Jana Stewart (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Labor's tax cuts passed the parliament this week, locking in a tax cut for all Australians on 1 July this year. This will see many more taxpayers in my state of Victoria get a tax cut, where they were not going to get one under the Morrison government plan. Minister, how much more will people keep in their own pockets under Labor's plan?

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

I thank Senator Stewart for the question and for her focus on the cost of living and how to alleviate cost-of-living pressures, particularly in her home state of Victoria. A person on an average income of $73,000 will get a tax cut of $1,504, an increase of $804 compared to the Morrison tax plan. A person on a national full-time minimum wage of just over $45,000 will get a tax cut of $827, an increase of $804 compared to the former tax plan.

Under our tax cuts, people earning $45,000 will get the largest increase in tax relief as a proportion of their income, because under the former tax plan they were getting zero. They will now get a tax return that they deserve. A person on an income of $50,000 will get a tax cut of $929. A person on an income of $100,000 will get a tax cut of $2,179. A person on an income of $130,000 will get a tax cut of $3,379. Those on high incomes, of $190,000 or $200,000, will get a tax cut of over $4½ thousand. This is still the largest absolute tax cut by any income group.

We know that these tax cuts go to 100 per cent of taxpayers. We know that 90 per cent of women will get a bigger tax cut, as I said yesterday. We know the benefits right across Victoria, for example, where 3½ million people will get a tax cut on 1 July under our tax plan and 86 per cent of taxpayers in Victoria will get a bigger tax cut.

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

Senator Stewart, a first supplementary?

Jana Stewart (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

We know Australians are facing ongoing cost-of-living challenges and that addressing that issue is at the core of the Albanese Labor government's policy agenda. Labor's tax cuts are the latest in a suite of measures that the government has delivered since taking office to alleviate cost-of-living pressures. Can the minister please outline to the Senate the benefits of Labor's tax cuts that build on other cost-of-living measures our government has taken?

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

Thank you, Senator Stewart. I can. The point that Senator Stewart raises is how the tax cuts work in conjunction with some of those other important measures we've put in place. For example, we've delivered urgent care clinics across Australia—

They're going very well, Senator Ruston. It must really pain you. I know you've been hoping for their failure, but they are going incredibly well, with more support than we'd expected. We've got one that has opened in Frankston. Since 30 June that clinic has delivered more than 12,000 services to the people of Dunkley. More than one in three of those services have been delivered to children under 15, which is exactly the group that we were trying to ensure would benefit from the Medicare urgent care clinics. We have also cut the cost of medicines, we're addressing housing shortages, cheaper child care and of course the Energy Price Relief Plan that those opposite— (Time expired)

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

Senator Stewart, a second supplementary?

Jana Stewart (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Why were Labor's tax cuts the right thing to deliver for the current economic climate? How might Australians have been worse off if these tax cuts had not unanimously passed this parliament this week?

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

Cost-of-living relief is the No. 1 priority for the Albanese government, and our approach will provide bigger tax cuts for more people and Middle Australia. We're continuing to roll out relief. We've found a better and more responsible way to deliver even more support. We know that the biggest threat to those tax cuts is, of course, the secret plan, or the 'back to the drawing board' plan, that was announced by the shadow finance minister. We know that you can't trust the Liberals on tax. We know what 'back to the drawing board' means. It means a redesign of stage 3 to take money away from low- and middle-income earners, who deserve the tax cuts that they will get on 1 July. We also know that there will be cuts to Medicare, cuts to the ABC and cuts to education. This is what you get. You can't trust the Liberal Party. (Time expired)