Prime Minister Anthony Albanese says his government is focusing on delivering real change for Australians, but the Opposition says those changes are not for the better. Photo: Thomas Lucraft.
Today, 1 July, kicks off a suite of cost-of-living measures the Federal Government is happy to boast about after securing parliamentary wins for the budget’s tax changes.
But some of the budget’s measures had to be significantly amended to get through the Senate.
Labor also watered down some of the more controversial initiatives in the face of public backlash, particularly over capital gains taxes on small businesses and trusts.
With the start of the new financial year, however, every taxpayer gets another tax cut, as part of Labor’s plan to deliver a series of five tax cuts that will ultimately save workers an average of $2800 a year.
Paid Parental Leave expands to a full six months; minimum wage and award wages increases have been backed for three million workers; and the $20,000 instant asset write-off for small businesses has been permanently extended.
Payday Super has been introduced to allow employees to start earning returns sooner and minimise the risk of super going unpaid.
Motorists, however, will see their fuel prices rise from today, with the fuel excise relief put in place when the war in the Middle East began being cut in half, from 32 cents per litre to 16 cents per litre.
The excise relief was due to end entirely on 30 June but has been extended, at the lesser rate, until August.
Bans on supermarket price gouging come into effect under a new mandatory Food and Grocery Code that prohibits large retailers from charging significantly excessive prices.
An additional $25 billion has been injected into public hospitals, and Medicare Urgent Care Clinics are now a permanent part of Australia’s health system.
A new National Environmental Protection Agency, the first in Australia’s history, has been opened, as has a new Veteran Wellbeing Agency.
Anthony Albanese said his government was “focused on delivering real change” for Australians.
“That means a full six months Paid Parental Leave for new parents, making it easier for first home buyers to get into a home, and major investments in Medicare including making Urgent Care Clinics permanent,” the Prime Minister said.
“From 1 July we’re cutting taxes again for over 14 million taxpayers, and our combined tax cuts mean an Australian worker on average earnings will be up to $2800 better off every year.
“We’ve also backed in a pay rise for 3 million minimum and award wage workers – because we know every bit of help matters.”
Treasurer Jim Chalmers said the changes to the tax system will help first home buyers and also help Australians earn more and keep more of what they earn.
“Whether it’s tax cuts for every taxpayer, higher wages for workers or support for small businesses through the instant asset write-off, we’re delivering more help that will make a meaningful difference to people under cost of living pressure,” he said.
Shadow treasurer Tim Wilson suggested to parliament on Tuesday (30 June) that the Federal Government was keen to disguise the truth.
“The Albanese Government isn’t big on truth bombs, but they are big on inflation bombs,” Mr Wilson said.
“1 July brings in the next round of consequences from the Treasurer’s active inflation agenda for families and small businesses.
“The Treasurer keeps pouring debt petrol on the inflation fire, and because the Treasurer can’t control his spending addiction, many fees are automatically indexed to go up.
“Company registration fees will go up; business registration fees will go up; NBN plans will go up by up to $10; the cost of sending a parcel will go up by close to 5 per cent.
“The price of fuel will increase, and that’s the way the Treasurer likes it. He wants inflation to be the silent thief in the night.
“And what he is doing to charges he’s doing to taxes.
“That’s why the Coalition’s tax back guarantee will return over-taxation from inflation automatically.
“We will draw a line under the Treasurer’s tricky take.”
The Opposition has proposed a tax back guarantee aimed at ending bracket creep by permanently indexing personal income tax thresholds to inflation.
According to the policy, a Coalition government would tie income tax brackets to the Consumer Price Index to ensure Australians are not pushed into higher tax brackets simply because their wages increased with inflation.