Karen Andrews (McPherson, Liberal Party, Parliamentary Secretary to the Minister for Industry and Science) Share this | Hansard source

Deputy Speaker Wicks, can I start by saying that I believe this is the first time I have spoken while you have been in the chair. I congratulate you on your appointment to the speakers panel, and I am very confident that you will do an outstanding job.

I rise in support of Appropriation Bill (No. 1) 2015-2016 and related bills. At the outset, I want to make the point very clearly that this is a package of bills that in its entirety delivers the budget outcomes that we explained on budget night earlier this month. These outcomes include boosting small businesses, creating jobs, supporting working families, making our community safer and continuing to repair the budget—among many other positive announcements. It is about creating a dynamic, 'have-a-go' approach to keep our country heading in the right direction. But it is very much a complete package of reforms. I urge all members of the House, and especially all senators, to ensure they keep that in mind.

All households know that if you draw up a budget that is designed to achieve your goals, one that you know will keep you on the right path to steadily pay back debt and improve your position, then you cannot pick and choose which parts you decide to stick to. You cannot drop various aspects and still expect to achieve the same outcome. So this is my very clear message today: these budget measures are a package. They should not be cherry picked by Labor and the minor parties—as they are now doing. Labor has to recognise that you cannot just support spending measures; you have to go back to the savings measures to pay for them. That is basic household economics 101, and the Australian people actually understand that.

In fact, the community response to this budget has been overwhelmingly positive. I have spoken with local residents, and especially local business owners, in my electorate on the southern Gold Coast, and there is a real optimism and excitement that has been generated by this budget. That is perhaps not so surprising. There has always been a 'have-a-go' dynamic on the Gold Coast. Our rapid growth has been spurred by a spirit of advancement and an energy and vitality. It is exactly that sort of spirit that this budget is aimed at encouraging in every community across Australia. It really is centred on harnessing the talent and drive of our small business owners, mums, dads, young people and seniors. It is about encouraging initiative.

The budget, of course, is never delivered in isolation. It is as much a response to the challenges of the past year as a plan for the coming year. We all know there continue to be economic challenges, but the fact is, due to the management of the Abbott government, the Australian economic and budget position has improved. After years of going backwards, that is a significant achievement. Even with the largest fall in our terms of trade in half a century, due to falling commodity prices, our economic plan has helped Australia to have one of the fastest-growing economies in the developed world. As the Treasurer pointed out, nearly a quarter of a million new jobs have been created since the election. Retail sales are at record levels, and new dwelling approvals are at a record high.

Importantly, our timetable back to budget surplus is unchanged from last year. On this side of the House, we recognise that the burden of debt is a millstone around the neck of our nation, and we are doing something about it. Deficits over the forward estimates are reducing each and every year, from $35.1 billion in 2015-16 to $6.9 billion in 2018-19.

While we are heading in the right direction, as the Treasurer acknowledged on budget night we need to do more. This budget delivers jobs, growth and opportunity in a way that is responsible, measured and fair. The centrepieces of our budget are the $5.5 billion Jobs and Small Business package—the biggest small business package in our nation's history, and the $4.4 billion Families Package to give parents more choice and opportunity to work. I will say more about that shortly.

But there are a number of other positive measures that help deliver on our commitment to responsible government. These include: reforms that make our taxation, foreign investment, welfare and individual benefits systems fair and sustainable; $1.2 billion in new funding for national security and counter-terrorism measures, which builds on the $1 billion announced last year; and the continuation of the government's $50 billion infrastructure program.

There are also a number of reforms, that, while they have not received a significant level of media attention, help add to the overall balance of the budget. For example, funding for Tourism Australia has been maintained and there is new funding of $43.1 million over four years that will be provided to implement its Tourism Demand-Driver Infrastructure Grants Program. This is good news, particularly for my electorate, which relies on tourism as a major economic driver.

But, of course, the small business package is the big ticket item for the Gold Coast, as it is for so many communities around this country. Of all Australia's businesses, 96 per cent are small businesses, employing over 4.5 million people and producing over $330 billion of our nation's total economic output. In my electorate of McPherson there are around 15,000 registered businesses, and the Gold Coast, with around 57,000 small businesses, is known as the small business capital of Australia. So the Growing Jobs and Small Business Package is really positive news for our region. In fact, there are $3.25 billion in tax cuts for small business, and $1.75 billion in accelerated depreciation measures. Keep in mind that this is in addition to the benefits Australian small businesses are gaining from the abolition of the carbon tax.

For up to 780,000 incorporated businesses with annual turnover up to $2 million, we will cut the company tax rate by 1.5 percentage points, to 28.5 per cent. For unincorporated businesses with annual turnover of up to $2 million, we will provide a five per cent tax discount, capped at $1,000, through their end-of-year tax return. And, from budget night, small businesses with turnover below $2 million can claim an immediate tax deduction for every asset they buy up to $20,000. This is fantastic news for local Gold Coast businesses such as the brilliant Burleigh Bakery and beautiful Home Sweet Home Gifts, which I visited just last week.

