Mr REPACHOLI (Hunter) (17:33): 

I rise to make a contribution to the Treasury Laws Amendment (Cost of Living Tax Cuts) Bill 2024. The great part about these tax cuts is every taxpayer gets one. It's simple. In my electorate of Hunter, every single taxpayer will receive a tax cut under our new tax cuts, with 86 per cent of Hunter taxpayers receiving an even bigger tax cut from 1 July. Australians across the board are doing it tough, and tough times call for tough decisions. What we have seen is a leader who is willing to make some tough decisions. I know in my electorate the people congratulate the Prime Minister for making that tough decision.

When the previous government legislated the original stage 3 tax cuts five years ago the world was a very different place. It was before a once-in-a-lifetime pandemic, persistent and stubborn high inflation, higher interest rates, two conflicts and global uncertainty that put Australians under more sustained cost-of-living pressures. There is no doubt that this decision was very difficult politically. But this is about people and not about politics, and it's the responsible thing to do. We are making the right decision, not the easy one, to make sure that cost-of-living relief goes to everyone, especially those who are doing it tough.

So here are the facts. From 1 July this year the government will reduce the 19 per cent tax rate to 16 per cent, reduce the 32.5 per cent tax rate to 30 per cent, increase the threshold above which the 37 per cent tax rate applies from $120,000 to $135,000, and increase the threshold above which the 45 per cent tax rate applies from $180,000 to $190,000.

The 45 per cent threshold will be lifted on 1 July for the first time since Labor was last in office. What does that mean for taxpayers in the Hunter electorate? Our new tax cuts will make a real difference for 73,000 taxpayers who will receive a tax cut. It means that 63,000 taxpayers will receive a bigger tax cut than what was being proposed under the old plan. This translates to a larger tax cut for 90 per cent of female taxpayers. Nurses, teachers, childcare educators, chefs and truckies are some of the most likely to benefit, with more than 95 per cent of those taxpayers getting a bigger tax cut. Parents, particularly women with young children, will be meaningfully supported to return to work under the government's changes through increases to their take-home pay. Under the proposed changes, taxpayers earning less than $45,000 will now receive a tax cut. The old plan would have seen them receive a big fat zero—doughnuts. This will significantly boost the take-home pay for Australians on modest incomes and people working part-time.

So, let's break it down into numbers. Someone on the average Australian wage of around $73,000 will now get a tax cut of more than $1,500 year. That's around $29 a week, and it's more than double what they would have received under the old plan. For a family on an average household income of around $130,000 with one partner earning $80,000 and the other earning $50,000, their combined tax cut will be over $2,600, which is around $50 a week, and about $1,600 a year more than what they would have got under the old plan. A person earning $40,000 a year will get a tax cut of $654, compared with nothing under the previous plan. A person earning $100,000 will get a tax cut of $2,179. That's $804 more than they would have received under the previous plan. And a person earning $200,000 will still get a tax cut, which will be $4,529.

Over the last few weeks I've been out speaking to my community about the tax cuts and what they mean for local residents. Emma from Branxton is a registered nurse in the Hunter electorate. She earns around $90,000 a year and paid $21,517 in income tax in the 2023-24 financial year. On the same salary Emma will pay $1,929 less in tax in the 2024-25 financial year under the government's new tax plan. That is $804 more than under the previous plan. Gordon is an electrician in Lake Macquarie and is married to Tracy, who is at home caring for their child. Gordon expects his wage to be around $130,000 in the 2024-25 financial year. With the new tax cuts, Gordon will receive $3,379 of income tax relief.

While these tax cuts benefit everyone, I understand that some people in my community who make over $150,000 might not be entirely happy with these changes. I want to reassure those individuals that you will still receive a tax cut. Actually, you'll get the largest tax cut of all. 'How?' you ask. We're increasing the highest tax threshold from $180,000 a year to $190,000 for the first time in 16 years. Just like everyone else, these individuals have expenses, like school fees, child care fees, health insurance and housing costs, either rent or mortgage. Many of them bought homes when interest rates were expected to stay low, but now they're dealing with higher rates, like many other Australians. They are facing similar financial pressures. They've been waiting for tax relief, and we're delivering it by raising the tax threshold to $190,000 and giving them a tax cut too. I spoke with Ian, a miner from Muswellbrook, who told me that this is a far more equitable outcome. Ian earns more than $170,000 a year and still gets a tax cut, but his children, who are in the childcare and service industries, get a far better deal on their tax.

Those opposite love a good scare campaign. It's the only policy they can come up with. We hear them running around like Chicken Little, telling everyone the sky is falling in, but this couldn't be further from the truth. The advice from Treasury is clear: our tax cuts will not add to inflationary pressure, because they are broadly revenue neutral. With the continuing fall of the inflation rate, Treasury are clear that our tax plan will not impact their forecast for inflation to fall to the target band.

Australians are under pressure right now and deserve a tax plan that responds to the challenges they are facing, but those opposite have backflipped on what they will do for struggling Australians. Why are they standing in the way of bigger tax cuts for Middle Australia? We had the Deputy Leader of the Opposition saying they would roll back these changes, meaning that 63,000 people in the Hunter electorate will not get a tax cut and will pay more tax under the Liberals and Nationals. Think about that for a second, Mr Deputy Speaker. Their plan is to tell those who are struggling that, if the Liberals and Nationals are elected, the relief they will be delivered from 1 July this year will be taken away and given to those people on $200,000 a year or more. How is that fair? The Liberals and Nationals are addicted to opposing cost-of-living relief. The only word they seem to know is 'no'.

The stage 3 tax cuts represent a transformative step forward for our nation, a step towards a future of opportunity, prosperity and fairness. By empowering individuals, stimulating economic activity and promoting equality within our tax system, these cuts lay the foundation for a stronger, more resilient Australia. I commend the bill to the House.