Sid Sidebottom (Braddon, Australian Labor Party) Share this | Hansard source

I am very pleased to be able to speak on Appropriation Bill (No. 1) 2008-2009, Appropriation (Parliamentary Departments) Bill (No. 1) 2008-2009, Appropriation Bill (No. 2) 2008-2009, Appropriation Bill (No. 5) 2007-2008 and Appropriation Bill (No. 6) 2007-2008. In effect, this is a discussion of and an assessment of the 2008 Rudd Labor government’s first budget. This budget is framed, as we all know, at a time of countervailing forces, with turbulence in financial markets abroad and comparatively high inflation in Australia. Despite the denials of those opposite and their refusal to accept the Reserve Bank’s continuing warnings on the issue, Australia’s underlying inflation is currently running at 16-year highs. Thus with slower global growth and the impact of higher interest rates, the economy is expected to slow to 2¾ per cent growth in 2008-09, and this budget is accordingly premised on these expectations. It is a realistic, responsible budget which delivers on Labor’s election promises on the macro and micro levels, seeks to keep inflation in check and interest rates as low as realistically possible and invests in key areas of social and economic health of our nation, both now and into the future. In addition, the Rudd Labor government has committed to a comprehensive review of Australian taxation to be led by Dr Ken Henry, Secretary of the Commonwealth Treasury. The review will address all forms of Australian taxation, including state and local government taxes and also including income for retirees and the aged.

As promised, this budget has rewarded working families. As promised in the lead-up to the 2007 election, working families will be assisted through the $55 billion Working Families Support Package, which includes some of the following: tax cuts of $46.7 billion over four years; an increase in the childcare tax rebate to 50 per cent; the introduction of a 50 per cent education tax rebate; the $2.2 billion housing affordability package, which includes a First Home Savers Program whereby the government will contribute 17 per cent for the first $5,000 saved each year; and the fact that from 1 July 2008—and this is often forgotten in all the broad sweep of this budget—part-time workers will be able to earn up to $14,000 without paying tax, up from the current $11,000. Consistent with our commitment to responsible economic management, the government will put fairness and integrity back into the income tax and transfer systems by better targeting benefits to families and making income-testing arrangements more comprehensive and more equitable.

Importantly—and this is often overlooked—we made a commitment to make federalism work, and work better. The government will continue to work cooperatively with the states and territories to implement a modern federation that can meet the challenge of a modern economy. We are already working together to develop reforms in the priority areas of health and ageing, education and training, climate change and water, infrastructure, business regulation and competition, housing and Indigenous disadvantage. These reforms, underpinned by the new federal financial framework of streamlined specific purpose payments and reform based national partnership payments, will assist in improving productivity and workforce participation. This framework will provide the states with greater funding certainty and budget flexibility, while enhancing accountability and transparency. There is a commitment that no state will be worse off from these reforms and that incentive payments will be in addition to—I reiterate: in addition to—existing payments.

Another hallmark of this budget and our promise to the Australian electorate is that we would invest in our future—that we would fund for future priorities. The government will invest budget surpluses from the 2007-08 and 2008-09 budgets in three nation-building funds: the Building Australia Fund to finance transport and communications infrastructure such as roads, rail, ports and broadband; the Education Investment Fund to fund higher education and vocational education and training facilities; and last, but by no means least, the Health and Hospitals Fund, whereby funding will occur for health, hospitals and medical research facilities, projects and technology equipment. I was very pleased that the Minister for Health and Ageing and the Prime Minister only yesterday announced a further tranche of that very important funding, particularly to tackle waiting lists and the provision of equipment for our hospitals that are doing a good job but under a lot of pressure. With transfers from the Higher Education Endowment Fund and the Communications Fund—which will be absorbed into the EIS and the BAF respectively—these funds will provide in the order of $40 billion for future capital investment. I understand disbursements from these funds will be subject to rigorous evaluation and an assessment of the macroeconomic conditions in the years in which payments are made. The government will make further contributions to the funds from future surpluses as appropriate.

Where funds are used to finance projects with the states, they will be disbursed to the states through a new Council of Australian Governments Reform Fund. The COAG Reform Fund will also disburse funding provided from the Commonwealth budget to the states for national reforms through National Partnership payments. These funds underpin our commitments to investing in Australia’s future prosperity in the areas of transport and communications, education and health facilities, which are so important to all the members that I can see in the House at the moment. In terms of infrastructure, a $20 billion Building Australia Fund is a central plank in our policies to lift Australia’s productive capacity and international competitiveness by providing leadership on national infrastructure planning and provision. This includes the establishment of Infrastructure Australia, implementation of AusLink land transport commitments and funding for Better Regions projects.

We also promised to commence an education revolution that is so necessary for the future of this country. The education revolution is also integral to lifting the participation and productivity of Australia’s workforce through an investment of $5.9 billion over five years in education and skills. Education and employment are also at the core of the government’s social inclusion aspirations. As part of the education revolution, a range of early child education and care measures worth over $800 million over five years are being taken forward, including universal access to early learning centres and services for children in the year before formal schooling. There are also 260 childcare centres, including an early learning autism centre to be located on the north-west coast in my electorate of Braddon.

The majority of these measures are being progressed through COAG. The government has also committed $500 million in 2007-08 for the capital requirements of universities, primarily for teaching and research infrastructure. In addition, the $11 billion education infrastructure fund will fund capital investment in higher education and vocational training. In future the EIF could be extended to include school infrastructure as further contributions are made to the fund.

In terms of the infrastructure funds, the Health and Hospital Reform Plan plays a central part. The government will spend $3.2 billion on the Health and Hospital Reform Plan to revitalise the health system. This will deliver on election commitments including the $300 million investment in public hospitals agreed to at the March COAG meeting; GP super clinics, two of which will be located in Devonport and Burnie in my electorate; reducing elective surgery waiting lists; improving dental health; and strengthening the care for older Australians. The government has also established the $10 billion health and hospitals infrastructure fund to provide additional investment in hospitals and health infrastructure and medical projects. There are also a range of preventative health measures aimed at reducing childhood obesity, improving nutrition and increasing participation in sport and physical activity. Indeed, these do not get as much coverage as when we discuss hospitals in our communities, but I think that preventative health measures and primary health care are very important because they will actually affect demand for our hospitals in the future. Perhaps that is what we should be discussing a lot more in this place.

Finally, meeting the longer term challenges of climate change and water security are at the heart of this budget as well. The government will provide funding of $2.5 billion over five years focused on the three pillars of the government’s climate change policy. I will reiterate those: helping to shape a global solution—that is, indeed being part of it and recognising it; adapting to unavoidable climate change; and reducing Australia’s greenhouse gas emissions primarily through an emissions trading scheme. I, like all members in the House, look forward to seeing more details of that scheme and being able to assist people to be part and parcel of it. This will include $500 million over seven years for the National Clean Coal Fund, $300 million over five years for green loans to help households install water- and energy-efficient products, and $150 million to assist countries in the region to prepare for and adapt to the effects of climate change.

I will now get to more specific details of the budget as they affect my beautiful state of Tasmania and more specifically my beautiful region on the north-west coast of Tasmania, and of course I always include the jewel in that crown, King Island. Again, I invite you all to visit some time in the very near future, particularly you Minister O’Connor. I would love to see you very soon.

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