Wednesday, 2 August 2023

Motions

Taxation

Debate resumed.

Matthew BACH (North-Eastern Metropolitan) (12:52): Our tax system really should do a series of things. Firstly, it should encourage opportunity. It should promote a growth agenda. It should encourage investment into our state and competitive markets. It should also, as a corollary to that, encourage digital transformation. I understand that for some people talking about tax is a little dry. However, in putting forward our discussion proposal and in launching the website with that fabulous URL of bettertaxsystem.com.au, what I have sought to do is to make the case that first and foremost when we are talking about our tax system and we are talking about cost of living and the ability to deliver cost-of-living relief to Victorians you cannot tax your way to prosperity. To do that you must grow and you must encourage investment, and that is what this entire process is about. So I would encourage anybody listening to go to that website and to consider making a submission.

I know that my colleagues in the other place Mr Rowswell and Ms Wilson have been out and about, in particular in regional areas, over the period since this paper was launched, and as a result of discussions with local communities we already have a very significant number of submissions. Submissions close on 31 October in the afternoon. There is a period of time now when businesses and individuals – I know some schools are interested – can submit their ideas. We want to make sure that as we are formulating our plans we are really, really listening.

Of course we have already made a series of commitments. We have a firm position when it comes to tax. Victorians know, I think, that should they elect a Liberal–Nationals government in October 2026, of course we will have less tax than under this Labor government. At the last election we went forward with a clear plan to scrap a whole series of taxes. Already we have said that whilst we would love to be in a position to ditch this government’s land tax increases, their rent tax and their jobs tax from the last budget, because of the absolutely parlous state of our budget, because of the fact that Victoria has more debt than New South Wales, Queensland and Tasmania combined, we are not in a position yet to make those commitments. We can commit to scrapping the schools tax of course, but as we make those decisions and as we formulate our plans we really, really want to hear from families who are being impacted by the huge and growing tax burden here in Victoria; from businesses – small, medium and large – that are being impacted by the growing tax burden here in Victoria; and also from community groups. If we do that, then we will be in the very best position to put forward a thoroughgoing tax reform agenda at the next election – a growth agenda, an agenda that will see cost-of-living relief delivered to families, which is something that has not happened hitherto. I commend the motion to the house.

Sitting suspended 12:55 pm until 2:06 pm.

John BERGER (Southern Metropolitan) (14:06): I rise today to set the record straight. The Andrews Labor government is working hard to address the cost-of-living crisis, and the Andrews Labor government has a track record of cutting your taxes. But first, we all know how hard it has been for the last couple of months – in fact the last year. The Andrews Labor government will always look out for Victorians no matter how tough it gets.

It only takes a brief look at the policies that we have delivered to understand that at times of financial insecurity the Andrews Labor government has your back. Take, for example, one of the biggest contributors to stress on the household bills: your energy bill. It is no secret that since the Ukraine war energy prices across the world have been a real concern for everybody. The Andrews Labor government would never stand to let a single Victorian go through the winter not knowing whether they would be able to pay their electricity or gas bills, which is exactly why last year and this year we launched the $250 power saving bonus. The power saving bonus is a one-time $250 payment from the government for Victorians to have extra cash to put towards their power bill. This was received well both in the 2022 round and the 2023 round.

This is not the only Labor government energy reform that is improving the lives of Victorians as we face unprecedented costs of living. Minister D’Ambrosio has done fantastic work in reforming the space around Victorian energy not just for the benefit of Victorians but also to enact real action on climate change. Cost of living is not the only crisis we are facing now. With the ever-present threat of climate change, real action needs to be done, and only the Andrews Labor government can do this whilst also helping ordinary Victorians with their budget. Victoria has the most ambitious emissions reduction targets, and this is in large part thanks to the return of the SEC.

Families are particularly affected when it comes to the household costs, so the Andrews Labor government knew that something needed to be done to address this, which is how we arrived at the free kinder program. Free kinder is an important piece of our approach to the cost-of-living crisis and does not just help with the family budget.

Despite what the motion says, we are acting. Here is a quick list of the initiatives: electricity discounts and winter gas discounts for eligible concession card holders; extending the solar homes and batteries programs into 2022–23 with 64,000 solar rebates and 1700 battery rebates available; the Victorian default offer, which in 2023–24 will still be cheaper than the price of the standing offers prior to the VDO’s introduction in 2019; free L-plate and P-plate licences and online testing; discounted driver licence renewal for safe drivers; car registration discounts for eligible concession card holders; short-term vehicle registration; free TAFE to give Victorians more training and new careers; making nursing and midwifery free, covering students’ HECS; a cap of one residential rate rise per 12 months; capped council rates; free zoo visits and Melbourne Museum entry for kids under 16; a wide range of discounts, concessions, entry and travel vouchers for seniors; discounted student travel and a conveyance allowance for all rural students; free travel and accommodation subsidies for rural Victorians travelling long distances to see health specialists; and discounted and free treatment through Dental Health Services Victoria. And of course do not forget the various tax breaks and supports provided to first home buyers that we have discussed earlier.

This side of the chamber talks a lot about schools because we support them. We support our children’s education. For families with slightly older children there is the school breakfast program. Without the school breakfast program many schoolchildren could well face the prospect of having to start the day on an empty stomach. This has serious negative health implications, and the Andrews Labor government understands that it must be avoided. This year a further $69.5 million was delivered to keep the program running with Foodbank Victoria. The delivery has even expanded by 2.4 million meals. With the Andrews Labor government in charge, you can always rest assured that we will support education wherever and however we can. $32.9 million has been put towards the affordable school uniforms program, which means disadvantaged families can save on essential school items – not just uniforms but also textbooks and stationery.

