I move:

That this House:

(1) notes that the Government's cost of living crisis is forcing Australians to pay more for groceries, power, insurance, mortgages and rents, while inflation and bracket creep are leaving workers worse off;

(2) condemns the Government's 'inflation tax' as a stealth raid on Australians who are working hard, earning more just to keep up with inflation, and then being pushed into higher tax brackets;

(3) recognises the Opposition's Tax Back Guarantee would end this dishonest bracket creep by indexing income tax thresholds to inflation, protecting 85 per cent of taxpayers from 2028-29, and all taxpayers from 2031-32;

(4) calls out the Government's higher tax agenda on housing, savings, start-ups, trusts and small and family businesses, which punishes aspiration and makes it harder for Australians to work, save, invest and get ahead;

(5) supports the Opposition's plan to back small business by:

(a) making a $50,000 instant asset write-off permanent for businesses with turnover under $10 million;

(b) expanding access to capital gains tax concessions; and

(c) consulting on a new Small Business Act; and

(6) calls on the Government to:

(a) remove its harmful higher taxes;

(b) reduce red tape; and

(c) stop choosing which Australians and businesses are allowed to pursue aspiration and which are forced to carry the burden of the Government's tax agenda.

There is no doubt that Australians are doing it tough at the moment. It is so hard economically to get ahead or to even keep your head above water. Just last week I was at a food charity in my community talking to them about the people that they're looking after, and they have seen significant growth in people needing support from their organisation. They and many others use the term 'working poor'. Families with two parents working are still needing food banks just to get ahead, some because of a one-off bill, others because they just cannot make ends meet week after week.

That is the reality that we are living through today. Everything is more expensive—food, rents, mortgages and inflation are through the roof, well above the band, with no projection to get them back into the band any time soon. Delivered primarily by the decisions made by this government, this Treasurer's addiction to spending meant that, when the conflict in the Middle East happened, Australia was already well above the band, and we'd already seen increases in interest rates before the invasion and the conflict in the Middle East. So we had no buffer and no ability to withstand those challenges in the Middle East. Those opposite will blame other factors, but the facts are in; the RBA governor and many others have confirmed that driving this are government spending along with the government being unable to focus on or drive productivity growth in this country. We've had negative 4.5 per cent productivity growth in this country, under this Treasurer and under this Prime Minister. And if we cannot deliver productivity, we cannot deliver higher, sustainable wages by addressing the supply-side challenges.

But what this government and this Treasurer do when it comes to tax is play a little bit of smoke and mirrors on the Australian people, and they've just done it recently. They will announce a tax cut, and they will say to you, 'Great news: you've got a tax cut coming.' They'll announce it in a budget in May. But what they won't tell you is that doesn't come until the next financial year, over 12 months later. In this example it was $5 a week. They make a big announcement, it doesn't help anyone today, and it's $5 a week in about 15 months time. But what has happened in that time? Because of inflation, you are paying more taxes through bracket creep. Essentially, the government collects more tax—well over $5 a week because of inflation and their inability to manage the economy—and they say to you: 'Here you go. Have $5 and say thank you.' So we'll hear those opposite talk about the tax cuts that they've delivered. They won't talk about the quantum of them, because it's not making a difference, and they won't talk about the delays and tricks that this Treasurer uses.

Now, the only way to sustainably deliver tax cuts to the Australian people is to deal with bracket creep. Bracket creep is when, every time you earn more, you go into another tax bracket and pay higher income tax. But that is why the coalition have committed to a tax-back guarantee. We will index the tax brackets to inflation, so, when inflation goes up, the brackets go up, and you will not be punished. For an average Australian wage earner, that will give you back in your pocket $250 in year 1, $500 in year 2, $750 in year 3 and $1,000 in year 4, and, doing the maths, it'll go up another $250 every year going forward. That will give you real, sustainable, tangible relief when it comes to tax.

