Graham Perrett (Moreton, Australian Labor Party) Share this | Hansard source

I'm very happy to rise in support of Labor's Treasury Laws Amendment (Cost of Living Tax Cuts) Bill 2024. I'm very happy because I know the amendments to the tax cuts will directly help the constituents of my electorate of Moreton and, indeed, every single Australian taxpayer from 1 July this year. That is 13.6 million people who will be better off. This figure includes nearly three million Australians who would not have received any tax cut under Scott Morrison's plan. Every representative in this chamber should support the Albanese government's cost-of-living tax cuts. It's common sense. This is a bigger tax cut for more people. It helps with the cost of living and it helps make our tax system more equitable. It is both support in a tough time and reform.

Under our tax plan, the average taxpayer on an income of $73,000 will get a tax cut of $1,504. That's an extra $804 compared with Scott Morrison's plan. As the honourable member for Rankin said:

This is all about supporting the hard work of people who make our economy and our country strong. It's all about supporting people who work hard so that they can provide for their loved ones and get ahead.

These are the aspirational Australians that the Labor government is committed to helping.

It's instructive that the coalition's knee-jerk response when these tax cuts were first announced was negative—straight to 'Dr No'. Even before these tax cuts were announced, those opposite were against the policy. The deputy opposition leader immediately confirmed the intention to roll the changes back, A statement she later retreated from—crab walked away from, I guess you would say.

Those opposite may continue to grandstand about Labor's change for the better—a policy that they've also said they will support. So my questions to them are: Why would you put politics before the people that you represent, when 85 per cent of the people in Moncrieff are going to be better off under a Labor policy? Aren't you listening to the people doing it tough in your electorates? How can you look the cleaners in the eye and say that they deserve nothing? Why would a millionaire deserve $9,000 back from the tax office but a Woolies cleaner deserve zip? How could you be that politician that ran that up?

Since the tax cuts were legislated by the member for Cook, five years ago, there has been a once-in-100-years pandemic, conflicts throughout the globe, a global inflation spike and all of those higher interest rate rises that have passed costs onto households. We know that Australians are suffering because of the economic ripples flowing into their homes and workplaces from all of these factors. When economic circumstances change, the responsible thing to do is to change your economic policy. This is what the Albanese Labor government has done, and we stand behind this change for the better. I'll choose commonsense over stubborn stupidity every single time.

The honourable Leader of the Opposition has grudgingly indicated that his team will support these tax cuts. You wouldn't believe it when you listened to the content of their speeches, but even the honourable Leader of the Opposition realised that the choice was obvious: to vote with Labor in favour of a tax cut for every Australian rather than stick with the Morrison plan from 2019.

Labor's tax cuts have broad support across my electorate. I doorknocked twice last week, and there's been uniform support for the additional help we're delivering to the people of southern Brisbane. As one of my constituents said prior to our government's 25 January announcement, 'As a high-income earner with a mortgage, I'm someone who will benefit from the proposed tax cuts'—that means the Morrison cuts—'but I want you to cancel them because the benefit to people like me of keeping the tax cuts is so small compared to the benefit of using the money for something else that will benefit all Australians, low-income earners in particular.'

The key here is that Labor's tax cuts benefit all Australian workers. We know Australians are doing it tough. We've listened to people and we know that they're under pressure. The Albanese Labor government doesn't just accept that people are under pressure and say, 'Well, what can I do?' We do something about it. That's why easing these tough cost-of-living pressures has been the Albanese government's No. 1 priority. These tax cuts provide meaningful and immediate cost-of-living relief up and down the income scale without adding pressure on inflation. That's so important. I stress that, because we know that inflation hits low- to middle-income earners most. It takes buying power out of their pockets.

So this is a fair and responsible plan, responding to the economic conditions of 2024 and helping those hardworking Australians most under pressure. Labor's cost-of-living tax cuts come on top of the other important relief measures we've rolled out, measures that are making a real difference in communities across the country. Despite a lack of support from the coalition, we've moved to make so many positive changes for Australians. We've provided energy bill relief—which I think they voted against—higher income support payments and the biggest boost to rent assistance in 30 years. We've made child care cheaper, we've made TAFE free and we're building more social and affordable homes. I know we need to do more, but we've got some great plans. I particularly commend the Steven Miles government in Queensland for what they're doing in terms of rolling out new homes.

