Thank you, Mr Speaker. The Prime Minister and this Government have no mandate to raise taxes.
Did they take these tax increases, these toxic taxes, to the last election?
No, they didn't.
Of course he didn't because the Prime Minister didn't have the guts, Mr Speaker.
He did not have the guts.
He knew millions of Australians would have voted against higher taxes had he done so, Mr Speaker.
He knew that millions of Australians would have given this Government the boot if he had done so.
So instead, he misled Australians. Prior to the last election, this Prime Minister ruled out any changes to negative gearing and capital gains tax, in his own words - 50 times - in his own words, Mr Speaker.
He ruled out changes and now this Prime Minister is imposing these toxic taxes on Australians against their will.
I tell you what, it's arrogant. It's arrogant, Mr Speaker, and Australians use colourful terms, adjectives next to arrogant.
It's illiberal.
It's a broken promise.
And this Prime Minister stands condemned.
This Government stands condemned too, Mr Speaker.
And I say to this to the Prime Minister. I say this to him: call an election, call an election.
Let the Australian people decide whether or not they want to see these tax increases, Mr Speaker.
I know they don't.
And if you don't have the courage to call an election now, we will make the next election a referendum on these tax increases.
Mr Speaker, one way or another, hardworking Australians will have their voices heard and we will ensure that is the case.
Now, time and time again, this Prime Minister and this Government have broken faith with Australians.
Time and time again, they've betrayed Australians.
He promised Australians that they would be better off under his leadership.
They're not.
Under Labor, Australia has experienced the biggest collapse in living standards of any developed country in the world, Mr Speaker.
He promised Australians that their power bills would go down by $275.
Not even close. We've seen them soar by 40 per cent, Mr Speaker.
He promised Australians they would have cheaper mortgages.
No way, no way.
A typical mortgagee in this country paying an extra $30,000 more in after tax income.
Increasing taxes, of course, under this Government after tax income that they didn't have to find before Labor came to power.
And now he's pushing ahead with his toxic taxes and he has broken the mother of all promises he made, in his own words - 50 times.
Now, Labor's Budget reminds Australians that this Prime Minister's word is never his bond.
It is never his bond. He leads a Government that misleads and deceives on a daily basis, Mr Speaker.
It's a government that's tricky and sneaky. A Government that says one thing and does another.
This is a Prime Minister who has no reverence, no respect for the truth and certainly no respect for hard working Australians.
Mr Speaker, he is an oath breaker and Australians know it.
Now, Labor treats Australians like mugs and at the recent Victorian Labor Party Conference, the Prime Minister had the gall to describe his budget as “pro-aspiration” and “pro-supply”.
Now, I can understand that those behind me believe that this is some kind of a joke, but the Government thinks it can get away with portraying its toxic tax grab as addressing inter-generational equity.
But Australians aren't falling for Labor's ruse.
They're not falling for it, Deputy Speaker.
They know that beneath Labor's weasel words is a Budget that is a massive con job, a Budget that's a massive con job.
Let's first consider Labor's changes to negative gearing.
The Government's own Budget papers show its changes will reduce housing supply by 35,000. Page 158 snuck through, snuck through the 400 staffers those opposite have.
Because in the end the Australian people will work out the truth - that these negative gearing changes will reduce supply of housing in this country and it betrays a very simple truth that if you tax something more, you get less of it.
Deputy Speaker, it's pretty simple.
This is a toxic tax on housing and there will be fewer houses available for young Australians as a result of this tax.
Now, beyond the Budget papers, we now have independent modelling that verifies the ramifications of this Budget and I thank the Master Builders, Property Council, Real Estate Institute - for the work that they've done, that they released last Friday.
Here's what it says:
Over a four-year period, new housing supply will fall by 8,700, construction jobs by more than 3,800. Rents will increase by $500 a year, Deputy Speaker.
Now, the Treasury Secretary has also been surprisingly upfront - I would expect that of an honest public servant - about how the Government's Budget will reduce housing supply.
Ms Jenny Wilkinson was speaking last week at an Australian Business Economists forum.
She said the changes were, and I quote:
“… more about changing the distribution of housing ownership, rather than addressing sort of an overarching sense, supply.”
She was honest. She was honest about what was in the Budget papers - page 158.
It's going to reduce supply and increase rents.
The Government's own budget papers say this.
But only in this Government's world of Orwellian doublespeak can housing scarcity be dressed up - as have attempted to do - as “pro supply.”
Orwellian doublespeak, Deputy Speaker.
So, let's also consider the capital gains tax changes, the scrapping of the 50 per cent discount.
This is again, a toxic tax, pure and simple.
