Latest news with #AlbaneseGovernment
News.com.au
2 hours ago
- Business
- News.com.au
PM will honour a big election promise as he moves to tackle cost of living
Anthony Albanese will move to freeze beer taxes on Thursday honouring his election pitch to tackle the cost of living. The Prime Minister confirmed during the election that 'we will freeze the indexation on draught beer excise for two years' in what he described as a win for beer drinkers and hospitality businesses. With schooners and pints tracking closer to $15 and $20 in major cities, publicans have expressed fears the steep prices are driving customers away. It follows warnings that a half of the cost of a $59.99 slab of Coopers Pale Ale was going to the taxman. On Thursday, the Albanese Labor Government will table tariff proposals to stop the excise and customs duty on beer from increasing from 1 August. The Albanese government has confirmed it will amend the legislation to temporarily pause the indexation on excise and customs duty. The pause on indexation for excise and customs duty will be in place for two years from 1 August 2025. The Albanese Government said that the excise and customs tariff proposals tabled in Parliament will be ratified by primary legislation to be introduced in coming months. However, the tariff proposal on Thursday will stop the price of beer increasing due to indexation until that freeze is legislated. 'Continuing to deliver cost of living relief to Australians is our number one priority,'' Mr Albanese told 'Freezing the excise on draught beer is a common sense measure that is good for beer drinkers, good for brewers and good for pubs.' Treasurer Jim Chalmers said the government remained focused on easing the cost of living for Australians. 'This will help take a bit of pressure off beer drinkers, brewers and bars,'' he said. 'Whether it's a tax cut for every taxpayer, help with energy bills, or the new relief that's rolling out this month like higher wages for award workers, we're doing everything we responsibly can to help with the cost of living.' understands the cost to the budget in tax revenue foregone will be $95 million over four years. But it's not all beer. It needs to be coming off tap in a licensed hospitality venue, so only schooners and pints of beer from your local watering hole will be blessed with a tax freeze. Those who prefer buying their beer, or any other alcohol, from the bottle-O can expect prices to keep rising. Last year Anthony Albanese said cutting beer taxes wasn't a priority for his government. 'We are not looking at that at the moment, but obviously in the lead-up to budgets, you have submissions and I'm sure that there'll be submissions along a whole range of ways,' he told 3AW. 'One of the things that we have to do though, is look at ways where we provide cost of living support, while putting downward pressure on inflation.' Health Minister Mark Butler was singing the same tune back then, insisting that the government's focus was on 'cheaper medicines, not beer'. Nationals leader's lonely call for action David Littleproud faced a backlash last year from senior Liberals after floating the prospect of a beer tax relief because the price was 'hitting a tipping point.' 'I'm part of the shadow expenditure review committee and our final taxation policy has not been determined,' he said. 'That will be determined by the National Party and the Liberal Party. That's why we'll be running the ruler over this. 'When we determine the taxation policy we'll take to the next election, it'll be a Coalition policy.' But the big idea was slammed down by the opposition treasury spokesman Angus Taylor. 'The starting point to reducing the pressure of indexation is to get inflation down,' Mr Taylor said. Opposition finance spokeswoman Jane Hume also wasn't a big fan. 'I always like the idea of free beer. But, unfortunately, that might not be the policy slogan that you'll be seeing us going into the election with,' she said. Ahead of the announcement, the Australian Hotels Association CEO Stephen Ferguson noted that beer and spirits tax quietly goes up twice a year every year and complained that the Government's only response is to refer pubs to the Australian Competition and Consumer Commission. 'Australia's beer tax is already the third highest in the OECD. There's also $38 tax on a $60 bottle of whisky or gin. That is outrageous and the voters are awake to it,'' Mr Ferguson said.