Finally, the Andrews Labor government has cut or abolished taxes and fees 63 times since coming into government in 2014. This includes increasing the payroll tax free threshold four times since coming into government so fewer small to medium-sized businesses pay any payroll tax, and with our most recent budget we have committed to increasing it twice more, lifting it to $1 million so that 6000 businesses – about 15 per cent of payroll tax paying businesses – will no longer pay a cent of payroll tax. Despite what some may say, we cut the regional payroll tax rate to 1.2125 per cent, just one-quarter of the metropolitan rate – the lowest in the nation. Regional unemployment is at historical lows, and it is thanks to policies like this that have got us there. That is why election after election, regional Victorians are increasingly turning to Labor as their vote of choice. From Bendigo to Ballarat and Geelong to eastern Victoria, only Victorian Labor is delivering for them. I know, as I grew up in regional Victoria.

I will not shy away from it, and I have said it before: we need to pay taxes to build things, to do things, to do what matters. We on this side of the chamber believe in a government that plays a role in supporting the community and creates jobs – and for the past few years we have shown that more than ever – and a government that uses those tax dollars wisely to build projects for the future. Just yesterday I spoke about Hawthorn West Primary School and the transformational infrastructure projects we are delivering for the community. Camberwell Primary School is getting the support that it deserves and needs. Think about the $15.5 million for free period products in all Victorian government schools, the $2.9 million Glasses for Kids program, the $32 million for the State Schools’ Relief program to continue to deliver the affordable school uniforms program, the $3.815 million for books and prep bags and the $168.724 million over four years and $44.85 million ongoing for the Camps, Sports and Excursions Fund. These are real cost-of-living relief measures that only this side of the chamber is delivering.

This morning I spoke about the Bills Street project, also in the community of Hawthorn. This will deliver affordable housing for my community and real cost-of-living relief for those that need it, because only Labor believes in properly supporting social and affordable housing. The new Union station is another success of the Level Crossing Removal Authority, which is delivering real results for Victoria. I want to highlight these last two projects, which need workers to deliver them, with construction workers working around the clock. We need to train them up, and that is why we delivered free TAFE – to break down barriers. Government schools are being funded to provide materials to students so that they can properly access the VET programs needed to learn the jobs of the future. Think about timber, screws, plasterboard and PVC pipes for certificates in building, construction and plumbing; workbooks, cabling, plugs, switches, solder, wire and fuses for certificates in digital media and technologies; disposable PPE, such as gloves, masks, gowns and booties, for certificates in health; food and beverage ingredients, disposable gloves, aprons, hairnets and disposable food containers for certificates in hospitality; products such as brow and lash tints, skincare products, hair products, nail products, make-up pads, cotton buds and bedsheet rolls for certificates in hair and beauty; and fabric, threads, patterns, calico, beads and specialist drawing paper, inks and art supplies for certificates in creative industries. The funding boost removes barriers for young Victorians wanting to undertake VET studies by reducing out-of-pocket expenses for families.

It delivers real cost-of-living relief for families while also having the benefit of training up the workforce of the future. The runs are on the board, and I know that my community of Hawthorn and all my community in Southern Metro get that it is only due to Labor that they are seeing these results and that it is only due to Labor that we have created almost 490,000 jobs since September 2020, surpassing an already ambitious jobs target of 400,000 jobs. From power to education, from transport to making it easier, we are delivering policy after policy to ensure that as we move through this difficult era Victorians do not have to choose between essentials. That is my contribution.

Melina BATH (Eastern Victoria) (14:15): I am very pleased to rise to put my name in association with Dr Bach’s motion 140 on the notice paper today, and indeed the motion goes to two very real, live and salient issues: the soaring cost of living and the pressures on Victorian families and businesses, and then some of the pain that our people are feeling with the burden of being the highest taxed state in the nation and Victorians being now the recipients of 50 new or increased taxes under the Andrews government’s last 8½ years of punishment.

I thought I would take the cost-of-living pressures first and deal with those, because certainly they are some of the key issues that my office staff are dealing with on a daily basis. I do feel for our electorate office staff and all of those people who are on the front line of services or discussions or receipt of information when people come in in a very distressed state. I know there are many people doing wonderful work on that front line. People who come into an electorate office do not actually care whether you are council, whether you are state or whether you are federal when they come in with a problem. Only recently my staff dealt with a very real issue of a gentleman who was on serious medication and could not afford to go and get his medication from the pharmacy. He could not afford to buy food, and thankfully a local neighbourhood house gave him a gift voucher, and also their larder was open.

These are the very real pressures – essential items. Obtaining food for the table and prescription medicine to help them sustain themselves – these are the very real pressures that people are under. Indeed the Australian Bureau of Statistics consumer price index only recently put out some information that whilst we have got the official inflation rate of 6 per cent, many of those normal cost items have climbed by two to three times as much. Let us look at some of those cost items that people are having to wear the burden of. Rents in Victoria have soared by 30 per cent in the last 2½ years. These are the implications and the downflow effects of some of the Labor Party’s taxes that we see, some of that rent tax, the squeezing of availability of housing stock. This has an impact. If you are going to put up taxes on people, and we know from the information we receive about home owners and landlords that the overwhelming majority, over 70 per cent, of properties for rental are mum-and-dad owners or are one-person property owners. So it is not unreasonable to expect that they are going to be suffering at the moment. They are going to be suffering, and they will have to put up those rental prices – 30 per cent since 2020 we have seen.

That is coupled with these increased price rises in everyday items, such as general basic foods, cheese and milk. Now, I am a dairy farmer’s daughter and I will always support people to buy cheese and milk, and our hardworking farmers produce that. These are essential items that have increased in price at the checkout. Bread has gone up. Ice cream is another one that has gone up, by 14 per cent; maybe that is not essential, but it is in many people’s normal daily lives. Some of these basic costs are hurting people.

We see that with inflation, as I have said, the spending on average has gone up by over $1500 on groceries from one year to the next. That, over the average weekly spend, is certainly a burden. Power prices: my goodness, this government has been the overseer of the most, we will say, radical change ‍– but we will also say cost impost – back onto the family. They have risen 25 per cent in the new default offer prices from the Australian Energy Regulator that come into effect very soon. The average cost increase on a home – this is not average cost, but average cost increase – is around that $400 mark per year. For small businesses it is up and over $800. Our small businesses, we know, are vast employers in our rural and regional towns and our city centres. They wear the burden of these input costs.