A tax on savings, a tax on taking risks, a tax on having a go, a tax on some of the very hardest working Australians, Deputy Speaker.
A tax on Australians who are already doing it incredibly tough, who are working more hours for less as a result of an economy that is not working for some of the hardest working Australians.
It's also a tax on every asset class – shares, crypto, ETF, small businesses, farms and more, Deputy Speaker.
And who's being whacked by Labor's taxes? Young Australians - whacked.
Australians trying to build a nest egg - whacked
Australian small business and family businesses – whacked.
Australian start-ups – whacked.
Australian farmers – whacked.
Tax. Tax. Tax.
Deputy Speaker, that's what this government believes in.
They are going after Australians money and some of the hardest working Australians who are putting that money aside for the future.
Investing in their businesses, their communities and their future.
Now, Deputy Speaker, the Government's CGT changes will shut down growth enabling investment.
They will obliterate opportunity and they will kneecap so many Australians.
It's no wonder that we see Australians expressing their frustration.
Some are doing it in satirical ways and every day there's new AI memes depicting the Prime Minister as a business co-owner - a co-founder - who never puts his shoulder to the wheel, never puts his shoulder to the wheel.
Deputy Speaker, asleep at the desk.
Of course, the Prime Minister dismisses these memes as misinformation and disinformation.
Deputy Speaker, he and his Government dismiss Australians concerns because they are clueless about the impact of these toxic taxes.
Because they haven't worked in small businesses, Deputy Speaker.
They don't understand how it works. They haven't got a clue.
And that's because so many in Labor's ranks are simply - not only have they not worked in small business - they don't like it, they don't like it.
And there's a simple reason for that is they can't unionise it, Deputy Speaker.
Now, Labor's toxic taxes are a war on aspiration.
An assault on aspiration.
A war on the very essence of being Australian.
A war on the soul of our nation.
They're an attack on the wealth creation that benefits all of us.
And they will crush reward for hard work and the spirit of reward for hard work that underpins our nation's success.
And do you know what? Labor knows its Budget is an aspiration killer, and that's why it's caving to carve outs.
That's why it's toying with compromises.
And since the Budget, there's been talk of a carve outs for tech start ups.
But what about for other businesses?
Deputy Speaker, what about hairdressers, tradies, fitness instructors?
Does the Government consider such businesses unworthy of a carve out?
Deputy Speaker, with all this talk of compromises the Government has unleashed absolute confusion, absolute confusion.
And we don't have any information on where the Government might go with this, just as it did with the Voice referendum.
The Government is avoiding the details because the details really matter on this one.
because they are going to impact on people's lives.
They're going to impact on people's lives.
As far as the Government is concerned, the details are afterthought and they're going to be left till after the legislation comes through.
They're going to be left until after the legislation comes through.
But frankly, the Government has no idea what it's doing, has no idea what it's doing.
And that's why we are not interested in carve outs.
We want these toxic taxes axed, Deputy Speaker.
Now, what is truly concerning about this legislation, is the sheer power it grants to the Treasury that I touched on and Treasurer, that I touched on a moment ago.
And if passed, these laws will permit an unprecedented level of ministerial discretion on tax decisions.
And as The Australian's Mathew Cranston pointed out, the Treasurer will be able to make no less than eight captain's calls - eight captain's calls - on negative gearing and capital gains tax without bringing it through the Parliament, Deputy Speaker.
You know, not only did they absolutely refuse to take these toxic taxes to the last election, they don't even want to take them to the Parliament.
They're going to leave it to the Minister, Deputy Speaker.
He's going to make decisions for them.
Now, the Treasurer will be able to determine whether a home is classified as a new build.
And we know how this Government works.
The truth is irrelevant as far as they are concerned.
He will be able to exempt properties of his choosing from being negatively geared - up to him.
Up to him.
He'll be able to stop investors.
Given the leaks we've seen from those opposite, he's not going to want to talk to anyone else about it, that's clear.
He'll be able to determine which assets should pay capital gains tax and which should be exempt.
In effect, the Treasurer can decide what's going to be affected and who is going to be affected, more importantly, and who will not be.
This is absolutely outrageous.
The Treasurer wants these sweeping powers because he hasn't thought through his tax changes or if there's a stray chance that he has, he doesn't want any accountability for them, Deputy Speaker.
They'll avoid any accountability at all.
Now, Jenny Wong from CPA Australia has said, and I quote
“I have never seen this many determinations in one bill… which shows that this has been rushed…
… And given ministerial determinations don’t go through the same scrutiny, this leaves the door open for further changes and that means less certainty.”