And it will force governments, most importantly, to do two things. They'll have to make a decision. If they want to increase taxes, they're going to have to be up front and honest with you, not do it by stealth like this Treasurer has made an art form out of. Or they're going to have to make really tough decisions and make sure that we value every dollar of taxpayer money to make sure it is delivering a return for the Australian people, not wasting $150 million on a conference in the Pacific that no-one is turning up to at a time when people in my community cannot put food on the table. That's an example of this government not having their priorities right.

This tax-back guarantee will give money back to Australians. It will ensure fiscal discipline, which means that every treasurer and prime minister has to value your dollar. And, if they want to tax you more, they need to be upfront about it.

Is the motion seconded?

I second the motion and reserve my right to speak.

I thank the member for Casey for bringing this motion because it gives us the opportunity to talk about our record on tax. The member for Casey is right in one regard: people are doing it tough. That's something that we absolutely realise, and it's something that we've been focused on. In this term of government and in the previous term of government there have been successive international shocks that have been felt right through the economy. As the member for Casey knows, interest rates were coming down before the war broke out in the Middle East. That's not a war that we started, it's not a war that we asked for and it's not a war that we're involved in, but it is something that's being felt by Australians at the bowser and, with flow-on effects throughout the economy, at the supermarket and when they're taking their kids to school and to sports. It is driving inflation in food prices and in many other areas.

We've been focused on making sure that we're providing real cost-of-living relief to hardworking Australians through tax cuts. As the last election showed, we are the party of lower taxes. We went to the election promising tax cuts. We've delivered those tax cuts. Those opposite opposed those tax cuts, promise to repeal them and, along with those in One Nation, voted against them again recently, showing us what a Liberal-National-One Nation coalition would look like.

We've cut taxes five times in three different ways. Tax cuts of up to $268 came in on 1 July this year. That's real relief, but that's not the only relief that we've provided through tax cuts. There are further tax cuts on 1 July next year. We have the working Australians tax offset, a $250 permanent tax cut that effectively raises the tax-free threshold. We've also got the $1,000 instant tax write-off. Those who would typically claim less than or equal to $1,000 in tax cuts won't have to collect lots of receipts. It saves them administration. It also saves the tax office administration, so it's an efficiency measure in that regard. The taxpayers will be able to claim $1,000 in instant tax write-offs. Of course, there were our stage 3 tax cuts in the previous term of government that preserved our progressive tax system. Across the board, for an average worker, all the tax cuts that we've provided have a cumulative benefit of $2,800 per year. That is real cost-of-living relief.

It addresses bracket creep, and it does so in a responsible way. The member for Casey talked about the coalition's plan to index tax brackets in line with inflation. The first thing to note about this so-called plan is that it's completely uncosted and unfunded, but some projections say that it would cost a quarter of a trillion dollars in debt. It's a very, very expensive measure. Two things are strongly against this measure. It would make inflation worse. Of course, you don't tend to put more money into the economy when inflation is high. But the very nature of receiving the tax cuts in line with inflation would mean that inflation would get higher and higher—more and more tax cuts; more and more money going into the economy; the higher inflation will be. It means that, at the exact time that we shouldn't be increasing demand and we shouldn't be pumping more money into the economy, that's exactly what the coalition's plan would do.

The member for Casey talked about being upfront and honest with the Australian people about what these cuts mean. The expense of these—if they were to achieve anything approaching a balanced budget, then they would have to make significant cuts, so they would need to be upfront and honest about what those cuts to the budget are going to be. Will they be to things like Medicare? Those opposite might say, 'Oh, no. We would never cut Medicare.' But we know what their record is like in terms of cutting Medicare. They might not make a real cut to the amount that doctors are paid, but they'll freeze it for years and years and years, causing bulk-billing rates to decline in our communities.

Thankfully, with our record investment in Medicare, we've been able to reverse that and make sure that bulk-billing is still on offer and that primary care is still available for free. It is the cheapest form of health care. That's something that we've been able to deliver in this term of government. In my community, we went from 19 bulk-billing clinics to at least 29 bulk-billing clinics locally. That's because we prioritise people's health and primary care.

