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senate vote 2019-07-04#14
Edited by
mackay staff
on
2019-07-12 14:01:44
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Title
Bills — Treasury Laws Amendment (Tax Relief So Working Australians Keep More of Their Money) Bill 2019; in Committee- Treasury Laws Amendment (Tax Relief So Working Australians Keep More of Their Money) Bill 2019 - in Committee - Bring forward lifting tax bracket
Description
<p class="speaker">Katy Gallagher</p><p>by leave—I move amendments (1) and (2) on sheet 8684 together:</p><p class="italic">(1) Schedule 2, page 5 (before line 4), before item 1, insert:</p>- The majority voted against an [amendment](https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:legislation/billhome/display.w3p;query=Id%3A%22legislation%2Famend%2Fr6345_amend_28286e4b-0b40-4d8c-8b3c-a5999ca10115%22;rec=0) introduced by ACT Senator [Katy Gallagher](https://theyvoteforyou.org.au/people/senate/act/katy_gallagher) (Labor), which means it failed.
- Senator Gallagher [explained that](https://www.openaustralia.org.au/senate/?gid=2019-07-04.217.1):
- > *This amendment seek to bring forward one element of stage 2 of the government's tax package. I have spoken in my second reading speech about this. Briefly, it recognises that the economy needs a boost now, so it supports stage 1 of the tax cuts. It ensures that there is a tax cut for every worker in this parliamentary term. It is responsible in the sense that, yes, it will cost more in the short term. We are aware that the government is forecasting a surplus of just over $7 billion. Bringing forward the lifting of the tax bracket from $90,000 to $120,000 in this financial year would have a budget impact in the order of $3.6 billion, but it would certainly—based on the current projections of the government and the Treasury—ensure that there was a surplus maintained. It is being responsible. It ensures that there is a tax cut for every worker in this parliamentary term.*
<p class="italic">1A Clause 1 of Part I of Schedule 7 (table dealing with tax rates for resident taxpayers for the 2018 -19, 2019 -20, 2020 -21 or 2021 -22 year of income)</p><p class="italic">Repeal the table (including the note), substitute:</p><p class="italic">(2) Schedule 2, page 6 (before line 1), before item 3, insert:</p><p class="italic">2A Clause 1 of Part III of Schedule 7 (table dealing with tax rates for working holiday makers for the 2018 -19, 2019 -20, 2020 -21 or 2021 -22 year of income)</p><p class="italic">Repeal the table, substitute:</p><p>This amendment seek to bring forward one element of stage 2 of the government's tax package. I have spoken in my second reading speech about this. Briefly, it recognises that the economy needs a boost now, so it supports stage 1 of the tax cuts. It ensures that there is a tax cut for every worker in this parliamentary term. It is responsible in the sense that, yes, it will cost more in the short term. We are aware that the government is forecasting a surplus of just over $7 billion. Bringing forward the lifting of the tax bracket from $90,000 to $120,000 in this financial year would have a budget impact in the order of $3.6 billion, but it would certainly—based on the current projections of the government and the Treasury—ensure that there was a surplus maintained. It is being responsible. It ensures that there is a tax cut for every worker in this parliamentary term.</p><p>At the moment, if this amendment doesn't get up, we will only see low- and middle-income earners, through the tax offset, getting an actual tax cut. The rest of the working people in Australia will have to wait until 2022-23 for this change to come into effect. Of course, it is longer for those outside of stage 2. We would urge those who do care about the economy and who do recognise that the economy needs stimulus now to recognise that this amendment would assist on that front and that it would ensure that there is a tax cut for every worker. For those who aren't going to support this, they will be voting against a tax cut for every worker in Australia if they do not support this amendment by the opposition.</p> <p class="speaker">Mathias Cormann</p><p>The government will be opposing this amendment for the reasons that I have extensively canvassed in my second reading speech. Our plan provides income tax relief to all working Australians but in a way that is fiscally responsible. Our plan is economically necessary and fiscally responsible. The Labor Party went to the election arguing for higher taxes as the pathway to a stronger economy, and now they are saying that they have rediscovered the virtue of lower taxes. It just doesn't hang together. Our plan is economically and fiscally responsible, and we will be opposing this amendment.</p> <p class="speaker">Peter Whish-Wilson</p><p>As the Greens just flagged in this place, we do want to see an increase in the low-income tax offset for genuine low-income workers in this country. Stage 2 does increase the maximum low-income tax offset from $645 to $700, but what it mostly does is convert the low- and middle-income tax offset—LMITO—into a tax cut by increasing the upper threshold of the 19 per cent tax bracket. This locks in tax cuts for all Australians, including the most wealthy Australians. The Greens were very clear in the last parliament, when the last tax package was implemented, and we have since been consistent and clear that we support increasing the low-income tax offset, but we do not support changing the tax thresholds. That will give a tax cut that will mostly benefit, substantially benefit, the wealthiest Australians.</p><p>I also want to make this very clear to anyone listening to this debate. This stage 2 of the government's plan, as legislated in this bill, gives a full benefit of the LMITO to everyone earning over $90,000 in Australia. If you think that's not high-income earners in Australia—that it's not those earning $180,000, $200,000, $300,000, millionaires—then I think you've got rocks in your head. Stage 2 destroys the progressive nature of the low- and middle-income tax offset. So Labor, with this amendment, not only support giving everyone in this country earning more than $90,000—in other words high-income earners, including those earning $200,000 or $1 million—an extra $540 each year on top of the extra $540 that they've already been given but they also want to give this tax cut away quicker by bringing it forward. So in Labor's book, reading from this amendment, the government is not giving tax cuts to the top 10 per cent of Australians or the top 20 per cent of Australians quick enough; they want it brought forward.</p><p>The Greens will not support an assault on the progressive tax system in this country. That's why we've made it very clear tonight that we'll support giving more money to low-income Australians who are working hard and battling, but we will not change the system and make it regressive.</p><p>The CHAIR: The question is that opposition amendment Nos (1) and (2) on sheet 8684 be agreed to.</p><p>The committee divided. [18:17]</p><p>(The Chair—Senator Lines)</p><p>Question negatived.</p>
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