Kelly O'Dwyer (Higgins, Liberal Party, Minister for Revenue and Financial Services) Share this | Hansard source

The Leader of the Opposition wants to permanently increase the top tax rate to 45 per cent plus the budget repair levy of two per cent plus the Medicare levy of two per cent, which would lock in the top tax rate at 49 per cent. Yes, 49 per cent—almost half. This is one of the highest tax rates in the OECD, putting a nail in the coffin of aspiration, hard work, enterprise and self-reliance.

The Turnbull government is not continuing the temporary budget repair levy, because we have done the hard work to help repair the budget. As announced by the Treasurer in the budget, the budget is returning to surplus. Again, Labor takes the lazy approach, by making what is a temporary levy permanent. Is Labor seriously suggesting that there will be a permanent budget deficit under Labor? Is it because they are part of the high-tax club? Is it because they can't control their spending? We all know that it is all of the above. The Leader of the Opposition and his Labor Party will take more money out of your pocket and use it for their reckless spending. Don't trust what they say; look at what they do. Who could forget the home insulation program under the Rudd-Gillard-Rudd governments or the $900 cheques to dead people? The list goes on. Labor's retiree tax would reach back into your pocket, taking more of your savings while you are building your nest egg for retirement. Their retiree tax will take more of your savings when you move into retirement.

The government's Personal Income Tax Plan will provide a simpler, flatter tax system. It will provide rewards for work and allow you to get ahead. If the tax system was left unchanged it is projected that 37 per cent of taxpayers would face a marginal tax rate of more than 32½ per cent by 2024-25. Labor believes the government has the first claim on people's hard-earned income. By contrast, we know that it is your money. Their plans on taxes—higher taxes—would cost investment, cost jobs, slow productivity growth and stall wages growth.

The government remains committed to our plan for a stronger economy. The Turnbull government will keep backing business to invest and create more jobs. The Turnbull government is guaranteeing the essential services that Australians rely on. The Turnbull government is keeping Australians safe. The Turnbull government is ensuring that the government lives within its means. And, as demonstrated through this bill, the Turnbull government is providing tax relief to encourage and reward working Australians. Lower, fairer, simpler taxes: that's what we believe in and that is what we are delivering. I commend the bill to the House.

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