Labor have mastered the politics of giving with one hand while taking more with the other—a small offset for workers while changing the tax rules on investment. Labor want Australians to thank them for what they receive without counting what they lose. Labor announce a tax cut then allow bracket creep to take more from your next pay rise. This Labor government wants Australians to be thankful for the handouts while ignoring the rising costs coming out of their pockets, but Australians are not fooled. Families are paying more for groceries, more for electricity, more for insurance and more for rents and mortgages, all because the Albanese Labor government cannot stop spending. Its spending puts pressure on inflation. Inflation pushes prices up. Then the same inflation pushes workers into a higher tax bracket. Labor's business model is simple: spend, inflate, tax and repeat. This is a vicious cycle Australians are caught up in, and there is something particularly unfair about what's happening to workers.

Think about families like Jason's, from Mackay. Jason is a truck driver. His work keeps him away from home for long stretches, which means his wife stays home to look after their three children. Two-thirds of Jason's income goes straight to rent. That doesn't leave much to pay for other essentials. For a family living on one income, there is simply nothing left to spare. There's nothing extravagant about this family. They're working hard, doing their best and asking for nothing more than a chance to get ahead. Yet, under this government, every dollar has to stretch further while Labor keeps taking more. This is what the cost-of-living crisis looks like around the kitchen table for many people across regional Australia.

A pay rise should be a celebration—recognition that your hard work is paying off and you can get ahead. But, when the pay rise is simply swallowed up by rising costs of groceries, electricity, insurance and mortgages, Australians are not getting ahead. Aussies are working harder for more dollars, but those dollars are buying less. Yet Labor's tax system treats that higher income as if these people are wealthy. You pay more tax by moving into a higher tax bracket. The government collects more revenue despite you having less in your bank account at the end of the week, and that is bracket creep. When inflation is what pushes you into a higher tax bracket, it becomes an inflation tax. The coalition believes Australians should not be punished for earning more just because the value of their money has been eroded by inflation. Our tax-back guarantee would index income tax thresholds to inflation, protecting 85 per cent of all taxpayers from bracket creep from the 2028-29 financial year and every taxpayer from the 2031-32 financial year.

But this is not just about what happens to workers on payday. It's about whether Australia remains a country where people can work, save, invest and build something of their own. Labor's higher tax agenda reaches into housing, savings, startups, trusts and family businesses. That means that government is not simply taxing today's income. Labor is taxing Australians' future. Labor is making it harder to build tomorrow's opportunity. The coalition is the party of aspiration. That is why the coalition would make the $50,000 instant asset write-off permanent for businesses with a turnover under $10 million, expand capital gains tax concessions and consult on a new small-business act. We want to see small-business owners buy new equipment. We want to see business owners hiring more employees. We want to see them grow their business. We believe that those taking the risks should be rewarded, not buried under another layer of tax and red tape.

The choice could not be clearer. Labor seem to believe every extra dollar Australians earn is another tax dollar they can take. We believe the reward for putting the effort in should belong to the person who earned it.

There is something remarkably easy about writing tax policy from opposition. You can promise everyone a tax cut, promise nobody will lose anything, promise better services and promise lower debt, and apparently never explain how it adds up. That appears to be the coalition's latest economic strategy—tax cuts without cost, spending without consequence, debt without responsibility. It's economics by press release.

Australians have seen this before. When Labor came to government, we inherited enormous deficits, rising inflation, falling real wages and close to a trillion dollars of debt. And now those opposite are doing it again. They constantly talk about bracket creep—which is fair enough; workers should keep more of what they earn. That is precisely why this government is cutting taxes. On 1 July, more than 14 million Australians received another tax cut—a tax cut those opposite voted against. They then promised to repeal Labor's tax cuts at the last election, and when they got another opportunity this year they voted against tax cuts again. There is something slightly curious about listening to the coalition lecture this side of the chamber about income tax, because if they had gotten their way Australian workers would be paying more tax today, not less.