We do need, certainly, sensible policy. We see that the government has put a ridiculous policy out only recently about gas, and the impact is that no new homes in Victoria will have gas connections. You are removing people’s right to choice. You are also removing competition in terms of that supply. We know that gas is very important. It is very important in the Otways; it is very important in my Gippsland region. We have been the powerhouse of gas production over many years. Natural gas supply is important for heating our homes and cooking our food, and it is an absolute indictment that this government has decided to shut that down, taking away rights and a sensible form of heating and cooking. We also see that car registrations have gone up. Day by day we see the government’s failed policies nibbling way at family purses and the thread of normal life in our families.

If we turn to taxes, I heard my colleague Dr Bach, very importantly I think, identify the new initiative from the Liberals and the Nationals, this discussion paper on taxes. We have a Premier who, before he came to be the Premier at the end of 2014, stared down the barrel of the camera and said, ‘No new taxes’. Well, we have got 50 new or increased taxes on the way. The South Australian Treasurer has said:

If you are a large corporate employer, especially in these days when even people in senior positions perform remotely, the choice should be obvious. Why would you choose a high-tax, high-cost location like Victoria …

No-one likes talking our state down, but this is the reality that is perceived not only interstate but certainly over the world. It is round the world, and I note Ms Crozier spoke about the debacle today in terms of the Commonwealth Games. I spoke on that very important select inquiry, but she read into Hansard the different countries across the world that thought that that was a debacle and the reporting. Our reputation has been trashed.

This better tax system – bettertaxsystem.com.au – is certainly a position, a discussion paper, to get feedback from all of the very valuable tax providers in our fair state. We see that people in regional Victoria again produce food and fibre for our tables and for domestic, interstate and international markets. How are these increased taxes burdening them, and how is that impacting on their ability to employ people locally?

We have certainly seen one of the most disastrous decisions from this state government, and I heard a former member talk about the cost of, I think it was, timber and various building supplies. The government shutting down the native timber industry is only going to absolutely make it critically challenging to builders – for new homes, for construction and for renovations – to be able to fund that hardwood timber, and it is going to come in from overseas. They talk about free TAFE, and they talk about industry and timber, I heard. Well, you have just shut down a viable, sustainable native hardwood timber industry. That is going to have an impost, again, on these amazing people in our amazing country towns and cities that value-add. It is going to have an impost on bottom lines. I really welcome this discussion about our tax system and our discussion paper, and I suggest everybody can be involved.

Jacinta ERMACORA (Western Victoria) (14:26): This government has a proud record of levering taxes to support the most vulnerable Victorians at the same time as promoting key elements of the Victorian economy in this state. This government’s taxation regime is carefully calibrated to support equity for vulnerable Victorians, stimulate the Victorian economy and fund the aspirations of Victorian communities.

I firstly want to comment on the opposition’s tax discussion paper. This motion reads more like an exercise in fishing for praise than a comprehensive review of tax. In fact the discussion paper reminds me a little bit of an exam question – I did read it. True to form, the opposition present what they call engagement with the community on ways to reform ‘the tax system’, then proceed to tell Victorians what changes they believe need to be made to the tax system. Despite what the opposition allege in their discussion paper, Victoria’s economy is strong. The Deloitte Access Economics Business Outlook of 20 July 2023 forecast that Victoria’s economic growth will surpass the other states over the next two years.

Since the Andrews Labor government formed government there have been 63 occasions when we have cut or abolished taxes altogether while continuing to foster new jobs and bring Victoria out of the financial hit that was the COVID-19 pandemic. To reinforce this point, ABS labour force data shows almost 490,000 Victorians have secured work since September 2020, more than any other state in both absolute and per capita terms. Victoria’s unemployment rate remains at a historically low 3.7 per cent, a full 3 percentage points below the 6. 7 per cent rate left behind by the former do-nothing coalition government.

I want to reinforce some of the tax reforms that the Andrews Labor government have introduced in recent times, the first being payroll tax from the COVID debt levy. This levy is temporary, targeted and responsible. The payroll component of the levy will focus on large businesses with national payrolls above $10 million – only about 5 per cent of businesses in total. The Parliamentary Budget Office has reported that using the latest ABS data on overall tax Victoria remains the second-lowest revenue state in the nation. The PBO report is clear that Victoria is expected to have only the third-highest payroll tax revenue per person of any state, behind Western Australia and New South Wales, which is expected to remain unchanged in 2025–26. In this year’s budget the government committed to increasing the payroll tax free threshold to $900,000 and then $1 million, which will mean 6000 businesses will no longer pay any payroll tax and around 60 per cent of businesses will pay less payroll tax. Even more, the government has cut the rate of payroll tax payable by regional businesses to one-quarter of that paid in metropolitan Melbourne, which is benefiting 5500 businesses every week.

Despite opposition attacks on property taxes, this government’s land tax levy is temporary. The average increase in land tax from the temporary levy will be $1300 on a land valuation of $650,000, which equates to a holiday or an investment home worth $1.3 million. It equates to about $3.50 a day on average and only applies to Victorians who own a second property. It is a reasonable contribution to come from an area where many landlords have seen the value of their properties rise by more than 80 per cent in the last 10 years.

Again, the PBO reports that from this financial year onwards forecasts for total property tax revenue are broadly similar in Victoria and New South Wales. They also report that these figures are narrowed down to one tax type and do not show the whole picture, as Australian states have structurally different economies and different levels of reliance on revenue sources. Based on this, using the ABS data and overall tax, Victoria remains the second-lowest revenue state in the nation. All existing exemptions to land tax apply and, most importantly, the family home is not subject to tax.

On cost of living, this government has committed to providing cost-of-living support to every Victorian struggling to get by. The Andrews Labor government has a range of initiatives currently underway, as well as more in the works – initiatives that are making a real difference to Victorian people. In my electorate free kinder for three- and four-year-olds is receiving consistently positive feedback, saving up to $2500 per child each year. This is helping families with children to support their education and achieve the best outcomes. The uptake of the $250 power saving bonus has been significant, and my team have enjoyed getting around the electorate and helping people access their bonus. Free TAFE is making a tangible difference to so many people’s career options, and in the south-west, Warrnambool and the South West TAFE experienced an increase of 800 students in the first year that free TAFE was introduced. That is a real thing; that is not talking about free TAFE, that is free TAFE actually changing people’s lives and careers. And it is impossible to take the train from Warrnambool to Melbourne without hearing comments about how the capped V/Line fares have opened access to opportunities for outer regional Victorians.

