Ross Hart (Bass, Australian Labor Party) Share this | Hansard source

The two appropriation bills that we have before us in the House provide appropriations from the consolidated revenue fund for the annual services of the government for the remainder of 2017-18 and facilitate implementation of a number of 2017-18 Mid-Year Economic and Fiscal Outlook, or MYEFO, measures. A total of around $1.5 billion is sought for the remainder of the 2017-18 financial year. These amounts are already incorporated into the budget bottom line as presented in the 2017-18 MYEFO. The Labor Party will support supply, but I don't think we can let the opportunity pass to examine in some detail the priorities of this government as demonstrated by its budget.

What this budget delivers is tax handouts for multinationals and millionaires whilst hurting every Australian family in the name of discredited trickle-down economics and, all the while, peddling the distortion that Australia's corporate tax rate is internationally uncompetitive. It demonstrates a clear lack of vision and highlights just how out of touch Prime Minister Turnbull and the Liberals are with everyday Australians.

The constituents in my electorate of Bass have little interest in the Prime Minister's $65 billion tax cut for big business in that they cannot see any connection between giving big business a tax cut and the claim of more jobs or increased jobs in the electorate of Bass. What they are concerned with is the day-to-day cost of living, paying their bills and having opportunities for them and their families to get ahead. What they also see, in contrast to what the government trumpets in its economic plan based around tax cuts for big business, is a government that fails to stand up for those who have lost part of their income through cuts to penalty rates. They see a government that does not stand up for our maritime workers, for example, or, in the face of the outsourcing of Australian jobs and the destruction of our car industry, for our manufacturing workers. They see a government that does not stand up for the individual.

Budgets are about making choices, and you can see what choices this government makes, writ large, in the budget and its so-called economic plan. The government underinvests in education whilst claiming the implementation of Gonski. It claims record investment in health care whilst negotiating long-term funding agreements that see more and more money being ripped from our public hospitals. It also fails to understand that investment in our universities and in technical and further education will drive economic growth. That investment would also drive future employment, supporting healthy communities where working-class and middle-class Australians—middle Australia—can aspire to home ownership and a decent standard of living.

The government continually seeks to justify the increase in taxes for ordinary Australians on the basis that the NDIS was not properly funded, despite the evidence within the budget papers that establishes otherwise. In any event, why should anyone accept the word of the government as to whether the NDIS was funded or not, when this government of no ideas and no-hopers proposes an unfunded $65 billion handout to big business as the central plank of their economic plan? This economic plan increases the tax burden on low- and middle-income earners whilst reducing the corporate tax rate, without regard to the average corporate tax rate paid or, indeed, the effective corporate tax rate, which is amongst the lowest in the world. This approach is economic vandalism.

This is the same government that spoke of a debt and deficit disaster, that sought to penalise young people by refusing access to Centrelink benefits for six months of each year. However, it's failed to do anything that is fiscally prudent to reduce the deficit and our national debt, whilst at the same time it's proposing to hand out tax cuts. Labor in contrast has proposed responsible savings that significantly improve the budget over the medium term, including ensuring that multinationals pay their fair share. We have also ensured that reforms to negative gearing and capital gains tax will address not only housing affordability but also the budget bottom line.

Finally, reforms to the taxation of trusts are long overdue. We on this side of the House know that it's possible to use trust structures in a manner that reduces the tax burden of high-income earners. The government must surely know that reform in this area is necessary to ensure fairness within our income tax system, but it refuses to do anything meaningful to ensure taxation compliance.

We on this side of the House know that investment in education drives economic growth and, in particular, is instrumental in combatting disadvantage. Economic analysis undertaken for the university sector suggests that the mere presence of more university graduates in an economy drives increases in wages for non-university graduates. In other words, at its most basic, the presence of more university graduates within an economy is likely to be a positive influence on the local economy. This has direct relevance in my home state of Tasmania. Federal, state and local government have recognised and supported the University of Tasmania's transformation project, which is not just an infrastructure project; more importantly, it's also tasked with improving the presence of university graduates within the Tasmanian community and the associated beneficial effects on the Tasmania economy. The Liberals' response, despite their welcome investment in the University of Tasmania transformation project, is to cut funding to the university sector. Students are also being saddled with a higher debt associated with higher education.

We know that investment in public education produces significant benefits for our wider communities. Time and again, whilst door-knocking, I had useful conversations with constituents about the importance of ongoing investment in education. Every parent knows that investment in education produces a benefit for that person's child or children. Every person should know that investment in education produces general benefits for our community in a very real sense. Every person needs to be comforted that investment in the education of a child living over the road is of real benefit to the local community. The child next door receiving a good education means that that person is likely to receive the best possible opportunity in life in order to obtain employment and play a fulfilling role in society. In this respect, there is a direct connection between investment in education, education outcomes and community benefits, but in Tasmania the state Liberals are also missing in action on education. We also know, for example, from experience in the United States and elsewhere, that programs like Justice Reinvestment and programs designed to divert offenders or those most likely to offend from the justice system have a heavy reliance on education. Just as the social determinants apply to predicting health outcomes, so too does educational attainment have a linkage with offending, incarceration rates and more general disadvantage. Choices were made by this government to favour $65 billion worth of tax cuts rather than additional investment in universities and TAFE.

