Jess Walsh (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Last night the Albanese Labor government delivered on its commitment to give all Australian taxpayers a tax cut from 1 July by passing legislation with unanimous support in this Senate. As a result all taxpayers in my state of Victoria will get a tax cut on 1 July. Can the minister outline what the unanimous vote of this Senate will mean for Australian taxpayers and how the Albanese Labor government's tax cuts will provide tangible relief to struggling households, in addition to the other cost-of-living relief measures delivered by this government?

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

I thank Senator Walsh for the question and for the role she plays in supporting and adding to the government's economic policy.

On 1 July this year the Albanese Labor government will deliver a tax cut for every Australian taxpayer; that's 13.6 million people. Our No. 1 priority is addressing inflation and cost-of-living pressures. We know people are doing it tough, but our tax cuts will deliver a bigger tax cut for Middle Australia to help with that cost of living. This builds on our targeted relief while not adding to inflation. Already we have delivered electricity bill relief, which those opposite opposed. We are making medicines cheaper, which, again, those opposite opposed. We are making it easier and cheaper to see a doctor through much-needed investments in Medicare. We are making child care cheaper and expanding paid parental leave. We are building more social and affordable homes and increasing rent assistance. There are our fee-free TAFE investments, and wages are rising at the fastest rate for a decade, including for minimum-wage and aged-care workers—

Anne Ruston (SA, Liberal Party, Shadow Minister for Health and Aged Care) Share this | Link to this | Hansard source

Real wages?

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

and, yes, Senator Ruston, we have had real wages growth. Of those, 3 million people—we've done that as well. Eighty-six per cent of taxpayers will get a bigger tax cut than they would have got under the plan Scott Morrison legislated five years ago. In Tasmania, around 280,000 people will get a tax cut. In Western Australia, it's about 1.5 million. In South Australia, it's around 900,000. In New South Wales, it's 4.3 million. In Queensland, it's around 2.8 million. They are all getting a tax cut thanks to the Albanese Labor government and the tax changes that passed this parliament unanimously—

Opposition senators interjecting—

I know you don't want to talk about it—last night.

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

Senator Walsh, first supplementary?

Jess Walsh (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Minister, as we know, many Australians are still facing cost-of-living pressures and the inflation challenge is not over. Today the release of the monthly inflation data showed that CPI was 3.4 per cent through the year to January, unchanged from December. Can the minister please outline the economic challenges that meant this tax cut plan was the right decision at the right time?

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

I thank Senator Walsh for the supplementary. The economic conditions remain challenging, with lingering inflation due to pandemic related supply chain disruptions, the war in Ukraine and global uncertainty from the conflict in the Middle East.

Opposition Senators:

Opposition senators interjecting—

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

I know you don't want to hear the facts. Despite the challenges facing Australians, the Albanese Labor government has the right economic plan to ease cost-of-living pressures on households, to navigate those challenges we face and to maximise the opportunities for the year ahead. Today's CPI results show that we continue to make welcome and encouraging progress in the inflation challenge, and that the government's policies are helping. But it is not 'mission accomplished' because people are still under pressure. The cost of living and the fight against inflation remains our highest priority. But the ABS statistics have shown that our cost-of-living plan is helping to directly reduce inflation across the economy.

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

Senator Walsh, second supplementary?

Jess Walsh (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

This morning, the shadow minister for finance said that the Liberals and Nationals would 'go back to the drawing board'. Minister, how will Labor's tax cuts plan provide more benefit to Australians facing cost-of-living challenges when compared with the former Morrison government's plan?

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

I thank Senator Walsh for the supplementary, and we did hear those comments from the shadow minister for finance this morning: 'We will have to go back to the drawing board.' Well, one thing we know is that you can't trust the Leader of the Opposition on tax. We know that when last—

Hon. Senators:

Honourable senators interjecting—

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

We remember that he was the minister—

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

Minister Gallager, please resume your seat. Order across the chamber!

Senator Watt! Minister Gallagher, please continue.

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

That's right. When we first announced the revised tax plan, remember that it was going to be rolled back? It was going to be abolished. Remember there was a call for an election over it? 'Let's call an election.' And then what? 'Oh, actually, no, it's okay. We may vote for them.'

We know you can't trust Peter Dutton; you can't trust the Leader of the Opposition.

Simon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source

You can't trust the PM. Everybody knows that.

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

We remember the GP tax. We remember him saying that there were too many free services on Medicare. We know what this means—cuts to services and a rollback of tax. (Time expired)

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

Senator Birmingham, I'm going to ask you to withdraw your comment, and then I invite you to ask your question.

Simon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source

I withdraw, President.

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

Thank you.