Matthew Bach interjected.

The DEPUTY PRESIDENT: Dr Bach! Ms Ermacora, without assistance.

Jacinta ERMACORA: This government is making available electricity discounts and winter gas discounts for eligible concession card holders and extending the solar homes and batteries program into 2022–23, with 64,000 solar rebates and 1700 battery rebates available.

This government is helping with school costs and fees: free school breakfasts and free pads and tampons in government schools help many families. Initiatives such as the Get Active Kids vouchers for up to $200 help all kids get involved in sport and recreation. The cost of sporting registration or a pair of new sports shoes can make such a difference to a kid getting involved. Discounted student travel and conveyance allowance for rural students and travel accommodation subsidies for rural Victorians travelling a long distance to see health specialists can also be life-changing. Other budget-friendly initiatives include free L-plate and P-plate licences, online testing, discounted drivers licence renewal for safe drivers and short-term vehicle registration and car registration discounts. The list goes on.

In the time left to me I would like to comment on the way the Andrews Labor government is proactively putting our taxes to good work across our communities. In this year’s budget we received in south-western Lowan a number of initiatives that are fantastic and only available as a result of the Andrews Labor government’s reasonable and responsible tax regime. That includes the Panmure Football Club, Portland Gymnastics Club, a new tech school in Warrnambool, the Warrnambool Base Hospital receiving additional funding for endometriosis surgeries, the Budj Bim cultural landscape and ranges, and also a new PET scanner for the Warrnambool hospital, which was received very positively. In Lowan, the rural outreach will also receive $250,000, and I will finish there.

Ann-Marie HERMANS (South-Eastern Metropolitan) (14:36): I rise today to address the motion, which is about a pressing concern that affects every individual and family in Victoria: the soaring cost of living. I want to specifically shed light on the issue. First of all, let me read out again what we have perhaps moved away from with some of the other speakers – what the actual motion that Dr Bach has brought to the house is all about. Dr Bach moved:

That this house:

(1) notes that:

(a) Victorians are paying $5638 per person –

this is just averaged out –

in tax annually under the Andrews Labor government, higher than any other state in Australia …

May I just add that when we are hearing all these speeches about an extra $250 bonus for electricity or $2000 for kindergarten, how does that work out when the average taxpayer is still paying so much more than every other person in every other state in Australia? It means nothing. It goes on:

(b) the Andrews Labor government has raised taxes on Victorians 49 times since its election in 2014 …

So they are either new taxes or they have raised the taxes. And:

(c) the Andrews Labor government has failed to act despite soaring cost-of-living pressures on Victorian families …

In fact what it has done is perhaps brought in some things that are going to make it much worse for every Victorian. Lastly, that this house:

(2) congratulates the opposition on the release of its discussion paper Making Victoria’s Tax System Work: Reducing Cost Pressures for Families, Community Groups and Business.

Might I say, it is a mighty fine discussion paper. One of the things highlighted in this discussion paper of course is some of the new taxes, but let me go through some of the old taxes that are in here under the Andrews Labor government. We had an increased stamp duty on new cars in 2017–18. As if that is not more difficult for everybody. Let us look at this: we had an increased fire services property levy, and we have had it not once, not twice but at least three times since the Andrews government has been in. Now, this is a really interesting one: expanded land tax on gender-exclusive clubs. I am sorry, I do not really get it. When we are trying to be very permissible of people to have whatever gender they choose, then we should also be celebrating that by not actually taxing people based on their gender.

Let us have a look at this one – this one I can speak on: the increase to the WorkCover average premium rate. We know that they promised they were going to bring in a 42 per cent increase on premiums to WorkCover in this financial year, but in fact we know that because of an inequitable system this government has been operating through WorkSafe, some people are actually paying significantly more than the 42 per cent. In fact that all comes about because they are industry rated. Basically, you might have the safest workplace and you may never have made a claim on WorkCover in your business, but if somebody that is either a competitor or classified in the same industry actually makes a claim, that impacts your business that has never made a claim. So your premiums can go through the roof, beyond that 42 per cent, because your industry classification allows that to happen. How is that an equitable system? I am sorry, it simply is not, and that is something that shows that we do need to make changes to the tax system in this state.

Let us talk about housing. Over the past five years housing prices in Victoria have risen by a staggering 40 per cent, outpacing income growth and leaving many families struggling to find affordable housing. Home ownership has become a distant dream for numerous hardworking individuals, particularly our young Australians. The median house price in Victoria has increased steadily over the past decade, reaching approximately $750,000 as of 2021. Rental affordability has become increasingly difficult, with the median weekly rent for a house in Melbourne reaching around $450 to $500 a week.

In utilities, electricity and gas prices have risen by an average of 12 per cent in the last two years alone, leaving many families facing difficult decisions about heating, cooling and basic energy consumption. In fact this has been a problem for a long time, and now, with the government trying to take away gas as an option for Victorians, we are going to see increases again.

Education: the cost of education both in terms of school fees and educational resources has increased by 25 per cent over the last decade. This puts a tremendous financial strain on parents and students aspiring to a quality education. The average cost of full-time non-tertiary schooling for a child in Victoria is estimated to be between $6000 and $12,000 per year, and the tertiary education costs have been increasing, with the average annual tuition fee for undergraduate courses ranging from $7000 to $14,000 – that is from StudyAssist if you want to go and look that one up.

Do not forget the school tax, charging random schools – no particular information on why certain schools are exempt and others are not – for a payroll tax. If they are not already struggling with the increases to WorkCover premiums, now they have the addition of a schools tax. Schools tax, the payroll tax – and so who is going to be paying for that but your average Victorian? Your average Victorian is going to be paying for that, the ones that choose, because the government has not yet built all of the schools that it needed to build. In the south-east, for example, they are going to –

Michael Galea interjected.

