Budget

The SPEAKER (15:17): I have received a letter from the honourable Deputy Leader of the Opposition proposing that a definite matter of public importance be submitted to the House for discussion, namely:

The Government's addiction to higher taxes and higher spending.

I call upon those honourable members who approve of the proposed discussion to rise in their places.

More than the number of members required by the standing orders having risen in their places—

Mr TED O'BRIEN (Fairfax—Deputy Leader of the Opposition) (15:17): Australia is going in the wrong direction. Under Labor, Australia is becoming poorer. Under Labor, Australia is becoming weaker. Under Labor, Australia is becoming more dependent on other nations. And the only way this can be turned around is if the Labor government starts to put the Australian people, rather than the government itself, at the centre. In order to do this, a prerequisite is to fix the budget. We all know—on both sides of this chamber—that the Australian government's budget is not sustainable. We know that Labor also appreciates that, because the Treasurer conceded as much only weeks ago. Herein lies the test for the Labor government: the starting point for fixing the budget is to stop the spending spree.

As a percentage of GDP, spending has gone up from 24 per cent to 27 per cent under this government. To put that into perspective, that means Labor's spending this year is $160 billion higher than when the coalition left office. This equates, on a household level, to $16,000 per Australian household.

You can imagine doorknocking your local community and asking them whether or not this year they're feeling value for money, with an extra $16,000 being paid out by this Commonwealth government.

The spending spree is genuinely out of control, and the problem is that what's funding it is more debt. The Treasurer has added more than $112 billion in new debt, which is why, this year, debt is set to reach $1 trillion. Debt hits $1 trillion this year under this Albanese government. Of course, nobody would argue that this is not fiscally irresponsible. But, more than that, this is morally bankrupt, and it is so because every single dollar that this Treasurer borrows goes on the shoulders of the next generation. This is akin to the Treasurer taking the credit card where the words imprinted on it are 'future generation' and just racking up debt. It is like the mums and dads of Australia going into their children's rooms, stealing their credit cards and going out on a spending spree, hoping that maybe one day the kids will pay back that debt. That is where this is so morally repugnant.

We know that Australian families have been doing it tough. They've been in household recession, and what have they been doing? Unlike the government, they have been living within their means. If the everyday Australian family has to do it, why shouldn't the Australian government? That's not fair. That's not genuine. Even the most recent national accounts show that the savings-to-income ratio has gone up to 5.2 per cent. So, at the very time that households are showing fiscal prudence, this government is spending.

Not only are we going to see $1 trillion of debt this year but we will see deficits over the next 10 years. That is this newly elected Labor government's plan for the Australian economy: $1 trillion of debt and 10 years of deficits. This places the Treasurer at a fork in the road. He has a choice here. He can turn right and stop the spending spree, or he can turn left and increase taxes. Is there any guess as to which way the Treasurer might go? Could this treasurer, the member for Rankin, possibly increase taxes?

Often, history is a good record as to where someone might go, and so I dug out the taxes that this treasurer has had something to do with. We're talking here about the carbon tax, the mining tax, the superprofits tax, the resource tax, the safeguard tax, the family car tax, the housing tax, the retiree tax, the family trust tax, the small-business tax and the deficit levy tax—and this is just a sample.

Mr Dreyfus: You forgot one!

Mr TED O'BRIEN: And I take the interjection from the honourable member, because I did forget one.

Mr Dreyfus: It was yours!

Mr TED O'BRIEN: I forgot about the superannuation tax. So you're right. I give him credit. It is superbig—

Honourable members interjecting—

The DEPUTY SPEAKER ( Ms Claydon ): Okay, we're getting a little bit loud here. Just keep the interjections down.

