Rebekha Sharkie (Mayo, Centre Alliance) Share this | Hansard source

In their pitch to the Australian people, the government's signature policy was to promise tax cuts to Australians across the income spectrum. Stage 1, as we all know, provides temporary relief for low- to upper-middle-income earners. It will not only provide a welcome boost for their own incomes but also provide a much needed fiscal stimulus to Australia's slowing economy. The multiplier effect will bring economic and social benefit to many Australians, and the parliament would appear to unanimously support them. Stage 2 of the tax cuts is also targeted at low- to upper-middle-income earners. It helps to compensate for the removal of the temporary relief in stage 1 and will not come into effect until 2022.

I and my Centre Alliance colleagues support both stage 1 and 2 of the government's tax cut agenda. We believe they are necessary, affordable and sufficiently prudent. Stage 3 has been more problematic for Centre Alliance and, indeed, the parliament to reach agreement upon. However, two aspects should be noted. Firstly, 60 per cent of the income tax paid will be contributed by the top 20 per cent of Australia's income earners. Secondly, should the economy slow, the implementation of stage 3 can and should be reversed either in this parliament or in a future parliament. That would be the responsible measure to take.

This parliament is faced with a dilemma as the government is refusing to break up the bill. It is an all-or-nothing bill. This weighs on my mind: there are many hardworking Australians who are waiting for this money and waiting to put in their tax return. The Australian economy needs the urgent stimulus from stage 1. With this bill I believe the government can argue it possesses a good deal of democratic legitimacy in seeking to deliver the one signature policy it presented to the Australian people at the recent election. Let us be clear: this was the only major policy the government campaigned on and it was outlined in the budget. I recognise the government was up front with their plan and the Australian community voted them back in.

Centre Alliance's approach to the government's tax plan has been to seek to maximise its benefit to Australian families, workers and small businesses. Centre Alliance went to the election with a promise to reduce energy prices. We are concerned that the value of the tax cuts package will be wiped out for low- and middle-income earners unless there is action on energy prices. We also want to ensure that there is relief in energy prices in sight for pensioners and people on Newstart and very low incomes.

In 2013, Australians were paying $3 to $4 per gigajoule for gas. With the addition of six LNG trains in Gladstone in Queensland the production of gas in Australia has tripled and exports have surged. Yet, in 2019 we are now paying $9 per gigajoule on the spot market in Australia for Australian gas, whereas customers buying Australian gas in the Asian market are paying $7 per gigajoule. Australian consumers, I believe, are being taken for mugs with this. We are talking about $9, triple the price of just over five years ago. This is a grotesque example of market failure, and something that we in Centre Alliance want to address. We know that this is affecting manufacturing businesses and their workers, particularly in my state of South Australia. We are facing an energy crisis because of this.

Centre Alliance is working with the government on both short- and long-term actions to deal with the concerns in the gas market. Without action, those jobs and businesses will simply disappear. I and my colleagues have always acted to help safeguard the future of our great manufacturing state. We believe that its best years are ahead of it, and I am confident that a sensible outcome can be negotiated with this package.

For this reason, I will be supporting the government's tax cuts legislation in this place while Centre Alliance continues to negotiate in good faith with the government on the bill in the other place.

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