Julie-Ann Campbell (Moreton, Australian Labor Party) Share this | Hansard source

I understand that technical tax legislation might not be enthralling for everyone and might not be everyone's cup of tea, but, like the member for Sturt, I think the Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Bill 2026 is an important piece of legislation. I may not have a favourite schedule, but I do want to take the House through not only what's important about this specific bill but also the importance of Labor's budget overall for everyday working Australians.

We know that right now too many people are feeling the squeeze. They feel it during their weekly shop, they feel it when they're filling up their cars and they feel it when the bills roll in. Cost-of-living pressures are not abstract. They are something Australians are copping every single day. That's why the 2026-27 budget really matters. This budget is about taking practical and responsible steps to ease that pressure. It's about putting money back into people's pockets, and it's about ensuring that support is targeted where it is needed the most. Fundamentally, it's about keeping the economy strong and resilient and robust for the future.

Let's talk about cost-of-living support. This budget includes a range of measures that are designed to take pressure off households. The Albanese Labor government wants Australians to earn more and to keep more of what they earn. That's why, this year and next, Labor is implementing legislated tax cuts that apply to every Australian taxpayer, and today we will find out whether or not those opposite are going to go down that same road of voting against a tax cut for everyone. Today we will find out whether or not they are going to again say no when it comes to a tax cut that Australians so desperately need. Will they repeat their form?

These cuts are designed to provide immediate relief, easing pressure on household budgets and putting additional money directly back into the economy. But we're not stopping there, because Labor is also introducing further ongoing income tax relief to support Australian workers over the long term. This includes a new $250 working Australians tax offset, which will deliver permanent targeted support to help boost take-home pay. Not only that, it creates another piece of architecture within our tax system that can be used into the future. This will take effect for income earned from the second half of 2027, automatically lowering workers' tax obligations for the 2027-28 financial year.

Alongside this, the $1,000 instant tax deduction without receipts will make the tax system simpler and will make it more accessible, cutting red tape while giving workers a fast and straightforward way to claim deductions—no scrapping around for receipts, no looking through shoeboxes. It's something that is easy for people who are busy working, raising their kids and caring for their loved ones. Together, these measures ensure that tax relief is not just a one-off benefit but a sustained effort to support Australians, help people hold on to more of that income and, indeed, strengthen their personal financial security.

Schedule 5 of the Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Bill 2026 implements an increase to the Medicare levy low-income thresholds. This amends the Medicare Levy Act 1986 and the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999. It will increase the thresholds for singles, families, seniors and pensioners by 2.9 per cent, in line with recent movements in the consumer price index. These changes will mean that Australians on lower incomes will continue to receive important protections when it comes to the Medicare levy.

We all know that Labor mark the genesis of Medicare. We created it, and we don't sit and rest on our laurels when it comes to the important program that is Medicare, because we believe that, when you put something in place, it's important not to just let it sit there. We make it better. We improve it, and that's what this is all about. From 1 July 2025, eligible individuals and families will either remain fully exempt or pay a reduced rate, particularly where their income growth has kept pace with or fallen below increases in the cost of living as measured by the CPI.

Adjusting the low-income thresholds in line with CPI has been a consistent approach taken by successive governments since 1996-97. This longstanding practice reflects a commitment to maintaining fairness in the tax system, ensuring that those with the least capacity to pay are not disproportionately impacted over time. As a result of these changes, more than one million low-income earners are expected to benefit in the 2025-26 financial year. This is meaningful financial relief which helps to ease cost-of-living pressures while preserving access to essential health services that Australians need every day.

This bill will also benefit around 92,000 Australian pensioners who travel overseas for more than six weeks. It doubles the amount of time they can be away before their pension supplement is affected, from six weeks to 12 weeks. This amendment takes into account the ongoing costs that are still incurred at home, such as energy, phone and internet bills, and it will provide travelling pensioners with greater flexibility and financial support when temporarily overseas.

At the same time, the bill introduces a clearer and fairer approach for those who are overseas for longer periods or who choose to live outside Australia on a permanent basis. In these cases, the pension supplement will cease after 12 weeks overseas, or from the time of departure for those relocating indefinitely, rather than continuing at the reduced basic rate. This reflects the original purpose of the basic pension supplement, which was designed to help offset the impact of GST on everyday living expenses in Australia—costs that are generally not incurred in the same way by people living overseas in the long-term.