Our combined tax changes mean a worker on average earnings can ultimately be more than $2,800 a year better off. But tax reform cannot simply mean finding the biggest number you can announce and leaving someone else to work out the arithmetic. That is where the coalition's proposal starts to fall apart. Their alternative is uncosted, is unfunded and, on government estimates, would add more than a quarter-of-a-trillion dollars to national debt. So what are they going to do—increase another tax, borrow more money or cut services? There is no fourth option where hundreds of billions of dollars simply materialise under the Treasurer's desk. Australians deserve an answer. Is it Medicare, pensions, aged care, schools or infrastructure? If those opposite want to promise hundreds of billions of dollars in tax changes, they have an obligation to explain where that money comes from. That is what governing means. Do the numbers. Take responsibility for both sides of the ledger. The coalition seems to think economic policy consists only of the pleasant side—spend more, tax more, borrow less, cut nothing, and everybody wins. If someone offered you that investment in private life, you would probably check whether your wallet was still in your pocket.

Our approach is different. We are cutting the tax burden on workers, helping more Australians into homeownership, cutting taxes for businesses and startups, reducing compliance costs and making the tax system fairer. For small business, we are making the $20,000 instant asset write-off permanent. That gives businesses certainty. If a small business needs a ute, new tools, equipment or technology, they should be able to make that investment knowing what the tax treatment will be. We're also supporting cash flow, helping startups and expanding investment incentives. That is tax reform with a purpose—reward work, encourage investment, help businesses grow and help Australians build a future.

Compare that with those opposite. At the last election, they promised to increase income taxes by reversing Labor's tax cuts. Now, suddenly, they have discovered tax relief. That is quite a conversion. The problem is they still haven't discovered a calculator. This is becoming a pattern: they oppose tax cuts and then complain about tax; they demand lower debt and then propose policies that increase debt; they demand lower inflation and then propose unfunded fiscal expansion. They want the political benefit of every decision while refusing to accept the economic consequence. That is not responsible economic management.

Labor has a different view. A tax policy should reward people who work, should encourage productive investment, should support Australian businesses and should help young Australians build a future—and should be paid for. That final point should not be controversial. There is nothing conservative about hundreds of billions of dollars in unexplained debt. There is nothing responsible about promising tax cuts without explaining what services will be cut. There is nothing credible about voting against tax cuts for Australian workers and then reinventing yourself as the party of lower income tax. Australians deserve tax relief. They also deserve honesty. If you're going to cut tax, explain how you will pay for it.

In support of the previous member, Australians do deserve honesty, and that is not what they are getting from this government. So I rise to speak in support of this motion. This is a government that has never had more of your money and has never had less to show for it. Ask the Australian people whether they feel like they are earning more and keeping more of what they earn. Despite Treasurer Dr Jim's spin, most will tell you they are not. This is not an accident; it is the direct result of the Albanese Labor government's fiscal failure. A pay rise that only keeps up with inflation leaves you no better off. The tax office does not care. Bracket creep pushes more of your pay into the higher tax bracket, meaning you pay more tax on your pay rise. And that was never really a pay rise. You are not earning more. You are just being taxed more. Under the Albanese Labor government, real wages are going backwards while your tax bill is going up. This is an inflation tax. The higher inflation goes the more the government collects. This government has no reason to bring inflation down, because inflation pays its bills.

The coalition will end this. Our tax back guarantee will index income tax thresholds to inflation. From 2028-29, 85 per cent of taxpayers will be fully protected. From 2031-32, every taxpayer will be. That means 250 bucks back in the first year, growing to more than $1,000 a year by the fourth. This is simple, honest tax reform. Under our plan, if a future government want to raise taxes, they'll have to be fair dinkum and front up to the Australian people and find savings.

Small businesses are carrying the burden of the Albanese Labor government's incompetence. Last year, 14,500 businesses went under, the worst for insolvencies since records began. In Grey, small business is not just a sector; it's the town. It's the mechanic at Kimba, the roadhouse at Glendambo or the cafe on the main street in Port Pirie. When a business closes its doors under Labor, another one does not open in its place. Month after month, the Treasurer gaslights Australians, telling them we have record company creation. Peek behind the headline figure and you will see company registrations are running well ahead of GST registrations. That gap does not mean shopfronts are opening. It means existing businesses and trusts are restructuring. That is what the Treasurer calls a boom. Unbelievable. If the Treasurer saw the world in three dimensions, he would know what his record really is—record red tape, record accounting fees and record paperwork.