This government speaks about record investment in infrastructure, but its actions in advancing infrastructure projects demonstrate either extraordinary cynicism or, in the alternative, breathtaking incompetence. Either the government promises record expenditure on infrastructure projects and deliberately constrains expenditure on that infrastructure or, in the alternative, it is so incompetent that it is unable to plan and deliver the infrastructure spend provided for in the budget. We recently had the absurd sight of the Deputy Prime Minister and Minister for Infrastructure and Transport responding to a question as to the underspending on infrastructure in the state of Tasmania, but making reference to Inland Rail, the Badgerys Creek Airport and other projects outside Tasmania. It also goes to show how ineffective the state Liberal government is in arguing the case for Tasmanian infrastructure. What Tasmanian projects the minister ultimately referred to were projects announced and commenced under the former Labor government.

This side of the House understands the importance of our public health system. The government protests that it supports Medicare, but this is like the very worst friend that any person could have, the friend who promises support but runs away at crunch time. This government extended the former Labor government's Medicare freeze beyond its original end date and as a result has made it more and more difficult for GPs to rely upon the Medicare rebate to bulk-bill. My community suffers from significant disadvantage. It is not possible for GPs in my electorate to maintain bulk-billing rates. I have consulted extensively in my electorate about the effect of the rebate freeze. There is no doubt that this government's cynical unfreezing of the Medicare rebate is more about appearances and less about providing practical relief to people seeking to access GPs. It's also significant to note that the program of unfreezing the Medicare rebate is extremely limited in scope, again failing to provide practical relief to people that need to consult their GP on a regular basis. This most affects the elderly or people with chronic medical conditions. Many constituents speak to me of the practical problem of trying to afford to pay the gap charged by a GP in maintaining their health. Sometimes it is impossible without accessing the public health system—in this case our overburdened emergency departments, which have been abandoned by the Tasmanian Liberals.

I congratulate the government for using our Labor commitment to fund the University of Tasmania transformation project as the central plank of the Launceston City Deal. I have spoken in this place about the potential of the Launceston City Deal and the fact that Labor will hold federal, state and local government, as well as the University of Tasmania, to the promises made which underpinned the City Deal. It is vitally important, nevertheless, that we consider the northern suburbs of Launceston and the redevelopment of the Newnham campus of the University of Tasmania. The Australian Maritime College, Australia's peak maritime training college, will remain at Newnham. There is great potential for Newnham to be redeveloped with a focus on advancement in research, the liveability of our city of Launceston and top-quality town planning principles so as to enhance Mowbray and Newnham and not diminish the present university campus at Mowbray. It is certain that the commitments made on a bipartisan basis to the development of Launceston need to be bold in realising the potential of our city not just for the university but with a focus on the liveability of our city, its heritage past, top-quality tourism, commercial development and the creation of a vibrant CBD and surrounds.

Above all, people within my electorate have a right to expect that we in this place do our best to create the conditions for the delivery of decent and secure well-paid work, particularly for those who may have been excluded from the benefits associated with the transformation of the Australian economy. The Liberals' insistence that tax cuts will facilitate increases in wages are hollow words, without positive leadership to support an increase in wages either at a state or federal level. Cuts to penalty rates send a message that corporate profits are more important than a wage earner's ability to support their family and that person's ability to make a decent contribution to our communities. Whilst at the time it was claimed that cuts to penalty rates would facilitate an increase in employment, there is little evidence that that is in fact the case.

There is much to be positive about for the future of Northern Tasmania around not only the implementation of the city deal but also significant private investment led by entrepreneurs like Josef Chromy, Errol Stewart and others. There are innovative businesses and service providers who time and time again demonstrate that innovation underpins much of what we do in Northern Tasmania. There are also tourism industry legends and icons like Stillwater restaurant, The Black Cow, Me Wah Restaurant and others in addition to the thriving food and tourism scene in southern Tasmania. It was wonderful to see a recent tweet by Nigella Lawson from one of my local restaurants, The Black Cow, singing the praises of the staff and experience at that restaurant.

This government lacks a vision for the future other than the hollow catchphrases of 'jobs and growth' and 'trickle-down economics'. Australia deserves better. Australians deserve better. They deserve better and well-paid jobs, secure employment, the opportunity to live fulfilling lives, decent education, health care and aged care. That vision is total lacking in the Treasurer's budget. That vision is not expressed when we turn up here to question time day after day. The Prime Minister keeps talking about an economic plan for the future which they are delivering. They keep talking about jobs, but they're not delivering higher living standards for anybody. The feedback we continually hear when we communicate with our constituents is all about the increased pressures from the cost of living and all about the fact that people cannot access decent healthcare. In my home state of Tasmania, much of the blame for that lies with the incompetent state Liberal government. But this federal government needs to own up to the fact that it has cut billions of dollars from the healthcare system, billions of dollars that would support ready access to our healthcare system.

Finally, I'm a very strong believer in investment and continued investment in our education system. Areas like Tasmania, which lag in economic terms behind the rest of Australia, really will benefit from continued and sustained investment in our education system and in our university sector.

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