Rob Mitchell (McEwen, Australian Labor Party) | Link to this | Hansard source

I move:

That this House:

(1) notes that on Monday, 1 July 2024, every Australian taxpayer will receive a tax cut; and

(2) acknowledges the Government's number one priority is to tackle the cost of living pressures facing Australians by ensuring they earn more and keep more of what they earn.

Today is the day—1 July 2024. Today, the Albanese Labor government's cost-of-living tax cuts come into effect, providing tangible cost-of-living relief to every single Australian taxpayer. Let's look at the facts. All 13.6 million taxpayers will receive a tax cut, and 2.9 million more taxpayers will receive a tax cut than would have under the coalition's failed plan. Eighty-four per cent of taxpayers—11.5 million people—will now receive a bigger tax cut under this government than they would have received previously. Five-point-eight million women—90 per cent of women taxpayers—will now receive a bigger tax cut compared to what they would have under the plan proposed by the coalition.

Labor's tax cuts deliver essential cost-of-living relief for Middle Australia, alleviating some of the pressures that currently impact household budgets. Importantly, Treasury has advised that these tax cuts will not add inflationary pressure. In our community of McEwen, these tax cuts will have a huge impact. Every single one of the 76,000 taxpayers in McEwen will receive a tax cut. On average throughout our communities, each person will get $1,583 back in their pockets. That is in addition to the $300 energy rebate that every single household will receive. That's another $300 back into the family budget.

It adds to the work of taking off more pressure in the cost-of-living crisis and supporting all Australians. Additionally, the Albanese Labor government is working tirelessly to tackle the cost of living and groceries. We are strengthening the Food and Grocery Code of Conduct and accepting all the recommendations from the recent independent review. This is part of our wide-ranging cost-of-living crackdown on anticompetitive behaviour in the grocery sector, and it is firmly aimed at getting a fair go for Australians and a fair go for farmers. It's all part of the plan to have Australians keep more of their hard-earned money and not to splash cash, which would lead to higher inflation. This is not the cash-splash that we've seen under previous governments.

Those opposite wouldn't know what effective cost-of-living relief or competent economic management were if they hit them in the face. Apart from a harebrained scheme to produce the most expensive form of energy in the world, what has the opposition offered up in response to the cost of living? The word is 'nothing'; they say, 'No.' Do they want cheaper energy bills? 'No.' Do they want cheaper medicines? 'No.' Do they want affordable housing? 'No.' Do they want wage increases? 'No.' Do they want tax cuts for all hardworking Australians? 'No.' We all recall the Deputy Leader of the Opposition grandstanding, saying that they will roll back these tax cuts.

Make no mistake: the coalition want to put your taxes up unless you're in the highest income bracket, and that is unfair on all Australian workers. They want to take the money that Labor has put back into the pockets of hardworking Australians for no reasons other than illogical ones. When it comes to the cost of living, the Liberals always say, 'No.' Their nasty negativity is no substitute for good economic policy credibility. Remember: the failed Liberals and Nationals left a legacy of economic mismanagement. The prolific spending, debt and deficit left this country on its knees.

This Labor government has been laying the foundations for a successful economy while dealing with the current cost-of-living crisis. The cornerstone of our cost-of-living relief package comes into effect today. If you're a nurse, the government has given you a tax cut. If you're a teacher, the government has given you a tax cut. If you're a truckie, this government has given you a tax cut. More than 95 per cent of the hardworking Australians in those industries will be getting a bigger and better tax cut than they would have received under the coalition. Under our plan, Labor's plan, more Australians will get a tax cut—and a bigger tax cut.

These tax cuts which come into effect today partner with our election promises of cheaper medicine, cheaper child care and affordable housing, and all are aimed at the cost of living. We said that we would get wages moving again in responsible ways, and we are. We supported this decision particularly because we know that our lowest paid workers are exposed to the impacts of high inflation. Given that real wages were going backwards, deliberately, under a decade of the coalition, and with all the pressures low-paid workers are under at the moment, we think it's entirely appropriate that they get the support they need. And we have seen around 800,000 jobs created since we came to government, a record for any government's first term. I'm proud to be part of the Albanese Labor government; we actually stand up for working families and provide the practical support and opportunities which the coalition failed to during its 10 years in government.

Karen Andrews (McPherson, Liberal Party) | Link to this | Hansard source

Is the motion seconded?

Dan Repacholi (Hunter, Australian Labor Party) | Link to this | Hansard source

I second the motion and reserve my right to speak.

Simon Kennedy (Cook, Liberal Party) | Link to this | Hansard source

Labor have given a tax cut to help with the cost-of-living crisis that they have created with a reckless approach to spending that has fuelled inflation. Across the last three budgets, Labor has committed an additional $315 billion in inflationary spending—an extra $315 billion. This accounts for almost $30,000 per household, and I would ask the average Australian household out there: do you feel $30,000 better off thanks to Labor's spending? Last week's figures showed core inflation has risen to 4.4 per cent, and it has increased for four months in a row. When inflation is rising, one can be sure that interest rates aren't going down and that Australian households are getting heaped and heaped with more weight until they're almost about to collapse.

Since the election, real disposable income is down 7.8 per cent; we have locked in bad workplace laws which are driving up the cost of doing business, and this is being passed on to the consumer as the cost of living increases; and families are now being slugged with higher tax. Labor is banking $60 million in bracket creep and has increased personal income tax by 20 per cent since the election. Betashares' chief economist described the latest consumer price report as a 'shocker', saying that it places huge pressure on the Reserve Bank to raise interest rates in August. What we have here is a reckless Labor government, with their budget increasing the probability that Australian households and families will be slugged with higher interest rates and more pain.

