Bill Shorten (Maribyrnong, Australian Labor Party, Parliamentary Secretary for Disabilities and Children's Services) Share this | Hansard source

In rising to support the Tax Laws Amendment (2008 Measures No. 2) Bill 2008, which improves our nation’s tax and superannuation laws, I would like to concentrate on two of the six amendments—and, if it is not forgoing too much of the convention of this place, I would like to say that I agree with the member for Cook, perhaps not so much with his praise of the departed Howard government but with his thrust about the importance of charity and giving in Australian life.

It is a shameful fact that Australia is in the grip of a serious skills crisis. I believe one of the major policy failings of the previous government was its cavalier attitude towards our future prosperity, as evidenced by its neglect of skills formation in Australia. Our nation has simply not trained enough new or existing workers to keep up with the demands on our economy and our workforce. As you know, Mr Deputy Speaker, even in the meatworks in your own electorate we have seen the skills shortage hit hard. In times of record prosperity, this is unforgivable.

Unlike the previous government, the Rudd government takes this skills shortage very seriously. We know that investment in skills creation is fundamental to the next wave of economic reform. That is why, earlier this year, the Minister for Education, Minister for Employment and Workplace Relations and Minister for Social Inclusion introduced the Skills Australia Bill, the first step of many that this government will take as part of a comprehensive approach to secure a prosperous future which maximises workforce participation and productivity. That is why in the budget last night we delivered on our commitment to establish Trade Training Centres in secondary schools to give young people the opportunity to study a trade at school. That program is worth $2½ billion over the next decade. That is why last night the budget delivered our commitment to 450,000 new training places over the next four years. In fact, the budget extended that commitment to $1.9 billion over five years to fund 600,000-plus new training places.

I congratulate the Prime Minister, the Treasurer and the Deputy Prime Minister for proving to the Australian people that promises made during the election campaign are actually promises kept by the Rudd government’s first budget. Australians know that, for our country to prosper and thrive, we urgently need to develop our whole base of skills training.

I think these tax law amendments are another step down that path. I would like to refer in particular to schedule 5, early completion bonuses for apprentices. This measure ensures that apprentices in areas with skills shortages will not pay tax on early completion bonuses provided by state and territory governments up to $1,000. As of now, these early completion bonuses are treated as taxable income. This measure will change that, and I think this is a great incentive for those young apprentices eager to get out into the workforce and help ease our skills crisis. As this bill outlines, this will apply to the early completion of apprenticeships in specified occupations affected by the skills shortage. At the moment, the great state of Queensland is the only state to have an early completion bonus for apprentices. I hope that perhaps other state and territory governments, with the passage of this bill, will introduce similar bonuses to encourage apprentices.

I would also like to comment specifically about schedule 6, deductible gift recipients. This is a crucial intersection between generous Australia and the non-profit sector. The Parliamentary Secretary for Social Inclusion and the Voluntary Sector, Senator Ursula Stephens, has spoken at length on this matter, and I am grateful for her research on the matter. As we have heard previously, there are approximately 700,000 non-profit organisations in Australia. Many of these are small and depend on voluntary commitment. About half of them are incorporated. Perhaps about 35,000 of these organisations employ staff. As the member for Cook correctly stated, 20,000 of these organisations have deductible gift recipient status. In fact, the contribution of the non-profit sector’s total revenue is about $35 billion. Indeed, in the 2005 Giving Australia report it was estimated that the donation of money, goods and services to non-profit organisations by individuals and business was estimated at $11 billion a year. In 2004 Australians gave $7.7 billion. Of this, $5.7 billion was donated by 13.4 million people, or 87 per cent of all adult Australians. Two billion dollars, interestingly, was provided by 10.5 million people through charity gambling. $3.3 billion came from 525,000 businesses, or two in every three Australian businesses. In terms of personal time, 41 per cent of Australians volunteered in the year 2004, providing no less than 836 million hours of their time—an average of 132 hours per year.

Despite all of this good work, it is crucial to strengthen the generosity of Australians and the resources of the not-for-profit sector. Even with the increasing size of our population, for sustained future prosperity and nation-building and to deliver for working families it is necessary to increase the number of non-profit organisations able to seek increased donations. Therefore, I strongly support this measure giving deductible gift recipient status to 13 worthy groups, including groups active in my own portfolio area of disabilities, such as Wheelchairs for Kids. We are aware that this government is strongly committed to supporting people with disabilities, and we know that out there in the community there are thousands and thousands of people working tirelessly to do the same thing. Wheelchairs for Kids looks further afield, to the great unmet need which exists for children with disability right through the developing world. Twelve years ago, a member of the Rotary Club of Scarborough began making wheelchairs for children with disabilities in the Third World. Now 100 volunteers make these wheelchairs, and in enormous numbers—13,000 by the end of 2007. This organisation is funded entirely by donations from the public except for the rental expenses, which are covered by the Western Australian government. I hope that, this initiative having been granted this status, many more donations will flow to the initiative, which brings desperately needed assistance to the marginalised and often neglected children.

I am also happy to note that Playgroup Australia has been listed for deductible gift recipient status. Playgroup Australia—which I have the pleasure of working with in my portfolio—is the national body and leading representative and advocate for playgroups. As a federation of eight state and territory playgroup associations across Australia it collectively represents more than 100,000 families and 135,000 children at approximately 8,000 playgroup sessions every week. The Australian government has funded playgroups since 1975, and the evidence is clear that forums such as playgroups are not only fun but also a valuable investment in a child’s cognitive, physical, social and emotional wellbeing. Community playgroups are initiated and managed by parents or caregivers. Supported playgroups are initiated by a paid coordinator who works with the families to help them develop skills to participate in or run a community playgroup independently over time. Supported playgroups target families from culturally and linguistically diverse groups and backgrounds, Indigenous families, families with mental health and/or disability issues, teenage and young parent families and families who are socially isolated and disadvantaged. I have been working with Playgroup Australia since I was given the privilege of representing people with disabilities by our Prime Minister, and I hope that this listing helps them continue to offer the vital support that they provide to the parents and children who need them so much.

I would also like to comment briefly on the AE2 Commemorative Foundation. It is a fantastic organisation. What this is about is ensuring and dealing with the issue of the fate and the future of the Australian submarine AE2. Talking to the organisation, I found that they are pleased with this status listing for them because it will make the source of funding much more available from individuals and organisations. Many philanthropic organisations have a requirement in their charter about the status of who they donate money to. The AE2 Commemorative Foundation is hoping to raise $2 million plus. In fact, as recently as the Anzac Day period, they were meeting in conferences in Istanbul to talk about the future of the AE2. There have been plenty of grandiose schemes to raise the AE2, but it has been decided to leave the AE2 to lie on the bottom. Instead, the foundation will protect and preserve her and educate people about the AE2.

Having welcomed the listing of these organisations for deductible gift recipient status, I find it extraordinary that to recognise such legitimate efforts on behalf of people we have such a complex process, requiring the amendment of the tax act in the manner in which we are doing it. Perhaps it is time for fundamental reform of charities legislation and for an appropriate piece of legislation which captures the specific work of charities and not-for-profit organisations. I commend the legislation and these organisations—the organisations listed, especially in schedule 6, and the other 20,000 organisations and, indeed, all of the not-for-profit sector. Perhaps they deserve better. Perhaps we need to provide better legislation, better regulation and greater support for the invaluable support that they provide to the Australian community.

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