Importantly, this change does not affect a person's eligibility for the pension itself, nor does it alter how the base pension is calculated. Pension payments will continue to be indexed twice a year, ensuring they keep pace with living costs over time. Overall, this approach ensures the pension supplement is better targeted. It provides additional support to pensioners who live in Australia and travel temporarily, while removing ongoing payments for those no longer facing the same domestic cost pressures. The impact of this measure will be limited, affecting only about five per cent of pensioners. The vast majority will either benefit directly or see no change at all, as they continue to reside in Australia and typically travel overseas for only short periods of time.

The budget is also taking aim at tax system reformation to address critical issues of intergenerational fairness. Labor's reforms will support around 75,000 more Australians into homeownership over the next 10 years, helping more people to achieve the security of owning their own home. When the opposition talks about aspiration, I find it incredibly interesting, because, in my community, people aspire to own their own home. In my community, people aspire to set down roots and build a life. In my community, people aspire to have a place with bricks and mortar where they can plan their family for the future. That is what aspiration looks like.

When we talk about making sure that our nation and particularly our young Australians have something to aspire to, it must start with a home. We know that so many young people right now do not see that as a reality, and that is a problem. It's a problem that we have to fix. It's a problem that cannot simply be talked about. It is a problem that something must be done about, and that is what this budget does. That is what the housing bill does. That is what the cost-of-living relief does. If you don't believe that this is a budget where lower taxes and access to a first home as its core priority is something that you can support, that is an assault on aspiration.

Reforming negative gearing and capital gains tax settings will help create a fairer and more balanced housing market. We know that the interaction between the housing market and the tax system is broken. Under these changes, the tax advantages currently associated with negative gearing will be redirected to support investment in newly constructed homes, helping to boost housing supply while improving access for buyers. If you want it, we've got to build one for the country as well. That's about making sure that we address critical housing shortages that haven't just popped up overnight but have been around for 40 years, and that's what this budget is focused on.

Capital gains tax arrangements will be reformed, replacing the existing framework with a system that indexes the assets cost base and introduces a minimum tax rate of 30 per cent on capital gains. These reforms are necessary in the current environment and reflect longstanding shifts in Australia's housing market. Since 1999, house prices have risen at more than twice the rate of average full-time wages. The question is: if you're a nurse working shift work, if you're working at the checkout at your local supermarket, if you're working as an early childhood care educator, why should you be taxed more than someone sitting on an asset?

Over the same period, particularly in the first two decades of this century, homeownership among Australians aged 25 to 34 has declined by seven percentage points, highlighting the growing challenges younger people face in entering the housing market. The reforms are designed to address these pressures and to improve access for younger Australians.

From 1 July 2027, as mentioned, negative gearing will be limited to investments in new residential properties only. At the same time, the existing 50 per cent of CGT discounts for individuals, trusts and partnerships will be replaced with a system that indexes that cost base. Importantly, these changes are structured to protect current investments. Properties owned before the announcement on 12 May 2026 will not be affected by the new negative gearing rules, and the revised CGT settings will only apply to gains made after the reforms come into effect in July 2027. These changes are designed and intended to support the construction of new housing. They're designed to make it easier for first home buyers to compete in the market and to rebalance the tax system, so it puts less pressure on workers while still recognising the role that investors have to play in our economy.

Labor is also investing an additional $2 billion in enabling infrastructure to unlock the construction of up to 65,000 more homes, bringing our Homes for Australia Plan to more than $47 billion. The Albanese Labor government is also providing $59.4 million to states and territories to help secure social housing for more than 4,000 eligible young people at risk of homelessness. That's important work.

Labor is delivering meaningful cost-of-living relief right now, and it's directed at Australians who need it the most. This budget is helping households manage today's pressures, and it's also building a more productive and resilient economy that can create jobs and drive growth into the future. At the same time, Labor is working towards a tax system that is fairer, a tax system that is simpler, a tax system that is more sustainable and a tax system that ensures everyone pays their fair share while supporting opportunity and aspiration. The aspiration of owning one's own home is at the heart of this budget. We're addressing the challenges in our housing market now and taking practical steps to improve affordability and accessibility so more Australians can achieve that great dream of having a place to call home.

The budget strengthens the nation's finances, delivering a budget that is responsible today and sustainable in the long term. Real relief for Australians is not simply about the here and now, and the short term; it's about building stronger foundations for the future.

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