Families are hurting, because the prices of basic necessities are going up. Food is up 11.4 per cent, housing is up 14 per cent, rents are up 14 per cent, electricity is up 21 per cent and gas is up 22 per cent. But what do these numbers mean? They mean that every time you pay a gas bill, it will double every three years. That's what 22 per cent per annum means: every three years your gas bill is doubling and every three years your electricity bill is doubling. Australian families have had enough, and they can't take it anymore.

It isn't just a global phenomenon. Core inflation in Australia is high and rising; it's higher than in Sweden, it's higher than in the UK, it's higher than in Norway, it's higher than in Canada, it's higher than for our neighbours in New Zealand, it's higher than in the rest of the euro area, it's higher than in the US and it's higher than in Switzerland. In stark contrast with Australia, inflation is now falling in all those countries I just mentioned. So this Labor government has put the Reserve Bank between a rock and a hard place. Australian families are breaking and under pressure. Inflation is falling everywhere else in the world. Yet they're left with the impossible task of trying to get this narrow landing without crashing the economy because of this irresponsible Labor government and its spending.

Now, this government for the last two years have been completely distracted with the wrong priorities. They could have started from day one with a focus on cost of living; instead, they were focused on divisive social policies. No matter how much money the government try to spin this, from the data this is a homegrown inflation crisis. Now is the time for the government to rein in their irresponsible spending, to adjust their budget and deal with the problems so Australians aren't burdened further by their mismanagement of the economy and the country. Tight monetary policy is being undermined by Labor's loose fiscal policy. If interest rates rise between now and the end of this year, it will be on the government's head. Dr Chalmers needs to stand before the Australian public and admit this Labor government is the reason inflation is out of control.

In stark contrast to this irresponsible Labor government approach, the opposition and the Leader of the Opposition have stated how they will reign in inflationary spending and take pressure off Australians, take pressure off Australian households and take pressure off interest rates and mortgages.

Dan Repacholi (Hunter, Australian Labor Party) | Link to this | Hansard source

Today is a very special day; it is the start of a new financial year. Do you know what that means? Every Australian taxpayer will be getting a tax cut. It is Christmas in July for every taxpayer in Australia, and the Prime Minister and Treasurer have been working hard at delivering for everyone who pays tax. While they may not have a sled and I might be too tall to be called an elf, what they do have is a hardworking team of Labor MPs behind them and a commitment to delivering for the hardworking people in this country. There is a lot to be excited about with all of these tax cuts, so let me just crunch a few figures. 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. Eighty-four per cent of taxpayers—that is, 11.5 million people—will now receive a bigger tax cut compared to the previous plan. Ninety per cent of women taxpayers, which is 5.8 million women, will now receive a bigger tax cut compared to what was previously proposed.

Time and time again we hear at election time that Labor is the party of higher taxes. It was never true, but now those opposite can't possibly use that line without making their lie crystal clear. In fact, we've heard the Deputy Leader of the Opposition say that they absolutely will roll back our tax cuts. It looks like taxes will be higher under a coalition government. Our outlook is clear and simple: we want more Australians to keep more of what they earn. I grew up in a hardworking family, and I've worked hard to provide for my own family as well. I know that every cent saved helps. I know that when the cost of living makes family budgets tight, times can be hard. I also know that any relief is welcome relief and that is why these tax cuts are going to have such a big impact for so many people in the Hunter electorate and right across Australia.

But it is not just tax cuts that help. Our whole budget had a big focus on cost-of-living relief across the board. We've announced new energy bill relief for every household and for one million small businesses. We've increased Commonwealth rent assistance by a further 15 per cent, taking the total increase to 25 per cent, making it the first back-to-back increase in Commonwealth rent assistance in three decades. We've wiped almost $3 billion in student debt, helping more than three million young Australians, with the average worker saving around $1,200. We've provided up to $3 billion to make medicines cheaper, freezing the maximum cost of the PBS prescriptions for everyone. We've also put the poor economic managers line that those opposite used to use to bed. We've provided all of this at the same time as we're expecting to deliver a back-to-back surplus for the first time in almost two decades, we're seeing wages grow at the fastest rate in 15 years and we're getting real wage growth sooner than expected.

We are a government that is setting records. Around 800,000 jobs have been created since we came to government, and that is more than any other first-term government. It could not be clearer: we are getting on with rolling out billions of dollars of cost-of-living relief that is carefully designed to take some of the edge off some of the pressures that people are under right now.

You hear those opposite bang on about cost of living, saying over and over that something needs to be done, but if you pay close attention, you'll see they've voted against every single one of these measures, which will make a real difference to the lives of the people of Australia. Those opposite are all talk, no action. If they really cared, they would support this relief, but they won't. The cost of living is hitting many of us very hard. We understand this and we are acting to do something about it, which is more than the 'no-alition' can say. We gave every Australian taxpayer a tax cut, which is more than the 'no-alition' can say. And we did it because we really care about every single Australian, which is more than the coalition can say. Under Labor, wages are growing, jobs are being created, Aussies are being supported and today everyone will be rewarded with a tax cut.

Karen Andrews (McPherson, Liberal Party) | Link to this | Hansard source

The time allotted for this debate has expired. The debate is adjourned, and the resumption of the debate will be made an order of the day for a later hour this day.