Kym Richardson (Kingston, Liberal Party) Share this | Hansard source

I rise today in support of Appropriation Bill (No. 1) 2006-2007 and cognate bills. 9 May was a sensational day for all Australians. It was the day when the most successful Treasurer in this nation’s history stood up and delivered a budget which heralded great results for every Australian. Before my speech, I heard the Labor member for Prospect talk about the Howard government’s introduction of the technical colleges initiative. ‘It’s a joke,’ he said. The 400 parents and their sons and daughters who recently attended a public forum in my area certainly do not agree with him. The actual problem for us in 2007 will be to try and place all of those young people.

The most important point to note is that this budget and the result it delivers for all Australians would not have been possible without the strong and disciplined economic management of the Howard government. Since this government was elected, we have paid back $96 billion in Labor debt—I repeat: $96 billion in Labor debt. As a result, we now save $8 billion per year in interest repayments. While the legacy of the former Labor government to this nation was crippling debt, the legacy of this government will be a strong economy and a government better able to serve its people because it is not constrained by the crippling effects of massive debt.

To me, one of the best announcements in the budget was the announcement that this government would no longer tax the superannuation end benefits of Australians over the age of 60 who have paid into a taxed super fund. The situation prior to the Treasurer’s announcement was ridiculous. We had a situation where we were desperately encouraging Australians to save for their retirement. With the ageing population, we needed Australians to embrace superannuation. However, we required them to pay tax on the money they were paying into a super fund and then to pay tax again when self-funded retirees received the benefit of that super. Not only did the absurdity of that situation act as a disincentive for people to save for their own retirement but it resulted in Australians who had saved for their own retirement receiving less of their own income when they needed it most.

These bills and this budget changes that by removing the absurdity and no longer taxing the end benefits of Australians aged over 65 who have paid into a taxed super fund. I can assure you that self-funded retirees and those near retirement age in my electorate of Kingston are exceptionally happy with this result and with what this government is doing to make life easier and more equitable as they head to retirement.

That brings me to the taxation reform contained in this budget, not just for individuals but for businesses as well. Let us face facts: Australian taxpayers paid back Labor’s debt. This government had to use Australian taxpayers’ money to clean up Labor’s mess. So, now that we have eliminated Labor’s desperately unfortunate legacy, those taxpayers should receive some relief. This government, across the last number of budgets, has delivered that relief, and part of that relief has been in the form of tax cuts.

Over a number of budgets, this government has delivered a tax cut to every single Australian taxpayer. We have not politicised tax relief as the Labor Party tried to do last year by opposing the tax cuts. We have rewarded not just those who voted for us; we have delivered a tax cut to every single Australian taxpayer. The taxpayers of Adelaide’s southern suburbs are exceptionally grateful for the tax relief handed down to them by this government.

Similarly, the businesses in my electorate of Kingston are very pleased with their share of the tax relief. As the Treasurer explained on budget night, the report received by the government on the international comparison of Australia’s taxes showed that Australia had the equal lowest value of depreciation allowances in comparator countries. Given the rapid growth in technology and the continual need for business investment in technology, this government will move to enhance our taxation arrangements by moving to a 200 per cent diminishing value rate on eligible business assets acquired after 9 May this year, compared to the 150 per cent rate prior to the budget. This will cut business tax by $3.7 billion over the next four years. This measure encourages Australian business to undertake investment in new plant and equipment and will ensure that Australian businesses, including those in my electorate, remain competitive with their international counterparts.

While we are on the subject of businesses in my electorate, I would like to speak briefly about the beautiful district of McLaren Vale on the southern side of my electorate. The members for Barker and Wakefield may disagree, but I believe that McLaren Vale is without doubt the finest wine-producing region in South Australia and one of the best in the world. The people of McLaren Vale are very happy with this budget. In addition to the personal income tax cuts and the cuts to business tax and red tape, they have an additional reason to smile, because the wineries in McLaren Vale may now take advantage of the increase in the wine equalisation tax producer rebate scheme. The WET producer rebate scheme previously enabled each wine producer or group of producers to claim a rebate of up to $290,000 each financial year. As a result of this government’s exceptional economic management, each wine producer or group of producers will now be entitled to a rebate of up to $500,000 each financial year.

The increase in assistance to the wine industry comes at a crucial time and has been well received by the industry. I would like to take this opportunity to say that, just as Minister Abbott and the Howard government are the best friends Medicare has ever had, the Treasurer is clearly the best friend the wine industry has ever had, and he certainly now has a lot of friends in McLaren Vale.

