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

I rise to support the passage of the Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008, the Appropriation (Economic Security Strategy) Bill (No. 1) 2008-2009 and the Appropriation (Economic Security Strategy) Bill (No. 2) 2008-2009. The last few months have proved to be hard yards for global finance and local confidence. Every economy in the world has been going through a horror stretch, has been brought to a crisis point—there has been HBOS in the UK, Lehman Brothers in the US, Landsbanki in Iceland, Hokkaido-Takushoku in Japan—and has been tormented thereafter by even worse possibilities.

And we are not immune from these devastating aftershocks of the credit crunch—with corporate carelessness, the trashing of communities and threats to neighbourly trust—though I believe we are better placed than most other countries to weather the storm. But we are not safe from the lightning, the hail, the great winds and the turbulence. We are feeling the impacts now, and we will feel them far into the future. Our Prime Minister, Kevin Rudd, has taken decisive early action to protect us from damage, but we must be vigilant because, as in the case of bird flu, if we are not vigilant then we will catch this disease.

More than 25 banks thus far have gone down or have been narrowly bailed out, if only for a time. The US and Europe are on the verge of recession, and even the economic conquering leviathan, China, is now walking with less certain steps. Australia is not safe. We too can be drawn into this awful whirlpool and see our best intentions drowning around us. There are no quick fixes, as the trillions of dollars lately announced around the world to help markets have shown. What is needed to take us out of this maelstrom is that which cannot automatically be commanded, ordered, fabricated or bribed into existence—that is, confidence; the confidence to say in global chorus, ‘Yes, we can.’ For, although we have nothing to fear in the long term, this fear in the short term can be corrosive. China has surprised us, I believe, and done well in the past few days, generously supporting its economy and, indeed, therefore the Australian economy, but whether it is enough remains to be seen.

The Rudd government has committed $10.4 billion through its Economic Security Strategy to help vulnerable pensioners, carers, people with disabilities and struggling low-income families. The bank deposits of all Australians, even the Leader of the Opposition, have been guaranteed by the Economic Security Strategy, whose elements included $4.8 billion as a down payment on long-term pension reform. Single pensioners are to receive a lump sum payment in December of $1,400 and pensioner couples will receive $2,100. Carers are to receive $1,000 for each person they care for—one of the single-largest transfer payments to people with disabilities in the history of Australia’s Federation. There will be $3.9 billion in payments to the families of eligible children under family tax benefit part A. That is $1,000 per eligible child, and we understand there are around 3.8 million eligible children, and their families will receive this valuable assistance before Christmas. This package will double the first home buyers grant to $14,000 and triple it to $21,000 for those who buy a newly constructed home. The number of productivity places will be doubled to 113,000 in this financial year and the government’s nation-building agenda will be brought forward, with new schools and bridges—all of the necessary developments that this nation needs and which were sorely neglected.

The Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 delivers immediate financial support to pensioners, seniors, people with disabilities, carers, veterans and families with dependent children. The payments to pensioners are an immediate down payment on long-term pension reform—long term and long overdue. These payments will help them get through the eight months between now and when the reforms will hopefully be in place at the beginning of the next financial year. Our elderly are already suffering and will have to put on brave faces and tighten their belts with this economic crisis, but at least we have a government that is concerned and standing alongside people. That is why we are backing these pensioners up for a period until better times emerge, provided that the self-servers in the coalition allow these measures through the parliament and do not fight them, line by line, as their leader, ‘Rumpole junior’, is wont to do.

Unlike the Leader of the Opposition, we are not going to exclude two million carers, people with a disability and married pensioner couples from this payment—this relief, this minimal mercy ahead of longer term reform. Unlike the opposition, we will not deny the millions of pensioners, carers and distressed families the mitigation of their distress. Unlike the Leader of the Opposition, we are not going to shut the door on needy, pressured, buffeted people who are up against it now as never before.

These payments recognise the additional costs single pensioners face relative to couples. For the first time, lump sum payments are being extended to include disability support pensioners, people I have come to know in my time in the portfolio—decent, strong people who have often been struck down by a fate they did not choose or cause. The Rudd government recognises that many people with disability face barriers in society and are struggling with cost of living pressures during this time of global financial uncertainty. For the first time, lump sum payments are being extended to include more than 700,000 disability support pensioners. Carers will also benefit from these payments. The lump sum payment of $1,400 to single pensioners and $2,100 to pensioner couples will be paid from 8 December 2008—three weeks from now.

We have received positive and glad responses to the announcement of the government’s Economic Security Strategy from the National Seniors Association, Carers Australia, the Combined Pensioners and Superannuants Association, the Fair Go for Pensioners Coalition and National Disability Services. National Disability Services, which is an organisation that represents non-government disability service providers across Australia, expressed its support to this package in its media release of 14 October. As its chief executive, Dr Ken Baker, said in that release:

These increases will help ease the financial pressure on people in receipt of Disability Support Pension or providing care and support for a person with disability, while the Government decides on reforms to pensions.