The package also includes measures to reduce the red tape and regulatory impediments that hinder the growth of small businesses. It will encourage business start-ups and entrepreneurship, with start-ups being able to immediately deduct professional expenses incurred when they begin a business, such as legal expenses on establishing a company, trust or partnership, rather than writing them off over five years.

The package will also help employers to take on both inexperienced and mature workers. New measures will focus on making job seekers more employable, reducing the costs of taking on new staff, and bringing job seekers and job providers together. And that really is the social dividend that is the substantial part of economic growth—helping people to get a job, get ahead and create a better life. These measures will be of particular benefit to the Gold Coast, where I know youth unemployment continues to be of concern.

Our families package is also designed to assist families in getting ahead and provides more choice and flexibility when it comes to child care. Shift workers like police and nurses will have more support. Families on lower incomes will be better able to afford child care if they decide to take on more hours of work. The budget also contains measures to help the disadvantaged and ensure access to early childhood education for those children who need it most. I am also pleased we have provided certainty for seniors, with changes to the pensions asset test, ensuring it is properly targeted. This will mean more than 170,000 pensioners with modest assets will have their pensions increased by an average of $30 per fortnight and around 50,000 part pensioners will qualify for a full pension. We have also ensured that the pension continues to rise in line with average earnings. This will bring security to the 17,000 recipients of the age pension in McPherson. Also, we have announced that there will be no new taxes on superannuation, so as to provide certainty for retirees.

I could go on at length as there are certainly a lot of positives, but of course there is also belt-tightening, as there should be. Our foreign aid budget has been slightly reduced, we will tighten up further on welfare fraud, and we have ensured that paid parental leave is fairer by making sure that people access either their employer scheme or the government payment, but not both. We have also announced a crackdown on tax avoidance by multinational companies.

Overall, the feedback I have received as I talk with local residents is that this budget gets the balance right, and the clear indication that this package is right is the boost to consumer confidence. In the week following the budget, consumer confidence surged 3.6 per cent to its highest level since November. This came after a 1.7 per cent jump the previous week, according to the ANZ-Roy Morgan consumer confidence index. As ANZ chief economist Warren Hogan said:

The initial positive reaction of Australians to last week's budget is great news for the economic outlook.

This suggests to us that Australians believe the government has got the mix of medium-term fiscal consolidation and short-term support for the economy about right.

So, it is bitterly disappointing that Labor has been so carpingly negative about the budget.

I want to take some time in this debate to briefly outline the very positive measures in this budget for science. The Abbott government are committed to putting science at the heart of industry policy. The ongoing funding for science, research and development across government is a testament to that commitment. This is something that often goes unnoticed, but we are spending: $9.2 billion this year alone in science, research and innovation across government; approximately $5.8 billion over the next four years for science and research in the industry and science portfolio; $3.l billion for the CSIRO over the next four years, with increases year on year over the forward estimates; $485 million for Geoscience Australia; nearly $800 million, including more than $49 million in new money for the Australian Nuclear Science and Technology Organisation, ANSTO; almost $170 million for the Australian Institute of Marine Science; more than $580 million for the Cooperative Research Centres; and let's not forget $20.5 million next year to ensure the continued operation of the Australian Synchrotron. We are also spending $12 million to improve the focus on STEM subjects in primary and secondary education. This is a personal passion of mine and one that I will continue to advocate for very strongly.

Our government is taking realistic and practical steps to help promote STEM and to develop more research capacity in our universities, including $300 million for the National Collaborative Research Infrastructure Strategy. Overall, the commitment to science and research means that targeted and smart new investments in Australia's science and research capacity include almost $70 million in additional funding in the 2015-16 budget for the nation's leading scientific research organisations to build world-class infrastructure that will create stronger industry connections.

Our commitment to science does not start and end with the dollars. We have a passion and a vision for science which did not exist under the previous government. We have established the Commonwealth Science Council to advise on areas of national strength and priorities as well as current and future capability, and to suggest ways to improve connections. We will also have the National Science, Technology and Research Committee to provide operational perspective. The council has had its first of two annual meetings, and the committee meets regularly.

This year as part of our broader science agenda the government will develop a national science, technology, engineering and mathematics policy. I would like to take this opportunity to thank Australia's Chief Scientist for his work in this area. He certainly has done substantial work and very significant work, so congratulations and thank you to Professor Ian Chubb. We will implement new measures to boost commercial returns from Australia's research. We have announced national science and research priorities, and we will assess associated challenges and consider a new approach to the funding of national research infrastructure so that key facilities have a sustainable future.

The government is working very closely across the industry and the science community to get the fundamentals right. Now is the time to push the boundaries of knowledge, commercialise our bright ideas, nurture our scientists of the future and increase the capacity of our world-class science and research agencies. We will foster a 'have a go' approach in the science community, just as we have in the business community and in the broader community. That is fundamentally what this budget is all about. Labor and the minor parties should do the right thing and not stand in the way of this budget being passed in its entirety. It is the only responsible thing to do.

This budget delivers responsible government in the national interest, and this is what the Australian public expect and want from us. I commend the bills to the House.

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