Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Hansard source

Thank you to the member for Macquarie not just for her question but for the very substantial small-business experience that she brings to this parliament. The tax reform package at the core of the government's fifth budget was about three main things: making it easier for people to buy their first home; cutting income taxes for 13 million Australian workers; and better aligning the tax treatment between people who work and people who earn their income in other legitimate ways. A really important part of that budget was that tax cut for 13.3 million Australians—the Working Australians Tax Offset. It's targeted to workers. It represents the most meaningful permanent increase to the effective tax-free threshold since Labor last increased it more than a decade ago.

But it's not the only way that we're cutting income taxes. We're cutting income taxes five different times in three different ways. We've got the tax cuts already legislated, including another round in July this year and another round after that in July next year. Those opposite voted against those tax cuts. We've got a $1,000 instant deduction next financial year, and now we've got the Working Australians Tax Offset announced in the budget. Altogether, our five different tax cuts will mean the average worker will benefit by up to $2,816 in 2028. We're also delivering over $3½ billion in new measures to lower taxes for businesses, and we're reducing compliance costs by more than $10 billion a year. This is what the budget was all about.

On Thursday, in this parliament, we'll be introducing legislation to give effect to these tax cuts: the standard deduction, the Working Australians Tax Offset and the core elements of the changes to negative gearing and capital gains. We will learn on Thursday whether they've learned the lesson from the last election. The last time this parliament cut taxes, those opposite voted against it and said that, if they won the election, they would repeal those tax cuts. We will learn on Thursday whether they've learned anything from the last election, whether they've changed a bit in recent times. What we already know is that there are two kinds of people in this parliament: people who see the issues in the housing market for young people and want to fix them, and people who see those issues and want to do absolutely nothing about it. There are people who see the social, economic and political division and dislocation around the world and want to avoid it versus those who want to copy it. There are people who see aspiration as the birthright of every single Australian and those who see aspiration as the exclusive preserve of people who are already doing very well. Thursday, when the legislation is introduced, will be another test for those opposite. This time they should vote for tax cuts. (Time expired)

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