PRIVATE MEMBERS' BUSINESS
Ms COFFEY (Griffith) (18:13): I would like to acknowledge and thank the member for Kennedy for bringing forward this motion on income splitting. I would in particular like to acknowledge the intent of the motion, which is very clearly supporting families—something I know the member for Kennedy is passionate about, and it is a passion I share. In Griffith, families are doing what families right across Australia do every single day.
They are working hard, juggling care, managing school drop-offs and shift changes, and stretching every dollar as far as it can possibly go. So when a proposal like income splitting is put forward as support for families, we owe people an honest assessment. Does it make life easier for the families that are under the most pressure?
And does it reflect how the majority of Australian families actually organise their work and care today? The answer is no. When it comes to tax, this government's policy is clear: to deliver a system that is fairer, simpler and more sustainable and that helps Australians earn more and keep more of what they earn.
Labor's first round of tax cuts has been flowing since July 2024, benefiting more than 14 million taxpayers, with further tax cuts legislated for this year and next year. Combined, they are expected to deliver an average annual tax cut of more than $2,500 in 2027-28. This is relief for every taxpayer.
It does not depend on whether a household has one income or two, and it does not build dependence on the tax system. Alongside those tax cuts, Labor has increased the Medicare low-income thresholds so more— Mr Katter interjecting— The DEPUTY SPEAKER ( Ms Claydon ): Member for Kennedy! Ms COFFEY: It's his passion, Deputy Speaker.
I hear your passion, Member for Kennedy. Labor has increased the Medicare levy low-income threshold so that more than one million Australians on lower incomes continue to be exempt from the levy or pay a reduced rate. We have also boosted the low-income superannuation tax offset from 1 July next year, benefiting 1.3 million Australians, around 60 per cent of them women.
Families deserve support, and we already have tools to provide it, like the family tax benefit. Part A helps with everyday costs of raising children while part B supports single parents, grandparent carers and some couple families with one main income. That's targeted support which recognises need directly without distorting the income tax system.
Mr Katter: I've got a point of order. The DEPUTY SPEAKER: What is the point of order? Under what standing order is your point?
Mr Katter: The misrepresentation of what is proposed in this proposal. The DEPUTY SPEAKER: Well, no, that's not a point of order. Sorry.
Mr Katter: The proposal is to get a fairness between this group of people and that group of people, and the member has not addressed that issue. The DEPUTY SPEAKER: No, you need to sit down. Please resume your seat.
The member for Griffith is completely being relevant, and that's the only point of order that you might have been referring to. I'm going to ask you to resume your speech. Ms COFFEY: Thank you, Deputy Speaker.
The same is true of paid parental leave. The scheme is already at 24 weeks for children born or adopted after 1 July last year, and that will expand to 26 weeks from 1 July this year. Four weeks can be taken concurrently, giving families more flexibility to share care.
Superannuation is now also being paid on government paid parental leave, directly addressing one of the long-term financial penalties that caring has imposed, especially on women. Our cheaper childcare reforms follow the same principle. They are ensuring around one million families receive more help with childcare costs, and the three-day guarantee means 100,000 families will receive more subsidised early education and care.
These policies reflect how families actually live. They support children, parents and workforce participation. Income splitting does the opposite.
It rewards stepping back from paid work, particularly for the second earner in a household, who in Australia is very often a woman. Treasury's tax review stated clearly: Individual assessment supports workforce participation by secondary earners … and that a progressive individual tax system is far more efficient than family taxation. Then there's the cost.
The Parliamentary Budget Office costed a similar proposal in March last year— Mr Katter interjecting— The DEPUTY SPEAKER: Member for Kennedy! This is your motion. Have a bit of respect, please.
Ms COFFEY: The Parliamentary Budget Office costed a similar proposal in March last year and found it would reduce the fiscal and underlying cash balances by around $12.4 billion over the forward estimates and by $68.9 billion in 2034-35. That's a staggering amount of money for a policy that is poorly targeted and does nothing to address the structural barriers that real families face.
Income splitting is not a fair reform. Families in Griffith deserve better than that. The DEPUTY SPEAKER: Thank you.
Now we're going to continue this debate without interjections. It's a good motion that the member for Kennedy has put forward, and the whole point of that is to enable a debate.