Mr TED O'BRIEN: and it's superbad. We know it is. I believe those opposite also know it is. In fact, the most egregious part of the tax to which the honourable member referred is the taxing of unrealised capital gains—the notion that you are going to tax theoretical profits that have never even been made. We know already from question times in this sitting that neither the Treasurer nor the Prime Minister would accept stopping the extension of unrealised capital gains at superannuation. In other words, they have every intention of extending unrealised capital gains beyond superannuation. We have heard from the former prime minister Mr Keating in media reports and we have heard from the Assistant Treasurer as well that it's not going to be just a few Australians who are hit. We are going to see everyday young Australians entering the workforce today eventually hit by this new super tax from the Labor Party.

Something that hasn't been mentioned about this super tax is the fact that they are introducing something which is called the Henry VIII clause.

For new members who aren't aware of this, the Henry VIII clause basically gives the Treasurer the right, after the bill goes through the House, to unilaterally make his own proclamations of change to the superannuation rules, the tax rules, without having to come back into this parliament, effectively leaving this parliament aside. There's a story here with this Treasurer. He has a history. He was previously titled something in this House when he was on this side of the chamber. You know what it was? Sir Taxalot.

The DEPUTY SPEAKER ( Ms Claydon ): I don't think we'll go into repeating that remark again.

Mr TED O'BRIEN: He didn't like those comments, and I thought it was for that very reason—that, maybe, it was not the sort of thing that one should say. However, with the fact that Henry VIII clauses are coming in, we now realise the reason he was offended. He didn't want to be a 'Sir'. Why be knighted by the sovereign when you can become the sovereign? Why not? Why not become the royal from Rankin? All hail King Taxalot, the Treasurer of Australia!

The DEPUTY SPEAKER: Excuse me, member for Fairfax, we just had a discussion about the use of that term. You agreed that it might not be the best way to proceed, so let's not repeat it, please.

Mr TED O'BRIEN: Thank you very much for your wise words, and, of course, I'll take it, Deputy Speaker. I'll just move to the next part of the Treasurer's life. He has a productivity roundtable coming up. He's already made it very clear that he will put a ruler over the ideas that come to the roundtable on the principle that they be at least budget neutral but preferably budget positive. In other words, he is looking for more taxes to feed his spending spree. You do not make an economy more productive by raising taxes.

In contrast, as shadow Treasurer, I will put a ruler over the ideas at the roundtable on the principle that they be at most budget neutral. In other words, higher taxes will not be accepted. It is plausible, of course, that this productivity roundtable is nothing but a ruse by the Treasurer, who knows very well that he has lost control of the budget. He cannot put the spending spree down, and he wants to raise taxes. So he has got 25 people in a room to give him cover to raise taxes. We on this side of the House are not interested so much in 25 people but in 27 million Australians, and they are who we'll fight for.

Mr BURKE (Watson—Minister for the Arts, Minister for Home Affairs, Minister for Cyber Security, Minister for Immigration and Citizenship and Leader of the House) (15:27): Every day, the MPI comes around, and I get asked which frontbencher will I will flick it across to. I saw the one today, and I'd just refused to share. I refused to share, because of what the shadow Treasurer has put forward. Here are the words: the government's addiction to higher taxes and higher spending. His objection, if you look at what they've been standing for, is because they want taxes to be even higher and spending to be even higher. That is exactly what they have just spent and gone completely to the Australian people on. They managed, and the now shadow Treasurer managed, the most expensive election commitment to be taken to any election in the history of Federation. Even when he quibbles with the numbers and picks his preferred lower figure, it is still the most expensive election commitment that has ever been taken to a federal election.

They managed to be offering cuts. We know all the things they oppose. They oppose free TAFE, free medicines and urgent care clinics. They wanted to sack workers left, right and centre. We know all the things they oppose, and, even with their long list of cuts, they still managed to increase debt. They still managed to go to the election delivering increased debt. At the same time, and full credit for their honesty, they were the first opposition to actually go to an election promising that people should pay more income tax.

He went through a whole lot of different tax areas that he wanted to talk about in his speech there. He didn't say a word about income tax, did he? He did not say a word about income tax. Every single Australian taxpayer was being told that, if they were on this side of the House, income tax was going to be more, whereas the government's position was really simple: people should earn more and keep more of what they earn. Those opposite opposed both. They opposed people earning more, and they opposed people keeping more of what they earn.

