As inflation rages on, the Government is making money out of it through “Bracket Creep” – collecting more taxes.
I moved an amendment to a bill so that tax thresholds are indexed to inflation, meaning you won’t pay more tax because of inflation. Predictably, the major parties voted it down. They rely on squeezing more and more tax out of you and making money out of inflation.
This clip from the Centre for Independent Studies is a great explainer on how “Bracket Creep” works so that the Government benefits from inflation at your expense.
Watch as these climate change bureaucrats deflect and squirm when trying to answer basic questions about what their department has been doing.
This session looked at why they sold millions of barrels of oil held in the United States and Labor’s new tax on petrol and diesel cars. Like always, the Department of Climate Change, Energy, Environment and Water (DCCEEW) is completely out of touch with reality while trying to tell you what you can and can’t do.
Senator ROBERTS: Thank you, Chair. Can we just continue with this strategic reserve? So Australia sold all of the oil reserves in the United States strategic reserve?
Mrs Svarcas: Correct.
Senator ROBERTS: That was 1.7 million barrels, around June 2022?
Mrs Svarcas: Correct.
Senator ROBERTS: What was the sale amount? $220 million?
Mrs Svarcas: I would have to take that on notice. I don’t have that in my folder.
Senator ROBERTS: Who was the oil delivered to?
Mrs Svarcas: I would have to also take that on notice, Senator.
Senator ROBERTS: How much was paid in seller’s fees, commissions or whatever it is?
Mrs Svarcas: I’m happy to break that down for you on notice.
Senator ROBERTS: How much is the continuing empty lease in the US strategic reserve costing?
Mrs Svarcas: We do have an ongoing contract for that. I will, again, come back to you with the leasing costs on that.
Senator ROBERTS: Thank you. That’s all I had there. I’d like to move to the ute tax, please.
CHAIR: I think you’ll find it’s not called that, Senator Roberts.
Senator ROBERTS: Sorry?
CHAIR: We don’t have such a thing. Would you like to refer to the correct program?
Senator ROBERTS: Your new car tax.
Senator McAllister: We don’t have a new car tax, either.
CHAIR: No new car tax?
Senator ROBERTS: You know what I’m talking about.
CHAIR: How about you just say it, Senator Roberts, so we can get the right people to the table.
Senator ROBERTS: I’d like to know the new fees for petrol and diesel vehicles.
Senator McAllister: It’s possible you’re referring to the New Vehicle Efficiency Standard.
Senator ROBERTS: Thank you very much.
CHAIR: Yes, that sounds a bit more familiar.
Senator ROBERTS: Yes, that’s another way of saying it. Minister, why were you so secretive about it? You passed it under guillotine with no debate. Yet again, another bill with no debate.
Senator McAllister: The New Vehicle Efficiency Standard brings Australia into line with the very significant majority of the international vehicle market. It’s a policy—
Senator ROBERTS: Excuse me, Minister. The people of Australia elected your government to govern. They didn’t elect the United Nations World Economic Forum, the United States, Great Britain, or other global players. They wanted you to govern this country—not on behalf of others.
CHAIR: Senator Roberts, could you allow the minister to finish answering the question?
Senator ROBERTS: Sorry, Chair.
Senator McAllister: The government was very clear and we had extensive public discussion about the New Vehicle Efficiency Standard. I believe there were Senate hearings, although I did not participate in them. We discussed it here in the estimates forum and also in the neighbouring committee at the last estimates hearings as well. Officials can talk to you about some of the public consultation that took place, including the position papers that were released. And senators had many opportunities to express their opinions about this particular policy initiative through the course of the Senate’s work.
Senator ROBERTS: So we don’t need to debate anymore in the Senate?
Senator McAllister: We do need debate in the Senate, Senator Roberts. These were important—
Senator ROBERTS: Second reading, third reading and committee stages?
Senator McAllister: I thought you had asked me a question.
Senator ROBERTS: I am! But I was continuing—
CHAIR: Senator Roberts, I’m going to ask you again to allow the minister to answer the question you have just posed and to not speak over her.
Senator McAllister: The government’s view was that this was an important reform, and that there was some urgency to this reform. It was a reform that had been proposed under a previous government, during a previous parliament, and not progressed. The consequences of that were that Australians continue to pay more than they need to at the bowser because the vehicle fleet in Australia is less efficient than it could be, because the range of vehicles available to Australians is considerably less than we expect it will be under the standard. We think it’s an important policy. We wanted to progress it, and we judged that there was a majority of support in the Senate for that, so we brought it on for consideration.
Senator ROBERTS: You’re afraid of letting the people participate through their views, expressed through senators in debates in second reading and third reading and committee stages, and assessing amendments?
Senator McAllister: I wouldn’t characterise it like that at all.
Senator ROBERTS: Okay. Minister, are you aware, with an increasing amount of smart metres being installed—despite some people saying they don’t want it—and electric vehicle charging happening overnight offpeak, that’s when coal-fired power is supplying most of the electricity. So there’s potentially going to be an increased demand on coal-fired power stations as petrol and diesel vehicles are set aside in favour of electric vehicles. So you’re actually increasing the carbon dioxide intensity of energy.
Senator McAllister: Senator Roberts, I will ask some of the officials to talk you through the expectations that we have for demand on the grid. But the Integrated System Plan, which is produced by the AEMO, includes demand that is predicted to arise from the introduction of greater numbers of electric vehicles into the Australian fleet, along with a range of other changes. It also, as you know, shows a very significant shift to renewable energy, so the emissions intensity of the National Electricity Market is expected to decrease over time, of course.
Senator ROBERTS: So, are they like the projections where you told us we would be having lower power costs, and instead we’ve got far higher?
Senator McAllister: Do you want to talk about the issue that you originally asked me about, or do you wish to move on?
Senator ROBERTS: I just wanted to know what your projections were like and how accurate they are.
Senator McAllister: The Integrated System Plan is a long-established piece of analysis undertaken by the Australian Energy Market Operator. Officials at the table can talk to you about the expectations there and any other information we have of that expected demand on electricity.
Mr Ryan: To start with, I’ll talk about some of the different charging solutions we’re seeing and what impact that’s having. ARENA, who I know will be appearing, will certainly be able to tell you about some of the investment and some of the innovations they’re looking at in charging. You’re right, a lot of charging is done at home—80 per cent, we think—but that’s not just from the grid. A lot of those people—not all, but a lot of them— actually have batteries that charge and store solar energy from during the day. So when they’re charging overnight—it might be from a battery but it also might be from the grid—note that the grid is slowly decarbonising as well. So that’s increasing, day to day. There are other innovations where we’re seeing EV charging being provided at places people visit on a regular basis, whether that’s at carparks during the day or the workplace during the day, whether it’s at the kerbside, at the local gym, at the movies—places where there’s charging, more and more. Sometimes that’s in the evening, but a lot of the time that’s during the day. So we’re seeing some innovation, and there’s certainly been funding—not just from the Commonwealth but from the states and territories—to develop that innovation and look to maximise the solar in there. The last thing I’d say on the projections is that I do know that they take into account the grid and the impact on the grid for the uptake of EVs. So they are in the figures that are provided each year when they do the projections.
Senator ROBERTS: Minister, do you still maintain—
Mr Fredericks: Senator, sorry; could Ms Rowley just give you 30 seconds on that, because it is quintessentially the answer to your question about how all of the emissions impacts are brought to bear.
Senator ROBERTS: Sure.
