Doorstop, Federal Press Gallery

28 February 2024

JOURNALIST: Parliament passed the tax cuts last night. The Coalition is in favor of these changes, why?

JANE HUME: Well, we were always going to support lower taxes. And that's why we said that we would happily support the drop from 19 cents to 16 cents. But that doesn't necessarily mean that there is support for the lie that the Prime Minister and the Treasurer told more than 100 times since the election, that they would stick with the stage three tax cuts. Clearly, that was never their intention. This was a significant lie. This is the mother of all mistruths. And while I know that Australians who are doing a tough right now and will appreciate whatever money can go into their pocket, as little as it is potentially only $15 a week. Is that really enough to buy Prime Minister's integrity back, I don't think so.

JOURNALIST: Do you think though, the passing of this legislation will help Labor in the Dunkley by-election?

JANE HUME: Oh there was a lot of frothing at the mouth yesterday about how the Coalition in the Senate was standing in the way of these tax cuts going through. That was all performance art that was essentially set up for the Dunkley by-election. Because let's face it, these tax cuts don't kick in until the first of July. They really will make no difference to anybody's hip pockets this week or next week. In fact, they won't for another four months. So that was all a bit of performance art.

JOURNALIST: But will it win votes in Dunkley for the government?

JANE HUME: Well, I think that people would actually wouldn't be grateful for anything that is in their pockets right now because quite frankly, they've seen their disposable income going backwards in the last 18 months. The person on the average wage is, or around $100,000, has seen their disposable income go back around $8,000 in 18 months. So it's not just that they're feeling poor, they in fact, are poorer. At a time like this, anything you'll be grateful for. You will pocket it, but when you thank them for it in the long run? I don't think so.

JOURNALIST: And what about the Coalition if they were to win the next election, would these changes at the very least stay in place?

JANE HUME: Well, we wouldn't reverse the tax changes that have been made here certainly, but we have said that we will go to the next election with a tax package that delivers lower and simpler, fairer taxes that are in keeping with the principles of stage three. We couldn't implement stage three now if we tried. That's been junked. It's been junked. I think that's a real shame because it shows a no appetite for personal income tax reform from this government, which is what stage three originally did. It essentially tackled bracket creep head on it would have meant that anybody earning between $45,000 and $200,000 wouldn't have been subjected to that pernicious bracket creep. Unfortunately, that's gone. But as I say, we will go over the next election with a tax package that is fully costed, that delivers on our promises, and most importantly, is fiscally responsible. Thank you.