Keith Pitt (Hinkler, National Party) Share this | Hansard source

As the member for Dawson says, it helps them with their medical costs. It helps them with their day-to-day living. This is a source of income for them. They are entitled—they are entitled—to get that refund like every other Australian. What are they suggesting? That people should give up all the things they've worked hard for and invest in something else, which they're then entitled to get a tax return on because those opposite want to take a massive $200 billion tax grab from the Australian economy and take a hammer to the Australian economy. I think this is just outrageous.

The candidate for the Labor Party in Hinkler has doubled down. He has gone out on social media and said that Labor will end this tax loophole. It isn't a tax loophole; these people are entitled to a rebate. It is the same for every single Australian. The comebacks on Facebook have been pretty solid. I looked at what's been put forward by Mr Jesse Zielke. I know Jesse. Jesse is a local builder and he's told me outright that he supports a different side of politics. And he's entitled to: this is a democratic system and you can vote for whoever you like. But I think what he says is important as a response to what the Labor candidate has put forward. He says:

To put it even more simple, it's the same as an employer paying an employees tax on their behalf. I'm no where near retired and think this is just plain wrong, the shareholder is paying tax and the same shareholder is a retiree who's managed to make some good decisions in life and reduce the burden on claiming a pension which actually saves a lot of money. Happy to support good policy, but this is just wrong.

And it goes on. There are endless letters to the editor, including one from Brian Reynolds. He's pretty straight up and down. He says:

Labor's tax on the vulnerable is ridiculous, unfair, infantile, stupid and unsustainable.

In fact, he suggests:

… Labor shows a complete lack of understanding of financial matters.

He goes on:

If Labor will steal from the elderly and most vulnerable Australians, they will have no problem keeping tax returns from others in the future.

I've got to say that I continue to be surprised that Labor haven't changed their minds and backed off, because this is taking money from the people who desperately need it, who are entitled to it, who get the return and have set up the structures for their retirement many years in advance, and Labor simply want to rob it from people's pockets. That's it—$2,200. What does the Labor candidate think? He thinks they're rich and they've come from capital cities—and I say shame on him. That is very, very ordinary.

Getting back to the bill, the Pension Loans Scheme provides fortnightly income payments at a reasonable rate of interest to people who have receive a reduced rate of income support pension or do not receive any income support pension because of the income or assets test. Payments are made for a short period of time while the person's income and assets are being rearranged or may be made for an indefinite period. A loan under the Pension Loans Scheme can be repaid in full or in part at any time. The full amount of the loan plus interest owed at the time of the death of the person will be recovered from the person's estate. There is quite a lot of detail in the bill, of course. I don't intend to stand here and regurgitate all of that.

The legislation increases the work bonus threshold from $250 to $300 per fortnight for those individuals who choose to do some more work. I look at my own family. My father is 74. They still run an extensive harvesting contract business. They've reduced their farming operations, but he goes to work because he enjoys it. I think that the opportunity for those individuals to put a little bit more in the tin is very helpful for them, and I think it's in the best interests of all. This also means that the first $250 of fortnightly employment income is not counted under the pension income test. The legislation amends the current rules for lifetime income stream to create fairer, more equitable means test outcomes. Once again, this is well supported across the parliament and makes a very, very reasonable contribution to those older Australians who have certainly done a lot for us. They have been stoic. They have dealt with incredibly difficult times throughout their lifetime, whether those are world wars, local wars or difficult times through floods and droughts. They have contributed to Australia. They have made Australia a better place, and we should look after them and provide them with opportunities.

I note that the member for Dawson is in the House and is very keen to make a contribution. I say again to the Labor candidate for Hinkler: 'You should change your mind on this. You have a dug a hole for yourself. You have not only called those people in my electorate rich but said they are trying to dodge taxes through a tax loophole without getting a small and meagre return that helps them to pay their bills.' I think it is an outrage and he should be called out for it. I thank you, Deputy Speaker Hastie, for the opportunity to make a contribution. I support the legislation.

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