Ms Rowley: In relation to the annual emissions projections, we look at the change in the vehicle fleet, including the uptake of electric vehicles, which is helping to reduce the direct emissions from transport. But we also take account of the electricity required to meet the growing share of electric vehicles. Just by way of example, for 2030, in last year’s emissions projections, we estimated that there was a seven-million-tonne reduction in transport emissions and a one-million-tonne increase in electricity emissions to meet that additional demand from electric vehicles, so the net effect in 2030 was an estimated six-million-tonne reduction in Australia’s emissions, taking into account both transport and electricity.
Senator ROBERTS: Sure, but I remind you you can’t tell me the impact on climate of that, so you’re basically going with a policy of spending money but not realising the benefit. Minister, do you still maintain—
Ms Rowley: I would note that the new vehicle efficiency standard is projected to save consumers money and reduce the impact of things like health costs on the Australian economy.
Senator ROBERTS: Minister, do you still maintain—
CHAIR: Senator Roberts, we’re going to rotate the call.
Senator ROBERTS: Last question?
CHAIR: Last question.
Senator ROBERTS: Do you still maintain, Minister, that punishing manufacturers of petrol and diesel vehicles won’t reduce the number of petrol or diesel cars available to Australians?
Senator McAllister: Senator, I don’t accept that characterisation of the policy setting.
Why? That’s one question that I want to ask repeatedly in this speech. I see the government’s changes as a welcome step, but it’s a tiny, tiny step and we need many, many more. It could be one of my footprints, Senator Ayres! We see the government’s previous tax changes. They weren’t cuts; they were changes. As a result of those changes, we will see the government increase revenue by about $38 billion over the next four years—so much for tax cuts. They’re tax changes that will lead to an increase in tax for mums and dads.
Why are politicians scared of tax reform, and why do they place the burden on families and individuals to pay tax and let multinationals off the hook? Why are politicians scared of tax reform, but they continue tinkering with the system to affect mums and dads, who end up by paying, by far, the lion’s share of tax in this country? Why did Senator Sharma, in a very good speech, say that he wants to end bracket creep and the Liberals want end to bracket creep, yet, three weeks earlier, they voted against ending bracket creep with my amendment? They want enduring bracket creep. Why do the Labor Party say they want to end bracket creep—I remember Senator Gallagher said at the time, ‘We want to end bracket creep’—but vote against it? My amendment to abolish bracket creep once and for all was defeated.
Why is taxation not transparent? I’ll tell you why. It’s so that governments can continue to steal money from families to pay for their uncosted bribes. The Senate and the House of Representatives have turned into auction blocks using taxpayers’ money to buy votes. That’s what they’ve turned into. That’s how the governments of this country work, the uniparty of Labor and the Liberals. Why is the uniparty looking for new ways to tax people? Cars and utes—the foundations for tradies—are now going to be taxed. Clothing is going to be taxed under the Labor Party. Food will be taxed with a new biosecurity levy. Inflation was caused by the Labor and Liberal uniparty during the COVID response—the COVID mismanagement. State premiers were largely Labor, and the federal Prime Minister was Liberal-National. Inflation is a tax, especially on the poor and those with low incomes. Inflation is a huge tax burden. Greenwashing requires corporations to buy carbon dioxide credits. How do they pass the costs on? They pass them on in the form of higher prices.
Why do they require diversity, equity and inclusion and ESG reporting, which are ridiculous and unfounded? No-one has provided the evidence for that policy. It’s a compliance tax. Where will the cost of that compliance tax go? Onto the things that mums and dads and families pay for. Whole departments have been created in corporations, and that adds to the prices families have to pay. Why more tinkering? Why more complexity and less productivity? Think about the behaviours this drives with regard to allocation of resources and the behaviour of executives and decision-makers. Why is it that every problem in this country comes out of this building, like housing and excessive immigration, which is putting inhuman catastrophic pressures on people now? People are living in tents, cars, caravans, out in the street and under bridges in Brisbane in one of the richest states in the world. This is happening in our regional cities right up and down the east coast of Queensland. It’s a long coast. The Murray-Darling Basin is a disaster. It’s climate fraud, a lie and a scam. It’s a hoax. Stealing farmers’ property rights—the Liberal-National government did that from 1997 to 2007.
We’re still living with COVID mismanagement. I had a gentleman in my office today who is vaccine injured. It’s been stated by doctors We had to turn the lights off because of the glare. He couldn’t look straight at the windows. He had to look down. This was a vibrant healthy person now with COVID vaccine damage. He’s almost incapacitated. This was a lively human being now pulled up.
We’re still living with the COVID mismanagement. There’s inflation from the money supply, as I mentioned. There’s inflation from crippling the supply chains during the COVID restrictions. Crippling our supply chains led to higher prices.
Senator Bilyk: President, I raise a point of order on relevance. We’re here to speak about the Treasury Law Amendment (Making Multinationals Pay Their Fair Share—Integrity and Transparency) Bill 2023. Not once has the senator mentioned anything to do with that bill, and it’s been five minutes. I’m just wondering if you could draw to the attention—
The ACTING DEPUTY PRESIDENT (Senator Polley): Thank you, Senator Bilyk. I will remind Senator Roberts of the topic, but as you and other senators know, it’s a broad-ranging debate.
Senator ROBERTS: For those senators with poor hearing, let me say again: we support this bill. That’s what I opened with. We support this bill—I’ll repeat it. I said that.
I’ve just laid down a litany of problems that are coming from this building in betrayal of the people in this country, my fellow Australians. I’m now getting to the point of that betrayal. The most destructive system in government under the uniparty for the last 70 years has been the taxation system. It focuses our brightest and best people, some of our lawyers and accountants, not on serving our country in competition with foreign companies overseas—the Koreans, the Japanese, the Taiwanese, the Chinese, the Europeans and the Americans—but on screwing the government and getting away from complex, ridiculous taxation systems. They’re focused not on competing with foreign owned corporations but on competing with our government. Think of the behaviours that are driven at the corporate level, the allocation of resources, the inefficiency of resources and the behaviour of executives.
Taxation is highly complex. How many pages are there in our taxation act? It’s highly inefficient directly in terms of allocation of resources and indirectly in terms of the behaviours that are driven. It’s directly inefficient in terms of the way taxation is levied in this country. James Killaly was a former deputy commissioner of taxation in charge of large companies and foreign matters. He said in 1996 and 2010, ‘Ninety per cent of Australia’s large companies are foreign owned and, since 1953, have paid little or no tax.’ This bill does go a little way towards addressing that, but we need to address it full on.
Why does that happen? Why are foreign companies getting let off the hook? I’ll tell you why. It’s because many of even our large Australian companies are part-owned and controlled by foreign corporations. The major predators are Vanguard, BlackRock, State Street and First State. They own 10 per cent of the four banks combined and they own the controlling interest. They tell the banks what to do—BlackRock, State Street, Vanguard, First State and others in that little cohort of multinational predatory organisations. We don’t have four main banks. We have one main bank that is hiding behind four logos. That’s what we have. They have the same policies, principles, strategies, products and services.
Coles and Woolies, again, are part-owned by BlackRock, State Street and Vanguard. If you go right through our corporations in this country, the corporations we thought were Australian owned, they’re foreign owned and controlled, and where does the money go? The profit goes overseas. What did the Morrison government do, along with the state premiers? They loaded it up so that foreign multinationals that own the large companies in this country made a killing out of COVID at the expense of small companies and small businesses.