Let's go through the economic stats. One of the most concerning things he just said is that Australia is becoming too reliant on other countries. That was one of his comments. He could only be referring to the fact that, under them, their concept of being less reliant on other countries was to shut down trade. So in country after country we were losing access to trade, which meant we were losing access to business, which meant we were losing Australian jobs. And yet they choose that as the better path. We are proud of the fact that there are more jobs in Australia because we've improved trade. We are proud of the fact that people have more job security because we've improved trade. We are proud of the fact that people are earning more and have more job security.

The DEPUTY SPEAKER ( Ms Claydon ): Order, member for Fairfax!

Mr BURKE: Go through each of the economic stats—whether it be inflation, wages, jobs, business investment, productivity or the budget—and look at the comparison between their record and the record of this government. On inflation, in the final figures, the March quarter figures, when they were last in office inflation had a '6' in front of it.

The DEPUTY SPEAKER: Member for Fairfax, you can leave the chamber if you cannot hold your tongue.

Mr BURKE: Not only was it their view that that was proper management of the economy; they also had a passionate view that wages should not keep up with that number. When our Prime Minister said, 'Absolutely,' to people's pay being able to keep up with what was happening with inflation, they were opposed to that. They never saw a pay cut they didn't want to grab. They never found a way of increasing wages that they weren't willing to oppose.

Real wages were going backwards by 3.4 per cent. There were five consecutive quarters where real wages were falling. When we came to office, we changed the laws for workers. We changed the approach the government took to the Fair Work Commission. What did that mean? We were told by them when we started to do that, 'Oh, no, that will cause inflation to go up.' The then shadow Treasurer actually opposed our workplace relations reforms on the basis that they would increase wages. That is what he said. When he was challenged, he said, 'I'm only saying that, if you increase wages, you are going to increase prices as well.' Well, what happened? As real wages went up, inflation fell. As a result of that, where they had five quarters leading up to the 2022 election where wages went backwards, Australia has now seen real wages grow for the last six consecutive quarters.

They talk about the number of jobs. Over 1.1 million jobs have been created. The average unemployment rate under this government has been the lowest of any government in half a century. They then want to go to business investment. Annual business investment under them fell by an average of 1.3 per cent per year for their nine years in office. What's happened in our time in office? It hasn't been falling by an average of 1.3 per cent a year. It's been growing by an average of 4.4 per cent per year, hitting a record high last financial year.

They oversaw the worst decade in productivity growth in 60 years, whereas we are working to restore growth. That's why you deliver free TAFE—because, if you have a skilled workforce, you have a more productive workforce. That's why you get away from the incentives that made people baulk at study through student debt. If you know that you have the government backing you on education, you invest in your own skills as well, just like the government is investing in a future made in Australia.

But, of all things, something that the shadow Treasurer really shouldn't try to talk about is debt and deficit. The way to deal with debt and deficit is to have surplus budgets. That's the way to deal with it. We are getting very close to the point where we will have people voting in Australian elections who have never seen the coalition deliver a surplus budget in their lifetimes. Have they been able to claim they were going to do it? Yes. They did the merchandise. They had the 'back in black'. Their only support for Australian live music ever was, much to the annoyance of AC/DC, to try to co-opt the song. Yet how many budgets did they deliver? How many surplus budgets? How many times, when the final figures came in, was the budget in surplus? How many times? How many times from them? And yet we have had the first back-to-back surplus in almost two decades. Debt is $177 billion lower than what had been forecast at the election. When you do that, you save the nation around $60 billion in interest costs over the decade. We've had from them, over this last fortnight, a whole series of images where they want to look backward. In terms of looking backward, in fairness, the member for Fairfax doesn't win; I suspect the member for Longman has won that prize with the speech he gave in the Federation Chamber earlier this week.

