MOTIONS

Mr VIOLI (Casey) (17:59): I move: That this House: (1) notes that the Government's cost of living crisis is forcing Australians to pay more for groceries, power, insurance, mortgages and rents, while inflation and bracket creep are leaving workers worse off; (2) condemns the Government's 'inflation tax' as a stealth raid on Australians who are working hard, earning more just to keep up with inflation, and then being pushed into higher tax brackets; (3) recognises the Opposition's Tax Back Guarantee would end this dishonest bracket creep by indexing income tax thresholds to inflation, protecting 85 per cent of taxpayers from 2028-29, and all taxpayers from 2031-32; (4) calls out the Government's higher tax agenda on housing, savings, start-ups, trusts and small and family businesses, which punishes aspiration and makes it harder for Australians to work, save, invest and get ahead; (5) supports the Opposition's plan to back small business by: (a) making a $50,000 instant asset write-off permanent for businesses with turnover under $10 million; (b) expanding access to capital gains tax concessions; and (c) consulting on a new Small Business Act; and (6) calls on the Government to: (a) remove its harmful higher taxes; (b) reduce red tape; and (c) stop choosing which Australians and businesses are allowed to pursue aspiration and which are forced to carry the burden of the Government's tax agenda.

There is no doubt that Australians are doing it tough at the moment. It is so hard economically to get ahead or to even keep your head above water. Just last week I was at a food charity in my community talking to them about the people that they're looking after, and they have seen significant growth in people needing support from their organisation.

They and many others use the term 'working poor'. Families with two parents working are still needing food banks just to get ahead, some because of a one-off bill, others because they just cannot make ends meet week after week. That is the reality that we are living through today.

Everything is more expensive—food, rents, mortgages and inflation are through the roof, well above the band, with no projection to get them back into the band any time soon. Delivered primarily by the decisions made by this government, this Treasurer's addiction to spending meant that, when the conflict in the Middle East happened, Australia was already well above the band, and we'd already seen increases in interest rates before the invasion and the conflict in the Middle East.

So we had no buffer and no ability to withstand those challenges in the Middle East. Those opposite will blame other factors, but the facts are in; the RBA governor and many others have confirmed that driving this are government spending along with the government being unable to focus on or drive productivity growth in this country. We've had negative 4.5 per cent productivity growth in this country, under this Treasurer and under this Prime Minister.

And if we cannot deliver productivity, we cannot deliver higher, sustainable wages by addressing the supply-side challenges. But what this government and this Treasurer do when it comes to tax is play a little bit of smoke and mirrors on the Australian people, and they've just done it recently. They will announce a tax cut, and they will say to you, 'Great news: you've got a tax cut coming.' They'll announce it in a budget in May.

But what they won't tell you is that doesn't come until the next financial year, over 12 months later. In this example it was $5 a week. They make a big announcement, it doesn't help anyone today, and it's $5 a week in about 15 months time.

But what has happened in that time? Because of inflation, you are paying more taxes through bracket creep. Essentially, the government collects more tax—well over $5 a week because of inflation and their inability to manage the economy—and they say to you: 'Here you go.

Have $5 and say thank you.' So we'll hear those opposite talk about the tax cuts that they've delivered. They won't talk about the quantum of them, because it's not making a difference, and they won't talk about the delays and tricks that this Treasurer uses. Now, the only way to sustainably deliver tax cuts to the Australian people is to deal with bracket creep.

Bracket creep is when, every time you earn more, you go into another tax bracket and pay higher income tax. But that is why the coalition have committed to a tax-back guarantee. We will index the tax brackets to inflation, so, when inflation goes up, the brackets go up, and you will not be punished.

For an average Australian wage earner, that will give you back in your pocket $250 in year 1, $500 in year 2, $750 in year 3 and $1,000 in year 4, and, doing the maths, it'll go up another $250 every year going forward. That will give you real, sustainable, tangible relief when it comes to tax. And it will force governments, most importantly, to do two things.

They'll have to make a decision. If they want to increase taxes, they're going to have to be up front and honest with you, not do it by stealth like this Treasurer has made an art form out of. Or they're going to have to make really tough decisions and make sure that we value every dollar of taxpayer money to make sure it is delivering a return for the Australian people, not wasting $150 million on a conference in the Pacific that no-one is turning up to at a time when people in my community cannot put food on the table.

That's an example of this government not having their priorities right. This tax-back guarantee will give money back to Australians. It will ensure fiscal discipline, which means that every treasurer and prime minister has to value your dollar.

And, if they want to tax you more, they need to be upfront about it. The DEPUTY SPEAKER ( Dr Haines ): Is the motion seconded? Mr Willcox: I second the motion and reserve my right to speak.