The Australian
14 hours ago
- Business
- The Australian
Labor to introduce student debt-slashing bill into parliament
Sussan Ley has hinted the opposition could cause trouble for the Albanese government's signature student debt-slashing legislation. Education Minister Jason Clare introduced the bill on Wednesday - the first of the new parliament. The proposed relief would cut HECS by 20 per cent for some 3 million graduates, or wipe off $5500 from the average student debt. The changes would also raise the repayment threshold for student loans from $54,000 to $67,000. It was central to the Albanese government's youth-focused re-election pitch. But asked if the Coalition would back it given Labor's federal election landslide, the Opposition Leader on Wednesday would not confirm. Opposition Leader Sussan Ley has not confirmed if the Coalition will back Labor's signature student debt-slashing bill. Picture: NewsWire / Martin Ollman 'It's an area where we can be constructive,' Ms Ley told Sky News. 'And I've said we will be constructive where we can. 'That doesn't mean a blank cheque of goodwill for everything that comes across the table from the Labor Party.' She went on to say it is important not to 'forget that this reduction in HECS debt came for students and young people who are really struggling with rising cost of living'. 'And when I talk to young people now, the first thing they tell me is how they are losing hope of ever getting into a home, and how their rents are skyrocketing,' Ms Ley said. 'I'm really hearing that pain in terms of their escalating bills. 'What we know is that when young people are struggling, that's bad for society, and it's really tough. 'Now the HECS debt, as I said, was a point in time to provide some of that relief, but what we want to do is help young Australians.' Ms Ley's comments seemed at odds with what her education spokesman Jonno Duniam said just a day earlier. He said it was 'one of the centrepieces of the government's agenda at the last election and obviously we had a view that was not supported by Australians, so we'll work with them'. 'We have our concerns, they remain,' Senator Duniam said on Tuesday, also speaking to Sky. 'We'll talk about those, but I expect them to pass parliament.' NewsWire understands the government is confident the opposition will support it. Labor is about to introduce its signature student debt-slashing bill. Picture: Martin Ollman / NewsWire Mr Clare introduced the legislation in the House of Representatives, where Labor commands a massive 94-seat majority. But the Senate is another matter. With the Greens holding the balance of power, they can effectively pump the brakes on key legislation – something members of the minor party have already said they would do to negotiate their own agenda. The Greens have said the changes do not go far enough. 'While every bit of student debt relief is good, what the government is doing by wiping some student debt doesn't even touch the sides of the issue,' Greens education spokeswoman Mehreen Faruqi said on Tuesday. 'The core of the problem is indexation. 'Unless indexation is removed, students will be in this hamster wheel always chasing their debts, which keep getting bigger and bigger.' Greens education spokeswoman Mehreen Faruqi says her party will push for amendments. Picture: Martin Ollman / NewsWire Before introducing the bill, Mr Clare said on Wednesday there was 'a lot at stake'. 'This was one of the big promises that we made in the election campaign that we would cut the student debt of 3 million Australians by 20 per cent,' he told the ABC. 'This will take the weight off the shoulders of a lot of young people right across the country in particular – at elections young people don't often see themselves on the ballot paper, but they did at this election. 'And they voted for it, in the millions. 'For the average person with a student debt today, this will cut their debt with about ($5500) and so there is a lot at stake there, and I'm hoping that politicians across the parliament will vote for this.'
Daily Mail
15 hours ago
- Business
- Daily Mail
Anthony Albanese's government introduces major change that will keep more cash in your pocket
Students and graduates will soon see a reduction in their HECS debts and save hundreds of dollars a year. Federal Education Minister Jason Clare will introduce legislation to slash student debt by 20 per cent and increase the income that graduates need to earn before minimum repayments kick in. It's the first bill that the Albanese government will put before parliament at the start of its second term. People earning between $60,000 and $180,000 will save hundreds of dollars each year under the changes. Someone on $70,000 will save the most, $1300 a year, on minimum repayments due to an increase to the thresholds at which the debts must be paid back. Savings vary between incomes in the bracket, with people pocketing anywhere from $200 to $850. Bruce Chapman said it would make it fairer by giving those on lower salaries more money in their pockets, while their debts remain the same in nominal terms. 'It looks bigger, in real terms it's not bigger,' the architect of the HECS scheme told AAP. But the top priority should be reviewing the price of each degree because humanities students finish with the highest level of debt and end up being the lowest-paid graduates. 'All the prices are wrong,' Professor Chapman said. Mr Clare said reforms were being looked at, after the failure of the former Liberal government's job ready program. The program aimed to fill skills shortages by making it cheaper to study courses like teaching, nursing and psychology while doubling the cost of popular degrees including law, communications, business, humanities and the arts. 'If the intention there was to reduce the number of people doing arts degrees, it hasn't worked,' Mr Clare said. 'People study the courses they're interested in, that they want to do, that they love.' The universities accord final report branded the program 'deeply unfair' because it punished students following their interest, and called for it to be scrapped. It recommended that fees reflect future earning potential, as part of 47 recommendations to reform the sector. Other aspects about how HECS is paid off also needed to be addressed, Prof Chapman said. HECS repayments are taken from a person's pay slip if they're earning above an income threshold. But the money isn't immediately taken off the HECS debt and is instead deducted as a lump sum at the end of the financial year after indexation has been applied on June 1. This means a higher debt is indexed as the repayments haven't been deducted and the university accord recommended it be reformed to make the system fairer. The Australian Tertiary Education Commission has been established in an interim capacity to implement long-term university reform and will review the HECS system over the next 12 months. Mr Clare will introduce further legislation in the coming months to set the commission up as a permanent body.
