tough, and the Albanese government's tax cuts are just the latest important element of the government's response to cost-of-living challenges being faced by Australians. Can the minister outline how Labor's tax cuts work to build on the existing suite of targeted cost-of-living measures that the government has already delivered for Australians?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Grogan for the supplementary question. As Senator Grogan outlined, this is just one part of our cost-of-living plan. Complementing the tax plan—the tax relief that we'll roll out on 1 July with the support of Senator Hume and others—the Albanese government is delivering real cost-of-living relief, much of which is opposed by those opposite. We do accept that the tax plan was initially opposed, and then they said: 'Oh, I don't know about this. We'd better crabwalk away from that opposition on this one.' But they did oppose electricity bill relief. They did oppose making medicines cheaper. They did oppose making it easier and cheaper to see a doctor. They did oppose the Housing Australia Future Fund and the effort that we're putting in there. I believe they may have as well opposed fee-free TAFE. With all of these measures that go to make a difference to Australian households, we've had opposition from those opposite.