On the other hand, look at Qatar and Norway. They have bountiful natural resources, just like us—not as much as we have, in fact, and yet they make so much more. Qatar made $78 billion out of its gas exports. We export more and we made a tiny fraction of that, around one per cent of that.
So why are we doing this? What I’m saying and have been saying for many years, ever since I got into the Senate, is that we need comprehensive, proper and honest tax reform. Let’s have a look at the person who introduced GST into this country. Paul Keating was the Treasurer and, I think, Deputy Prime Minister under Bob Hawke. He came so close to introducing the GST, and, at the last minute, the Prime Minister at the time, Bob Hawke, fell over and lacked the courage to do so. Paul Keating was very upset with that. A few years later, John Hewson introduced the GST as part of Liberal Party policy, and who smashed him over it? Paul Keating, the man who introduced the concept of GST to this country.
The ACTING DEPUTY PRESIDENT (Senator Polley): Senator Roberts, I will remind you to use people’s correct titles when referring to former prime ministers.
Senator ROBERTS: He was the Treasurer at the time. What I’m saying is that the taxation system was mooted for change, and the person who introduced the GST actually smashed the GST, for purely political reasons.
On another aspect of comprehensive tax reform, Treasurer Peter Costello—who has been admired as a Treasurer—found out that Senator Pauline Hanson, who at the time was a member of the lower house, was keen on the transaction tax. As a way of trying to destroy her, he destroyed the transaction tax, even though he had previously said publicly that it had a lot of merit.
The point I’m getting to is: taxation has become a political football. It’s not an honest debate anymore; it’s about smashing a system. So what I propose is that, instead of proposing a system, we should look at basic principles. We should first of all agree that the taxation system is one of the most destructive systems in this country, if not the most destructive, which is my opinion of it. Once we get agreement on that, we should then put forward a set of principles that we can agree on.
I’ve been putting some thought to principles. First of all, a fair, efficient and honest taxation system would enable us to receive far more income because the multinationals would be paying their fair share of tax. It should be fair and equitable to all people and to all economic entities, including Australian businesses, and with no exemptions for foreign companies, which are now largely exempt. Making foreign companies and speculators pay their fair share of tax would quickly end the budget deficit and overseas debt and fund future infrastructure without borrowing. The second principle: it should be in the national interest.
The third principle—and this is very, very important for a country, and the reason why I went through the problems that are coming from this building: it should be incorruptible and impossible for politicians to fiddle with. A major source of political power is the ability of politicians to make legislation that punishes or advantages particular groups. This ability gives politicians from the uniparty enormous power over others because they can enact, for example, taxation provisions that assist their supporters or hurt their supporters’ competitors. An honest tax system removes this blatant abuse of power.
The fourth principle: it should comply with and support our Constitution’s intent and written provisions—not contradict our Constitution but comply with it. The fifth principle: there should be simplicity in understanding, administration and accountability. It should be completely transparent, unlike the current taxation system, which is deliberately opaque. There should be an objective basis for levying tax. Instead of assessing tax on profit and loss that can be fiddled, use objective measures. These do exist and include, for example, market sale price or straight-out unit cost.
The taxation system needs to be constructive, not punitive. It needs to be efficient to administer, with low administration costs, not the unwieldy behemoth that is administering, or mismanaging, tax at the moment. It should increase people’s purchasing power. A good taxation system, an efficient taxation system, will increase people’s purchasing power so people are economically far better off, because the burden will be shifted more towards multinationals.
The next principle is: there should be minimal disruption to the economy, with no ability for politicians to manipulate the tax system across industry sectors or industry groups. The taxation system could be a wonderful way of getting aggregate economic data and detailed data.
The next principle is arguably one of the most important: accountability. When properly designed, a tax system develops accountability in the government and in the people, through being a restraint on the cost of government. Taxes are necessary to pay for the cost of government, but what happens at the moment, because politicians from the uniparty can ratchet taxation up freely, is that they tend to abuse it and neglect their accountability to the people for managing costs. Politicians will have to manage within the country’s means. The next principle is: it should help people to become independent of government.
What I want to do in wrapping up is say, again, to the senators who didn’t hear me in my opening comments: we support this bill. But it is far too little. Why is it too little? We have got plenty of money in this country for investment. We have got super funds holding enormous sacks of gold, from rivers of gold. I’m asking the government to change your ways. Put families before large, foreign multinationals—Blackrock, State Street, Vanguard, First State. Put national interest before large, foreign multinationals. Reclaim our national sovereignty, and put it before large, foreign multinationals. Put Australia and Australians first.
I asked this question at the start: why? I ask this question now: why not?
I spoke with Daisy Cousens last Friday on increased land values in #Queensland and how the government benefits. As well as Digital ID and the upcoming rallies around Australian capital cities.
Watch ‘The Daisy Cousens Show’ live and on demand Fridays 7pm AEST at ADH TV: https://adh.tv/videos/the-daisy-cousens-show
Transcript
Daisy Cousens: Well, it’s abundantly clear by now that despite trying to con Australians with a $15 a week tax break, Federal Labor is ideologically perfectly happy to rob citizens blind by taxing them out the wazoo. The beginning example of that was the reinstating of the 37.5% tax bracket, which ensures bracket creep will continue in perpetuity. However, in an even sneakier ploy, Labor is now taxing by stealth by increasing land values. Joining me this evening is One Nation Senator, the wonderful Malcolm Roberts. Senator, fabulous to have you here this evening. How are you?
Senator ROBERTS: I’m very well, thanks Daisy and thank you for the invitation. It’s a pleasure to be with you.
Daisy Cousens: Well, it’s wonderful, wonderful to have you here. I’m very, very keen to get your take on this Senator. There has been a lot of upset up north about an increase in land value. And look, at first thought this might sound like a great thing for farmers, that their land is now worth more. But when you take tax into account, the tax hungry Labor government, this all you know, starts to make sense from their point of view, doesn’t it?
Senator ROBERTS: Well, I’d love to talk about the tax hungry Labor government, but we also must talk about the tax hungry Liberal opposition and former Liberal government. But we’ll come to that hopefully.
Daisy Cousens: Hmm.
Senator ROBERTS: Inflation, as you quite rightly pointed out, is a stealth tax. It’s stealthy thing that people don’t see but it reduces disposable income and what we see is land values going up for, and I think an 11% increase in the number of properties that that will be subject to land tax because it’s a threshold of 600,000 and above, but also remember the land valuations are bases for rates and councils right across the state are under pressure, some through mismanagement, some through mismanagement from the state government. But the systems are so complex and so confusing, and the accounting systems, that local councils will be increasing rates as well. So, this will slug everyone – it’ll mean less disposable income. So, people’s stand of living will be going backwards.
Daisy Cousens: Gosh, which is appalling in this cost-of-living crisis. I hate this sort of ideological bit that political parties have that it’s okay just to tax people into oblivion, because as you rightly mentioned, the Liberal Party. I’m always on about how, you know, Labor is so happy to tax citizens, but the same can actually be said quietly about the Liberal Party can’t it?
Senator ROBERTS: It can be. I moved a motion, an amendment, sorry, recently into one of the pieces of legislation that Labor had introduced to the Senate and that was simply to remove bracket creep. It was done properly. The Liberals even stood up and said they commend me for it, they like the way the bill was written, but they’re not going to support it because they love bracket creep and so does the Labor Party. They love bracket creep. They love seeing people go unconsciously into higher tax bracket, not even doing being aware that that’s the case and that’s an immediate increase in tax and so people don’t realise that they’re being, that they’re having more money stolen from them.
