Louise Markus (Greenway, Liberal Party) Share this | Hansard source

I rise tonight to support the Appropriation Bill (No. 1) 2006-2007 and cognate bills which are before the parliament. Since 1996 this coalition government has been committed to providing Australians with an economic framework to build their lives and communities, with more jobs, less tax burden and the provision of services that our constituents expect and deserve. I am proud to support an 11th Howard government budget that takes these achievements and builds upon them further. I am proud to be part of a government that has repaid more than $96 billion in debt that it inherited from the previous Labor government—a government that presided over record interest rates and record unemployment levels and the resultant effects on Australians and their families. I note that one of the members opposite talked about returning to the 1850s. I would like to note that I would not be pleased to see us return to a Labor government and what happened prior to 1996. Instead, under this government, Australians find themselves in a situation where strong economic management has provided the lowest unemployment rate in 30 years, where interest rates remain affordable and where there is investment in infrastructure, education and health for our nation.

I would like to take this opportunity to highlight some of the aspects of this budget that will particularly benefit people in the electorate of Greenway. As a working mother, I understand the time and cost pressures faced by mums and dads who juggle work commitments and family time. It is a delicate balance that requires a great deal of skill and teamwork by couples and families. This budget recognises those time and cost pressures on families. Over 10 years in office, the Howard government really has taken the time to interact and converse with Australian families to learn the challenges they face and the support they require. I would particularly like to highlight the uncapped child-care places in family day care and before and after school care. While it is a job that is never done, child care must change with the social nuances of the time. It is a job that requires active listening and responsiveness. That is why I am very pleased with some of the announcements that will be of significance to families in my local area. Nearly 3,000 families in Greenway alone will benefit from an increase in the family tax benefit part A income threshold to $40,000 per annum. This is an increase in the threshold of nearly $6,000, meaning that thousands more families across Australia will benefit from additional family tax benefit part A payments.

How have we been able to deliver these increases? The answer is simple. Unlike those on the opposite side, we are committed to strong economic management, because strong economic management has given us the capacity to put money back into the pockets of hardworking Australians. Families will further benefit from the extension of the large family supplement to those families with three or more children. This recognises that families with three or more children face great cost pressures and further extends the assistance to help alleviate those cost pressures. Families clearly benefit from changes to the taxation system announced by the Treasurer during this budget. Dual income families with children where the major income provider is on an average wage will pay no net tax until they earn $52,000. When this is coupled with a family tax benefit increase, it is clear that the government has been listening to Australian families.

I would like to turn my attention to the superannuation reforms announced by the Treasurer and signal my unqualified support for those changes. Superannuation has for a long time been a complex minefield for all Australians. The Treasurer announced a series of changes that will make superannuation less complex and much more user friendly, improving retirement outcomes and increasing incentives to work and save in the process. The plan has a number of changes earmarked that are of great benefit. Superannuation benefits paid from a taxed fund, either a lump sum or as an income stream such as a pension, would be tax free for people aged 60 and over. This means that benefits paid from an untaxed scheme would still be taxed, although at a lower rate than they are now for people aged 60 and over.

Complexities in superannuation have needed to be addressed. The current systems have different arrangements for tax on contributions, earnings and benefits. In 1988, the Labor government led by Bob Hawke and Paul Keating brought forward part of the tax which was previously applied to end benefits. The result was a dramatic exacerbation of the complex tax arrangements relating to superannuation in Australia. I am pleased that this government has committed to simplifying the superannuation system. The current system means that a lump sum contribution may be comprised of up to eight different parts, which can be taxed in seven different ways. The level of comprehension required to understand how superannuation works is quite astounding. When people cannot easily understand how their superannuation works and what they will receive upon retirement, they will understandably not have faith in the system. The complexity does not just affect retirees; it affects the decisions of Australians of all ages as they approach retirement age as to whether or not to make additional contributions to their superannuation. The complexity also adds to the administration costs of the funds. Removing tax on superannuation contributions reduces the complexity and benefits retirees. I am very pleased to support tax exemptions on superannuation benefits. This covers 90 per cent of Australians with superannuation benefits, making this an incredibly important announcement for the Treasurer.

The changes provide great assistance for a great number of Australians and a great number of people in my electorate. I want to highlight some very important and exciting changes to curtilage that were announced in the budget. Quite a significant part of my electorate—about half—is rural in make-up, with many families, and particularly Maltese migrants, who have been on the land for up to 50 years, who have worked the land and who have faced some discrimination with regard to pensions. In my electorate I have been fighting the issue of curtilage since I was elected. Nearly 10,000 pensioners across the country—and a significant number of them reside in my electorate—will benefit greatly from a $17.3 million initiative to improve the treatment of rural land under the pension assets test. The previous system exempted the first two hectares of land surrounding the principal home, on the same title, from the pension assets test. The practical reality of that situation, particularly in a city like Sydney where property values have skyrocketed, is that city residences were exempt from assets testing, whereas for rural pensioners their large allotments of land were only partially exempt.

With some colleagues, I have been advocating for this system to be addressed. It was a great moment then, particularly for the pensioners in the northern suburbs—on rural land in Riverstone, Schofields and Marsden Park—to see the new exemption in the budget. The Howard government will now replace the current two-hectare exemption on home property land. A fairer exemption will now apply. Where people have a long-term attachment to the land and where that land, on the same title as the family home, is used for domestic use, it will be exempted from the assets test. That is a much fairer arrangement and it is a response to the concerns that have been voiced by members of my local community.

Government is assessed on many factors. On the key indicators of strong economic management, security and leadership, this government has excelled. I commend the Prime Minister and the Treasurer on their excellent leadership. As a team, they have led Australia to unrivalled economic prosperity and have developed the conditions for low unemployment, strong growth and low interest rates. I differ from the members opposite in that I do not believe that this is a time of uncertainty. I believe that the fear in the community is related to the unfair and untruthful claims by members opposite and the union movement. I can testify that in 1996 the unemployment rate in my electorate was 8.8 per cent; it is now 4.5 per cent. Since December it has dropped from 4.8 per cent to 4.5 per cent. I think this is evidence that the decisions and the economic management of this government are actually lowering unemployment and creating more jobs. Indeed, I encourage people in the electorate of Greenway to see this as a measure to build their confidence for the future.

Our budget is in surplus for the ninth time in 10 years. We have established a Future Fund that has begun to save for the future. With those savings, the next generation will be able to meet the challenges of their time. More than that, changes to the tax system mean that 80 per cent of taxpayers face a top marginal tax rate of 30 per cent or less. That is a real benefit to the residents and the families in my electorate. The results of 10 years of disciplined management are not something that this government take lightly. Strong and disciplined economic management means that we can fund the services that Australians legitimately expect and are entitled to receive. I am proud to be part of a team that has recognised cost pressures on families. This budget is indeed very positive for the people of Greenway.

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