In the week of the 40th anniversary of Medicare, designed by Labor, we can reflect with pride on the Albanese Labor government's strengthening of Medicare and the rolling out of cheaper medicines for Australians. We've tripled the bulk-billing incentive, supporting 11.6 million Australians to access a GP with no out-of-pocket costs. We saved Australians $250 million last year on medicines, and we're establishing the Medicare urgent care clinics across the country—like the one in Dutton Park, right on the border of my electorate— to boost access to critical medical care.

The Treasurer also introduced the Treasury Laws Amendment (Cost of Living—Medicare Levy) Bill, which directs more support to Australians on modest incomes. The Albanese government will increase that Medicare low-income threshold for 2023-24, ensuring that people on lower incomes continue to pay less or are exempt from the Medicare levy. It's great help but non-inflationary. It's a sensible approach to government, rather than one that sprays money around with a hose. Labor's tax plan centres around relief and reform. It provides more help up and down the income scale without adding to inflation, as I said.

What else are we doing? We're decreasing the lowest rate of income tax from 19 per cent to 16 per cent. This is for the people earning below $45,000. Those in that tax slot, above the income tax-free threshold of $18,200, instead of giving nearly one-fifth of each dollar to Treasury, will now only pay 16 per cent. And we're lowering the second tax rate from 32½ per cent down to 30 per cent, so that's for middle Australians earning between 45 grand and $135,000. We're raising the threshold of the 37 per cent tax bracket to $135,000 and raising the threshold of the 45 per cent tax bracket up to $190,000.

I note we've had a few contributions from those opposite about bracket creep, but I also note that the Abbott-Turnbull-Morrison horror show didn't touch this threshold in that wasted decade that they haunted the Lodge. This is a substantial and sustainable tax reform that has a direct impact on all workers at all ages in every community in Australia.

The Labor cost-of-living tax cuts, I'm proud to say, are a great boost for women. All 6.5 million women taxpayers will receive a tax cut, on average that's a tax cut of $1,649 each year under Labor's plan, and 5.8 million women—that is, 90 per cent of taxpaying women—will benefit from a bigger tax cut, with an average increase of $707. This directly helps families with parents who are returning to work and it support workers in high-demand occupations that have high numbers of women workers.

Ninety-six per cent of the nurses at QEII Jubilee Hospital, down the road from my office, will benefit. I'm sure Logan Hospital will be much the same. That's where my neighbour works as an obstetrician—as a midwife, sorry! I think that's a demotion! I thank all the people at QEII for the great work that they do, and I particularly want to call them out for helping my son Leo, who broke his arm on the last day of school. The QEII staff were magnificent.

I'll also do a call-out for my former profession: 98 per cent of the teachers at the 49 schools peppered across Moreton will receive a boost to their pay packet. The hard workers in early childhood, disability support and aged care, who are the crux of our community, will all benefit from the Albanese tax cuts.

Another group to benefit will be the young working Australians. Again, more than 90 per cent of under 35s will receive a bigger cut—remembering that those above this threshold, above that 90 per cent mark, will be doing okay. This plan has a positive effect on labour supply, will increase it by about 930,000 hours per week—yet again a substantial improvement compared to that flawed, out-of-date Morrison plan I mentioned earlier. This is more than double the labour supply impact forecast from five years ago.

The Treasurer and the economic team consulted extensively with the Treasury and received confirmation that the plan in front of the House addresses the bracket creep that can hit low- and middle-income earners. The average worker will pay around $21,000 less in tax over the next decade. So Labor's cost-of-living tax cuts don't burden the budget and don't add to inflation. Inflation is cooling—more work to be done, Treasurer, obviously—and, by the time the cuts rollout from 1 July, it's expected to moderate further. The RBA has also confirmed these tax cuts don't affect inflation forecasts.

The Albanese government wants people to earn more and it wants people to keep more. We want for no-one to be left behind and nobody to be held back. The Labor tax cuts mean that 84 per cent of Australian taxpayers will get a bigger tax cut from 1 July, just a few months away. These measures are fair and responsible. They provide support; they provide reform. This is something I'm proud to get behind, and I commend this bill to the House.

See this speech in context