And then Dave Sharma, the new Liberal Senator, when he gave his maiden speech, his first speech in the Senate recently, he said he’s all in favour of removing bracket creep, but just two weeks before he he voted against removing bracket creep. So, there was nothing wrong with my bill, they said it was well done but they couldn’t do it. So, both the Liberal and Labor Party. And we’ve also got to remember that net-zero, putting in place net-zero foreign policy, increases energy prices which flow right through the economy. The energy sector is the most important sector in the economy in terms of the foundation for prices of goods and services because they flow right through and when you increase energy prices, you decrease productivity, you decrease wealth and that applies not only to individuals – it applies to businesses, it applies to communities. And the Liberal Party is the one who first said in government that they would support UN 2050 net-zero policy. So, the Liberal government is putting heavy impost on every person who uses electricity and every person who lives in this country.
Daisy Cousens: Hmm gosh! It’s so hypocritical of both the major parties because they both go on this bent, don’t they, pretending they’re for the little guy, or we’re for the workers, we’re for ordinary people, but how can they possibly say that with a straight face when they’re so happily happy to tax people?
Senator ROBERTS: Well, they’re used to the lies that they’re putting out. The climate scam is a lie. The climate fraud is a lie. The whole basis for these energy policies is a lie. And then we see – every major problem, Daisy, in this country comes out of Parliament House, Canberra, every major problem. Some of the problems come out of states, but they’re exacerbated by the federal government. So, we see inflation, was driven by the federal government and the Reserve Bank of Australia by printing far too much money during the COVID mismanagement. The whole of that COVID mismanagement shut down supply routes, the supply side, so we had fewer goods, which meant that raised prices, and we had more money chasing those fewer goods, which further raise prices. So inflation, which is a hidden stealth tax as you rightly pointed out, is the cause of people going backward in disposable income. So inflation is the number one enemy and it was created by the Morrison government with the Labor Premiers in hand and by the Reserve Bank of Australia.
Daisy Cousens: Ohe absolutely.
Senator ROBERTS: So what we need to so is actually open these people up to the truth.
Daisy Cousens: Hmm. Oh no, I agree with you and what people just I think conveniently shove under the rug or forget, certainly the Liberal Party does, was that it was the Liberal Party’s fault when they were in government a few years ago that we are in this inflationary position because they kept capitulating to the states’ demands for money for their ridiculous COVID policies. So, thank you for bringing that up and let’s never forget it. Now, Senator Roberts, according to this chart, the greater the rate of primary production, the higher the valuation increase. Is this justly proportional?
Senator ROBERTS: Daisy, let’s keep flogging everyone who’s successful. Let’s see how many successful people we have left in this country. That’s exactly what they’re doing. So, someone that works their land better, their business better, someone invests in their land, their business, and they have a higher productivity and what do we do? We slug them for it. That’s no way to reward talent. That’s no way to reward creativity and hard work and enterprise. That’s the opposite. It’ll cripple this country and it is crippling this country. That’s what we need to remember. This will do enormous damage to our primary producers and we call them primary producers for a bloody good reason. They’re the primary producers of the whole economy. Everything is based upon agriculture and mining, the two primary production sectors. Manufacturing is based on that. Goods and services in the services sector or the tertiary sector are all based upon it. So, we’re killing the primary sector and what it’s doing is it’s hollowing out the bush – they want us all to move from the bush and into the slums and cities – high density high rise living. Thomas Jefferson said it so well and Tim Ball, the expert climatologist from Canada, echoed those words. You can have farms without cities, Daisy, but you cannot have cities without farms. We are crippling this country.
Daisy Cousens: And that is such a good point. You know they are so important, our farmers, and they’re being treated so shoddily by the government and certainly, think of the cost-of-living crisis, as taxes increase for our farmers, won’t that in turn flow onto our grocery bills? Will they become even more expensive?
Senator ROBERTS: Yes, it will. And we’re seeing the prices increase already, quite dramatically, because of the recent increases in energy costs, which have been artificially driven by basically lies and also by inflation. And also, we must remember that we’re seeing the consequences of previous Liberal-National governments that stole farmers rights to use their land and to comply, that was the Liberal Party government’s way of complying with the United Nations Kyoto Protocol. They said they wouldn’t sign it, but that they will comply with it. The moment they did that they started putting in restrictions on land use. They got the state government involved, particularly in NSW and Queensland to put those land use restrictions in and now we see the Queensland government, two years ago, three years ago, bringing in legislation to cripple the farms right up and down the East Coast of Queensland which, as you know from our states layout, are fundamental agricultural areas. They’re the richest agricultural areas – all in the name of the environment. And I asked questions in a Senate inquiry of the QLD experts -they don’t have any evidence for it. We must remember that the farmer, the owner of the land, is the most important custodian, the best custodian, because a farmer, if he ignores the environment around his land, his land deteriorates. The farmer is the best person for understanding the management of the environment. The farmer is the one who’s going to miss out the most if he abuses that or she abuses that because they’re superannuation goes, they have got nothing to hand back to their kids. Whatever they want to do is gone. So the farmer is the best person to manage the land and the environment around his or her property. And what we’re doing is we’re putting it in charge of bureaucrats in Canberra, bureaucrats in Brisbane and bureaucrats in academia that are crippling our agricultural sector.
Daisy Cousens: Oh, absolutely. I mean, they’re just handing it over to people who have no idea what they’re doing. It’s outrageous! Now look, Senator, before we go, I have to talk to you about this Digital ID bill. You have been a real campaigner against the Digital ID bill. What is there left for Australians to do to stop this nightmare becoming imprinted as a reality?
Senator ROBERTS: Well, Daisy, I’m normally a very calm person and I don’t get upset too easily, but on Wednesday night, before Easter, after this bill went through without any debate, not one word of debate. Amendments were moved and passed without one word of debate. And so that’s the first thing to recognise, the guillotine. So, I was shattered. But on Thursday I came into my office the next morning and found everyone in my office happy and I thought, what’s going on? And they said, Malcolm, the House of Reps was kept back late, the bill was introduced in the Senate and once it was passed in the Senate, it was supposed to go to the House of Reps, for passage through the House of Reps. Well, it didn’t go to the House of Reps. And we believe that that’s the case because the public kicked up such a fuss, social media gutted Labor, social media gutted David Pocock the Teal, David Pocock the Teal senator and what we think is going on is that Labor is very, very worried about the consequences of passing this bill. And so, what we’re saying is 2 things. Every citizen get out there and hammer your local representative in parliament, in the House of Representatives. Not just the Labor Party but also the Liberal Party. Now the Liberals introduced this bloody bill into the parliament three years ago and I opposed it from the start. But the Liberals have voted with us against the bill two weeks ago in the Senate. So, we know the Liberals are sensitive in the lower house. We know that the Labor Party is sensitive in the lower house and the Teals and the Greens, so get out there and tell your lower house representative, your house representative member to vote against it.
Daisy Cousens: Absolutely.
Senator ROBERTS: The second thing is we saw the public rise up and I must congratulate everyone for doing that. We heard it in Canberra. Now what we need to do is – One Nation put out a petition opposing the digital identity bill. It got 60,000 signatures in the space of two days. Phenomenal.
Daisy Cousens: Fantastic.
Senator ROBERTS: And what we’re doing now based on that strength, we’re running a national protest day on May the 5th, Sunday May the 5th and we’ll be having protests in each of the major capital cities in Australia. So, it’ll be a very important that the public gets out and shows its voice.
