Steve Georganas (Adelaide, Australian Labor Party) Share this | Hansard source

I'm very proud to speak on the Treasury Laws Amendment (Cost of Living Tax Cuts) Bill 2024. We hear members from the opposition saying that you can't trust this government because of the changes we've made, but all I can say is that you can trust this Albanese government to put more in your pocket than you would have got under the former Liberal government. There's no doubting that when you look at the figures. As members of parliament, we speak to our constituents regularly. My constituents in the seat of Adelaide are very pleased with the changes that we've made. Yes, we did make a promise: we promised that we would be making tax cuts. We made that promise in the run-up to the election. We've changed it. We're now saying: 'Sorry, we're not going to give you the amount that we said. We're actually going to put more in your pocket. We're going to give you more.' That's the change that's been made. The majority of Australians will be getting more of a tax cut than they would have under the previous government.

This Labor government is putting more money back into the pockets of Australians, especially of hardworking Australians—those that need it the most. This isn't just a concept; it's a practical move to build a solid base for the financial future. It's also a readiness to prepare for a substantial, straightforward change that underscores our commitment to a resilient and financially secure future. At the same time that we're doing that, we're assisting those that are doing it the toughest—those low- and middle-income earners and those aspirational Australians. We know that people are doing it tough. We hear them. That's why these changes are being made, and that's why these tax cuts will put more into Australians' pockets.

The government is here to deliver. It's a good government, and good government isn't about doing what's easy for yourself. It's about doing the right thing for your constituents and for the nation, as well as doing it for the right reasons. It's about putting people ahead of politics. All we've seen from the opposition is politics on this particular measure that's taking place, yet they're voting for it. They're attacking it and condemning it, but they are voting for it because they know in their hearts that this is a better policy and a better change for Australian workers. It's about putting people ahead of politics, as I said. When I go around my electorate, as I'm sure you and other members of parliament do, Deputy Speaker Vamvakinou, we hear how people are doing it tough. We hear about the circumstances that a lot of people are in.

When economic circumstances change, the right thing to do is change your economic policy. We know that since five years ago, when the Morrison government was in, the economic realities have changed, and this government is making those changes because it recognises that. Australians are under pressure; there's no doubt about that. They're under pressure right now and deserve a tax plan that responds to the challenges that they are facing. When the coalition's planned stage 3 was legislated—five years ago, mind you—the world was a very different place. It was before a once-in-100 -year pandemic, persistent inflation, higher interest rates, two conflicts and global uncertainty put Australia under a more sustained cost-of-living pressure. When the circumstances change, as they have in the last five years, changing policy is the responsibility of a good government. It's the thing to do, and that's what we've done.

Cutting taxes for middle Australia is a central part of the economic plan, along with getting wages moving again, and you saw at the beginning of this government how they opposed that minor increase for the lowest-paid workers in this country. Every time there's more money to go into Australians' pockets, they oppose it, especially when it's for lower-income and middle-income workers. We hear nothing but opposition from them. As I said, when circumstances change, the responsible thing to do is to change and to do things to adapt to the current present day. This government is providing meaningful cost-of-living relief with this policy and these tax changes. It's doing it in a responsible way that doesn't add to inflationary pressures while laying the foundation for a stronger and more resilient economy, and at the same time putting more money into people's pockets. That's what we're doing. We're doing the right thing for the right reasons.

From 1 July, every Australian taxpayer will witness a substantial tax cut. We're doing this because we believe in not just increasing earnings but ensuring individuals keep more of what they earn. Cost-of-living pressures are this government's top priority, and we've seen that with cheaper medicines, with cheaper child care and with changes to Medicare. All of those things assist people in this current climate. Our tax cuts are not isolated, as I said. They're part of a robust economic plan addressing wage boosts, inflation control and fairer prices for consumers. That's what it's all about. Australians are under unprecedented pressure in 2024—right now—and they deserve a meaningful tax cut right now, not next year or in three years or five years. The need is right now, and we're delivering on that and delivering one that makes a tangible difference for 13.6 million hardworking Australians. I'll go back to what I was saying—this is not about populism. It's strategic, and it's the right thing to do under the current economic climate.

I'll give you some examples. A nurse earning $76,000 will get a tax cut of $1,579. A primary school teacher earning $80,000 receives $1,679. A truck driver earning $77,000 benefits from a $1,604 tax cut. Those who keep us safe—police officers, for example, earning $110,000—will see a tax cut of $2,429. This is real money going into their pockets. This is money that will help them during these cost-of-living pressures. Supporting those who tirelessly work on those front lines to keep Australia running is not just a financial decision; it's an acknowledgement of their invaluable contribution to our society and our economic strength. It gives us strength and resilience.

It's not just about numbers; it's about equity. All 6.5 million women taxpayers get a tax cut averaging $1,649. In fact, 90 per cent of women taxpayers, 5.8 million strong, receive a more substantial tax cut than under the former government's 2019 plan, with an average of $707. What we're currently giving them is well over double what they would have got under the previous government's proposals. The median taxable income of around $68,000 gets a tax cut of $1,379. That's $804 more than the former government's 2019 plan.

It's as I said earlier. We promised to give people tax cuts, and we're saying, 'Sorry; what we're doing now is we're going to give you more.' So I don't think the argument from the other side is quite correct. Labor's tax cuts are not letting anyone down. We want to ensure that no-one is let down, and that's what we're doing. We've delivered intergenerational benefits. For example, younger Australians who are aged 18 to 24 get an average tax cut of $1,007. That's the average across the board. Those aged 25 to 29 experience an average tax cut of $1,573. Older Australians, who have been the backbone of this economy for many, many years and who have worked hard and are going towards those twilight years of retirement, get an average tax cut of $1,731 for those aged between 65 and 69, $1,685 for those aged 70 to 74 and $1,726 for those over the age of 75.

In my own home state and in my seat, around 89 per cent of taxpayers will receive a more substantial tax cut than that offered by the opposition and former government. In Adelaide, in my electorate, 93,000 taxpayers—that's more than the majority of the taxpayers in my electorate—will experience an average tax cut of $1,540. Importantly, 79,000 taxpayers in my electorate will get a more substantial tax cut than under the previous tax cut, representing 85 per cent of taxpayers.

So, the Labor government's tax cut strategy is strategic, equitable and focused on the prosperity of every Australian. Even those at the high end, at the top end, in the $200,000s and over, will get a tax cut of around $4½ thousand. So, no-one's been left behind. No-one will be without a tax cut. And the majority of Australians—I know the majority of people in my electorate—will be receiving a higher tax cut than that proposed earlier.

On this side of the House we stand for a nation where hard-earned money is kept. We know it is tough out there, and we know that times are tough. I see this when I talk to my food banks and to the different charitable groups around the place. We're seeing people lining up for charity because they're doing it tough. Hopefully this will help. And it's not just those who are, for whatever reason, homeless or have found themselves in dire straits. The food banks are telling me that working people are fronting up on a regular basis—working people who can't make ends meet.

I know that what we're doing is not a panacea for everything, but it certainly will go a long way in putting a few extra dollars in people's pockets. That's why I support the Treasury Laws Amendment (Cost of Living Tax Cuts) Bill 2024, and I hope everyone on the other side supports it as well. It is a very important bill that will put extra money into the pockets of the people who need it the most.

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