James Bidgood (Dawson, Australian Labor Party) Share this | Hansard source

People in my electorate welcomed the tax relief delivered in the budget just recently, and I have to say the member for Cunningham made some very good points in her speech previously. I would like to say that the people in my electorate deserve tax relief, and that is why this government has delivered tax relief in this financial year and, through the Tax Laws Amendment (Medicare Levy Surcharge Thresholds) Bill (No. 2) 2008, plans to deliver even more.

Starting on 1 July, those earning $40,000 per annum welcomed their extra $20.19 each week. Why wouldn’t they? When the childcare tax rebate increased from 30 per cent to 50 per cent, mothers were calling my electorate office saying, ‘What a wonderful move,’ and, ‘That was so much help.’ The baby bonus increased to $5,000 and a full tax credit was granted to petrol and diesel expenses, particularly for activities in commercial fishing and fish farming. This was good news and was very well received. I went up to Bowen in my electorate, to the Bowen Fishing Classic, where over 10,000 people attend for a long weekend to go fishing, and I can tell you they were very happy with some of the tax relief they have been getting.

People in my electorate of Dawson do not want budget measures blocked in the Senate. They do not want tax measures blocked that are going to save them money, put money in their pockets and help them put food on the table and petrol in the car. These are good policies that put money in the pockets of everyday working people and working families. They want the Liberals and the Nationals in the Senate to get out of the road, unblock the supply and pass these measures. My constituents do not expect or want the Senate to play politics and block key budget measures such as this. The Senate is the states house and senators should act in the best interests of the states they represent. Blocking budget measures is not the action of a responsible opposition. It proves that they are in no position to lead.

The member for Wentworth had a sterling opportunity to show real leadership and work for the national interest, not the Liberal Party’s interest, but he has absolutely and completely failed to do that on this issue. The member for Wentworth has failed in his first test as leader of his party to make things right in the Senate. If the member for Wentworth wants to show true leadership, he should give the command to the Senate: unblock the supply, pass these measures and give working families money in their pockets to put food on the table and petrol in the tank. That is what the people of this nation want. Is it his lack of leadership, his lack of judgement, or is it simply irresponsible? I tell you what: I will let the Australian people be the judge of that—and judge him they will.

The Liberals control the ultimate passage of this bill through the Senate, so the question of economic responsibility goes fairly and squarely back to them. I do, as the member for Cunningham has done, congratulate Senator Steve Fielding on his decision. He has shown pragmatism in the circumstances of the global economy and how that will affect everyday working people in this nation. The Prime Minister has called on the Liberals not to play short-term politics in the Senate, because the Senate is not the place for short-term politics.

In blocking tax relief for battlers, in unnecessarily taxing those on medium incomes, their flag is well and truly planted. What those on the opposite side truly believe is well and truly on show for all to see. The fact of the matter is that they have not changed. They paid no attention to what happened to them in the election in November last year. They were out of touch then and—guess what?—they are still out of touch now. They are not in touch with the everyday people of this nation, who are saying, ‘We want a government—the Labor Rudd government—to help us with our everyday expenses.’

Here is a measure that is going to do that directly and the Liberals and the Nationals in the Senate are deliberately blocking it. It is absolutely irresponsible. Those opposite should come clean and admit that the Liberal and National parties have denied working families a tax cut and are proud of it, plain and simple. That is a terrible place to be with the Australian people. They will not forget this. I again acknowledge Senator Steve Fielding, the Greens and Senator Nick Xenophon for the decisions that they are making.

We are reintroducing this bill because we want to deliver tax relief. We want to give a fair go to families on medium incomes. This bill will provide tax relief by adjusting the Medicare levy surcharge thresholds for individuals and families. The Medicare levy surcharge currently is a one per cent increase on top of the Medicare levy for individuals and families who do not have private hospital cover. The thresholds are currently set at $50,000 for individuals and $100,000 for couples and families. This bill will increase the thresholds to $75,000 for individuals and $150,000 for couples and families, and index these thresholds against wages growth into the future. That is a responsible thing for the government to do. That is a responsible thing for leaders to do. This is a responsible thing which any future leaders on the other side of this House need to take note of, and they need to get out of the way and stop blocking the supply.

This bill will deliver tax relief to working families struggling with household budgets. The truth is that since 1997, due to a failure to adjust the thresholds, the Medicare levy surcharge has become a tax trap that has caught more and more working families. This measure will deliver immediate tax relief to 330,000 Australians. For two average-income earners, each earning about $60,000, this will deliver a saving of $1,200 in its first year. Why is the opposition blocking this? Why is the opposition denying everyday working people the ability to have an extra $1,200 in their pay packet? Fifty thousand dollars is not a high income. It is certainly not a level to justify imposing a Medicare levy surcharge. Why would the Liberal and National parties be opposed to putting $500 in the pocket of someone earning a working salary of $50,000 who is forced to pay the Medicare levy surcharge right now? The Liberal and National parties continue to support slugging people in working families with a tax that was meant to apply only to high-income earners. The Liberals’ failure to adjust the thresholds when they were in government, and their stubborn refusal to support our proposal to do so now, brings into question whether they ever really intended it to be a tax that applied just to high-income earners in the first place.

We on this side of the House have delivered and want to continue to deliver tax relief to working families. Until now, those opposite have not. I hope the opposition will support the government’s Medicare levy surcharge bill and join with us in providing tax relief for hundreds of thousands of Australians. Remember: $1,200 a year may not be much to you but to the working families who are struggling it is a lot. I commend this bill to the House.

See this speech in context