Amanda Rishworth (Kingston, Australian Labor Party, Minister for Social Services) | Hansard source

I'm very pleased to speak in this debate. I was listening to those opposite, and they were very forthright in their objections to these tax changes, which are bigger, better tax cuts for more Australians. So I was a little confused about why they are voting for these tax changes. They had the opportunity to get up, put a stake in the ground and show their opposition to these tax cuts, but, of course, they haven't done that, because, despite their rhetoric and what I think is a lot of hot air, they actually know deep down that these tax cuts are tax cuts for Middle Australia, they are tax cuts that support aspiration and they are tax cuts that give every single Australian a tax cut. If they didn't know or believe that, surely they would vote against these tax cuts, but they are choosing not to. They are putting a stake in the ground and saying, 'We support the government's tax cuts.' It would be nice if these quite contradictory positions were explained a little bit more in this debate, but I'm not going to hold my breath.

I am very pleased to speak in favour of the tax changes put before the parliament, because the Treasury Laws Amendment (Cost of Living Tax Cuts) Bill 2024 will provide a tax cut to every Australian taxpayer. Our No. 1 priority as a government is helping Australians with the cost-of-living pressures. From 1 July, the government is delivering a tax cut, as I said, for all taxpayers, which will provide meaningful and immediate cost-of-living relief up and down the income scale without adding to inflation. All 13.6 million taxpayers will receive a tax cut, and 2.9 million more taxpayers will receive a tax cut compared to the previous government's plan. Eleven point five million taxpayers—that's 84 per cent of taxpayers—will now receive a bigger tax cut compared to the previous government's plan. Our tax plan includes increasing the Medicare levy low-income thresholds, meaning that 1.2 million low-income earners will get additional tax relief on top of the tax cuts that the government is legislating.

Of course, the Albanese Labor government's tax cuts are better for workers and families and better for Middle Australia and communities right around Australia. This includes social and community services workers, who deliver a range of programs in my portfolio of Social Services, including services for people with disability, carer support services, initiatives to reduce violence against women and children, and other family and community supports. Our tax cuts mean that a full-time social and community service worker earning $75,000 will receive a tax cut of $1,554. This is double the tax cut that they would have got under the previous government. The rhetoric coming from those opposite would suggest that they disagree with this person getting double the tax cut that was otherwise planned. The rhetoric that we are attacking Middle Australia suggests that this worker on $75,000 should not get double the size of tax cut. Well, we think that this worker, along with all other Australian workers, should be able to keep more of what they earn. A part-time disability support worker earning $40,000 will receive a tax cut of $654, once again keeping more money in their pocket. Under the previous government's plan, this worker would have got no cost-of-living relief. So I am really pleased that, as a result of this government's tax plan, community service workers will be able to take home more of what they earn to help with cost of living. My portfolio and, indeed, many other social services would not be able to deliver these programs without the dedication of workers who touch lives every single day, particularly the lives of vulnerable Australians doing it tough.

Not only are our tax cuts particularly good for Middle Australia but they are also particularly good for women. All 6.5 million women taxpayers will receive a tax cut, benefiting by an average amount of around $1,650. Of course, 90 per cent of female taxpayers will receive a bigger tax benefit than otherwise was planned by the previous government. More than 90 per cent of taxpayers in essential and high-demand occupations, many of which have a high percentage of women, will receive a bigger tax cut. This includes teachers, nurses, aged-care workers, disability carers and childcare workers. Our tax plan will ensure more women keep more of what they earn and will help parents who are returning to work. Increases in take-home pay will also create opportunities for women to take on more hours, and we've seen in the modelling that this will boost labour force participation.

The government's tax cuts complement continuing reforms to address women's economic inequality by closing the gender pay gap, supporting workplace flexibility and security and rebalancing unpaid care work. Of course, I'm here particularly as the member for Kingston, and I am really pleased that the workers in the southern suburbs of Adelaide will get to keep more of what they earn under Labor's tax plan. There are 75,000 taxpayers in my electorate, many in the health area. There are care workers, tradies, technicians and office workers. They will all receive a tax cut, and 90 per cent of these taxpayers will receive a bigger tax cut than they would have received under the previous government's plan. Once again, what the opposition is saying is that those people don't deserve a bigger tax cut. Workers in my electorate, in all those different professions, deserve this tax cut to support them with the cost of living.

Our tax cuts complement the significant other cost-of-living relief measures that the Albanese Labor government has provided, particularly for those Australians on low incomes. In the last budget, the government announced an increase to the working age and student payments, which commenced from 20 September last year. This additional support has been flowing, along with indexation increases of the relevant payments. Since Labor took government just over 18 months ago, the base rate for JobSeeker has increased by 17 per cent in less than two years. The government has also delivered the largest boost to Commonwealth rent assistance in over 30 years to help people on income support, pensioners and low-income families cover the cost of rent. Around one million households are better off up to $36 per fortnight, including indexation and depending on their household type.

Importantly, this has not only provided cost-of-living relief but has helped to moderate rent increases. This is an example of smart government policy that is delivering direct cost-of-living assistance but is not adding to the inflation challenge, and that has been keenly felt. In fact, the opposite is happening, and this measure has moderated rent rises. Whether it is strengthening the safety net, providing electricity bill relief, providing cheaper child care, tripling bulk-billing or providing cheaper medicines, the Albanese Labor government is doing a whole lot to help people with the cost of living.

As we've heard from those opposite, it's pretty clear that those opposite do not want these tax cuts for Middle Australia, just like they didn't want to see an increase to JobSeeker or provide electricity bill relief. What has been pretty stark is that those opposite clearly have no alternative plan. They oppose our bigger, better tax cuts to Middle Australia but are voting for them. It is clear that they absolutely have no plan. It is hard to understand their position on this, because their position has been changing quite a lot. On the first day, they were going to roll them back. On the second day they weren't going to make a decision until they'd seen the legislation. Then I think the shadow Treasurer equated the cuts to Marxism and said they would fight us every step of the way. Now they're voting for them. You could not contort yourself in as many different positions as those opposite have done when it comes to these tax cuts. But that is because this opposition are full of negativity. They're full of negativity. They're full of saying no. They have no plans for the future. There's so much negativity that they've spent how many days arguing against tax cuts that they are actually going to vote for. The Australian people can see this posturing for what it is: the cynical politics that we are seeing from those opposite.

Our government has taken the responsible action. Economic circumstances have changed and, as a result, we've adjusted our policies to meet those economic circumstances. We have been very, very clear that we want to support Australians with the cost of living, and ensuring we have a bigger, better tax cut has been important in that and in ensuring that our policy on tax does not add to inflationary pressures.

This is supported by Treasury advice, which stated the tax system is an effective way of providing cost-of-living relief without putting extra pressure on inflation. That is what the Treasury has said about our tax cut plan. Importantly, our tax plan puts Australians first. It will provide meaningful cost-of-living relief for everyday Australians in a responsible way that doesn't add to inflation.

While we see those opposite contorting themselves—will they, won't they, will they roll it back, won't they?—I look forward to seeing their tax plan, which we hear is going to come one day—one day it's going to come! I look forward to seeing the merits of that, but, based on the quality of this debate, I'm not going to hold my breath. I'm not sure we're going to see something from those opposite that is well thought through and is right for our economy.

This government will get on with doing what's right for the economy, but, most importantly, what's right for the Australian people, what's right for Middle Australia, because they deserve cost-of-living relief, and that's what we're delivering. I commend the bill to the House.

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