Raff Ciccone (Victoria, Australian Labor Party) | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. As we know, tomorrow is 1 July, and the next lot of income tax cuts will start. This is very good news for many, many Australian workers. It's the latest of five tax cuts, actually, that the Albanese government is delivering, and, when they're fully rolled out, a worker on average earnings stands to be around $2,800 better off. How are these tax cuts, Minister, and other cost-of-living help that will arrive on 1 July making a difference for working people and their families?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | Link to this | Hansard source

I thank Senator Ciccone for the question. Again, all the work has been done on this side of the chamber to make sure that, when 1 July rolls around tomorrow, we've got a whole range of supports flowing through to Australians to assist with the cost of living.

Of course, we've got the tax cuts that those opposite voted against, which will come in on 1 July. Every Australian taxpayer will get a tax cut from 1 July this year. From 1 July, we will reduce the 16 per cent tax rate to 15 per cent, with another one to come next year. We've also passed important legislation to help more Australians into the dream of homeownership. We've got the working Australian tax offset—again, Senator Bragg voted against that—to provide a permanent annual tax offset of up to $250 for every working Australian taxpayer. There's the $1,000 instant deduction with no receipts—again, those opposite voted against that—allowing workers to deduct up to $1,000 off their taxable income without providing receipts.

We know that, while the changes to negative gearing, CGT and trusts don't impact the majority of people, they help support the investment that we are making in 13 million Australian workers through those tax cuts coming in. We will also see the national minimum wage increase by six per cent, and modern award wages will increase by 4.75, following the annual wage review decision, to which we provided a submission in support of a real wage increase.

Around 2.6 million Australians will also benefit from indexation of a range of social security payments and thresholds. Workers will also benefit from having super paid at the same time as their salary and wages. And, of course, there's the work that we've been doing to ban excessive pricing in supermarkets. (Time expired)

Sue Lines (President) | Link to this | Hansard source

Senator Ciccone, first supplementary?

Raff Ciccone (Victoria, Australian Labor Party) | Link to this | Hansard source

Thanks, Minister, for that very thorough answer. From 1 July, the Albanese government will also deliver another first—that is, paid parental leave for a full six months. Superannuation will also be paid on it to ensure that parents don't lose out in their retirement. Minister, how is this PPL expansion supporting parents to share care and stay connected to work, and what does it mean for parents' retirement savings over the long term?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | Link to this | Hansard source

I thank Senator Ciccone for that question. As a parent of a young Australian, these issues around paid parental leave and making them work for families have been central to our thinking about sensible reforms that could be made to PPL, not only to make sure that families are getting the extended time—so going to a full six months—but, as Senator Ciccone said, also to make sure that super is paid on PPL.

We on this side of the chamber thought it was a problem that we had an employment condition—essentially the only employment condition—that didn't have super paid on it, and we have fixed that with the investments that we've made. We're also making it easier for families to share care under those arrangements. We know more and more dads or second parents in those relationships are wanting to spend time with their babies as well, and our changes to PPL do that. We always look for ways to help people with caring responsibilities.

Sue Lines (President) | Link to this | Hansard source

Senator Ciccone, second supplementary?

Raff Ciccone (Victoria, Australian Labor Party) | Link to this | Hansard source

():  From tax cuts to expanded PPL, this government is helping many working Australians with the cost of living, even when some in this chamber have failed to back these important supports for these families. How will the government continue this work, Minister, so that many Australians can continue to earn more and keep more of what they earn?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | Link to this | Hansard source

I thank Senator Ciccone for that supplementary as well. Well, this government is focusing on real change for Australians—more tax cuts, six months of paid parental leave, making it easier for first homebuyers to get into a home, our investments to make Medicare stronger and keeping our kids safe online. I think it's very clear from what we have delivered over our term in government that addressing cost-of-living help for households is our number one priority.

Our five tax cuts, once fully implemented, will mean that the average working Australian will be $2,800 better off every year from 2028. And in addition to that, we have our investments in Medicare, cheaper medicine, cheaper child care, free TAFE, our home batteries program, Help to Buy and five per cent deposits. All of these investments are about making life easier for Australians, particularly when they're feeling under pressure, and we'll continue to focus on all measures to do that.