Ken Ticehurst (Dobell, Liberal Party) Share this | Hansard source

The 2006 budget handed down by the Treasurer represents the greatest investment in Australia’s future, a huge investment in our transport and water infrastructure, our families and our health services, along with major improvements to our taxation and retirement income systems. These practical benefits can only be delivered because of the Howard government’s responsible economic management. The budget is in surplus for the ninth time in 10 years. We have now eliminated the $96 billion of debt that Labor left the Australian government when it left office. This means the Australian government is debt free in net terms. It is able to save over $8 billion each year in interest payments which can now be invested to meet the challenges of the future. Unlike the member for O’Connor’s problems with foreign debt, I can still recall house mortgage rates at 18 per cent and business overdrafts at 23 per cent. Those things are not evident today. These days we do not have interest rates of that level because the foreign debt is not the government debt.

Improvements to tax and family payments in this budget will help middle-income earners in Dobell, particularly those with families, and put more money back into their pockets. From 1 July 2006, all Australian taxpayers will benefit from new personal tax cuts worth $36.7 million. The 30 per cent threshold will rise to $25,001; the 42 per cent tax rate will be cut to 40 per cent, with a $75,001 threshold; and the 47 per cent tax rate will be cut to 45 per cent, with a $150,001 threshold. Central Coast families who rely on the government’s generous family tax payments will be substantially better off as a result of the changes announced in this budget.

The government will move the threshold of the base family tax benefit up to $40,000 from its current $33,361. This means that the maximum payment per child under part A has increased from around $2,400 to $4,200 a year. Families will get to keep more of their earnings before their family assistance payments are affected. This is a very welcome and generous boost. In fact, since 1996 the coalition government has doubled assistance to families through the family tax benefit system. For some Dobell families, the government will also remove the limit on subsidised outside school hours care and family day care places. This will enable an increase of some 25,000 places over the next four years. Also, from 1 July 2006, parents will receive the government’s new child-care rebate which will entail a 30 per cent rebate on out-of-pocket child-care costs of up to $4,000 each year.

Originally, the government offered an extra payment to assist families with four or more children. This payment is now extended to families with three children. This extra payment is paid on top of the family tax benefit. It means an extra $250 per year for families with three children and would be welcomed by those families on the coast who fall into this category.

The budget also provides security for older Australians. The government introduced a $100 utilities allowance in 2005. This allowance has been extended. Pensioners and eligible self-funded retirees in Dobell will receive the important utilities allowance bonus of $102.80. Recipients of the mature age allowance, partner allowance or widow allowance will also be beneficiaries of this allowance bonus. Senior Australians in Dobell will also benefit from improvements in the senior Australian tax offset. They will now pay no tax on their annual income up to $24,867 for a single person and $41,360 for couples. There are many self-funded retirees in Dobell who will benefit from these improved measures. The low-income tax offset will also be increased to $600 per year and will phase out from $25,000—up from the current $21,500.

On the education front, this budget provides $9.3 billion in schools funding, an increase of nine per cent since last year and 158 per cent since 1996. Importantly, this funding provided to the state government has, since 2004, been conditional on the states addressing priorities for higher standards and values, including plain English report cards, publicly available information about the school performance and explicit teaching of values in schools. The New South Wales Iemma Labor government has really let down schools in my electorate of Dobell. Thankfully, the Howard government is countering Labor’s economic mismanagement with record funding and innovative programs, like the $1 billion Investing in Our Schools Program which provides money directly to school communities for important projects identified by the school. Many schools in my electorate have benefited from this program, using the funding for projects including new and improved computer facilities, shade structures and classroom improvements, such as airconditioning. I am delighted that the second round of this program will shortly open for applications.

This budget reflects the government’s unwavering commitment to bettering educational skills and standards in this country. It also reflects our efforts to strengthen vocational training. Australia’s national training system is providing real choice for the 70 per cent of young Australians who do not go directly from school to university as well as for the mature age students. This government has put in place a system of training and apprenticeships which is better than anything Australia has had for a decade.

The budget includes $1.4 billion in innovations to provide vocational education and training, including $537 million to extend the youth allowance to apprenticeships; $350 million for 25 Australian technical colleges; $143 million to improve careers advice; $120 million for tool kits; and $106 million for Commonwealth Trade Learning Scholarships. The total funding for VET has more than doubled since the Australian Labor Party were thrown out of office. This support is delivering results. The total number of new apprenticeships has doubled from 156,700 in 1996 to 397,800 in September 2005. The number of new apprenticeships in traditional trades increased from 120,000 in 1996 to 168,000 in September 2005. Sadly, the Labor Party continue to thwart our efforts for an agile VET system. They have taken every step possible to hinder our plans for Australian technical colleges to be established locally.

See this speech in context