Ann-Marie HERMANS: Sorry, I visit the schools all the time.

Michael Galea interjected.

Ann-Marie HERMANS: I am not going to do that now for you. But they have to actually consider how this is going to impact the average Victorian who is paying for those independent schools because they want the choice and because they want a decent education.

Matthew Bach interjected.

Ann-Marie HERMANS: Health care and medical expenses have escalated significantly, with private health insurance premiums increasing by 27 per cent in the last five years – 27 per cent. And the rising cost of health care can be crippling for those in need of medical attention and medication. Out-of-pocket medical expenses have been on the rise with the average cost for a single visit to a GP‍ –

Michael Galea: On a point of order, Deputy President, I would like to ask that Dr Bach withdraw his very rude and very inappropriate comment about the Minister for Education.

Matthew Bach: I am happy to withdraw. I wonder if it would be parliamentary to perhaps say something like that she has instead –

The DEPUTY PRESIDENT: No, sorry. Just withdraw, thank you.

Matthew Bach: I withdraw.

Ann-Marie HERMANS: Out-of-pocket medical expenses have been on the rise, with the average cost of a single visit to a GP being approximately $80 to $100.

Transport: public transport fares have seen a sharp rise, impacting the daily commute of millions of Victorians. Additionally, car ownership and maintenance costs have also surged, making it harder for individuals to travel and access job opportunities. The cost of public transportation has risen steadily, with a single-zone Myki fare in Melbourne reaching around $4.50 to $5. The average weekly fuel price in Victoria as of 2021 was approximately $1.40 per litre. Now, I can say I have paid significantly more than that. The last time I put petrol in my car it was closer to the $2 mark.

I know that my worthy colleague mentioned the timber industry closing. Well, of course if you close the timber industry, we are going to have to pay more for our timber because we will have to import it into Victoria, and there are going to be a whole lot of additional costs that are going to actually come into closing down this industry.

The impact of these rising costs is felt all across Victoria, on all demographics, from struggling families to retirees on fixed incomes. It is our duty as lawmakers to address these challenges and take meaningful action to alleviate the financial burden on our citizens. The cost-of-living crisis in Victoria is a matter of utmost urgency, and it requires our immediate attention. By implementing targeted policies and working collaboratively we can alleviate the financial strain on our citizens, ensure a better future for all Victorians and uphold the values that make our state a great place to live and thrive ‍– or at least it was. By enacting these measures we can make a positive impact on the lives of our constituents and create a more equitable and prosperous future for all Victorians.

Tom McINTOSH (Eastern Victoria) (14:46): Thank you, Dr Bach, for providing this opportunity to speak to this motion, and I am very passionate about doing so because I am very passionate about our economy. I see our economy much like the way I see our environment and our climate: we have got to maintain and manage it responsibly and sustainably. Sustainability is the key. And when we talk about our economy – and there is so much talk here about taxation – we have got to ask the question: why? Why are we doing this? Why do we have a taxation system? I am going to take my time, and I am going to go through it and all the wonderful things we do with it and ask some questions that I am sure I will not get any responses to about what those in opposition think they would like to see occur with the system.

Part of the ‘why’ is a fair and just system that enables us as a government to do the things to help our community, to help our state and to support that economy to keep it strong and to keep it sustainable so that we continue to see Victoria growing, thriving and prospering. I believe it is the investment that has been made in recent years – we are now onto our third term, so the last nine years – in infrastructure around this state and in our people and in our students, who have become our workers, that drives this economy that is doing so much and that competes on the world stage in so many different areas. People come from all over the world to join this state because they see the potential of the state and they see the opportunity, and opportunity is absolutely key. When we provide opportunity to people, we get the best out of people. We get the best out of their families. We get the best out of their community. And together we get the best out of each other as a state.

Ann-Marie Hermans interjected.

Tom McINTOSH: I do not think I will take that up, but –

Ingrid Stitt: On a point of order, Deputy President, I just think that Mrs Hermans was afforded the respect, in relative silence, of her contribution being heard by the chamber, so I would appreciate it if she could do the same for Mr McIntosh.

The DEPUTY PRESIDENT: Thank you. Mr McIntosh to continue without assistance.

Tom McINTOSH: Obviously around the world we are seeing inflation, so we have to be very mindful of where we make our investments. I believe this government is investing in the places that make the biggest difference to our people and, as I said before, set this generation up to be as prosperous and successful as it can possibly be. When we look at health – coming back to that key point of sustainability – our health individually, as communities and as a state is absolutely important, and it actually makes really good economic sense. When we make smart decisions about health, when we invest in our health system, when we invest in the workers in our health system and when we invest in education around personal and community health, we are setting the next generation up for success.

Now, housing – obviously in Victoria, around Australia and around the world there are great challenges with housing, and that is why this government is stepping up to the challenges, because the challenges are real. We are aware of them, we are alive to them and we are prepared to take those challenges front-on and ensure that we have a sustainable, affordable level of housing for Victorians going forward.

I touched before on education and training. I just want to speak briefly to early education. The only thing I wish I had more of is the opportunity to get up and speak about early education. I have had the opportunity to go out to and meet with a number of centres and, fortunately, announce record levels of investment. I believe there is something like $1.8 billion in this budget alone for new centres around Eastern Victoria, where families are going to have the opportunity to send their kids to three- and four-year-old kinder. In Yarram, Foster, Sale – all over the place – and the Mornington Peninsula this government is investing in the very, very start of the next generation. We are setting them up. There are multimillion-dollar investments in our primary schools, our high schools and of course something I am very passionate about, TAFE – free TAFE. We have got this absolute pipeline of support for our youngest Victorians to go from their early education all the way through until they enter the workforce. This is when jobs become critical, and that is something that this government has done: it has ensured there are the jobs for Victorians to support our families, our communities, this state and this economy.

We can see that we are rebuilding. We had a pandemic. It was very, very difficult. It was difficult on us and on the economy, and the steps we have put in place to build back are well underway. We had an incredible bounce back in employment. But it is not just employment for employment’s sake, it is good-quality jobs that families can be built around, that communities can be built around and that this state can be built around. I am very proud that we are looking at the complete picture of investing in our people, ensuring we have the right dynamics for our jobs and then connecting those people, those businesses and this community through our infrastructure.

