Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Hansard source

The question was about tax and what the government has done on tax. We have been absolutely clear cut about honouring our commitments for tax cuts—some $44 billion of them—for low- and middle-income earners.

Secondly, we have been absolutely clear cut that, when it comes to the use of additional public revenues, we do not believe—as those opposite believe—that Porsche drivers need further income tax relief. Those opposite are about to give them a tax break in terms of the luxury car tax. But do those north of 180 grand need an extra $3 billion to $4 billion? I would have thought not. Therefore, what we did with that money—and I say this to the member for Wentworth—is we said to working families, ‘If you are spending money on your kids’ education in primary school and high school, you should keep those receipts and then, at the end of the financial year, we will provide you with a tax refund at different levels for both primary school and secondary school students.’ It is $750 a year for primary school students and $1,500 a year for secondary school students.

That is a measure which, from memory, cost something in the vicinity of $3 billion to $4 billion. We believe that is a very significant measure. For example, if those at home wish to add to the digital revolution occurring in the classrooms of Australia, as a consequence of the policies of the government, by assisting with their kids buying a home computer and getting internet connections at home, that becomes a tax deductible expense for the future. As a consequence of that, we are making it easier for working families to provide for their kids’ education.

On the question of child care, there is the increase in the childcare tax rebate from 30 per cent to 50 per cent. I do not recall those opposite actually saying anything about boosting the childcare tax rebate from 30 per cent to 50 per cent prior to the last election.

So on the education tax refund, Member for Wentworth, you are wrong. On the question of the childcare tax rebate, you are wrong. On the question of your predisposition to provide $4 billion worth of funding for those north of 180 grand—

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