Daisy Cousens: Absolutely. Thank you so much for letting us all know about those protests. And Senator, thank you so much for coming on the show this evening. You do wonderful work and I do hope we can see you again soon.
Senator ROBERTS: I look forward to it. Thank you very much and have a good weekend, Daisy.
https://img.youtube.com/vi/CAnA_QdDlJU/maxresdefault.jpg7201280Senator Malcolm Robertshttps://www.malcolmrobertsqld.com.au/wp-content/uploads/2020/04/One-Nation-Logo1-300x150.pngSenator Malcolm Roberts2024-03-14 14:32:162024-03-14 14:32:20One for You, Two for the Tax Man
I spoke to Alexandra Marshall of Spectator Australia on the outrageous tax that is being floated, which will impact those on smaller incomes and families.
The Environment Minister, Tania Plibersek, has warned the fashion industry to turn its back on the concept of fashion that encourages people to buy too many new clothes. This idea is straight out of Chairman Mao’s China where everyone dressed in the same uniform, reducing the need for clothing to just a few sets of clothes.
This is your future under the most radical government in Australian history, who are actively promoting the World Economic Forum’s war on clothing under the guise of ‘saving the environment’, but really they just want us to have less.
Minister Plibersek is trying to justify their levy on clothing by saying it will create a ‘Green Fund’. Based on flawed science, this tax on clothing comes just after the WEF suggested on its website that people wash their clothes less often — you will wear old clothes and be dirty. This is literally what the WEF thinks of us. It’s impossible to be “happy” about this out of control, UN agenda followed loyally by this government.
One Nation opposes any new taxes. For the Prime Minister to even consider more tax on clothing shows how out of touch he is.
Both Labor and the Coalition voted to collect billions of extra income tax dollars because they need more money. Yet foreign multinational corporations in Australia are paying little or no company tax.
Bracket creep is a secret tax that means government makes money out of inflation. The government is not indexing the tax brackets to fix bracket creep meaning Australians will collectively pay $38 billion extra in tax over the next four years.
I moved an amendment that would eliminate bracket creep by indexing the tax thresholds. This means the inflation rates would be adjusted for inflation so Australian’s pay the same rate of tax instead of continuing to pay more which is the current situation the government is failing to address.
Instead of giving tens of billions of dollars back to Australians, both Liberal and Labor are happy to keep secretly collecting more and more tax, and by their own admission, they’ll only ever give it back when they can afford to. When can we expect that to occur, considering the current government’s focus is on funding UN climate goals and inflationary COVID debts?
Transcript
Senator ROBERTS: Minister, do you agree bracket creep is a problem for taxpayers in Australia?
Senator GALLAGHER: I think all governments recognise bracket creep is an issue. That’s why governments of both major parties return bracket creep when it’s affordable and sustainable to do so. You’ll notice that, in the reforms to the tax proposal that was outlined by the former government, this does that by lowering the two thresholds and dropping the two tax rates; sorry, I’m getting back into tax land! That’s how we’re dealing with bracket creep. It provides relief, and 84 per cent of taxpayers will be getting a bigger income tax cut than they would have under the former government and paying less tax. By 2034-35, someone earning an average income will pay $21,635 less tax than they otherwise would have without these tax cuts.
Senator ROBERTS: Minister, you said you return bracket creep when it suits you and when you can afford it. Doesn’t that mean that you’re taking money off taxpayers, and that it’s really a stealth tax because taxpayers don’t know they’re moving into a higher tax bracket? Bracket creep is when the brackets stay the same but people’s wages inflate and they move into a higher tax bracket—so they automatically pay a far higher rate of tax in the next bracket and they don’t even know it. Isn’t that tax by stealth?
Senator GALLAGHER: No, I don’t agree with that. I think Australians understand marginal tax rates and the interaction between their earnings and those tax rates. I would say again that’s why, regularly, tax cuts are provided to taxpayers—to deal with bracket creep and provide other assistance where that’s possible, where it’s affordable and sustainable to do so. I say that not to say ‘when we choose to’ or ‘when we feel like it’ but because we have to manage a budget responsibly as well. People expect that because taxes pay for all the services that people consume and expect to receive from their government.
Senator ROBERTS: Minister, I remind you, before asking my next question, that former deputy commissioner of taxation Jim Killaly, who was in charge of large companies and also international matters for the Australian Taxation Office, said back in 1996 and 2010 that 90 per cent of Australia’s large companies are foreign owned and have paid little or no tax since 1953, due to Liberal legislation that was passed in 1953 letting major foreign owned corporations off the hook. Bob Hawke made sure that the Labor Party was also giving gifts to major foreign corporations by letting the world’s largest avoider of tax, Chevron, off the hook for tax in the North West Shelf. Surely the fix to bracket creep is to index brackets. If we’d done that 10 years ago we would have saved the people $44 billion in tax. You say, ‘Where can we get the tax from?’ I get that tax is the cost of government, that tax is the price of government and that tax has to be paid, but foreign corporations in this country are paying little or no company tax. That means they’re using our services that every mum and dad and family and small business is paying for in this country, and they’re doing it for free. We used to be the world’s largest exporters of gas, we get very little for it, and these foreign companies are sending it overseas. Japan gets $3 billion a year off import duty for our gas going into their country, and we get very little for it. So what I say to you is that we can’t afford it because you’re not taxing foreign multinationals adequately. You’re letting them off the hook. Because you didn’t index brackets in this attempt, over the next four years Australians will pay $38 billion more tax than if you indexed brackets. Surely, you can look at the spending and cut some of that back. Surely, you can look at the taxation of foreign multinationals and make sure they start paying their fair share. Then let Australian families off the bracket-creep hook. Why can’t you do that proper budget for the Australians?
Senator GALLAGHER: There was a lot in that, Senator Roberts. I think your final question was around budget management, and the work we have done in the last or two budgets and MYEFO has been to repair the budget. The deficits are a lot less, going forward. We’ve had a surplus budget, we’ve lowered our debt, we’ve contained spending despite the pressures the budget is under, and where we’ve had revenue windfalls we have returned the vast majority of it— over 80 per cent, 88 per cent I think—to the budget to repair it. We do have to manage the budget responsibly and we’ve been able to do that and provide bigger tax cuts to more Australians. On your point about multinational tax reform, I don’t necessarily agree with all of it because I haven’t been able to verify some of the things you’ve said. We agree that we should be making multinationals pay their fair share of tax—we’ve got a bill before the parliament on that, we’ve got a bill on PRRT and we’ve got a bill on high-balance super, and that is about making sure we are putting the budget on a sustainable footing, that we’re able to pay for defence, aged care, hospitals, the interest on our debt and the NDIS, and that we are able to pay for those services that people expect. But this plan does deal with bracket creep, so I don’t accept the position that you put saying we don’t. That’s part of the reason why we’re doing it. The Treasury advice there is very clear. Our plan provides better protection against bracket creep for 70 per cent of all taxpayers over the decade, including the average taxpayer and those on low and middle incomes.
Senator ROBERTS: Minister, how can you say it fixes bracket creep when over the next four years Australians—families and individuals—will be paying an extra $38 billion due to bracket creep? You are not indexing the brackets themselves; you’re just making a one-off adjustment. As soon as that happens, with inflation continuing, you will continue to increase revenues. Inflation hits families in two ways: first of all, goods and services cost more; second of all, they move into a higher tax bracket and they pay more tax. They actually end up with less take-home pay. So I don’t buy your argument. Why doesn’t Labor want to fix bracket creep?