Obviously, our investment in public infrastructure and public transport has been second to none, and the results of that are clear to Victorians no matter where they go. That is the fundamental basis of our community, and then it is our services that we wrap around that that make sure we are caring for, we are thinking about and we are mindful of our most vulnerable and our most disadvantaged. This government has been out on the front foot on family violence and has been out on the front foot on mental health. We are ensuring not only that we are supporting people in difficult times but that we are removing people from these traumatic situations. Again, this investment, this policy implementation, is setting the next generation up for more and more success.

I will just find my notes. I will not be reading from notes; I just have a few small notes that I have made. I do have some questions. Dr Bach a few hours ago in this place – I made a note of it – talked about disingenuousness. I am not saying Dr Bach is disingenuous, because actually I have got a great deal of respect for Dr Bach. However, some of the people putting pen to paper for his speaking notes could be; I do not know. They talk about taxes – taxes, taxes, taxes. I do not know whether they are saying ‘axe’ or ‘tax’ or what is being said. But a number of these taxes have actually been supported by the opposition, like the point-of-consumption tax on wagering, bringing us in line with states all around Australia. I know you will have heard this before, but the foreign landowners tax has been mentioned six times. I think most Victorians would be quite happy to hear about this tax and in fact would be completely supportive, as I believe they were at the recent state election.

Then we could talk about the mental health payroll tax surcharge. The Nationals have said they support every recommendation from the royal commission. Does that include the mental health levy? I do not know, but if there are taxes that are supported by the opposition and those around them, I think it is quite unfair and perhaps even worse to be talking about all the taxes. I will not even go to the number of taxes that have been removed and the number of taxes that are supporting small businesses, including regional Victorian businesses, which I am passionate about supporting, and I am glad we are.

I want to thank Dr Bach for this opportunity, because what this government has done and is continuing to do is set Victoria up for economic success, not just for this generation but for generations of Victorians to come, so that not only are we proud, thriving Victorians but so too will be our children.

Michael GALEA (South-Eastern Metropolitan) (14:56): I also rise to speak on this motion, and I likewise thank the good Dr Bach for providing us with the opportunity to speak on a motion that is almost as flawed as it is self-congratulatory. Nevertheless I do have to start by saying the cost of living is a genuine and serious issue that many constituents are facing. I know from conversations that I have had over the past several years and past several months that it continues to be a big issue. As other speakers have already gone into, there are a wide range of factors – local, domestic and international ‍– that have all played into that.

It is one thing to stand up and self-aggrandise on some of these perhaps rubbery figures that have been quoted in this motion, but it is quite another thing to actually get on with the job of doing something and actually addressing the issue. It is important for us to note as well that when it comes to the cost of living this is a government that gets on with addressing the issue, making the changes and working every day in different portfolios, from education to energy, to Treasury and transport and others as well, to make things better for Victorians.

A lot has been discussed about tax cuts and there have been a lot of assumptions that some of the minor tax changes in this budget have already caused cost-of-living pressures, even if they have not even come in yet. The road user charge for electric vehicles, the modest increase to 2.8 cents per kilometre, has apparently been cited as driving this change, when it has only just come in. I do not know how many people in my region, the South-Eastern Metropolitan Region, are buying these $200,000 Tesla Model Xs that are coming out. It is very important that we have these new technologies and new cars, and it is appropriate that there is appropriate road user charging for that as well. We currently have fuel excises that fund our roads, and it is just completely appropriate as we adapt to and make these changes that we have a fair and reasonable road charging scheme that means everyone is paying a modest fair share that is helping everyone to benefit – individuals, residents, businesses – from improved road and transport networks.

There are a number of fiscally measured and responsible measures that have been included in this year’s state budget. Along with other members and also along with you, Acting President McArthur, I had the privilege of attending several weeks of Public Accounts and Estimates Committee hearings in the last couple of months and looking through the budget in forensic detail. So I am sure you too, Acting President, are all too aware of the vast number of cost-of-living measures that are in this year’s state budget.

For one, let us look at payroll tax. Much has been said about payroll tax today. We have already moved to cut payroll tax impositions on small businesses. I think my colleague Mr Berger also mentioned there have already been four lifts in that threshold, but from 1 July next year the payroll tax free threshold will be lifted from $700,000 to $900,000. That measure means that there will be 4200 fewer businesses paying the tax.

Matthew Bach interjected.

Michael GALEA: Dr Bach might like to say ‘Rubbish’, but we have done it four times before. From 1 July 2024 there will be a $200,000 increase in the threshold. On top of these businesses that will not be paying this payroll tax thanks to the expansion of this threshold, an additional 22,000 businesses will pay a reduced amount, saving up to $9700 per year each. The payroll tax free threshold will be lifted again, for a sixth time –

Matthew Bach: Talk about self-aggrandising; talk about self-congratulatory.

Michael GALEA: never – to $1 million from 1 July 2025, meaning a further 1500 businesses will become exempt. This is not about self-aggrandisement, Dr Bach, as you might like to think. This is about actually getting things done that make a difference, make a positive difference, to Victorian taxpayers and to Victorian businesses. You might not like to hear that, but this is another example of getting things done to make things better. Thanks to these measures introduced by the Andrews Labor government in this year’s state budget, 15 per cent of businesses that currently pay payroll tax will no longer pay a cent of that payroll tax, and that amounts to 6000 businesses across Victoria in the city, in the suburbs, in my region and in regional Victoria as well. Lower payroll tax for hardworking small businesses will mean many will have that tax demand reduced to zero.

There are a number of other measures in this budget as well, including for our tradies, with the new trade apprenticeship registration discount scheme introduced by this government earlier in its term. Apprentices who need their car for work are already entitled to a 50 per cent discount on their vehicle’s rego fee. Around 12,000 apprentices already take up that offer, and this year we are putting even more money back into the pockets of our apprentice tradies as we have doubled this discount, which means free registration for those eligible apprentices. It is absolutely fantastic to help reduce the cost-of-living pressures for these Victorians and for drivers overall. We have already made rego permits more flexible by introducing short-term payments on registration, allowing families who have struggled to make those high yearly charges to spread it over the course of the year as well.

