Jane Hume (Victoria, Liberal Party, Shadow Minister for Employment and Industrial Relations) | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. In the four years since Labor was elected, according to the ABS, inflation has gone up by around 23.9 per cent for working households. That means that people have paid more at the checkout, more in their energy bills, more on rents and more in taxes. According to your own budget, tax as a percentage of GDP is forecast to increase this financial year. How many Australians will pay more in taxes this financial year than they did in the previous financial year?

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

I thank Senator Hume for the question, particularly on a day that the second of our five tax cuts have come in—the second of the five income tax cuts that we are bringing in and that those opposite voted against. They come in here and they raise concerns around the amount of tax that might be being collected, and yet, when we have sought to cut income tax, they have voted against it. They went to a campaign saying they were going to raise income taxes. They went through an election campaign promising to raise income taxes, and since then they have voted against the tax cuts that are coming in today, and the tax cuts that will come in at the end of this financial year, and the working Australian tax offset—all of that.

So forgive me for not taking your question seriously, Senator Hume. Forgive me for not believing that you are genuinely concerned about the tax that is being paid by Australians when, on this side of the chamber, when we've sought to increase wages, you've voted against it. When we've sought to reduce the pressure on people's cost of living, whether it be through medicines, whether it be through energy bill relief or whether it be through our investments in Medicare, those opposite have voted against it. They've voted against our increases to wages. They've seen as wasteful spending our investments in early education and care and aged care. So forgive me for not taking your question seriously. How you vote in here matters because that's actually where you make the difference—and you vote no to everything. Everything that we have tried to do to ease the pressure on households and to reduce inflation you have voted against, and then you come in here and you say you're concerned about it all. Well, forgive me, Senator Hume. I don't believe you.

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

Senator Hume, first supplementary?

Jane Hume (Victoria, Liberal Party, Shadow Minister for Employment and Industrial Relations) | Link to this | Hansard source

Let's put aside your egregious tax hikes on housing, investment, saving, innovation and entrepreneurs and your egregious tax hike on widows. After your cup of coffee tax cut, how many days will it take before the average income earner is paying more in taxes because of bracket creep, based on your budget's own inflation forecasts?

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

I thank Senator Hume for the question. Again, this government has shown our appetite to not only return bracket creep but actually deliver it—actually do it. We did it in 2024 when we changed the stage 3 tax cuts that were only going to give certain income earners tax cuts and made sure that they were fairer. We're doing it today and we'll do it next year and we'll do it with our instant tax deduction. And we'll do it with the working Australian tax offset. This is all designed to reduce the tax burden on working Australians.

When we have sought to do so, Senator Hume, you have sought to protect the status quo. You have sought to protect the status quo through the way you voted when you voted against a better and fairer approach to our tax system. Those opposite voted against it and we are returning it to working Australians.

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

Senator Hume, second supplementary?

Jane Hume (Victoria, Liberal Party, Shadow Minister for Employment and Industrial Relations) | Link to this | Hansard source

Minister, can you look up into the gallery and tell those Australians whether they will pay more for groceries, petrol, energy and rents this year than they did last year because of the way your government is managing the economy and letting inflation remain too high for too long?

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

The message I would give those in the gallery is the message I would give all Australians. This government is 100 per cent focused on easing the cost-of-living burden on Australians. It’s about a better and fairer tax system that reduces the burden on 13 million Australian workers, about getting wages again, about repairing the budget and about lowering the debt and lowering the interest on that debt. That is the approach we take, and we've taken it since we came to government. We will continue that, and where we can afford it, we will give tax back through tax cuts that you voted against. The people in the gallery and around should judge your voting record and the way that you have said no—every single time we have brought reform into this chamber to make life easier for working Australians, you have voted against it.

Jane Hume (Victoria, Liberal Party, Shadow Minister for Employment and Industrial Relations) | Link to this | Hansard source

Your budget says you will be poorer next year!

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

Senator Hume, I did call you to order. You completely ignored me. Minister Wong.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) | Link to this | Hansard source

I ask that further questions be placed on notice.