Senator GALLAGHER: I think we’re just agreeing to disagree, Senator Roberts. This plan does deal with bracket creep by reducing two tax rates and increasing two tax thresholds. It does deal with bracket creep. In particular, as I said in my previous answer, for average taxpayers—those on the average wage, and low- and middle-income earners—this substantially improves the money they get back in their pockets, and returns that bracket creep. But you disagree with me—I will keep making that point and, presumably, you will keep making yours.
Senator ROBERTS: Minister, you cannot argue with the fact that someone who is just below the next tax threshold will soon be paying higher tax because of inflation. That is a fact. The only way to beat that is to index the tax thresholds. As to supporting my amendment, it shows you do not want to stop rampant increases in tax or you want to keep bracket creep to exploit taxpayers. Why don’t you want to fix bracket creep properly by indexing it so that brackets rise as inflation rises and wages rise, so people stay within the same bracket and there is no creep? Why don’t you want to fix bracket creep?
Senator GALLAGHER: The tax rates haven’t been indexed, that’s right. I understand your amendment seeks to do that. I don’t think you’ve moved your amendment, but I may as well cover off. We are not supporting your amendment. The approach in this bill is preferable to your amendment because it provides governments—I’m talking about not our government but all governments; this is the way it’s been done—with greater flexibility to respond to fluctuations in the economic cycle. This proposal does deal with bracket creep. It does return money to taxpayers. I don’t know where you get your $38 billion figure from over the forward estimates, but I think your point there is that there will be—that’s assuming, wherever that number comes from, that there will be no change to tax rates in that. History will show that governments have made decisions to implement tax cuts where it’s affordable and sustainable to do so on the budget, and I expect governments of both political persuasions will continue to take that approach.
Senator ROBERTS: Minister, in my view, I don’t think you’re being honest with the people of Australia, because bracket creep is a stealth tax. Inflation helps your tax revenue. How many pages are in our tax act?
Senator GALLAGHER: We might have to take that on notice. I’m just seeing if we can provide you with an accurate answer, but it’s quite detailed and there are obviously pages that underpin the tax act as well. I’m not sure we’ll be able to do that accurately tonight, but we’ll see what we can do.
Senator Scarr: To the nearest ten thousand!
Senator GALLAGHER: I was going to say: it’s a lot!
Senator ROBERTS: To the nearest thousand would be fine, thanks, Minister. The point I’m trying to make is that we already have a very complex tax system, which is confusing for small businesses and confusing for people who don’t have access to lawyers and deep pockets. It’s confusing for individuals and families. We always support returning more money to taxpayers, and $15 a week is a lot of money to many people. In the overall scheme of things, it’s not very much. In a few years, you’ll be recovering far more. Is there any plan to actually reform taxation properly, to do a comprehensive reform so that the tax system becomes simple, clear, effective, efficient, fair and honest? Is there any stomach within the Labor Party to be honest with the people of Australia and really reform taxation comprehensively?
Senator GALLAGHER: I think the government’s been clear about what our tax changes are. They are the Treasury Laws Amendment (Cost of Living Tax Cuts) Bill 2024, the bills I referred to before on high-balance super accounts, multinational tax reform, PRRT—they are the government’s tax plans. Am I missing one?
Senator Hume: Negative gearing!
Senator GALLAGHER: I don’t accept that interjection. That is the government’s tax agenda going forward.
Senator ROBERTS: I move Pauline Hanson’s One Nation amendment (1) on sheet 2342.
Senator HUME: For the benefit of the chamber, I just want to inform you that the opposition is going to oppose this amendment, Senator Roberts. We won’t be supporting it, because the stage 3 tax cuts were originally designed to address bracket creep but do it in a very structural, costed and fiscally responsible way. While this measure would address bracket creep, you’re absolutely right that the fiscal cost of this change isn’t known, and that’s why we couldn’t support it at this stage. The Prime Minister’s broken promise means that delivering the stage 3 tax reforms as they had been legislated originally is now impossible, but the coalition remains committed to fighting bracket creep and to enshrining aspiration, because strong leaders keep their promises, even when it’s hard to do so.
Senator GALLAGHER: I made some comments previously, but we will also be opposing this amendment. The bill before the chamber does deal with bracket creep. It delivers tax cuts for 13.6 million Australians. It’s carefully calibrated to provide more cost-of-living relief. I know that Senator Roberts said that it was $15. I think that figure he is using is the extra that people will get. Those people will get $15 extra on top of the tax cuts they otherwise would have got, and, for many people, that is a substantial amount of money. We recognise there are other things to do on the cost of living. That’s why our other measures are being put in place. But in terms of your amendment, we oppose it. We think the way we’re approaching it in this bill is preferable, and it’s the way it has been done in the past. It gives government the flexibility to make those decisions when it’s affordable to return bracket creep in a way that can maximise those returns.
Senator ROBERTS: Minister, I want to take you back briefly to a previous answer you gave when you implied the surplus—which is correct in the budget. The surplus has only been around for two years because of the strength of our agricultural production and our coal and iron ore exports. That’s the only reason. What we’re seeing is a country that is at the mercy of international prices for its major primary products. If something happens, then we have to rely upon bracket creep to pull us out of the mess, and that’s not fair to Australian families and individuals.
Senator GALLAGHER: I accept that our export industry and our resources certainly contribute to our tax revenue through company tax receipts and others, but the strength of the revenue upgrades has also been improved and strengthened by the strength of our labour market. We’ve had many more people in jobs earning money and therefore paying tax than we have previously. Unemployment is at a record low; participation is at a record high. It’s kicking up a bit now, but that has contributed significantly to the improved position of the budget. Yes, we acknowledge that. Part of that has allowed us to pay debt down so that we’re not paying as much into the future and generations of the future are not paying those interest costs—the fastest-growing cost on the budget is managing the interest costs on our debt— and it’s allowing us to deal with all of those areas of pressure that we talk about all the time in here: the NDIS, aged care, hospitals and defence. They are all big costs coming at the budget, and we do have to manage it in a responsible way.
Senator ROBERTS: I’m not pretending to say it’s easy. It’s complex, but it’s excessively complex. You’re addressing the need for increasing tax revenues for the extra expenditure, including interest payments, but what you’re not saying is that a lot of that money is coming from individuals through immigration, which is putting enormous pressure on house prices and inflation. That’s a real impediment to people looking for houses right now. We’ve got people in Queensland sleeping in tents in showgrounds in Gladstone, in parks in Bundaberg, in parks and on the banks of the river in Brisbane and in Ipswich, Logan and Townsville. I think we’re making a rod for our own back. When are we going to see comprehensive tax reform to take the load off individuals and put it onto large corporations so they start paying their fair share?
Senator GALLAGHER: Well, I’ve outlined that we do have a bill around multinational tax reform to ensure that those big multinational companies are paying their fair share of tax. I think if you talk to many domestic companies they’ll say they’re paying their fair share of tax right now. People have a view about that, I guess. Individuals do contribute substantially to the Commonwealth budget through income tax. We need to generate revenue in order to pay for services. On your point around population and housing, obviously you can’t do everything through tax cuts, and that’s why all those initiatives we’ve got in housing are so important and why we want the chamber to support the latest part of our housing initiatives, which is Build to Rent. We’ve got a full suite of programs. We acknowledge that supply is the problem, and the Commonwealth is right in there with our sleeves rolled up, working with states and territories, to do whatever we can to generate more supply. Also, as you know, some of the changes we’ve made to the migration system have ensured that those net overseas migration numbers that we’ve seen rise post-COVID are coming back down to our more traditional rates.