Under a coalition government, we will get small businesses going again, we will consult on a new small-business act, we will make a $50,000 instant asset write-off permanent for all small businesses and we will scrap all of Labor's toxic taxes.

All of this comes back to one question: what is the Albanese Labor government doing with the money? They bought a farm. The very same Treasurer who believes chocolate milk comes from brown cows bought a farm with your money. Rushy Lagoon, Tasmania's largest farm, with 22,000 hectares of beef, dairy and cropping country, was sold to a UK investment fund to plant pine trees for carbon credits. The Commonwealth, using your taxes, chipped in $69 million, plus another $8.8 million for the trees. Australian farmers were outbid with their own taxes. Twenty-two thousand hectares that grew beef and milk will now grow certificates. You cannot eat a carbon credit. The coalition will end Labor's carbon land grab and put our farmers first. I commend this motion to the House.

The member for Grey reckons that it's important to be fair dinkum and to front up. Well, fair dinkum, who was the highest taxing government in history? It was a coalition government. Fair dinkum, who was the highest spending government in the history of this country? It was a coalition government. And who, out of the two major parties in this country, voted against tax cuts? Once again, it was a coalition government.

All of the alliteration, all of the rhetoric and all of the talk cannot muster up real change for people in this country who are doing it tough right now. We know that. People are struggling to pay their bills. They're struggling to put petrol in the tank. They're struggling to buy groceries at the checkout. What people need right now more than ever is practical change. They need real change. They need change that means something to their hip pocket.

When we talk about Labor's tax record, one thing is really clear. It's the principles that underpin it and the practical reform that makes it real for everyday Australians. What does that look like? It looks like more tax cuts for everyday Australians—not one, not two, not three, not four but five of them. It looks like a fair go for first home buyers, for people who have felt like they've been locked out of the market. We've had four decades of not building enough supply. What they need now is a shot in the arm to be able to realise that great Australian dream once again and better aligning the treatment of work with income earned in other ways. If you're working as a sparky, if you're working as a nurse, if you're working as a teacher, if you're working in aged care or if you're working as a chippy, you should not be taxed higher than someone earning their money through the holding of assets.

When we talk about practical reform—tangible operational things that actually make a difference—we're talking around those tax cuts for everyday taxpayers, including 86,059 of them from my electorate on Brisbane's south side in Moreton. We're talking about a $1,000 instant tax deduction, saving people from rummaging through shoe boxes, so that they can have a tax deduction that's guaranteed. We're talking about making superannuation fairer, boosting the LISTO, expanding it to paid parental leave and making sure that women can access it. We're talking about supporting 75,000 more Australians into the housing market. And we're talking about delivering over $3.8 billion in new measures that lower taxes for businesses and for start-ups.

One thing that is clear is that the coalition's tax plan can't be taken from what they say. It's got to be taken from what they do. And what they do in this place and what they are so very good at in the chamber right downstairs is voting against tax cuts for all Australians. On 1 July, over 14 million Australians got another tax cut, no thanks to those sitting opposite.

My electorate office is in the heart of my community. If you took a rock and you threw it as far as you possibly could and you drew a circle around it, what you'd find inside that circle is many small businesses—hospitality, manufacturing and retail. It's why we've extended the active asset 50 per cent CGT concession to all small businesses with up to $10 million in turnover. It's why we're keeping other existing CGT concessions, which means eligible small businesses will pay reduced or no capital gains tax when it comes to sell. And it's why we're delivering $3.8 billion in new business tax relief measures, making the $20,000 instant asset write-off permanent and the two-year loss carry back and loss refundability. These measures mean better outcomes and lower tax for Australians.

The time allocated for this debate has expired. The debate is adjourned and the resumption of the debate will be made an order of the day for the next sitting.