And with less certainty, you get less investment, less increase in real wages, less productivity, less prosperity, in this country.
The exact opposite of what we need right now.
Stuart Broadfoot from K&L Gates said, and I quote:
“… they were not ready with the legislation, and not ready with the details, and they are trying to essentially ram through a system of legislation that hasn’t had the required thought.”
Well, the one thought they've had is they need to make a tax grab.
That is the very clear thought, Deputy Speaker, but not much beyond that, other than a willingness to hurt some of the hardest working Australians.
Barrister John de Wijn KC said, and I quote:
“It shouldn’t be left to ministerial discretion to work out how it’s going to be applied.”
Now, Deputy Speaker, the Treasury is seeking other powers too, and this one's extraordinary.
Through this legislation, he will have the discretion to reduce the Government's $250 annual income tax cut where he sees fit.
He can reduce it.
It doesn't actually have to be $250.
Now we want more than $250. I'm going to come back to that.
But he can actually reduce it.
I mean, why would that be in there?
Well, I tell you what, nothing he says about why that's in there is credible because you can't believe a word this Treasurer or Prime Minister says, Deputy Speaker.
This legislation is incomplete.
It trashes transparency.
It trashes accountability.
It is a power grab and an overreach.
It is an utter disgrace.
Now, Deputy Speaker, let me be clear.
Australians need relief from the economic disaster that has been wrought on this country and our economy.
We support Labor's $250 annual income tax cut, but we want it to be bigger.
We support Labor's $1,000 reduction for work related expenses.
These cost-of-living measures could have passed Parliament easily with our support, with our support.
But tricky Labor has deliberately tied these measures to its toxic taxes.
That's what it does, Deputy Speaker.
It's using a single piece of legislation – “an omnibus bill” - for its tax cuts and tax increases, put them both together so that they can sneak them through.
Labor could have put forward separate bills.
It's very easy to do.
There's absolutely nothing stopping them doing that, other than it's trying to ram them through.
It didn't separate them out and what Australians see is a bad faith Government, a bad faith Government, playing a cynical political game as they do every single day in this place.
In 2022, on the day he was sworn in, no less, the day he was sworn in, the Prime Minister said, and I quote:
“I look forward to leading a Government… that doesn't seek to have wedges.”
I think he was talking about potato wedges.
I think he was talking about potato wedges, Deputy Speaker.
He certainly didn't seem to be talking about “wedge-islation” like we're seeing right here. So maybe it was a joke.
But the truth is, we know this Prime Minister's word is never his bond, never.
Ramming this legislation through the Parliament without sufficient scrutiny is an act of political bastardry and expediency, Deputy Speaker.
And Labor is more interested in headlines than it is in helping Australians.
That's the truth And Australians know.
Our resolve is clear Labor's toxic taxes need to be axed.
And that's why we don't support Labor's legislation.
We have proposed amendments - I'll come back to those.
And should these toxic taxes pass the Parliament with support from the Greens and Independents, our resolve is also clear
A Coalition Government, under my leadership will repeal these toxic taxes with immediate effect.
Now, Deputy Speaker, there's a reason why the Government is desperately trying and failing to depict its Budget as “pro-aspiration.”
I find it hard to even say that. I mean, it's just absolute nonsense.
But there's a reason why they're going to extraordinary lengths to paint this shameless tax grab as the solution to inter-generational equity.
And that reason is that the Albanese Government has lost control of its spending.
It's lost control of its spending.
Government spending as a proportion of the economy is at a 40-year high outside of the pandemic – 40-year high.
And it's why we are about to cross the threshold of $1 trillion of debt.
It's why inflation in our country remains stubborn and sticky. Going up, not down.
The Treasurer told us that he'd beaten inflation. Well, the truth is inflation had beaten this hapless Treasurer and the Government needs, now more than ever, needs to take money from Australians to fund its spending addiction.
And when Labor runs out of money, it comes after yours.
Again, the Treasury Secretary was up front about this being a tax grab.
At the Australian Business Economists forum last week, she also said, and I quote:
“… individuals are sensitive about paying additional tax, which is understandable.
But revenue needs to be raised from somewhere.”
Let me repeat that last part:
“… revenue needs to be raised from somewhere.”
Without compunction, the Albanese Government is coming after Australians money, however they possibly can.
Now, there's no more harmful tax than Labor's inflation tax, Deputy Speaker.
The higher inflation goes, the higher the home grown inflation of this Labor Government goes and the longer it lasts, the more the Government takes from Australians.
That's how it works and that suits Labor just fine.
Suits them just fine because the Government's reckless and unrestrained spending requires more revenue.