Soaring cost of living, massive mortgage, rent hikes and inflation meant Australian households suffering the fastest income collapse in the world last year. Labor’s tax changes will benefit some Australians, a measly $15 a week to make up for this.
Labor are out of touch.
This legislation will barely make a dent in cost of living and the government admits as much by claiming these tax cuts will make no measurable difference to the amount of money Australians have in their pocket to spend. Meanwhile, they are silent on their secret money maker – bracket creep. As wages increase, Australians move into higher tax brackets while only being able to buy the same things due to inflation, yet they’ll be paying more tax. This little trick means government has collected an extra $44 billion in taxes from Australians, thanks to inflation over the last decade. Because it hasn’t been fixed, Australians will be paying an extra $38 billion in the next four years alone.
I moved an Amendment that would change the tax rates to keep up with inflation and eliminate bracket creep. If Liberal and Labor are genuine about real tax cuts, they’ll vote for this Amendment and let Australians keep billions of dollars.
One Nation has been talking about the Liberal-Labor government’s secret tax loophole of bracket creep ever since this debate on the Stage 3 Tax Cuts started and we are doing something about it with our proposed amendment to this bill. We need proper tax reform urgently.
Transcript
I rise to speak to the Treasury Laws Amendment (Cost of Living Tax Cuts) Bill 2024. Like most of the words Australians hear out of Liberal and Labor mouths, the title of this bill is a false promise. It’s a lie. It’s almost a sick joke from the Labor government to even put the words ‘cost of living’ in this bill. Let’s talk about the cost of living. Compared to what was already legislated, these tax changes are $15 a week different for the average Australian. For many that’s significant because of Labor’s huge cost-of-living increases. In four years, Australians have been slapped with some of the worst declines in economic circumstances in decades internationally. Australian households suffered the fastest income collapse in the world last financial year, under Labor. Inflation has sent Australian wages—real wages—back to a point not seen since 2009. That means that Australian wages have gone nowhere in real terms for 15 years. The average mortgage has gone up $1,210 a month—a month! Australia’s average rent has hit a record $601 a week, up from the August 2022 median of $437 an astounding 37 per cent. Fifty dollars doesn’t get you far at the supermarket anymore. Petrol is now considered a bargain at $1.80. How far we’ve fallen!
As billions in government coupons and rebates expire, power bills will rise even further. Despite Labor’s promises to cut electricity bills by $275, Australians have never paid more to keep the lights on. We’ve never paid more. We have the highest electricity prices in the world. We used to have the lowest—until Labor and the Greens and teals came along.
What is the government’s solution to these skyrocketing costs of living? To fix your problems with groceries, your mortgage or rent, power bills and more, the Albanese government is going to give some Australians—some Australians—$15 a week and expect you to bow down and thank them for it.
Like the governments before it, this Labor government is all spin and no substance. In fact, it’s all theft. They will put a fluffy title on a bill, like they have here: ‘cost of living tax cuts’. Oh, really! In reality, this won’t make a dent in the cost of living most Australians are suffering through. The costs Labor is imposing are far, far higher than the minor changes they’ve made. This bill is a perfect example of how out of touch this Albanese Labor government really is. Their priorities are in the wrong place. They’re more interested in looking good than actually doing good.
In his speech about this bill, Treasurer Jim Chalmers just couldn’t help himself. He needed to invoke identity politics and explain that these tax cuts were so much better for women. I checked the Taxation Office website, just to make sure nothing had changed, and it hadn’t. Someone might want to let Treasurer Chalmers knows that Australia doesn’t charge different tax rates based on what’s between our legs. There’s no table that says, ‘If you earn $60,000, as a man you’ll pay, say, 32.5c per dollar, and, if you’re a woman, you’ll pay 35 cents.’ That’s probably lucky, because Labor can’t even answer the question: ‘What is a woman?’ If the Treasurer can’t make a speech about tax without invoking gender political correctness, you have to wonder what hope they’ve got. What hope have we got? Here’s a tip for Labor: regardless of what Australians have between our legs, life is tough right now; the economy sucks; and $15 a week will barely make a dent in the extra costs you have imposed in just 18 months.
Now, I’ll never oppose Australians getting a tax cut. Yet calling these tax changes ‘cost-of-living relief’ is like claiming you’ve fixed a raging bushfire after throwing cup of water on it.
These tax changes won’t do anything while government policies make Australia’s cost of living even worse—far, far worse. There’s energy. They’re killing agriculture. There’s immigration. They’re hiding per capita recessions. There are house prices and rents. The government response to COVID created the inflation problem that has wrecked Australian households. And Labor was all the way with Prime Minister Morrison.
The government’s net zero policies are increasing power prices, making it harder for households to keep the lights on and businesses to keep their doors open. That’s a fact. Only this week, the government is discussing putting an extra four per cent tax on clothes, to comply with United Nations/World Economic Forum policies—four per cent on clothes, in addition to the 10 per cent GST on clothes. The government will be putting an emissions tax on vehicles, forcing Australians’ favourite utes off the road and making any other cars far more expensive. That’s from a Labor government. All of the pressures facing Australian households are a result of government policies, and Labor’s response is a measly $15 a week.
The Liberals do not get a free pass on this. The only reason we’re in this situation is because of the Liberal Party’s gutlessness in parliament. Many will notice that the original tax changes were called ‘the third stage’. All three stages were announced by the Liberal coalition government in 2018. Why, then, was stage 3 left until 1 July 2024 to come into effect? I’ll tell you why: the truth is the Liberals wanted to leave stage 3 as a trap for Labor, who have always been opposed to them. If the Liberals were genuine about stage 3, why didn’t the changes come into effect five years ago? That didn’t happen because the Liberals wanted to play cynical political games and trap Labor. Neither Liberal nor Labor are interested in genuine tax reform; they’d rather play games with it to get a headline—play games with people’s livelihoods, lives and futures.
The crown of destroying Australia sits on the heads of both the Labor party and the Liberal party. They both have gutless policy on everything in our country, especially tax. They run away from the real issues facing Australians. The Treasurer and the government claim that these tax changes won’t add to inflation—that’s shooting themselves in the foot. If that’s true then the government is admitting these changes won’t do anything. They’re saying it won’t make enough of a difference to the amount of money Australians will have to spend to even be measured. Maybe the government is lying, and these changes will make inflation worse. That would be embarrassing to admit, given Treasurer Chalmers says our No. 1 priority should be ‘to finish the fight against inflation’. Labor appears to have put themselves between a rock and a hard place, a situation all of their own making. Australians have got used to this Labor government speaking out of both sides of their mouth—this tax bill is no different.
Now, I’ll never oppose tax cuts for Australians. These tax changes, however, are just fiddling around the edges. Instead, we need real tax reform. Real reform is in the amendment I have proposed on sheet 2342. This would index the income tax thresholds to inflation and eliminate bracket creep. This is genuine tax reform. Bracket creep is the government’s dirty little secret. Inflation means Labor will quietly pocket tens of billions of dollars in extra taxes by simply doing nothing. As wages increase with inflation, they go into higher tax brackets, you’re paying higher tax rates and no one says a thing. We are going to say something. We’ve been saying something about this ever since this debate started, and we will fix it by putting an amendment in there.