But this government is proud of the fact that we will back workers, back Australian industry and back Australian jobs. One of our proudest boasts, I have to say, is the fact that our laws have done exactly what we said they would do, and the gender pay gap is at the lowest it's been since they started collecting the record. Again, that is a contribution to productivity. That is a huge contribution to productivity. But every measure we've brought in to be able to do that has been opposed by those opposite—right through! The excuses are always the same. They say that it will drive up inflation; well, inflation is lower than it was under them, markedly lower. Or they'll say that it will boost inflation—wrong. They say it will cause a collapse in jobs—wrong. Their other classic one is to say that it would lead to more industrial disputes. Fewer days have been lost to industrial disputes now, under this government, than in the final quarter under them. Under every metric, people are earning more and keeping more of what they earn. They have more secure employment and a more productive economy because those on the other side have not been in charge of any of the decisions.

The DEPUTY SPEAKER: Before I give the call to the member for Flinders, I'd just like to say that the sledging from frontbenchers was really unhelpful throughout that debate, so let's try and be courteous so that the member for Flinders can be heard, and I'd like the same for the next speaker as well.

Ms KARA COOK (Bonner) (15:43): I rise today to respond to this tired, misleading claim from those opposite and the member for Fairfax. Here are the facts: every single Australian taxpayer is getting a tax cut under Labor—not just the top end of town, not just some but all 14 million taxpayers. Do you know who else is getting a tax cut under our plan? Every woman who is a taxpayer in this country, whether she's a teacher, a small business owner, an engineer or a scientist or works in IT or mining. Yes, women do all those things, and they will pay less tax under Labor. That matters.

Frankly, after the comments from the member for Longman in recent days, comments that revealed a disturbing lack of respect for women, it's more important than ever to call this out. The coalition may not value the economic contribution of women, but Labor does, and our policies reflect that. Labor's new tax cuts are fair, modest and responsible. They'll make a real difference.

From next year, we're cutting the 16 per cent tax rate to 15 per cent, then down to 14 per cent in 2027—the lowest it's been in 50 years. And we're lifting tax thresholds so you can earn more and keep more of what you earn. That means a worker on $40,000 gets an extra $436 a year from 2027 and an average earner on $79,000 gets an extra $536 a year. Combined, Labor's tax cuts will deliver up to $2,500 a year for the average taxpayer or around $50 a week.

Who is against this? Those opposite! They want to reverse these tax cuts, which means raising taxes on every single taxpayer. That includes the workers they claim to support. It includes the very people who would have missed out completely under their original plan: 3 million Australians, many of them women and low-income earners.

Let me tell you what else Labor is doing to help with the cost of living, because the government isn't just talking about it; we are acting. We're delivering energy bill relief—$1.8 billion to help households and small businesses through to the end of the year; we're growing wages—$2.6 billion for aged-care workers; and we're banning unfair non-compete clauses that stop workers from finding better, higher paying jobs. We're making medicines cheaper, cutting the price of PBS prescriptions to just $25 and investing $1.8 billion to list lifesaving medicines.

We're cutting student debt, by wiping 20 per cent off and lifting the payment threshold for graduates. We're strengthening Medicare. We're making it easier to buy or rent a home. We're delivering permanent free TAFE. We're backing families and farmers, strengthening the ACCC and holding supermarkets to account. We're delivering more affordable child care with a three-day guarantee and new centres across the country. That is what responsible economic management looks like. These investments are funded thanks to back-to-back surpluses—

Mr Repacholi: Back to back!

Ms KARA COOK: I'll take that interjection and say it again, if they didn't hear me in the back. Back-to-back surpluses! Meanwhile, those opposite have no economic plan, just scare campaigns and cuts—just like we've seen today. They offer no costed alternative, no vision, just the same stale male policies that failed working Australians for nearly a decade and certainly failed women.

So, when those opposite accuse Labor of being addicted to spending, here's the real question: why do they want to raise taxes on 14 million Australians? Why do they want to take away tax cuts from every woman, every worker, every family in this country? And why do they oppose targeted, funded support that actually helps Australians live better lives? Labor's plan is about fairness, it's about reward for effort and it's about helping Australians to earn more and keep more of what they earn.