And Labor's only too happy to see inflation push more Australians into higher tax brackets so it can take more of their income as tax.
That’s what they're doing. Bracket creep, as it's called. That's their best friend, Deputy Speaker.
As I said, we support the government's $250 annual income tax cut.
But here's what Labor is not telling Australians - if that was put in place tomorrow - it would be gone by Christmas because of inflation.
That's what it does, Deputy Speaker.
It will be gone by Christmas.
And here's the reality, Labor is stealing more money from Australians through inflation than it's giving back through their tax cut.
That's how they work.
Give it a little bit with one hand.
Take way more back with the other.
That's how they're doing it and that is how Labor always likes to do it.
The Albanese Government's not so dirty little secret is that it likes inflation because that way it gets more money for its spending.
Now, Deputy Speaker, a Coalition Government under my leadership will stop Labor's dishonest tax.
In my Budget-In-Reply, I announced the Coalition's policy to index tax thresholds to inflation and we call that the tax back guarantee.
Never again will the Government be able to steal from Australians year after year via stealth, as this Labor government is doing.
In simple terms, our policy will help protect Australians incomes from inflation.
That thief in the night.
We will protect it in a way Labor never would.
From 28/29 we'll index the bottom two income tax thresholds to inflation and that will fully protect 85 per cent of income earners - 85 per cent.
And from 31/32, we’ll index the top two tax thresholds as well.
And of course, that will protect all income earners from inflation.
Let me give you two examples of how this works in practice.
Let's assume, big assumption, but let's assume that inflation was at the Reserve Bank's target rate of 2.5 per cent.
It's a big assumption under this Government but it won't be under our government. It’s double at the moment.
Let's assume wages are growing by three per cent. Heather is a hairdresser earning $70,000 a year
Under Labor, her real wage gains will be completely taxed away.
But under our Tax Back Guarantee, Heather will get a tax cut of about $250 in Year one.
And that will rise to about $1,000 a year in Year four.
Paul is a plumber earning $140,000 a year.
Under Labor, his real wage gains will be taxed away as well - all gone.
Under our tax back guarantee, Paul will get a tax cut of $250 in year one and $1,200 in year four.
In short, under our policy, Australians will get more each year.
We will give Australians a bigger tax cut without the tax increases that are occurring under this Government.
Australians will be rewarded.
Keep more and get ahead because that's what we believe.
The Treasurer, of course, has given the game away and on Sunday after Budget week, the Treasurer was being interviewed by David Speers on Insiders.
And in that interview the Treasurer said that our indexation policy will cost a quarter of $1 trillion over the decade.
Well, there's the rub because that's the figure he wants to steal from Australians, Deputy Speaker.
That's his hidden tax. He admitted it.
That's how much he wants to get. And of course, if he can get inflation up higher, he can take more and he'll keep he'll keep trying to push it up, no doubt.
But it will not happen on our watch.
We will ensure Australians keep their money, Deputy Speaker.
Our policy is fair. It's as simple and it's honest.
Unlike those opposite.
Now, Deputy Speaker, as I said, the Coalition has a proposed amendments to Labor's legislation and I move the second reading amendment circulated in my name.
Our proposed amendments include the following:
Labor's $250 annual income tax cut stays in the Bill - we support it.
We seek to retain schedule three, Labor's $1,000 deduction for work related expenses, also stays in the Bill. We support that as well.
We seek to retain schedule four.
But we oppose Labor's toxic taxes on Australians.
We don't support Labor's changes to capital gains taxes contained in schedule one.
These changes punish aspiration and the Coalition therefore seeks the removal of schedule one from the Bill.
We also don't support Labor's changes to negative gearing in schedule two.
Their own Budget papers explicitly admit that the combined impact of these taxes will reduce housing supply and push up rents.
The Coalition therefore seeks the removal of schedule two from the Bill as well.
Put simply, we support tax cuts. We oppose tax increases.
It's that simple.
And here's what Australians need to know, if the Albanese government doesn't endorse our changes, it means two things.
One, Labor is for imposing higher aspirational killing taxes on Australians shame and two, Labor is for inflation, pushing more Australians into higher tax brackets, paying more tax so it can have more of their income.
The ball is in Labor's court.
They have an opportunity here to support our proposal to protect
Australians incomes from inflation, to support our policy to end bracket creep, to support the Coalition's determination to provide real, meaningful tax cuts to Australians.
To support our plan for generational tax reform, to support our vision for a fairer, freer and better Australia.
To restore Australia's standard of living and protect their way of life.
Deputy Speaker, we believe in aspiration.
If Labor truly seeks to preserve the reward for hard work spirit that makes our nation tick, they will support our amendments.