16 News

The Greens say $11 billion in annual federal subsidies to polluting fossil fuel companies should be phased out and the money redirected to accelerating a community-led transition to renewable energy.

With yesterday’s news that Rio Tinto’s deal to purchase all energy produced by the Upper Calliope Solar Farm would only deliver one quarter of the wind and solar energy it needs to power its Gladstone alumina and aluminum operations, it’s clear that the federal government needs to urgently ramp up investments in renewable energy.

The Greens support calls from industry, business, unions and climate and energy organisations for renewable energy and electrification investment of at least $100 billion.

Gladstone-based Greens spokesperson on Industry, Transition and Regional Development Senator Penny Allman-Payne said:

“With Cyclone Kirrily bearing down on the Queensland coast it’s another harsh reminder of the cost of our coal and gas obsession and the urgent need to transition to an economy powered by clean, cheap renewable energy.

“Australia can become a renewable superpower, but if we don’t act soon to transition our industries away from dirty fossil fuels, we risk getting left behind as the rest of the world moves on.

“The Inflation Reduction Act in the US shows what’s possible when a country seeks to let loose investment in clean energy. But Labor continues to back more gas – a dirty, polluting industry of the past that is fuelling the climate crisis and will leave workers stranded.

“We can’t leave climate action up to the same unchecked market forces that have caused the climate crisis in the first place. That’s why the energy transition needs to be driven by public investment, community- and government-led, with full, transparent and timely engagement, including the free, prior and informed consent of Traditional Owners, and protections for workers.

“The people of my home of Gladstone know all too well what happens when we let massive corporations drive decision-making. My community still bears the scars of multiple boom and bust cycles.

“They don’t want to trade one set of profiteering corporations and billionaires for another, and they don’t want their jobs, their homes and their health to be afterthoughts.”

The Albanese Labor Government is delivering a tax cut for every Australian taxpayer commencing on July 1.

These new tax cuts are designed to provide bigger tax cuts for middle Australia to help with cost-of-living, while making our tax system fairer.

The Albanese Government recognises the economic realities of 2024: Australians are under pressure right now and deserve a tax cut.

Labor’s tax cuts will make a real difference for 13.6 million Australians, ensuring that hard working Australians are keeping more of the wages they earn.

Building on the first budget surplus delivered in 15 years, Labor’s tax cuts deliver more relief to more people in a way that is fiscally responsible and doesn’t add to inflationary pressures. 

Scott Morrison’s tax plan was designed five years ago, before the pandemic, before the global inflation spike, before interest rate rises and greater global uncertainty. It doesn’t do enough to help those who’ve been put under the most pressure by these changing circumstances.

We have found a more responsible way to ensure more people get a bigger tax cut to help ease the pressure they are under.

The Albanese Government’s tax cuts will deliver a bigger benefit for more Australians.

Our plan means every Australian taxpayer will receive a tax cut this year.

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.

From 1 July 2024, the Albanese Labor Government will:

• Reduce the 19 per cent tax rate to 16 per cent (for incomes between $18,200 and $45,000).
• Reduce the 32.5 per cent tax rate to 30 per cent (for incomes between $45,000 and the new $135,000 threshold).
• Increase the threshold at which the 37 per cent tax rate applies from $120,000 to $135,000.
• Increase the threshold at which the 45 per cent tax rate applies from $180,000 to $190,000.

As a result of these changes, on July 1:

• All 13.6 million taxpayers will receive a tax cut – and 2.9 million more taxpayers will receive a tax cut compared to Morrison’s plan.
• 11.5 million taxpayers (84 per cent of taxpayers) will now receive a bigger tax cut compared to Morrison’s plan.
• 5.8 million women (90 per cent of women taxpayers) will now receive a bigger tax cut compared to Morrison’s plan.
• A person on an average income of around $73,000 will get a tax cut of $1,504 – that’s $804 more than they were going to receive under Morrison’s plan.
• A person earning $40,000 will get a tax cut of $654 – compared to nothing under Morrison’s plan.
• A person earning $100,000 will get a tax cut of $2,179 – $804 more than they would receive under Morrison’s plan.
• A person earning $200,000 will still get a tax cut, which will be $4,529.

In addition, the Government will increase the Medicare levy low-income thresholds for 2023-24.

This will benefit more than a million Australians, ensuring people on lower incomes continue to pay a reduced levy rate or are exempt from the Medicare levy.

Labor’s tax cuts will return bracket creep, increase the rewards for Australians who choose to work and earn more, boost labour supply and deliver a fairer share of tax relief to women.

Cutting taxes for middle Australia is a central part of our economic plan – along with getting wages moving again, bringing inflation under control and driving fairer prices for Australian consumers.

Our tax cuts come on top of the billions of dollars in targeted and responsible cost-of-living relief that’s being rolled out, including:

• Energy bill relief;
• Cheaper medicines;
• Cheaper child care;
• Strengthening Medicare;
• Higher income support payments; and
• The biggest boost to Rent Assistance in 30 years.

