Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Hansard source

Firstly, I'd like to thank those members who contributed to this debate on the Treasury Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Bill 2018. I particularly thank the member for Gilmore, who I think has set the matter out incredibly well. A stronger economy means the government no longer needs to proceed with the change in the Medicare levy as we advised before the budget this year. It also means the government is able to increase the Medicare levy low-income threshold as set out in this bill.

Through our plan for a stronger economy, the Turnbull government is guaranteeing essential services that Australians rely on. Funding for Medicare has been guaranteed in legislation by this government, as we promised we would—another commitment kept. But there's a much stronger guarantee that this government provides for Medicare, for the Pharmaceutical Benefits Scheme, for social security payments, for childcare support, for schools funding, for hospitals funding and for any area of essential service and support that the government provides. And that is that this government has a plan for a stronger economy that's delivering. The Labor Party can make whatever claim they like about what they think they're going to spend, but if they don't have a plan for a stronger economy they can't pay for it. And, when they hear 'revenue', all they hear is the need to increase taxes. When we hear that, we know the need to create a stronger economy that generates the revenue—not to tax the economy out of existence.

A stronger economy is what guarantees Medicare. A stronger economy is what guarantees schools funding. A stronger economy guarantees the essential services that Australians rely on. Essential services aren't guaranteed by politicians making promises, like the Labor Party does. They're guaranteed by governments that know how to support and grow an economy—as this government has overseen, with more than a million people getting jobs over the last five years. A million people have got jobs over the last five years. That's a simple fact, and they've been created by Australian businesses. Australian businesses have created those jobs—Australian businesses that have been benefitting from the pro-business, pro-economic policies that enable them to grow.

The Labor Party has a proposal for business and the economy, and that's to tax them out of business. If you tax businesses out of business, what happens is you don't have the money to guarantee Medicare and you don't have the money to list important life-saving drugs on the Pharmaceutical Benefits Scheme. If you don't have policies for a stronger economy, you don't have a policy for Medicare. If you don't have a policy for a stronger economy and a plan, you don't have a policy for the Pharmaceutical Benefits Scheme. All you have are glib promises that you can't back up.

This bill ensures—and demonstrates once again—that, through the strong economic and financial management of the Turnbull government, we are in a position to be able to move forward on this measure. The bill will assist Australians on low incomes by continuing to exempt them from paying the Medicare levy. These changes will ensure that low-income households who did not pay the Medicare levy in the 2016-17 income year will generally continue to be exempt in the 2017-18 income year if their incomes have risen in line with or less than the consumer price index. For individual taxpayers, no Medicare levy will be payable for those with a taxable income that does not exceed $21,980 in 2017-18, which has increased from $21,655. Single senior pensioners with no dependants who are eligible for the seniors and pensioners tax offset will not incur a Medicare levy liability if their taxable income does not exceed $34,758 in 2017-18, which has increased from $34,244. As well as these individual thresholds, further relief is available for low-income couples and families. The amendments to the Medicare levy low-income thresholds apply to the 2017-18 year of income and future income years.

Again, the government's plan for a stronger economy is delivering more jobs and it's guaranteeing essential services that Australians rely on—and it is making sure that we do all of that while ensuring that the government continues to live within its means. That is at the heart of the government's approach to guaranteeing those essential services. It's something you can take to the bank—because, if you have a stronger economy, you can take it to the bank. Otherwise, it's just a promise that you have to take back to the Labor Party—a promise that they can never deliver on because they cannot run a stronger economy. But I welcome Labor's support for this bill. They are just fortunate that there's a Turnbull government in place that can run a strong budget and a strong economy that can pay for it. I commend the bill to the House.

Question agreed to.

Bill read a second time.

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