I could go into great, great detail on all the many cost-of-living measures that we have implemented, which is not even to mention the $250 power saving bonus, which many, many on this side of the house have had great feedback about from the community and I believe, Dr Bach, you yourself got good feedback on when you advertised the Andrews Labor government’s power saving bonus program to your constituents as well, which is fantastic to see.

We have also capped regional fares to the metro fare rate, which has seen huge benefits for regional Victoria. There is $50 million to help more Victorian families access public fertility, with up to 3500 treatment cycles funded each year, and $42 million to install 100 neighbourhood batteries across the state.

I could go on and on and on and on, but I am mindful of time, so let us just say: what is the alternative? What is the Liberal vision? What would a Liberal budget actually do? How are you going to deliver all these things that you say you will do and not cut? How would you do this without cutting back on TAFE, on hospitals, on ambulances? This is a government that has invested comprehensively in our schools, in our hospitals, in our transport networks and in our infrastructure, and what do we get from the opposition – we do not know. It is a nice plan; it is a nice document – it is a vision, apparently. It is all visions at the moment, I think, for them. But what is the answer? We still do not know. And yet they say, ‘When we were in office things were better.’ Well, I can count several new schools that are being built in just one of the seats in my region right now, in the state seat of Berwick. I know Dr Bach likes to say that we are not investing in Liberal seats with education, but the number of schools in the Berwick electorate alone probably, I would wager, exceeds the number of government schools built by your government last time you were in office in the entire state. So I really do not know what the Liberal plan is other than to say ‘Cut, cut, cut’. With that I will conclude by saying I do not support this motion, though I am very much grateful to the good doctor for allowing me the chance to speak on it, and I will yield the rest of my time.

Sonja TERPSTRA (North-Eastern Metropolitan) (15:04): I also rise to speak against motion 140 in Dr Bach’s name. I am very pleased to have been able to be in the chamber and listen to the excellent contributions of my colleague Mr Galea and other speakers on the government benches in regard to this motion. I have had the benefit of hearing Dr Bach speak, and I am going to also talk about some of our amazing cost-of-living measures that we are going to. But I did take the time to carefully consider this motion that Dr Bach has put forward, and I must take issue with (1)(a). It says:

Victorians are paying $5638 per person in tax annually under the Andrews Labor government, higher than any other state in Australia …

I thought, ‘Hmm, what a curious thing to say. I must research this and find out where in fact Dr Bach has got his research from.’ As I went into researching it, I did see that the Liberal Party put out a press release in fact about this on 2 June, quoting the Parliamentary Budget Office figures. I thought, ‘I’d be interested to actually go in and have a look at these figures to see whether they’re accurate,’ and – surprise, surprise – it will not come as a surprise to anyone in this chamber that they are not actually accurate. There is also a story behind what they say about us being the highest taxing government. If you read the Parliamentary Budget Office report, it actually has a caveat there. Let me just read it. This is from the Liberal Party’s own press release, from Brad Rowswell, which says a report has found, ‘Victorians are paying $5074 per person in taxes.’ That is significantly less than what Dr Bach has quoted in his motion. Maybe they thought, ‘We’ll just round it up to $5600-odd just for effect.’ But even by their own admission and their own press release, that is not the case.

I thought, ‘Well, I’d like to go further and actually have a look at the source document that they are quoting from.’ They failed at the first hurdle there. They did not even get that right in their press release. Then we go to the next bit of information from when I conducted my analysis of this. I do like a bit of research, as you can tell. I like to make sure that the facts and figures over there are actually correct. As you can tell, they are never correct, because they never let the facts get in the way of a bad story, which is what they want to tell over there. I turned to the Parliamentary Budget Office’s report. It goes on and it and talks about different figures and all the rest of it, and then it says:

Limitations

Victoria, Western Australia, and Tasmania have released 2023–24 budgets, while the other states have not. This means that not all states have published forecasts for 2026–27, which limits our analysis in that year. This also limits the comparison of 2022–23 figures, as some states have more updated estimates based on actual tax collected earlier in the year.

We prepared this advice on 4 June 2023.

So, colleagues in this chamber, as you can see, you should never let the facts get in the way of a terrible story and a terrible attempt to try and besmirch this government and say that we are the highest taxing government, especially when you want to rely on a document that you have only selectively quoted from, because you might get caught out, and you might be a little bit embarrassed about it – as you should be when you quote something selectively. It never, ever works out for you, and you just look more and more embarrassing. You are talking to yourselves. Again, no-one is going to buy this. You cannot even get the facts right or rely on source documents, and you think that no-one on this side, on the government benches, is actually going to do the research and look into it.

I note Mr McIntosh’s excellent speech from earlier when he talked about all of the cost-of-living measures. The rhetoric that is coming from that side, on the opposition benches over there, is just appalling. It is not even interesting anymore, it is just becoming standard Sky News talking points without any thought behind it other than to say, ‘The government’s bad. The government’s wrong. The government is doing all of these things.’ But again, when you look into the detail and the actual facts around this, selectively quoting the Parliamentary Budget Office report is always a bad look. It was something that was very easy to look up to find out how terrible and transparently bad it is.

I could go on as well about the cost-of-living measures that this government has funded. I might also just talk quickly about this. I know Mr McIntosh did this and so did Mr Galea. I just want to talk about why we have taxes. Most people actually know and understand that if you want to have a society that provides services, you have to raise money to support those services. It is called tax, and people actually know and understand that.

Matthew Bach interjected.

Sonja TERPSTRA: If you want public schools and public education, Dr Bach, that means you need to fund it somehow. You need to employ teachers and you need to build schools. We support teachers. We also run public hospitals. The state government runs public hospitals, so we employ people like nurses, we employ doctors and we employ all those people in the public health system that actually run our public health system. If you want to have public services, then you need to support them through taxes. The alternative is that you have a user-pays system, and people who are wealthier end up having a better quality of life and quality of care in their lives than perhaps people who cannot support themselves in the same way.