Mr WALLACE (Fisher) (15:48): Like most of the members on this side of the House, we've come from small business.

A government member: Like us!

Mr WALLACE: I'll take that interjection. Like you—for sure. Most of the people on this side of the House have come from small business: doctors, small-business people, carpenters or whatever. When I'm make my way around my electorate of Fisher and I talk to small businesses—because the Sunshine Coast is, according to Bernard Salt, the small-business capital of the country. In my now 33 years on the Sunshine Coast, I have never seen so many Sunshine Coast businesses under the pressure they are right now. Whilst the Labor Party comes in here cock-a-hoop and talks about how good things are, they have absolutely no understanding.

If you want to know how times are tough, come to my electorate and talk to people in the main street of Mooloolaba and see the shops that are closing down in the towns in my electorate. Why? Because small businesses are doing it incredibly tough. They're doing it incredibly tough for many reasons, but I'll just pick two for the time being and they are the cost of energy and the cost of borrowing money.

I'll pick another one: the cost of energy and also—I've forgotten what I was going to say, Deputy Speaker, but I'll come back to it in a minute.

The DEPUTY SPEAKER ( Ms Claydon ): I'm not sure I can help you there!

Mr WALLACE: That's okay. It really breaks my heart when I talk to small businesses, because, having been in that world, I know just how hard it can be—that pit you get in your stomach on a Wednesday night. You are trying to figure out how you are going to pay your staff. For most small-business people, their staff is like their family. I've been there, where I have thought, 'I can either not pay my staff or borrow more money against my house.' Virtually every small-business person in this country will borrow more money against their house because, for themselves and for their business, their staff is their family. They know that it's not just the case that that family relies upon them. They know this person or people. They've worked with them for a long time. They know their families, and they want to be able to provide for them.

Energy's gone up since this government's been in power. Electricity's gone up 32 per cent. Gas is up 30 per cent. These are real costs that are unable to be avoided. Don't get me started on industrial relations. When I talk to small-business people, I've never seen the degree of pain and angst, and that's why we are now experiencing more small businesses failing—more over the last three years than in Australian recorded history. I want to retract that, because it's not the small business that's failed. That's unfair of me to say that. It's the small businesses that have gone to the wall under this government. It's the small businesses that have been unable to keep their doors open. They've done everything they possibly can. They've borrowed against their credit cards. They've borrowed against their home. But they just can't make ends meet. This government either doesn't seem to care or doesn't know what it is like to run a small business in this country.

Ms Doyle: That old chestnut!

Mr WALLACE: I'll take the interjection—'that old chestnut'. There are tens of thousands of small-business people who are working out how they're going to pay their staff's wages, because this government either doesn't care or has no appreciation for what it's like to run a business in this country.

Mr FRENCH (Moore) (15:53): Here we go again—another lecture from the party that racked up a trillion dollars worth of debt—that's 'trillion', with a t—and now they're clutching their pearls about higher spending. Those opposite want to accuse this government of being addicted to taxes and spending. Let's get one thing straight. Those opposite left Australians with a trillion dollars of debt with little to show for it. Those mugs? They were good. I'll stress this slowly for the benefit of those opposite, who clearly aren't great with numbers—a trillion is followed by 12 zeroes. That's nine and three, okay? If you can't count, don't lecture us about balancing it. They've doubled the debt, and now they've got the gall to complain about the interest bill they left behind. Come off it!

Let's not pretend the member for Fairfax is worried about average Australian taxpayers, because here's the truth. The coalition voted against tax cuts for every single taxpayer—every single one.

Labor is delivering a fairer tax system, where someone who is earning $50,000 gets double the tax cut they would have received under the coalition. But the member for Fairfax wanted someone who is on half a million dollars a year to pocket nine grand while someone on $60,000 got crumbs. That's not economic policy; it's trickle-down fantasy—out of touch, out of ideas—and the Australian people told you that at the election.

