Deputy Opposition Leader Sussan Ley continues to criticise Labor government’s tax cuts as bill passes the Senate

Deputy Opposition Leader Sussan Ley has hit out at the Albanese government over Labor’s revamped tax package which passed the Senate overnight. 

Prime Minister Anthony Albanese held a media conference late on Tuesday evening to confirm Labor’s tax cuts – set to come into effect on July 1 – had passed the Senate. 

However, Mr Albanese was immediately questioned about the timing of the passing of the bill just days out from the Dunkley by-election on Saturday for the seat in Melbourne’s south-east.

Speaking to Sky News Australia on Wednesday, Ms Ley claimed Labor’s revised tax cuts provided little relief for Australians as cost of living continues to soar. 

“This is all their weak Prime Minister can actually produce for them (Australians), and then think that it’s enough,” she said. 

Ms Ley said the Coalition supported the bill because “we understand the cost of living is critical, and measures, even though they may be small, will go some way.”

“But it’s just a drop in the ocean, I mean $15 a week and it starts in July,” she said. 

“There’s been a lot of sneaky business coming from Anthony Albanese this week, we’ve seen it across residential age care, across private health insurance, just not fessing up to the Australian people about what the Labor government’s real plans are in these policy areas.” 

She then pointed to the Coalition’s “fantastic” candidate for Dunkley, Nathan Conroy, as campaigning for the Melbourne seat heats up. 

“We have a fantastic candidate in Dunkley, Nathan Conroy, and standing with him at the ballot box recently, I saw just what a class act he is, in terms of fighting for the people of Dunkley,” she said. 

“His work as the Mayor of Frankston backs in his real determination to see improvements in people’s lives.” 

As the Prime Minister continues to sell Labor’s tax overhaul, aimed to provide further relief to low and middle income earners, he was pressed on whether Labor’s newly-passed stage three tax cut changes were aimed at winning votes in the upcoming by-election.

“We hope to get a good result in the Dunkley by-election and everyone in Dunkley will know that we wanted every single taxpayer in Dunkley to get a tax cut,” Mr Albanese said on Tuesday night. 

“And people in Dunkley will also know that Peter Dutton wanted those who are… working part time or in low paid work, earning under $45,000, would have not got a single dollar if we hadn’t acted in the way that we have.”

Mr Albanese described Labor’s Jodie Belyea as a “strong candidate” in the Dunkley by-election, which is being held following the death of Labor MP Peta Murphy. 

The by-election is considered to be a major test for the Albanese government after it copped fierce criticism for backflipping on its election promise on stage three tax cuts.

Mr Albanese said the tax reform will give a larger tax cut to low and middle income earners amid the cost of living crisis. 

“The legislation means all 13.6 million taxpayers will receive a tax cut,” he told reporters.

“Our tax cuts are good for middle Australia, good for women, good for helping with cost-of-living pressures, good for labour supply and good for the economy.” 

The legislation, set to come into effect on July 1, means the 19 per cent tax rate will be reduced to 16 per cent for those Australians on incomes between $18,200 and $45,000. 

The 32.5 per cent tax rate will also be lowered to 30 per cent for workers bringing in between $45,000 and $135,000.

Under the bill, the threshold above which the 37 per cent tax rate applies will also increase from $120,000 to $135,000.

Workers earning more than $190,000 will be taxed at a rate of 45 per cent. 

The federal government also confirmed the Treasury Laws Amendment Bill 2024, to increase the Medicare levy low-income thresholds for this financial year, also passed the Senate on Tuesday.