The Rudd government are staying the course. We will keep the faith in the midst of this most difficult economic maelstrom, roaring planet wide. We are adding $4.8 billion to the $7.5 billion in our first budget to bring $12.3 billion to pensioners, carers and seniors. This improvement will commence on 8 December and will sweeten, however frugally, some Christmases, New Years and family reunions. There will be no need for a claim; the payments will not count as income for social security, family assistance or veterans entitlements purposes; and they will be tax free. Payments will be made to people who are receiving any one of a range of qualifying social security and veterans entitlements payments as at 14 October 2008. These qualifying payments include: age, disability support, wife, widow B and veterans service pensions; income support supplements; carer payments; and partner, widow and bereavement allowances.

People who on 14 October 2008 were receiving the age pension, parenting payment, special benefits or Austudy or Abstudy living allowance will also attract the payment. The payment will also go to self-funded retirees who on 14 October 2008 held a current Commonwealth seniors health card and to holders of the Veterans’ Affairs gold card who were also eligible for the seniors concession allowance on that date.

The Economic Security Strategy for this group of Australians will provide $1,400 for singles or $2,100 for couples if both members receive a qualifying payment and $1,050 if only one of the couple does. People receiving carer allowance as at 14 October 2008 will get a separate $1,000 payment for each eligible person cared for. If the carer allowance for one care receiver is shared between two or more carers, the Economic Security Strategy payment will be similarly shared. Where receipt of one payment of carer allowance depends on the person providing care for two care receivers, the payment will also be $1,000.

Families with dependent children will also get an Economic Security Strategy payment. A payment of $1,000 will be made for each child who attracts family tax benefit part A as of 14 October 2008. The same $1,000 payment will be made for each dependent child who, as on 14 October 2008, either attracts or receives youth allowance, Abstudy living allowance or an education allowance under the Veterans’ Children Education Scheme or the Military Rehabilitation and Compensation Act Education and Training Scheme. If any of these qualifying payments for families is shared between two people under the usual rules for the payment, the Economic Security Strategy payment will be similarly shared. In my electorate of Maribyrnong over 37,000 people will directly benefit from Economic Security Strategy payments. Indeed, my electorate office has had a number of positive calls from relieved constituents who have complimented the Rudd government on their handling of the global economic crisis thus far and in particular on looking after the needs of the most vulnerable—the pensioners and families and first home buyers.

The Appropriation (Economic Security Strategy) Bill (No. 1) 2008-2009 and the Appropriation (Economic Security Strategy) Bill (No. 2) 2008-2009 are supplementary estimates bills being introduced as part of the government’s response to the global financial crisis. They seek appropriation authority from parliament for the additional expenditure of money from the Consolidated Revenue Fund to strengthen the national economy and support Australian households. Supplementary Estimates Appropriation Bill (No. 1) seeks a total appropriation of $146.054 million for the following initiatives. Firstly, it seeks an investment of over $117 million to create 56,000 additional productivity job seeker places in 2008-09. This funding for the Department of Education, Employment and Workplace Relations is for Certificate II, III and IV levels and in the next two years this government will provide for a total additional commitment of over $187 million to develop the skills that Australian industry needs.

Secondly, funding of $17.2 million is proposed to cover the administrative costs of implementing a one-off lump sum payment to Australian pensioners and families. The Department of Families, Housing, Community Services and Indigenous Affairs will receive some $16.5 million, with additional funds going to the Department of Veterans’ Affairs. The funding will allow the payment from 8 December of immediate financial support to Australia’s four million pensioners, carers and seniors and around two million low- and middle-income Australian families. The Department of Families, Housing, Community Services and Indigenous Affairs will also receive $11.55 million to conduct a public information campaign to ensure that those eligible to receive the one-off lump sum payment are advised of their entitlement.

Supplementary Estimates Appropriation Bill (No. 2) seeks additional appropriation to implement the government’s initiatives with respect to the first home owners scheme. Under the Economic Security Strategy the government will provide around $1.5 billion over two years to introduce the first home owners boost to stimulate housing activity by assisting more first home buyers to enter the housing market. In addition to the first home owners scheme, first home buyers who purchase established homes will receive an extra $7,000 to take their grant to $14,000 and first home buyers who purchase a newly-constructed home will receive an extra $14,000 to take their grant to $21,000. The first home owners boost will be available to eligible first home buyers who enter into a contract between 14 October 2008 and 30 June 2009. To implement the measure, Appropriation (Economic Security Strategy) Bill (No. 2) 2008-2009 proposes an appropriation of some $1.2 billion for the Department of the Treasury to pay to the states and territories. Those payments will cover the increased costs that the states and territories are expected to incur during 2008-09.

This package will provide a boost and a solace and a leg-up and a sigh of relief for pensioners, carers and families in need. It will provide a kick-start to the construction sector and will rekindle the Australian dream of a family home with a veranda and a backyard and a shed. It will provide a kick-start to new job training, new infrastructure and new and stirring dreams in the small towns and the regions of Australia. It will provide a way through the mire of the next few months and a pair of muddy boots in which to continue our journey to that fair go we all strive for. The Rudd government has been quick to act. It has been responsible, equitable and fair and has shown all the hallmarks of traditional Labor values. In times of greatest hardship the Australian people have always been able to put their trust in Labor to deliver. The Rudd government intends to deliver for all Australians, despite the self-serving logic of those opposite, whose mouths are gorged with sour grapes and whose brains teem with a viral ingratitude. The opposition men and women of Australia, unfortunately, will not get it and never will. I commend the bills to the House.

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