Let's talk about the man who was driving that clown car over there, Peter Dutton, the former Leader of the Opposition, the member for Dickson—yes, the bloke who thought the path back to government was through raising taxes for 14 million Australians. And what for? Not for health, not for schools but for a $300 billion nuclear fantasy. There was no business case, no rollout plan, no detail, just a vibe—and a very expensive one. And how did the voters of Dickson feel about that? They voted him out—the first opposition leader in Australian history to lose his seat. That's not just rejection; that is a total write-off of the clown car that the former member of the opposition was driving.

The DEPUTY SPEAKER ( Ms Claydon ): Member for Moore—no.

Mr FRENCH: Withdrawn. And now the member for Fairfax is out there trying to jumpstart it. Is it nuclear powered? Member? No? Now, contrast that with Labor, the party that actually understands ordinary Australians. We're cutting taxes for every taxpayer. We're making multinationals pay their fair share. We're tightening tax compliance. We're reining in super tax breaks for those with multimillion-dollar balances. We're reforming the petroleum resource rent tax. And we're investing in clean energy, housing and small business. That's not addiction; that is economic stewardship. We've delivered the first surplus in 15 years, and we did it without smashing services or selling off assets.

Now those opposite suddenly care about restraint. Well, where was that restraint when their side was doling out sports rorts, carpark rorts, robodebt notices and grants that mysteriously always landed in opposition seats? Their legacy is one of waste, mismanagement and inequality. And now they're having a dig at us for cleaning up their mess. It beggars belief. Let's take a look at the actual numbers. Inflation's back in the RBA's target band, at 2.1 per cent. Unemployment is steady, at 4.3 per cent. GDP is growing. That's what economic management looks like. You don't fix a budget by slashing Medicare; you fix it by backing Australians and making sure everyone pays their fair share.

I didn't come here with a silver spoon. I've poured beers, wired switchboards and stood beside workers who were shafted. I came here for them—for people who actually turn up, clock on and keep this country running. The people in my electorate of Moore don't want spin; they want support. They want governments that deliver, not deflect.

Mr TIM WILSON (Goldstein) (15:58): I begin by saying I think it's wonderful that we have a member of the House here who says they represent people who pour beers. As somebody who's pulled beers in their past, I think it's an important part of the Australian story: beer, and pulling it and drinking it. But central to that is to create jobs and economic opportunity for the next generation of Australians. We have a challenging reality right now, and unfortunately the Australian Bureau of Statistics is not a friend of the current government when it comes to unemployment data, as we have seen. Unemployment is on this upward trajectory, which is normally not a very good sign for Australians who want to get ahead and want to get their first foot on the economic ladder of this nation.

But it's not just about getting a job. It's actually about getting a fair day's pay for a fair day's work. And of course we know there is a lived reality in this country.

There is a per capita recession where Australians are working harder, and it does not matter how hard they work; they are not getting ahead. It doesn't matter what the aggregate data says. It doesn't matter what the speeches from the opposition say. It is not achieving the objective and the lived reality of Australians. There is a simple reason for this, and this has been established by international benchmarks; it's not just something that the opposition is raising. Australia has had the biggest drop in household income in the developed world since 2022, which happens to coincide uniquely by chance with the election of the Albanese government.

The Albanese government, despite its boasts and despite the incredible amount of public expenditure, has not actually seen a real and material lift in household income in this country. Instead, people have experienced decline through stagnation—and, of course, we know the curse of inflation that has been there. We are all happy of course to see any change off those peaks, but there is a reality that is not translating to rising standards of living. So what we're seeing from the Albanese government is a gold medal for the collapse in household income. When we saw the members of the 1980 Olympic team in parliament this week and celebrated their incredible achievements, it was not for the Labor Party to mimic it and seek to get a gold medal in declines in household income collapse, but that is the lived reality that Australians are experiencing.

We also, of course, have the reality for small businesses. Again, aggregate data disguises and covers the lived reality. We have the biggest number of collapses in insolvencies for small businesses in Australian history. I notice that the opposition has suddenly gone very silent. I do understand their pause for thought on this. I would be taking pause for thought on this, because sitting behind every small business isn't just a number; it is, at the same time, a lost opportunity. It's people's livelihoods—their houses, investments, security, hopes and dreams—not just on the line but now falling off a cliff. It is a national tragedy.