Just as the taxpayers, businesses and wine producers in my electorate are thrilled with the announcements in this year’s budget, so are the local councils. In the budget speech, the Treasurer announced that the federal government would invest an additional $307.5 million into the Roads to Recovery program. The result of this is that councils across the nation will have double the allocation of Roads to Recovery funding, essentially enabling them to double their construction plans for the coming year. I have two local councils in my electorate of Kingston, the City of Marion and the City of Onkaparinga, and when I spoke with their mayors following the budget they were thrilled with the additional funding that they are now able to spend next year to ensure the safety of southern suburbs road users.

In South Australia in particular, the Labor state government has dropped the ball when it comes to roads and transport infrastructure. In general, and as a result, South Australians, particularly those in Adelaide’s southern suburbs, are suffering. So, while the Labor state government is wasting taxpayers’ money extending the tramline down King William Street to service a few South Australians who already have ample access to public transport, this government is empowering councils to address the transport issues specific to their local areas. The Howard government recognises that state governments are not doing their share when it comes to transport infrastructure and maintenance and recognises the importance of building and maintaining roads of good standard in an attempt to reduce road trauma.

The doubling of local council Roads to Recovery funding over the next 12 months will go a long way to achieving that. I have been a police officer and I have attended motor vehicle accidents, and as a result I can assure the House that we cannot underestimate the importance of properly building and maintaining our roads. At the end of the day, the lives of our road-using constituents depend on it.

This now brings me to the measures in this budget aimed at assisting older Australians and carers. In 2005 the Howard government introduced the utilities allowance—a biannual payment to aged pensioners to assist with the cost of utilities. This year the Howard government will provide a one-off payment of $102.80—the same value as the utilities allowance—to each household with an aged pensioner. Similarly, each self-funded retiree who is eligible for the seniors concession allowance will receive the same payment of $102.80. In addition, this government is seeking to address the problems for rural pensioners seeking to gain access to an aged pension. The previous rules associated with curtilage often resulted in individuals with a family farm being prevented from obtaining an aged pension because the value of their property meant they failed the assets test. In this budget the Treasurer announced that the government will exempt the value of all land on the same title as the family home for all eligible rural people who have a connection with the land of 20 years or more when applying for an aged pension.

This government recognises the strong connection that country Australians have with their family properties and does not believe they should be penalised for trying to remain in their family homes. For that reason, the Howard government has chosen in this budget to address the situation and ensure equality for all older Australians seeking an aged pension. This government has also sought to recognise the part that carers play and the contribution they make to the people they care for and to society. For that reason, the government has again announced—as it did in the last two budgets—that a payment of $1,000 will be made to recipients of the carer payment and an additional $600 payment will be made to each recipient of the carer allowance. These bonuses are tax free and do not impact on the recipients’ social security entitlement. It is estimated that around 495,000 Australian carers will be a recipient of one of these payments. This payment recognises, while by no means making up for, the sacrifices made by Australian families in caring for their loved ones.

In addition to these measures, this budget—which will reward Australian taxpayers and which attempts to make life that little bit easier for every Australian—delivers yet another surplus, ensuring the Howard government legacy of responsible economic management continues. We as a government and as a nation have achieved a great deal over the last decade, and this budget continues on that path. This is a budget for every Australian. This budget has aimed at removing absurdities in our taxation and social security systems. It has set Australians and the Australian government on a course of saving for our future, and it has given back to those taxpayers who, like this government, went through some difficult times in making up for the irresponsible years of the Labor government. This budget delivers reform to our taxation and superannuation systems, and it delivers realistic assistance to older Australians and to carers.

This budget is only possible because of the responsible economic management of the Howard government. I am always a little perplexed when the Labor Party response to the budget comes out. I mentioned this in my speech on the budget bills last year. If I had been part of a government that put this fine nation into the level of debt that the Labor Party did, I would be so embarrassed and so ashamed that any time anyone delivered a budget or spoke about economic matters in the future I would sit quietly in the corner knowing that it would be nothing short of complete hypocrisy to have an opinion after I had failed so dismally.

Not this Labor Party, though, and not this Leader of the Opposition—who sadly was on the front bench of the very government that plummeted this nation into debt. They will happily criticise, telling anyone who will listen about how we should be spending the surplus. Fortunately, the Australian people know better than to trust the Labor Party with the national purse strings. We the Howard government are able to provide this budget, which provides benefits for every Australian while continuing the government’s path of responsible economic management, which will ensure we leave our children a legacy of a strong and growing economy. For these reasons, I commend the Treasurer on yet another outstanding budget and I commend the bills to the House.

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