Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Hansard source

As the Greens just flagged in this place, we do want to see an increase in the low-income tax offset for genuine low-income workers in this country. Stage 2 does increase the maximum low-income tax offset from $645 to $700, but what it mostly does is convert the low- and middle-income tax offset—LMITO—into a tax cut by increasing the upper threshold of the 19 per cent tax bracket. This locks in tax cuts for all Australians, including the most wealthy Australians. The Greens were very clear in the last parliament, when the last tax package was implemented, and we have since been consistent and clear that we support increasing the low-income tax offset, but we do not support changing the tax thresholds. That will give a tax cut that will mostly benefit, substantially benefit, the wealthiest Australians.

I also want to make this very clear to anyone listening to this debate. This stage 2 of the government's plan, as legislated in this bill, gives a full benefit of the LMITO to everyone earning over $90,000 in Australia. If you think that's not high-income earners in Australia—that it's not those earning $180,000, $200,000, $300,000, millionaires—then I think you've got rocks in your head. Stage 2 destroys the progressive nature of the low- and middle-income tax offset. So Labor, with this amendment, not only support giving everyone in this country earning more than $90,000—in other words high-income earners, including those earning $200,000 or $1 million—an extra $540 each year on top of the extra $540 that they've already been given but they also want to give this tax cut away quicker by bringing it forward. So in Labor's book, reading from this amendment, the government is not giving tax cuts to the top 10 per cent of Australians or the top 20 per cent of Australians quick enough; they want it brought forward.

The Greens will not support an assault on the progressive tax system in this country. That's why we've made it very clear tonight that we'll support giving more money to low-income Australians who are working hard and battling, but we will not change the system and make it regressive.

The CHAIR: The question is that opposition amendment Nos (1) and (2) on sheet 8684 be agreed to.

The committee divided. [18:17]

(The Chair—Senator Lines)

Question negatived.