And that is why the government here, the Labor government, will always support appropriate levels of taxation – because we know the downside of not doing that is going to be such a bad situation and much more worse off, when you then will have a range of people not being able to support themselves and enjoy a reasonable standard of living. I do not want that. I do not want to see people with poor health care not being able to access medical care when they need it. You have just got to look at what happens in America – people cannot afford to go to the hospital system and their health outcomes are so much poorer. They have to sell their house, they have to go into debt just to get basic health care, whereas if they could have got access to preventative health care that they could have had under a system like Medicare in the past, their health needs could have been taken care of much sooner and perhaps their healthcare needs and outcomes would not have been so bad. So the point is there are reasons –

A member: It is true.

Sonja TERPSTRA: Absolutely. There are reasons why we need to have taxes. So for the opposition benches to continue to run this line that taxes are bad – it is actually not resonating with younger voters as well, because younger voters are saying to us, over here on the government benches, ‘But I want a decent standard of living. I want access to education. I want access to –

Matthew Bach: A home?

Sonja TERPSTRA: Yes, a home, exactly, because wealthy boomers on your side want to become property developers and moguls and basically hog it all so young people cannot buy homes. So we can go down those rabbit holes, Dr Bach, but I think in the few seconds that I have left I would just like to reiterate the point: if you are going to bring a motion to this house, make sure you get your facts right – rounding something up to $5638 when the Parliamentary Budget Office did not even use that figure and your own press release got it wrong. And also you did not let everyone know about the limitations in the budget report, in that other states had not actually finalised their budget. So I also encourage people in this chamber to not support this motion, and I thank the house for listening and taking the time to hear my contribution.

Matthew BACH (North-Eastern Metropolitan) (15:12): I want to thank all members who have contributed to this debate and also for the lovely vote of thanks from almost all members opposite to me personally for putting this on the notice paper. I want to touch upon just two or three points. Of course the detail in the motion is correct, but I do want to touch on two or three points. It has been interesting to me to hear those opposite laud the Parliamentary Budget Office. That is very interesting, because –

Sonja Terpstra: Well, you didn’t in your press release.

Matthew BACH: I do laud the Parliamentary Budget Office – through you, Acting President, to Ms Terpstra. I will pick up that interjection. Before the last election, when I was Shadow Minister for Transport and Infrastructure, I was lauding the Parliamentary Budget Office when they said that the Suburban Rail Loop would not cost up to $50 billion, which is what Minister Allan said, but would cost more than $150 billion. And I distinctly remember those opposite rubbishing the Parliamentary Budget Office at that time and arguing that that analysis was incorrect. So it has been very, very interesting to hear those opposite base many of their arguments upon the Parliamentary Budget Office, when so often in the past they have rubbished the analysis of the Parliamentary Budget Office.

It was also interesting to hear the criticism that, if we are going to criticise the Andrews Labor government when it comes to taxation – and we certainly do do that – well then, we should have a plan. Now, the purpose of this document is in order to be able to engage with the Victorian community to give them a say in our tax reform plans – we are 3½ years out from an election. But nonetheless Mr Galea said, ‘What would the Liberals do? What are the Liberals going to do?’, and then he said, ‘Cut, cut, cut.’ It is an interesting day to talk about cuts. We just learned today the Labor government has cut the Western Rail Plan. We have heard about mandates from those opposite, and of course the government won the last election – the Labor Party won the last election. They won the last election on the basis that they made a whole series of commitments to the Victorian people, and now they are cutting in a whole range of areas. We have been talking about the Commonwealth Games; they promised – no ifs, no buts – they were going to deliver the Comm Games. They even ran a scare campaign against the Liberals on the basis that the Liberals would cut the Commonwealth Games. But now they have cut the Commonwealth Games. They promised the Western Rail Plan for so many years – for so many years. But today – today of all days, when there is another scare campaign about Liberal cuts and closures – the Labor Party has cut the Western Rail Plan. In addition, they have cut airport rail.

Mr Andrews, in an interview on radio that is currently circulating on social media, has previously said:

We will deliver the projects we said we would deliver.

Word for word:

We will deliver the projects we said we would deliver. We will not be breaking promises and cancelling projects.

Mr Andrews:

We will not be breaking promises and cancelling projects.

It is nonetheless perfectly reasonable of Mr Galea and others opposite to say, ‘Well, what are you going to do?’ Our process, whether you like it or not –

Members interjecting.

Matthew BACH: Maybe there is just a disagreement. What we seek to do, given that there are more than three years before the next election, is thoroughly engage with the Victorian people. Now, those opposite may think that is a stupid thing to do – they clearly do. However, we on this side of the house think that it is very important. We think that taxation is far too high here in Victoria – the highest in the country on any measure. We think there must be tax reform. We think the taxation system must drive investment and reform and it must drive growth, and those opposite have a different view; they are entitled to their view. And, yes, those opposite are very happy with themselves winning another election – that is fair enough. But our view is what we should be doing as a constructive opposition coalition is engaging with the Victorian people and hearing their views about how we can fix this broken system in order to then properly put in place our tax reform plans. Again I want to thank all members for their contributions, and I commend the motion to the house.

Council divided on motion:

Ayes (15): Matthew Bach, Melina Bath, Jeff Bourman, Gaelle Broad, Georgie Crozier, David Davis, Renee Heath, Ann-Marie Hermans, Wendy Lovell, Trung Luu, Bev McArthur, Joe McCracken, Nicholas McGowan, Evan Mulholland, Rikkie-Lee Tyrrell

Noes (19): Ryan Batchelor, John Berger, Katherine Copsey, Enver Erdogan, Jacinta Ermacora, Michael Galea, Shaun Leane, Sarah Mansfield, Tom McIntosh, Aiv Puglielli, Georgie Purcell, Samantha Ratnam, Harriet Shing, Ingrid Stitt, Jaclyn Symes, Lee Tarlamis, Sonja Terpstra, Gayle Tierney, Sheena Watt

Motion negatived.