QUESTIONS WITHOUT NOTICE
Dr CHALMERS (Rankin—Treasurer) (14:15): Thanks to the member for Bennelong for his important question and for all of his work. This government is cutting taxes for workers five times, in three different ways. We cut taxes in our first term, there's another tax cut in July and another one the July after that, and on Thursday we will introduce legislation to cut income taxes a fourth and a fifth time as well.
That's because that legislation includes a thousand dollar instant deduction and also the Working Australians Tax Offset. Our tax cuts mean that an average worker could be up to $2,800 better off in the year that these tax cuts are implemented. The legislation on Thursday includes those new tax cuts, and it includes the changes we are making to negative gearing and capital gains.
This legislation is all about making it easier to own a first home, better aligning the tax treatment for workers and asset owners and also funding these tax cuts. The reason these four elements are all together is that the negative gearing and capital gains tax changes fund the tax cuts for workers and for small businesses. The package is broadly revenue neutral over the four years, and that's why these measures are all in together.
By passing the core elements of the package quickly, we will give the market some certainty about the major changes while we consult on the implementation details flagged in the budget. This is not unusual. The Howard government's GST reforms required more than 30 bills, and when it came to the capital gains tax changes in 1999—also around 30 bills.
So this legislation on Thursday is a test for the coalition— Opposition members interjecting— The SPEAKER: Member for Maranoa, Member for Goldstein and Member for Gippsland, that yelling is completely unprofessional, but it's also against the standing orders, so you're warned. Member for Goldstein, I assume you want the MPI to proceed. So everyone is clear: if there are more interjections, there won't be an MPI today.
Because that yelling is unacceptable. So there won't be an MPI if the member for Goldstein interjects. There are consequences for actions.
Dr CHALMERS: This legislation is a test for the coalition, and it's a test that they have failed before. It beggars belief to remember that in the first term the big, two mistakes that they made in the first term because of the genius of the member for Hume were to vote against tax cuts and to block housing for Australians. They are showing all of the signs of repeating the exact same two mistakes that they made in the first term.
They haven't learned a thing and they haven't changed a bit since the member for Hume convinced them in the last parliament to vote against the tax cuts that this government was putting in place. He got it badly wrong the first time and it looks like he's going to repeat the mistake. So let me be very clear.
If they vote against this legislation, they are voting for higher income taxes once again. They are voting to make it harder for people to buy their first home. And, when people are crying out for change in the housing market and in the tax system, they would be clinging to and voting for a broken status quo that is locking too many young Australians out of housing.
They should vote for the tax cuts that working Australians need and deserve, which this government is determined to give them.