Louise Miller-Frost (Boothby, Australian Labor Party) | Link to this | Hansard source

My question is to the Prime Minister. How will the Albanese Labor government's tax cuts help Australians with the cost of living? What has been the response to Labor's plans?

Anthony Albanese (Grayndler, Australian Labor Party, Prime Minister) | Link to this | Hansard source

I thank the member for Boothby for her question. Of course, she supports every Australian taxpayer getting a tax cut—all 13.6 million of them, not just some—because the member for Boothby understands, due to her background in the social services sector, where she had a career helping people through organisations like St Vincent de Paul, that we can't leave people behind. That's why every single worker, whether they earn $45,000 or not, will get a tax cut as a result. Everyone below $45,000 will benefit from the reduction in that first rate from 19c down to 16c, and the good news is that that tax cut flows right through the income tax scales.

But we haven't left it there, because we also don't want to leave people behind. We want to support average workers. We want to support aspiration. That's why we've lifted the rate from $120,000 up to $135,000, where the 37 rate kicks in. That's why we've lifted the top rate from $180,000 to $190,000 as well. I note: it's the first increase in the top rate since 2008, when we occupied the Treasury benches as well.

It stands in stark contrast to what occurred when those opposite actually put in an increase in the top rate by introducing, without any notice, prior to an election, a so-called deficit levy on higher income earners at the same time as the Leader of the Opposition personally tried to put in a GP tax on every visit to the GP, a tax on everyone who visited a hospital and an increase in the cost of medicines while, at the same time, ripping $50 billion out of the health system.

But what we will do is: a shop assistant on $32,000 will get a $414 tax cut, instead of nothing. A nurse on $76,000 will get $1,579. A teacher on $80,000 will get $1,679. A police officer on $110,000 will get $2,429. And an IT manager on $160,000 will get $3,729. These tax cuts will make an enormous difference. And importantly, as well, they won't put pressure on inflation. We want people to earn more and to keep more of what they earn. What they want is for people to work longer for less. That's the great divide in Australian politics today. This side of the House understands that aspiration is what every Australian family has for themselves and for their kids.