Linda Reynolds (WA, Liberal Party) Share this | Hansard source

What has happened in 2016, Senator McAllister? I know this is going to be terrible news for you, with your nice 'Corbynista' style policy here. The fact is the 2016 census data showed—this Gini coefficient based on gross household income—guess what? Income inequality has declined from 0.382 to 0.366 since 2011. On the facts, it is actually declining. Not surprising we don't hear that from those opposite because it actually contradicts their narrative. So, let's have a look at some more facts from the ABS and other credible sources.

Between 2006 and 2014, the largest fall in household wealth occurred in the richer households, with the measure for the top one per cent of income earners falling nearly 10 per cent, while the lowest 10 per cent in society had an actual increase of 25 per cent. So, again, that directly contradicts your mantra that income inequality is actually getting worse. Between 2001 and 2014, the HILDA survey did show a small decline in that coefficient, but now it is declining even further. So where income has been constrained in families, the government's safety net does provide great value. According to the ABS, the poorest 20 per cent of households, on average, receive cash transfers and social service benefits more than eight times what they pay in tax. I will say that again: the poorest 20 per cent of households, on average, receive benefits and cash transfers more than eight times what they pay in taxes.

According to the OECD, in an analysis released in 2015, while income inequality has risen in most OECD countries over the past three decades, in Australia it has increased by substantially less than most OECD countries—that is over the last 30 years. Also, in 2015, the Productivity Commission itself found that 40 per cent of families paid no net tax after taking into account their transfer payments like family tax benefits. So already 40 per cent of families pay no net tax. By contrast, the top 10 per cent of income earners pay almost 50 per cent. So the top 10 per cent of income earners pay 50 per cent of personal income tax. The top one per cent pay 17 per cent of all tax received. I think this is paying a pretty fair share. To then say their tax rate should be increased even further is nothing more than a lazy, cynical tax based on envy and division.

Coming back to the bill and to the regulation, it will achieve absolutely nothing. Those opposite are choosing to waste time with token ideas rather than actually getting on with the job of addressing real inequality, which is what this side are actually doing. This bill is nothing about reducing the burden of the cost of living. I challenge Senator McAllister to say how this bill, by creating more paperwork, will actually make a single difference to one Australian. It will not lift any of the burdens of cost-of-living pressures. It doesn't deal with energy prices or with the creation of jobs, whereas this side of the chamber are doing everything we can to reduce the cost of electricity and provide more gas to the nation. We are securing more gas supply, which will ease the cost-of-living pressures on this nation. We're also creating more jobs than ever, as you've seen over the last few months. We are now creating more jobs every single month, and that is what we on this side of the chamber believe will reduce inequality. It is through jobs. It is through educating children for the jobs of the future. It is not about left-wing ideological measures such as those proposed by those opposite. So, for all of those reasons, I do not support this bill and I urge the Senate to reject it.