The Albanese Government is providing meaningful cost-of-living relief in a responsible way that doesn’t add to inflationary pressures, while laying the foundations for a stronger and more resilient economy.

The changes to the personal income tax system will have a net cost of $1.3 billion over the forward estimates. The total impact of these tax cuts is expected to be $107 billion over the forward estimates.

The increase to the Medicare levy low-income thresholds is expected to cost $640 million over four years from 2023-24. This was accounted for in the 2023-24 Mid-Year Economic and Fiscal Outlook.

To find out how much the Government’s tax cuts will benefit you, use the calculator on the Treasury website: Tax cut calculator

Further details on these changes can be found at:

• Tax cuts to help with the cost of living
• Tax cuts to help Australians with the cost of living

New personal tax rates and thresholds for 2024-25

Current tax rates
0 –18,200	Tax free
18,201 – 45,000	19
45,001 – 120,000	32.5
120,001 – 180,000	37
>180,001	45

New tax rates from 2024–25
0 –18,200	Tax free
18,201 – 45,000	16
45,001 – 135,000	30
135,001 – 190,000	37
>190,001	45

The Albanese Government will direct the Australian Competition and Consumer Commission (ACCC) to investigate pricing and competition in the supermarket sector to ensure Australians are paying a fair price for their groceries.

We understand that Australians are under the pump and the cost of groceries is among the biggest concern for many.

This 12-month ACCC inquiry – the first of its kind since 2008 – will investigate the competitiveness of retail prices and allegations of price gouging in the supermarket sector.

The monitoring announced today is an important part of the Government’s broader efforts to boost competition and put downward pressure on the price of essentials for Australians, including a review of the Food and Grocery Code of Conduct and the Competition Review’s focus on cost-of-living initiatives.

Matters to be considered by the ACCC will include, but will not be limited to:

• The current structure of the supermarket industry at the supply, wholesale and retail levels;
• Competition in the industry and how it has changed since 2008, including the growth of online shopping;
• The competitiveness of small and independent retailers, including regional and remote areas;
• The pricing practices of supermarkets;
• Factors influencing prices along the supply chain, including the difference between farmgate and supermarket prices;
• Any impediments to competitive pricing along the supply chain; and
• Other factors impacting competition, including loyalty programs and third-party discounts.

The ACCC will produce an interim report in 2024 and final report in early 2025 which will provide the Government with findings and recommendations. The Government is working with the ACCC to finalise the direction, which will be issued in coming days.

In addition, the Government will deliver $1.1 million to respected consumer group CHOICE to provide price transparency and comparison reports on a quarterly basis for three years.

Starting from the second quarter of 2024, CHOICE will provide shoppers with better information on the comparative costs of grocery goods at different retailers, highlighting those charging the most and the least.

The provision of this information will empower Australian consumers to make informed choices about food and grocery purchases. 

Prime Minister, Anthony Albanese said:

“When farmers are selling their product for less, supermarkets should charge Australians less.”

“That’s why the ACCC will use its significant powers to probe the difference between the price paid at the farm gate, and the prices people pay at the check-out.”

“My Government is prepared to take action to make sure that Australians are not paying one dollar more than they should for the things they need.”

Treasurer, Jim Chalmers said:

“Australians are under cost-of-living pressure, and we know that a lot of that pressure is piled on at the cash register.

“This is about making our supermarkets as competitive as they can be so Australians get the best prices possible.

“We want a fair go for families and a fair go for farmers.”

Assistant Minister for Competition, Charities and Treasury, Andrew Leigh said:

“Competition is the consumer’s friend. Economics teaches us that monopolies tend to overcharge and underdeliver.

“Australia’s grocery sector is more concentrated than in other countries. The Government has appointed respected policy economist Dr Craig Emerson to review the Food and Grocery Code of Conduct to look at whether the Code is effective in improving the conduct of supermarkets towards their suppliers.

“An ACCC inquiry and regular CHOICE reporting will complement this by making sure supermarkets are charging fair prices and by helping shoppers to save money.”

Today we announce the appointment of Mr James Baxter as Australia’s next Ambassador and Permanent Representative of Australia to the World Trade Organization (WTO) in Geneva.

The WTO is an international forum where 164 Members determine global trade rules and agreements, as well as resolve trade disputes when they arise.

Australia plays a leadership role in the WTO and is working to update the rules and reinvigorate the negotiating function to better respond to contemporary challenges in global trade.

We are working with other Members to deliver a substantive reform package at the upcoming 13th WTO Ministerial Conference (MC13).

Mr Baxter is a senior career officer with the Department of Foreign Affairs and Trade and was most recently First Assistant Secretary, Office of Global Trade Negotiations. He has previously served overseas as Deputy Head of Mission, Australian Permanent Mission to the WTO in Geneva and in Belgium and Japan.

We thank outgoing Ambassador and Permanent Representative George Mina for his contributions to advancing Australia’s interests in the WTO since 2020.