Treasury Laws Amendment (Tax Reform No. 1) Bill 2026, Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026

Mr ALBANESE (Grayndler—Prime Minister) (11:07): The four measures in the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 prove that Labor is the party of aspiration. They prove that Labor is the party of fairness. Importantly, Labor is the party of homeownership and Labor is the party of lower income taxes for every working Australian.

This bill, which every single Labor member of the House of Representatives is looking forward to voting for tomorrow, delivers a new $250 working Australians tax offset to over 13 million working Australians; a $1,000 instant tax deduction that will benefit around six million low- and middle-income Australians; and reforms to negative gearing and capital gains tax that will rebalance the tax system and finally give young people a fair crack at homeownership.

This legislation also demonstrates that Labor is the party of reform. We're not in government just to occupy the space; we're here to get the big things done. At a time when Australians feel like the economy isn't working for them, our government is not going to waste a single moment defending a system that everyone knows is broken, nor are we going to sit back and wring our hands and hope that something will turn up.

Instead, we take responsibility. We take action. We are delivering real change that makes a real difference, and that is what is at the centre of this legislation.

Four weeks from now, on 1 July, every single Australian taxpayer will receive a tax cut. That will be the second round of tax cuts delivered by our Labor government, with a third round on the way for every taxpayer on 1 July next year. And we're not stopping there.

This legislation delivers two more reductions in income tax—a total of five tax cuts for working Australians under our government, delivering a total saving of over $2,800 for average workers. It's fitting that we're legislating for these new tax cuts in a week that confirmed five consecutive increases in the minimum wage, every single one of them backed by our government with submissions to the Fair Work Commission.

Now, those things also have something in common, which is that all of our tax cuts have been opposed by those opposite—all five—and on no occasion in the history of the Liberal and National parties have they ever made a submission to the Fair Work Commission saying that real wages should be maintained, let alone increased—not once, not ever. We on this side of the House want people to earn more and keep more of what they earn.

Those on the opposite side of the House now, with the three right-wing parties and their allies—we saw some of the commentary of the allies this morning—want people to earn less, and they oppose income tax cuts. Five tax cuts plus five wage increases equal millions of Australians benefiting directly from the policies that our government has put in place. Our new $1,000 instant tax deduction is cost-of-living relief, but it's also economic reform because it means that everyone can opt for an automatic tax deduction of $1,000 on their work expenses—no research needed, no scrolling back through your online banking.

Just tick the box and your tax return is ready to go, and you'll receive that deduction. This is a productivity measure that takes away the hassle of tracking your expenses, and it will mean that millions of people who work part time or work from home or don't have their own accountant don't pay more tax than they should. No-one will be worse off under this reform, but nearly six million taxpayers, overwhelmingly low- and middle-income earners and young Australians, will be better off.

The $250 working Australians tax offset is the first important step in rebalancing the tax system to better reward hard work. For too long, Australia has taxed income earnt through wages and work too heavily because we haven't had the balance right with income derived from assets. This legislation recognises a very simple fact—that the overwhelming majority of Australians earn their living by going to work.

That's where the income comes from—teachers and nurses and cleaners, police officers, people in retail and hospitality. Millions of Australians who work their guts out to make ends meet and provide for their families have probably never even heard of a discretionary trust, and they will never have the means or the opportunity to use one to minimise the tax that they pay.

This legislation makes our tax system work better for these 13 million Australians by returning more of the money that they earn. At our campaign launch in Perth last year, I quoted from a report that the great Ben Chifley had commissioned as Minister for Post-War Reconstruction. That report said that housing was 'not only the need but the right of every citizen'.

Eight decades separate our government from that one, but we are still the party of homeownership. Those values that led the Curtin and Chifley governments in postwar reconstruction—the values of resilience, of making things here in Australia, of aspiration for Australians, going forward—are very much what drive our Labor government. We also understand that when it comes to homeownership a secure roof over your head is a foundation—for better education for your children, for better health for yourself and your family, and for that security that comes from knowing you can have that certainty going forward.

It is also critical for the people we've met already who've benefited from our range of programs—$47 billion under the Homes for Australia Plan—whether it's those who've benefited from the Housing Australia Fund for social housing, those who've benefited from the Build to Rent scheme or Help to Buy, the shared equity scheme, or those who've benefited from our five per cent deposits, which is more than 250,000 Australians.

Having that secure roof is also how they can plan to have a family, how couples can plan to get ahead in life. We understand that our focus has been very much on boosting housing supply. That's why we've spent the past four years working to build more homes, and we've thrown everything at it.

We're also throwing everything at the labour market, with free TAFE and $10,000 construction or electrical apprenticeships—all opposed by those opposite—and 100,000 new homes being set aside for first home buyers, the Housing Australia Future Fund. Not only have all these measures been opposed and delayed when they've been introduced into this parliament but also the current parliamentary opposition leader committed, in the budget reply, to getting rid of all those programs.

Again, the party that didn't bother to have a housing minister for most of their time in government also still want to get rid of programs that are proving to be very successful. We know that thousands of Australians have benefited from these programs, but we knew we needed to do more. Despite all those programs, we still were not doing enough, because too many young people will tell the story of turning up to an auction on a Saturday and simply being outbid by an investor, someone who has a partner at that auction—and that partner is every Australian taxpayer, because if an investor is in a bidding war at an auction they know that if they go the $20,000 more then that's money off their tax, if they're going to negatively gear that property.

It's something that's not available to the first home buyer. That's why the system has simply been working against them. The changes the Howard government made to capital gains tax in 1999 were meant to boost investment in the share market.

Instead, they turbocharged property investment. Year after year, more and more young Australians were being locked out of the market by tax breaks that favoured property investors, widening the gap between the generations and eating away at aspiration. Since 1999, house prices have risen by more than 400 per cent, more than two times as fast as average incomes.

In the same period, the rate of homeownership among Australians aged 25 to 34 has fallen by seven per cent. We owe the next generation better than this, and that's what these reforms are about. These reforms are for young people who are working hard, are making sacrifices, are doing everything right but have spent years missing out at auctions.

These changes are for young Australians who are this close to just giving up on buying a home altogether. We say to those young Australians: my government has got your back. We are on your side and we're going to bring the great Australian dream back within reach.

Importantly, when it comes to negative gearing, that concession will still be available for new homes. So, if people want to invest in a property and negatively gear it, good on them. But, from now on, as well as building their own wealth and assets, they'll also be building the wealth and assets of our nation.

Part of what makes Australia the best country on earth is that, in Australia, aspiration isn't exclusive or narrow. It's not just people who are born wealthy. Every Australian aspires to a better life for themselves and importantly a better life for their children and grandchildren.

It is not something you can only inherit; it is an opportunity that you can earn, a dream you can achieve with hard work and sacrifice. That is the Australian aspiration we're proud to be backing with these reforms—aspiration for all Australians, not just for some; a society and economy that's stronger and fairer, stronger because it is fairer; and a nation that is more resilient—because more Australians have a stake in the economy and a stake in the future.

That's what drives our Labor government. That's the real change that we are delivering. That's why I'm proud to join with every single member of the Labor government in commending these bills to the House.

Debate interrupted.