Annette Ellis (Canberra, Australian Labor Party) Share this | Hansard source

Oh dear! How quickly things change in politics. I have sat here for the last hour or so and listened with great interest to a range of speeches from the opposite side. I have to say that I am just a teeny bit confused—though I am sure that if I settle down and think about it I might work it out—because such differing views have been put forward.

It is my privilege to speak this evening on the Appropriation Bill (No. 1) 2008-2009 and the related bills—in other words, the budget for this year—and I rise to support the appropriation bill and those related bills. This is a historic first budget for the Rudd Labor government. This budget—unlike those of the last 11 years, in my view—is designed to meet the challenges of the future and to strengthen Australia’s economic foundations. Broadly speaking, one of the most important elements of this budget is that it has been carefully designed to fight inflation. I am well aware of the hardship that rising costs and interest rates are bringing to all people, in my electorate and around the country.

When the government first came to office in November last year—that is just six months or 21 weeks ago—Australia was facing the highest levels of domestic inflation in over 16 years. That affects everyone. Just to give an indication of that, the price of bread has risen 18 per cent in the past two years alone. I believe that one of the best things that any government can do in these circumstances is to put all the effort they can into fighting that demon called inflation. But, if there is one thing that is going to help the household budgets in my electorate and in other electorates, it is to fight that inflation and ensure that we are doing all in our power to keep that pressure down on inflation and down on interest rates. I know the interest rates that my community and other communities have endured in past times have really put those household budgets under severe pressure. So the best thing for me and one of the most important things for my community is to know that they have a government which is determined to fight that inflation demon and to do what it can to keep control of the economy at that level.

Therefore I am particularly pleased that the first Labor government budget in over 11 years has started a new era of responsible, long-term economic management. The Rudd Labor government has gone beyond its commitment and has delivered a budget surplus of 1.8 per cent of GDP. It is applying an additional two per cent efficiency dividend to most Australian government agencies, producing savings of $1.8 billion over five years, and every single dollar of new spending is more than offset by savings. This is responsible, and it is something we have not seen at that level for quite a while.

For people living in my electorate of Canberra, there was good news over and above the issue I have just talked about, which I think is the most essential one. Local initiatives in the budget for the ACT and the immediate region have included $19.6 million for infrastructure investment in roads across the ACT, and that includes the Black Spot Program, which is continuing, and the continuation of $19 million in federal government funding for the duplication of the Barton Highway. There is also $500,000 to the ACT government for the renovation of the Albert Hall—something very dear to the Canberra community. It is our town hall; it is a very historic building. In fact, the first ever citizenship ceremony held in Australia was held there in 1929. The Albert Hall is held in great affection in this town. It is part of the national capital and the role we play here as the national capital. So I am very pleased with that initiative. There is also $8.2 million—an election promise delivered—to upgrade the Kings Highway through to near Bungendore.

The Rudd Labor government has delivered on its promise of tax cuts for low- and middle-income earners, with $46.7 billion in tax cuts over the next four years. This includes raising the cut-off for the 30 per cent tax rate from $30,001 to $34,001. Medicare will become fairer under our government. We are lifting the threshold for the Medicare levy surcharge from $50,000 to $100,000 for singles and from $100,000 to $150,000 for couples.

I am aware that there is a bit of a debate being urged along by some on the impact this policy may have on the public health system. To those who argue that it will cause a mass exodus from private health insurance and immense pressure on the public hospital system, I say this: those who use the private system and are possibly in this category are more likely to be younger people, who are not high users of the health system in the first place, anyway. People who are high users of the health system and who believe that private health insurance is of value to them will in fact stay in the system. I believe it is only fair to change that threshold to reflect the current economic climate in which we find ourselves.

The Rudd Labor government budget announced many benefits for older Australians. These included the one-off bonus of $500, the increase in the utility allowance to $500 and also an increase in the telephone allowance for those with internet connection. While I do not have time to go through all the details, I am pleased to see the Henry inquiry instituted, which will have a proper, serious, long-term look at pension levels and other tax questions that impact on that part of our community.

In regard to education in Canberra, we were very pleased here in the ACT with a $24 million payment to the Australian National University and more than $5 billion to the University of Canberra. Nationally, $533-plus million will be spent over four years to provide universal access to preschool—that is, 15 hours per week, 40 weeks a year, for all four-year-olds by 2013. This is a fantastic policy for early childhood education.

Rudd Labor will also ease the cost burden on families by providing the education tax rebate. This will allow parents to claim back $350 of school costs per primary school student and $700 of school costs per secondary school student. This government understands how important it is for families to have access to high-quality child care. From 1 July this year the childcare tax rebate will increase from 30 per cent to 50 per cent of out-of-pocket expenses for approved childcare costs. This will deliver $1.6 billion back to families over the next four years, with benefits ranging from $500 to $2,500 per year for the average family. Furthermore, the government will lift the cap from $4,254 to $7,500, indexed, per child per year, for approved child care. From 1 July, payments will be made quarterly instead of annually. These measures, without any doubt, will help parents to get back into the workforce and to undertake training and will definitely ease the burden of cost that they have been enduring in attempting to provide good child care for their children.

A couple of terms ago, I had the privilege of being a shadow minister in the area relating to carers. I am very well aware, from the work I was able to do then and from the work within the community, of the enormous personal sacrifices that carers make through their dedication and hard work and also, of course, of the impact that caring can have on their lives, their families and their lifestyles generally.

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