Terry Young (Longman, Liberal National Party) | Hansard source

I rise to speak on the Treasury Laws Amendment (Cost of Living Tax Cuts) Bill 2024. There has been much talk and spin about the fact that Labor have tweaked the coalition stage 3 tax cuts in a manner that attempts to cement the narrative that they are the party of the battler, of the low-income worker. That's just a load of rubbish. This continuing rhetoric and attempt to project themselves as the Robin Hood party, where they take from the rich and give to the poor, is not washing with Australian people, because they aren't fools.

Let us look at the facts—a new concept, I know! Firstly, these are proposed stage 3 tax cuts. This means there were two stages before this one. I know this because it was the coalition who legislated all three stages. It was our idea, our policy, because we are, and always have been, the party that believes in and delivers lower taxes to all workers. We're also the party that believes in simplifying the tax system, not making it more complicated. The original legislation not only allowed hardworking Australians to keep more of what they earned—a term first coined by the coalition, which I notice Labor have now picked up on and are using with gusto and enthusiasm. They do say that, when you are copied, that is the greatest form of flattery.

I digress. The coalition's legislated tax cuts eliminated entirely the 37c in the dollar tax bracket and reduced the 32½ per cent bracket to 30 per cent. To assist low- and middle-income workers, from July 2020 we lifted the 19c bracket from $37,000 to $45,000. These measures meant that every worker earning up to $200,000 would not pay more than 30c in tax on any dollar they earnt. What a wonderful incentive for people who have aspirations to work hard, take risks and/or upskill themselves. Labor have re-complicated the tax system by reintroducing the 37c bracket for those who earn more than $135,000—in doing so, punishing those with these aspirations. They have also legislated that those earning $190,000 or more will pay 45c in tax on every dollar they earn over that figure.

The coalition understand that a percentage of a bigger number is a larger amount in real dollar terms, and we wanted to ensure low- and middle-income workers on under $120,000 were looked after as well as those on higher incomes. This was achieved in two ways. First, stages 1 and 2 of these tax cuts implemented the tax cuts for those on these lower incomes back in 2018-19 and in 2020-21, when we were in government. Stage 3, where the tax cuts came in for those on higher incomes, were due to commence this July. This is further evidence that the coalition is the party of all workers, including those on lower incomes. Second, the LMITO, or the low- and middle-income tax offset, was introduced for those on an income of less than $120,000. I can testify firsthand, from speaking to people on these lower incomes, to the real difference this made in their lives. Getting their tax done and receiving a windfall of up to an extra $1,500 in their tax refund was, for some, life-changing.

Debate interrupted.

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