Llew O'Brien (Wide Bay, National Party) | Hansard source

I rise to speak on the Treasury Laws Amendment (Cost of Living Tax Cuts) Bill 2024. Obviously, in this place we make a lot of big decisions that affect people. Some are smaller than others, but one thing about tax law and taxation is that it strikes at the heart of most people's family budget, and it's something that we need to take extremely seriously. I just don't think that is happening on the other side. I really don't. I think, when it comes to this plan that the Labor Party has effectively cooked up on short notice, it isn't well considered. If you believe the Prime Minister, who's been telling us up until five minutes ago that there was no plan to change the stage 3 tax cuts, it's very hasty in its being brought forward, and it's ill considered. I'll go on to explain what I mean by that.

Of course I'm in favour of income tax cuts. They effectively give people their own money back. When you go for a job, and they tell you what your wage is, they don't tell you the amount after tax; they tell you the amount before tax, because that's your money. You're earning it. When you pay tax, the government takes that off you. Any legislation that comes before this House that looks to give people more of their own money back I'm naturally going to be in favour of. But it's the basis upon which these changes are happening. I certainly won't stand in the way of people getting more of their own money back, but I do think, under the circumstances and in the current economic climate, there is a better way of doing it. I don't think anyone likes paying tax, straight up. A lot of people give their altruistic views on taxation and it being a wonderful thing. I think it's a necessary evil, and I don't think people actually really do like handing over money to the government.

Certainly, taking more income tax off of people is one of this government's key achievements. Indeed, 27 per cent more income tax has been going into the economy under the Albanese government in the last 18 months. A 27 per cent increase in personal income tax under this government is quite extraordinary, really. That's before you start looking at the 10 per cent GST on the goods and services that are absolutely going through the roof with this current cost-of-living and inflation crisis that has been 100 per cent brought about by the policies of the Albanese government. People are paying a 49 per cent excise every time they fuel their car up. That's only going to become worse, with transport costs that will go through the roof under the new policies that have been brought forward by the Labor Party, which will see electric vehicles and hybrids forced into the market and onto people who can't afford what will be a major increase in cost to purchase a vehicle.

People are already paying excise on beer and wine, and tobacco is going through the roof. There are the policies around tobacco, which they're gouging more and more out of. They're not only failing on a health basis, because all we're seeing is illicit tobacco shops popping up all over the place. It's an absolute disgrace what this government is doing in terms of their economic management. Labor talks a big game on middle-income and low-income relief. But we've got to remember it's the coalition who have already delivered $40 billion worth of tax relief to low- and middle-income earners in their three-stage plan, of which the Labor government are certainly changing the third stage, which they initially agreed to and promised the Australian people that they wouldn't change. But $40 billion has already been returned to taxpayers.

Stage 1 provided tax relief to low- and middle-income earners earning up to $90,000 by raising the 32.5 per cent tax rate threshold and introduced a low- and middle-income offset. That was a key piece of policy that was designed to help people in a cost-of-living crisis. It was something that could be implemented at short notice, something that wasn't permanent but could be directed at those who needed it most at the right time, unlike this structural change that is certainly not going to be in the long-term interests of Australian taxpayers and the economy.

Stage 2 increased the 19 per cent rate threshold from $37,000 to $45,000. The 32.5 per cent rate threshold was raised from $90,000 to $120,000, and the low-income tax offset increased from $445 to $700, with low-income earners eligible to receive both tax offsets.

Stage 3 would have simplified and flattened the system by removing the 37 per cent tax bracket completely. That was a very important piece of legislation that would have addressed bracket creep. Those people in the middle-income range, hardworking Australians who are not rich by any stretch of the imagination, are being pushed into that next tax bracket and paying more tax through bracket creep, and that has certainly contributed to that massive increase of 29 per cent income tax that has been taken from hardworking Australians by the Albanese government.

That was the plan—in stage 3, we were getting rid of the 37 per cent tax bracket completely. That 37 per cent tax bracket really needs to be known as Prime Minister Albanese's tax bracket, because he owns that from here on in. That is his tax bracket. When hardworking Middle Australia are paying 37c on the dollar instead of 30c on the dollar, they can say, 'Thank you, Prime Minister Albanese, for making me pay more tax.' It shouldn't come as any surprise, but it is the case.

The low- and middle-income tax offset gave people back $1,500. That was the offset that we put in place in the coalition. The offset was removed by the Albanese Labor government in 2023, and the government now says that it will give these low- and middle-income earners about $800 back instead. We were giving them $1,500 as targeted relief in a cost-of-living crisis, and the Albanese Labor government, which is spruiking that it's making these wonderful changes, is giving back $800 as opposed to our $1,500. That's $15 a week, which won't go very far at all when you think about it.

We are living through a cost-of-living crisis. This government is failing badly when it comes to that. They will tell you that they are implementing all of these policies that are helping with the cost of living, but I ask you simply: Do you feel like you are paying too much for your goods? Under this government, have you felt like you are paying less? I think I know the answer to that, and the answer is a big no. People are paying more under Labor, and that is a fact.

The other aspect to this is the politics around this. Yes, there are some people, as I said before, who will receive more of their money back, and we won't stand in the way of that. But there is a big cohort of people who won't who are not rich. We've heard all of these television gibes throughout the week from the other side, but this is like an old repeat. This class warfare of envy is attacking Middle Australia.

I know frontline emergency service workers who are going to have money taken off them by the Albanese government. I was talking to one the other day. This person is somebody the Albanese government has decided is not worthy of the tax cut that they were going to get. This person goes to the most horrendous domestic violence incidents and puts their life on the line to help others in their community. This person is in a particular tax bracket not necessarily because of aspiration but because of a sense of duty. Particularly in Queensland, where the Labor government has mismanaged things so poorly, there are people working in public services that are very understaffed. They're not taking on overtime because they want extra money. They're doing it because no-one else will. That's what finds them going into these tax brackets that the Albanese government has decided it's okay to take money off. These are people that are serving their community on the front line and they're being labelled as rich and as not feeling cost-of-living pressures. That's absolutely absurd. The government should hang their heads in shame for engaging in that sort of thing.

To add insult to injury, this government is taking money off hardworking Australians and it's blowing it, with government waste like you would not believe. The greatest example, so far, of many is the referendum we had that cost $450 million. The government said, 'We're going to take this money out of your pay packet, hardworking Middle Australia, and we're going to spend money on things like a referendum.' It was an ill-considered referendum which should have been a moment of unity for our nation but did nothing but cause division. The government said, 'We're going to waste that $450 million, but we're going to take it out of your pay packet, hardworking Middle Australia. We're going to bury a billion dollars worth of Taipan choppers instead of using those assets more prudently. We're going to have a Prime Minister that decides he's going to fly around the world in the VIP jet but wants to talk about hardworking Middle Australia, who he's taking money off with these tax changes.' He's blowing money, left, right and centre. It's an absolute disgrace—it really is.

The good news is that after the next election we will, hopefully, have a different government that makes decisions in the interests of both the economy and the taxpayers who add to that economy. We will have a government that makes long-term decisions that will look further into the future to help Australian taxpayers and that will bring about changes that address bracket creep. We will have a government that will stop waste. We will have a government that looks after hardworking middle Australians, who are characterised by this government as rich snobs who don't deserve a tax cut. That government will, hopefully, be a Dutton government, and I will certainly be proud to serve as part of that government.

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