Daily Mail
a day ago
- Business
- Daily Mail
EXCLUSIVE Hidden cost of Labor's new super tax that could send prices soaring at Coles and Woolworths
Labor's radical tax plan for superannuation could end up seeing Australians pay more for their weekly food shop, farmers are warning. Parliament resumed for the first time since the May election on Tuesday, and one of the key pieces of legislation the Albanese government will try to get passed is a new tax on superannuation savings even before the funds are accessible. Anthony Albanese 's government wants to impose a new 15 per cent tax on unrealised super balances above $3million, which would see self-managed super funds taxed on the paper value of assets before they are sold. This radical departure from the usual capital gains tax practice would also double the headline tax rate to 30 per cent, with superannuation already subject to a 15 per cent earnings tax during the accumulation or working phase. While most wage earners have their super invested in liquid assets like shares and bonds, many farmers hold self-managed super funds tied to their land, and may be forced to sell the farm to stay under the $3million cap. National Farmers' Federation president David Jochinke told Daily Mail Australia that this could result in less supply of food and therefore higher prices. 'Higher taxes and costs on farm business ultimately make it harder for them to keep fresh produce on supermarket shelves, and this one has the potential to be significant,' he said. 'These farmers will be taxed simply because their land value has gone up on paper. No additional income. No sale. Just a tax bill.' 'This is not just about yachts and waterfront mansions. It's about orchards, dairies, and the family farms that put food on the table.' The National Farmers Federation estimates Labor's Better Targeted Superannuation Concessions bill from 2023 would affect 3,500 farmers immediately, with Labor proposing to backdate it to July 1. It estimates 17,000 family farms are held within a self-managed super fund, which can have up to six members. The government will not index that $3million threshold, meaning more and more people will become subject to the tax as inflation continues. The NFF argues this would see another 14,000 farmers have assets worth more than $3million in coming decades. 'We urge the government to proactively consider changes it can make to the proposed 'Super Tax' to avoid impacts on farmers and small businesses across the country,' Mr Jochinke said. Labor has a landslide majority in the House of Representatives but needs the Greens in the Senate to get legislation passed. The Greens want the threshold lowered from $3million to $2million but indexed for inflation. But Mr Jochinke said if the government is forced through negotiations to accept the Greens' position it would be an even worse outcome. 'This would be an even more devastating outcome for Australia's farming families than the original Super Tax parameters,' he said. 'Thousands more farms will be in jeopardy if the threshold is lowered to $2million. 'We are against the current bill, and in particular its taxing of unrealised gains, but to aim for an even lower threshold in order to ram the bill through the Senate is just reckless.' Nick McKim, the Greens' treasury and economic justice spokesman, said superannuation had become a way for people to accumulate vast sums at a tax rate that was well below that applied to income. 'Over time Australia's superannuation system has become less about providing a dignified retirement for working people, and more of a vehicle for wealth accumulation. This needs to change,' he said. 'The Greens want to ensure that very wealthy Australians pay their fair share of tax, so that governments can do more to support people who need it.'
ABC News
a day ago
- Politics
- ABC News
Pomp, ceremony and political division
The 48th Parliament has officially begun, but amid the pomp and ceremony, the Albanese Government has signed a joint statement calling for an immediate end to the war in Gaza. It's the strongest language yet from the Government, but the Opposition has been quick to condemn the move — with frontbenchers labelling it "alarming" and "disappointing" — while the Greens have suggested the statement doesn't go far enough. So, is this a sign of some of the friction to come in this 48th parliament? Patricia Karvelas and Claudia Long break it all down on Politics Now. Got a burning question? Got a burning political query? Send a short voice recording to PK and Fran for Question Time at thepartyroom@