Of course, as soon as I pointed out their silence, they were spirited back to life. They were spirited back to life because they wanted to defend their legacy, but their legacy is nothing but shameful. It is a disgrace to ever want to celebrate, as they seem to have just done, the decline of small businesses in this country. Sitting behind that are real people who have backed themselves and want to give economic opportunity for themselves, their family and, of course, the next generation of Australians. So many of those small-business people hold the assets that they need to thrive in their superannuation.

What we see now is the Treasurer coming with a tax that nobody voted for—the dead hand of the tax office after unrealised capital gains on people's family savings. And this family savings tax that is directly attacking small businesses, and once on superannuation will move over to other things like businesses and trusts, is coming after the Australian people. Even at his new summit, we know he's proposing new taxes that no-one else has voted for as well. (Time expired)

Ms COMER (Petrie) (16:03): Australians want to know who they can trust to keep taxes low, invest wisely and make every dollar count. For me and the majority of Australians, the answer is clear: it is Labor. While the coalition talks a big game on the economy, Labor delivers. We've cut taxes, kept spending responsible and returned the first budget surplus in 15 years, all without leaving everyday families behind.

Let's break it down and look at the facts. Last term, Labor delivered tax cuts for every Australian taxpayer. We've also committed to delivering two more tax cuts in 2026 and 2027. Under Labor, Australians are earning more and keeping more of what they earn. By contrast, the two highest taxing governments of the last 30 years have both been Liberal-National governments.

Now, looking at spending: after nine years of coalition mismanagement, we inherited a deficit crisis and a trillion dollars of debt. The Labor Party delivered two surpluses in a row in our very first term. We've also averaged the lowest unemployment rate of any government in the last half-century. Monthly headline and underlying inflation are in the bottom half of the RBA's target band. I know I'm hoping for an interest rate cut in the future; thousands of people in Petrie are eagerly awaiting the possibility of an interest rate cut on the horizon. This is only possible because of the diligent way that our economy has been managed under the Treasurer.

Not only are we keeping the economy on track but we're also doing it without leaving the most vulnerable behind—something those opposite have failed to do again and again. It is a fallacy that you must cut essential services in order to maintain productivity. We know what makes Australia great is access to affordable health care, education and child care. These cannot be cut on the road to prosperity. Even though our economic stats are pretty good, we know that people are still struggling. We are laser focused on easing the financial pressures on families to make their lives that little bit easier. We've delivered three rounds of energy-bill relief. We've increased rent assistance, and we are capping the price of medicines on the PBS at $25. We are also attacking the issue from the other side by prioritising wage growth. We recently delivered a pay rise for every minimum- and award-wage worker, and real wages have been growing for 18 months.

I recently had the pleasure of speaking to Cameron at my Carseldine shopping centre mobile office. He served as a combat engineer for many years. He now has a young family and decided he needed a career that would allow him to be nearer to his children. Free TAFE made the decision to re-skill an easy one. Paying for a qualification while supporting a family is not easy. My mum raised me while studying for a nursing degree and had to work to afford it. It meant she had little time to spend with her kids. Cameron proudly served his country and now free TAFE has given him the security to reskill closer to home so that he can serve his family.

The OECD employment outlook 2025 confirmed that the government is delivering the lowest personal income tax rates in 50 years, and unemployment levels are below the OECD average. Given this, it's hard to understand how the opposition can justify the claim that government is 'addicted' to raising taxes. We delivered an $800 tax cut for every Australian taxpayer—a tax cut designed to support those earning under $150,000. On the other side, the coalition wanted to increase taxes. My seat in Petrie was held by the Liberal Party for 12 years but voted Labor at the last election. This reflects my community's trust in our government's agenda. We are investing in cost-of-living relief, secure jobs, education and health care. These are issues my community care about and want to see safeguarded. I'm committed to continuous improvement in these areas to make sure that locals are supported.