It’s a stealth tax. As wages increase, Australians move into higher tax brackets, while being able to buy only the same things due to inflation, yet they’ll be paying more tax, so they’ll have less money to spend on groceries effectively and less money to spend on disposable income. Bracket creep amounts to a secret tax that the government are keep collecting to pay for their pet projects of questionable benefit. If the Liberals and Labor want to increase taxes, they should put in a bill or take it to an election and be honest with Australians, rather than quietly rely on bracket creep to secretly plug their budget holes and ratchet up income tax receipts.
Bracket creep should’ve been fixed a decade ago. Analysis from the Parliamentary Budget Office shows that Australians have had to pay an extra $44 billion over the last decade because of bracket creep. Shh, don’t tell them! Because we didn’t take that action and fix this 10 years ago, over just the next four years bracket creep will mean Australians will pay more than $38 billion extra in taxes. You thought you were getting a tax cut. If the government gets inflation under control, fixing bracket creep won’t cost the budget anything. Australians don’t deserve to pay for inflation twice because of government mistakes, and the budget shouldn’t benefit from out-of-control inflation. Here’s how you’re paying twice: firstly, inflation because of an out-of-control government—higher prices; secondly, the higher wages that come with inflation put you into a higher tax bracket—bracket creep, higher taxes. You have less real money overall. Now, I note that the Liberals have made many comments about the scourge of bracket creep. This is your opportunity to fix it once and for all, and I urge all senators to stop the taxation increases-by-stealth and index the tax thresholds—the brackets.
If Labor need any suggestions on areas of spending to fix it so they don’t have to keep secretly stealing more money from Australians, they can consult One Nation’s extensive work at Senate estimates for a few tips. There are lots of tips in there. We exposed so much: the flawed $65 billion Hunter frigate program they fiddled with and didn’t cancel; the NDIS being on track to cost $100 billion every year; and up to $8 billion a year in Medicare fraud. They are all some good places to start.
We support this bill. It’s being dishonestly represented by Labor as a tax cut; it’s a tax fiddle. We can change that by passing my amendment to remove bracket creep. As a servant to the people of Queensland and Australia, I recommend that, instead of fiddling with the tax system, we fix the tax system. Reform the tax system for the benefit of all Australians, all families, our economy and our grandchildren’s economic future and security.
I will just make some comments about tax reform, in connection with this bill. The tax system is complex, wastes enormous resources and is destroying economic productivity. Tax is essentially necessary because it’s a cost of government. It has become the cost of unaccountable waste over government needlessly micromanaging and controlling people’s lives and destroying economic initiative, hope and security. That’s what our tax system has become. It’s necessary as a cost of government, but it has now gone overboard. The tax act is immense—thousands of pages, a feast for lawyers and accountants.
In a highly competitive international market, our resources are being wasted. Instead of our best and brightest accountants helping us to be more competitive in facing our international competitors, companies in Korea, Japan, China, America, Indonesia and Asia—instead of facing them and being more competitive by putting our best people to work, we’ve tied them up in the tax system trying to dodge tax because it’s so damn complex and so inefficient. Jim Killaly, the deputy commissioner who was responsible for international matters and large companies, who was second in charge at the Australian Taxation Office and in charge of large companies and international matters, said twice, in 1996 and 2010, that 90 per cent of Australia’s large companies are foreign owned and, since 1953, have paid little or no company tax due to the Liberals introducing legislation exempting foreign companies back in 1953.
The tax act enables companies to use tax tricks such as transfer pricing to eliminate book profits and tax being paid in Australia and take it all overseas. In 1987 the Hawke Labor government introduced a petroleum rent resource tax that effectively exempted the world’s largest tax evader, Chevron, from paying tax. They steal our gas and export it to other countries, and we don’t get much for it at all. The Liberal-Labor party, the uni-party, are working for their global corporate masters. Exempting corporations from paying their fair share of tax means the burden falls on us, the people. To the people in the gallery: you’re paying for these uni-party rorts.
Aussies are paying far too much tax already. Former Treasurer Joe Hockey said that typical Aussies work from January to June paying tax. Half of the year paying tax, effectively a 50 per cent tax rate—that’s what Joe Hockey said. And then we get to keep the rest from July to December. Industry figures calculate that almost 50 per cent of the price of a house is tax, meaning an effective tax rate of 100 per cent. Brisbane accountant Derek Smith said that 50 per cent of the price of a loaf of bread is tax, meaning the effective tax rate is 100 per cent. Seventy per cent of the price of fuel is tax—or it used to be; the price has gone up even higher now. Essentially, workers have to pay double and they’re getting ripped off. They pay income tax, and, with what’s left, they pay taxes on everything they buy. We need tax reform urgently.
https://img.youtube.com/vi/VTJv992yf0o/maxresdefault.jpg7201280Senator Malcolm Robertshttps://www.malcolmrobertsqld.com.au/wp-content/uploads/2020/04/One-Nation-Logo1-300x150.pngSenator Malcolm Roberts2024-02-26 18:23:412024-02-26 18:23:46Labor’s Tax Changes Do Nothing for Cost of Living and Bracket Creep
The Federal opposition has been urged to follow through on calls for real tax reform to stop bracket creep and vote for a One Nation amendment to Labor’s Stage 3 tax changes.
Senator Malcolm Roberts’ amendment would index all tax thresholds to adjust for inflation, saving Australians billions of dollars in extra taxes over the coming years.
Senator Roberts said: ‘It’s time to stop fiddling around the edges and implement genuine tax reform.
‘Bracket creep is the government’s dirty little secret. Inflation means Labor will quietly pocket tens of billions of dollars in extra taxes by doing nothing.
‘As wages increase, Australians move into higher tax brackets while only being able to buy the same things due to inflation yet will be paying more tax.
‘Bracket creep amounts to a secret tax that government is happy to keep collecting to pay for their pet projects of questionable benefit.
‘If Liberal and Labor want to increase taxes, they should put it in a Bill or take it to an election and be honest with Australians rather than quietly relying on bracket creep to secretly plug their budget holes.
‘If the Government gets inflation under control, fixing bracket creep won’t cost the budget anything.
‘Australians don’t deserve to pay for inflation twice because of government mistakes and the budget shouldn’t actually benefit from out of control inflation.
‘If Labor needs any suggestions on areas of spending to fix so they don’t have to keep secretly stealing more money from Australians they can consult One Nation’s extensive work at Senate Estimates for some tips.
‘The flawed $65 billion Hunter Frigate program, the NDIS on track to cost $100 billion a year and up to $8 billion a year in Medicare fraud are all some good places to start.’
Anthony Albanese has lied to the Australian people — it’s important to point that out.
The conversation around Stage 3 tax cuts is a smoke screen that only fiddles around the edges.
Since 2020, the rate of taxes Australians are paying has gone up by 20%. Anthony Albanese will only give Australians $20 a week back.
Here’s a thought PM – if you’re genuine about Australians paying lower taxes, why don’t you index the thresholds so Australians don’t pay more tax just because of inflation?
https://i0.wp.com/www.malcolmrobertsqld.com.au/wp-content/uploads/2024/02/424879670_980414743653080_1162574999189007966_n.jpg?fit=792%2C764&ssl=1764792Senator Malcolm Robertshttps://www.malcolmrobertsqld.com.au/wp-content/uploads/2020/04/One-Nation-Logo1-300x150.pngSenator Malcolm Roberts2024-02-01 15:26:292024-02-01 15:26:33Anthony Albanese Lies to the Australian People
