ADJOURNMENT
Senator POLLEY (Tasmania) (20:24): The Albanese Labor government understands that Australians are working hard and feeling the pressure in their household budgets, whether from groceries, power bills, rent, fuel or the everyday costs of raising a family. People want a government that recognises those pressures and acts responsibly to ease them. That's exactly what Labor is doing.
We're delivering real, practical and permanent cost-of-living relief through a fairer tax system, helping Australians earn more and keep more of what they earn. This is unlike those opposite, who, at the last election, advocated increased taxation. Our tax agenda amounts to five tax cuts and relief mechanisms delivered in three different ways.
This means, for a worker on average earnings, the combined benefit could be as much as $2,816 each year, compared with the tax settings that applied in 2023-24. This is money that can help pay for the weekly shop, school expenses, a tank of fuel or overdue bills. The first reform was Labor's cost-of-living tax cuts, which began on 1 July 2024.
We redesigned the previous tax plan so that every Australian taxpayer, not just some, received a tax cut. We reduced the first tax rate from 19 per cent to 16 per cent, reduced the 32.5 per cent rate to 30 per cent and lifted the threshold for higher tax brackets. That delivered a bigger benefit to low- and middle-income Australians and ensured millions of people who would otherwise have missed out received relief.
The second tax cut took effect on 1 July 2026. The tax rate applying to income between $18,201 and $45,000 fell from 16 per cent to 15 per cent. This cut benefited every taxpayer because everyone who earns above the tax-free threshold pays tax through that bracket.
For taxpayers earning more than $45,000, it provides up to an additional $268. The third tax cut will begin on 1 July 2027, when that same rate falls again, from 15 per cent to 14 per cent. Together, the two further rate reductions provide taxpayers earning above $45,000 up to $536 a year in additional relief, compared to the 2024-25 settings.
These reductions also return bracket creep and improve the reward for work, particularly for low-income and part-time workers. The fourth reform is a $1,000 instant tax deduction from the 2026-27 income year. Eligible workers can choose to reduce their taxable income by up to a thousand dollars for work related expenses without keeping receipts.
The fifth reform is the permanent working Australians tax offset for 2027-28. It will provide an annual offset of up to $250 for more than 13 million Australians who earn income from work. It will be applied through the tax system after a worker lodges their return, giving nurses, teachers, tradies, retail workers, carers, truck drivers and sole traders another permanent tax cut.
But, with all of these things, Labor also has had a deliberate approach to relieving the cost of living for Australians. Cost-of-living relief must make a real difference without undermining the fight against inflation. That's why these measures are targeted, staged and permanent.
They put money back in the household budget while strengthening workforce participation and supporting a fairer, more productive economy. And tax relief works best as part of a broader plan. The Albanese government is delivering cheaper medicines, a stronger Medicare, more bulk-billing, permanent Medicare urgent care clinics—Launceston has the best and the busiest in the country—cheaper child care, free TAFE, student debt relief and support for higher wages.
Compare that with those opposite, who, quite clearly—this is not us saying it; this was what they went to the last election with. Higher taxes! What we see now is that the Liberals and Nationals will do whatever to try and outmanoeuvre One Nation, their new leader.
They are being led by One Nation. Australians know that, with a Labor government, they will get support when they need it. Australian workers will get support when they need it.
They cannot afford the 'tri-alition' of those opposite. Senate adjourned at 20:29