Cassandra Fernando (Holt, Australian Labor Party) Share this | Hansard source

I rise today with pride to support the passage of the Treasury Laws Amendment (Cost of Living Tax Cuts) Bill 2024. In Melbourne's outer south-east, where families are grappling with steep housing costs, soaring energy bills and rising childcare expenses, the cost-of-living crisis is deeply felt. Working Australians have shouldered the burden of these issues, struggling to make ends meet despite their tireless efforts. This bill represents a leap forward in our nation's journey towards economic fairness and social equity. It is a testament to the Albanese Labor government's unwavering commitment to the welfare and prosperity of all Australians.

This bill implements the Labor government's cost-of-living tax cut for middle Australia. It means every single Australian taxpayer will now get a tax cut, no matter their income. It means that 90 per cent of taxpayers in my electorate of Holt will get a bigger tax cut than they would have under the coalition. This means more tax relief for more workers to help with cost-of-living increases.

When the Prime Minister spoke during question time last week, his words echoed the sentiments of every resident in the south-eastern suburbs of Melbourne. They reminded us of the fundamental truth that aspiration knows no bounds. They remind us that the concept of aspiration is not confined to a select few who have enjoyed privilege or come from an elite background. Instead, it is evident in every corner of our nation, touching the lives of every hardworking individual.

As I engage with my constituents from all walks of life in Holt, I see the profound aspirations that drive each and every one of them. From fast-food workers to IT professionals, from the dedicated staff at Woolworths to the migrants who have journeyed to our shores through our skilled migration programs, the desire for a better future resonates deeply within the hearts of every Australian. I understand this aspiration better than many because this is also the story of my family, who migrated to Australia to ensure a better life for their children. Under a Labor government, these aspirations are not only acknowledged but championed. We understand that the foundation of a fairer and more prosperous society lies in ensuring that every individual has the support they need to pursue their dreams regardless of their current income. That's why our government is committed to implementing policies that empower middle Australia and to providing them with the support they need to thrive.

Our plan will give all 13.6 million taxpayers a tax cut. It will mean that, compared to Scott Morrison's plan from five years ago, 2.9 million more people will receive a tax cut. It will mean 11.5 million taxpayers will receive a bigger tax cut than under the coalition. The biggest beneficiaries of these tax cuts will be the nurses, teachers and truckies. When I went to vote in my first election, I asked my mum who I should vote for. She told me that I should vote for Kevin Rudd because the Labor Party is the party that represents working-class Australia. Only the Labor Party stands up for Australians who are doing it tough, and this legislation is proof of that.

From 1 July this year, the Albanese Labor government will reduce the 19 per cent tax rate to 16 per cent. The decrease in the 19 per cent tax rate will ensure that minimum-wage and part-time workers, like many of our nation's youth, will be better off. These workers, of whom I used to be one, received zero support under the coalition's plan. This is the difference between Labor and the coalition. The Labor Party is here to support everyone. The coalition is only here to support those in the top percentile of society. On top of this, the government will also increase the threshold for the Medicare levy by 7.1 per cent. These changes will support low-income households, as households with taxable incomes below $32,500 will not be liable for the full Medicare levy. These changes will give back money to an estimated 1.2 million low-income earners, in addition to the lower tax rate.

From 1 July this year, the Albanese Labor government will also reduce the 32.5 per cent tax rate to 30 per cent, increase the threshold above which the 37 per cent tax rate applies from $122,000 to $135,000 and increase the threshold above which the 45 per cent tax rate applies from $180,000 to $190,000. The increase in threshold above which the 37 per cent and 45 per cent tax rates apply will ensure that the middle-income earners in my electorate of Holt will receive a fairer share of tax relief. In Holt, the average tax cut will amount to a substantial $1,321 a year, offering significant relief to families grappling with the rising cost of living. A minimum wage worker on $45,000 will save $800 under Labor's plan. A nurse or a primary school teacher on $76,000 a year will save $1,600. The average truck driver on $80,000 a year will save nearly $1,700. A welder who earns $110,000 will save nearly $2,500. Those who earn $180,000 and above will still get a tax cut. In fact, those who earn over $180,000 will receive the biggest tax cut of all, 4½ thousand dollars.

By putting more money back into the pockets of hardworking families, Labor is empowering them to better navigate the challenges they face daily. The decision to amend the old stage 3 tax cuts was not taken lightly by the government. We understood the political sensitivity and the potential challenges involved in altering tax legislation that had been in place for five years. However, we recognised the significant changes in the economic landscape since then, including the once-in-a-century pandemic, persistent inflation, higher interest rates and global uncertainty. These factors have placed greater pressure on the cost of living for individuals and families across the nation.

Over the summer as I engaged with my community in Holt it became increasingly evident that more comprehensive cost-of-living relief was necessary. As responsible managers of the economy, Labor understands the importance of adapting economic policy to changing circumstances. The tax changes outlined in this bill reflect Labor's commitment to addressing the evolving needs of Australians. In the words of ANU Associate Professor Ben Phillips, 'These are the right measures to implement driven by reasons and timed appropriately to provide relief when it is most needed.'

However, it is important to acknowledge the tax cuts alone are not enough to address the root causes of the cost-of-living crisis. In Melbourne's outer south-east, where families are grappling with steep housing costs, soaring energy bills and rising childcare expenses, a holistic approach is needed to tackle these issues. The Albanese Labor government understands the daily struggles faced by families in Holt and across the nation. That's why our comprehensive approach goes beyond mere tax relief.

We have delivered electricity bill relief, with $1.5 billion in power savings to Australian households. We are delivering cheaper child care, benefiting 1.2 million families. We have delivered the largest increase in rent assistance and income support payments in history. We have strengthened the beating heart of Medicare by tripling the bulk-billing incentive. We have delivered cheaper medicines, with the 60-day prescriptions saving patients $1.6 billion over the next four years. We are delivering 300,000 fee-free TAFE positions, upskilling Australians in the jobs of the future. We are investing over $10 billion to build more affordable homes, we are expanding paid parental leave to 26 weeks and we are creating jobs and getting wages moving again after a decade of stagnation.

While these tax cuts will undoubtably provide much needed financial breathing room for hardworking Australians, we recognise that they are just one piece of the puzzle. That's why Labor is committed to investing over $23 billion in a range of initiatives to ease the burden on working families. From investing in affordable housing and renewable energy and providing greater support for child care and education, we are taking decisive action to address the underlining factors driving the cost-of-living crisis.

In Holt and across the nation, working people can rest assured that we will be better off under a Labor government. We will continue to fight tirelessly to ensure that every individual has the opportunity to fulfil their aspirations and achieve their full potential, because in Australia aspiration belongs to every single person, and it is our duty to ensure that it remains within reach for all. Whether it's a part-time worker striving for financial security or a supermarket worker dreaming of home ownership, only the Labor Party's policies are designed to uplift and empower all Australians. We understand that true prosperity is more than just financial gain. It's about having the opportunity to build a better life for oneself and one's family. That's the promise we make to the people of Holt and to all Australians. Under a Labor government, everyone will be better off.

In closing, I would like to express my gratitude to Treasurer Jim Chalmers for his tireless work on this bill. His dedication to the welfare and prosperity of all Australians is evident in the thoughtful measures outlined within this legislation. I commend this bill to the House, confident that it represents a significant step forward in our ongoing efforts to create a fairer and more equitable society for all.

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