This can be achieved only if the economy continues to grow, and I am certain we are on the right track. We guaranteed Australians costed, targeted and clear cost-of-living relief, not vague, ever-changing promises. Labor governs with transparency and has a plan for future reforms. We're delivering on tax cuts, responsible spending and a stronger fiscal outlook. For Petrie residents, this means better wages, more affordable living and economic stability. (Time expired)

Mr KENNEDY (Cook) (16:08): This government is addicted to spending. It's addicted to tax. Like any addiction, that comes with consequences—and I'm not talking about the Treasurer walking around, scratching himself, looking for some unrealised gains to tax. It's taxes and it's consequences for real, everyday Australians. For them, it's actually about how they pay their bills. How do they pay for their homes? How do they look after their families? What's Labor's solution? Tax more, spend more—rinse and repeat. This is a government that just can't say no—no to their spending habits, no to their taxes and no to taking more of your money. Since 2023, eight out of the last nine quarters have seen GDP per capita go backwards. What does that mean? That means the average Australian family has gotten poorer. It means your standard of living is going down. That is what has been delivered under this Albanese government.

Productivity has collapsed, down over five per cent. Real GDP per capita has fallen from 20th in the world to now into the 60s. Australia is plummeting, and our living standards are plummeting compared to all developed economies and the rest of our world peers. This isn't drift; this is decline. It's not a coincidence, it's not natural and it's not a predictable result. It's economic mismanagement from a treasurer who's more interested in writing essays and books than delivering economic outcomes.

Jim Chalmers promised to win the peace on superannuation. Instead, he's declared war on aspiration. The first big fight of this parliament is not about a tax on wealth; it's about a tax on imaginary wealth, a tax on gains that don't even exist except in the Treasurer's head—from assets that haven't been sold. It's absurd. But, more than that, it sets a dangerous precedent. If they're taxing unrealised gains right now in your super, what will be next? Will it be the family home, your business or any other asset you may own? Right now, it will only affect about 80,000 people. But, just like our income tax, this policy is not indexed. What does that mean? That means that, for almost half a million Australians sitting out there today, this tax is coming for you. This tax is designed to grow. It's a trojan horse. Australians won't know they've been caught until it's too late and they're caught in the jaws of this tax.

This isn't a government about making hard choices; this is a government about making lazy ones. Why do the hard work on productivity reform when you can just tax more, tax harder and tax more often? Why grow the pie when you can carve it up? Australia's highest marginal tax rate is now at 47 per cent, kicking in at $190,000. We heard from the member for Petrie, 'Income taxes are going down, and we've passed tax cuts.' But that ignores bracket creep, because in the last five years the number of people in this top tax bracket has almost doubled. It's grown to just under $500,000, and it'll soon breach over a million dollars. Everyday Australians are getting taxed more because this cost-of-living crisis sees inflation go up, which sees your wages go up—not as fast as expenses—but then leaves you paying more tax.

Economic experts warn that such marginal tax rates on relatively modest incomes discourage work, entrepreneurship and risk taking. Labor's so-called stage 3 tax cuts that we heard about just a moment ago—we pretend this is cost-of-living relief, but bracket creep is just ballooning and ballooning. Tax receipts will hit a record $349 billion, and almost 52 per cent of all tax revenue will come from individuals. What you do at work and what your husband or your wife does at work—you are funding this country. Actually, it's even worse than that. One dollar in every three produced in this economy finds its way into government hands. That's one in every three dollars. Don't take my word for it; listen to John Kehoe of the Financial Review. This is what he had to say recently:

… Australia relies on taxing personal income and corporate profits more than any other advanced economy while under-utilising consumption taxes, including the 10 per cent GST.

The same article reports that Professor Robert Breunig, a director of the ANU—that right-wing organisation—'said that the combination of a lack of fiscal restraint and an ever-increasing reliance on income tax was already a big problem and will get bigger in the future'. It certainly is, thanks to Dr Chalmers.