Ian Goodenough (Moore, Liberal Party) Share this | Hansard source

I'm pleased to support these appropriation bills in their original form. They make provision for the moneys required to be appropriated from the Consolidated Revenue Fund for expenditure for the remainder of 2020-21 and for the new activities agreed to by the government since the introduction of the 2020-21 supply bills in March of this year. Appropriation Bill (No. 1) 2020-2021 proposes appropriations of approximately $36.8 billion, whilst Appropriation Bill (No. 2) 2020-2021 proposes expenditure of approximately $14.9 billion and Appropriation (Parliamentary Departments) Bill (No. 1) 2020-2021 proposes appropriations of approximately $141.7 million to support the functions of parliament, including security, new videoconferencing arrangements and the maintenance of assets and services.

This is an extraordinary budget for extraordinary times. The advent of the COVID-19 coronavirus has changed the world order in unexpected ways, disrupting trade, commerce, markets, plans and lives in a manner unseen in generations. The financial affairs of many of my constituents have been thrown into disarray, with reduced incomes, declining asset values and volatility surrounding their investments causing much anxiety and stress, particularly among retirees. People who once considered themselves to be financially secure and provident, for the first time in a long time have faced the stress of financial uncertainty. Mindful of the plight of our fellow Australians, our focus as a Liberal-National coalition government has been to act swiftly, first and foremost to safeguard the wellbeing of Australians and our communities, restore jobs, promote confidence and rebuild our national economy.

When the coronavirus shutdowns were first implemented and Australians directed to remain in their homes, it was distressing to see the long queues forming outside Centrelink offices across Australia, including around the corner from my own electorate office. Through the JobKeeper program, our government acted quickly to support around 3.5 million of our fellow Australians by enabling eligible businesses to keep workers in jobs through a wage subsidy for qualifying employees. This economic lifeline came at the very heavy cost of $101 billion. In hindsight, the system could have been improved to ensure that part-time workers did not receive more than their normal wages under JobKeeper and were incentivised to continue working when required to by their employers. However, most of these issues have since been addressed.

Young Australians in their prime are disproportionately represented in the unemployment figures, so our government is taking action to increase workforce participation for some 450,000 young Australians aged between 16 and 35, under the JobMaker program, by providing incentives for businesses to recruit additional employees. For those without the requisite work experience or training, the JobTrainer program is designed to provide up to an additional 340,000 places for school leavers and jobseekers in free or low-cost courses to boost entry-level skills needed in the workforce. The budget also contains $2.8 billion for the supporting apprentices and trainees wage subsidy to support businesses to employ up to 180,000 apprentices and trainees. These measures will benefit young people in my electorate as they transition to opportunities in the workforce.

For those who are retired or unable to participate in the workforce, the government has chosen to provide more support for discretionary spending to stimulate the economy. The government is mindful of the impact of rising cost-of-living pressures for those on pensions and fixed incomes. An additional $16.8 billion in income support has been provided for individuals, including extending the coronavirus supplement, and $12 billion in support of age and disability pensioners and other eligible recipients. On the other hand, for those of working age, the focus is on incentives to achieve increased workforce participation. Those who are able to work must be encouraged to do so, even if it means taking on temporary work in a new field for an interim period.

For the over 11.6 million hardworking Australians fortunate enough to remain in employment throughout the crisis, this budget delivers an additional $17.8 billion in personal income tax relief to support economic recovery, bringing forward the second stage of the government's Personal Income Tax Plan for 2020-21. Providing a one-off additional tax benefit will ensure that low- and middle-income earners receive tax relief of up to $2,745 for singles and up to $5,490 for dual-income families when compared with the 2017-18 settings. The majority of the benefits of reduced taxes will flow to those on incomes below $90,000, typical of many households in my electorate. As Liberals, we believe in returning more personal disposable income into the hands of individuals so that they may choose how best to spend their own hard-earned money. Discretionary spending drives our economy. Treasury estimates that reducing the personal income tax burden on hardworking Australians will boost GDP by around $3.5 billion in 2020-21 and $9 billion next year, creating an additional 50,000 jobs by the end of 2021-22.

The construction industry is a major sector within our economy that employs an estimated one million Australian workers. The Morrison government is supporting families and the home-building industry with grants of $25,000 to eligible owner-occupiers under the HomeBuilder program to build a new home or rebuild an existing home. There are more than 1,000 vacant sites in the City of Joondalup, so measures designed to initiate the construction of homes is beneficial to our local economy. This measure will support a range of local tradespersons and building contractors based in my electorate through a combination of greenfield development in new subdivisions and urban renewal in older suburbs. The issue of housing affordability is partially addressed with the grants helping many families enter into homeownership for the first time.

Many businesses in the Moore electorate are experiencing extremely difficult times due to the restrictions of international and interstate travel. A significant reduction in the number of international students and their visiting families has had a significant impact on the Joondalup economy, as has the decline in international and interstate visitors staying with family. From observation, retailers, service providers and food and beverage venues are not trading at optimum capacity. Turnover is down and cash flow is tight for many small businesses in my electorate. To assist, the Australian Taxation Office has changed its remittance arrangements to improve cash flow for eligible employers to between $20,000 and $100,000, benefiting around 800,000 small-business employers. The City of Joondalup's economic development unit, led by Nashid Chowdhury, has been proactive in engaging with local stakeholders, including the Joondalup Business Association, in forums and workshops to support local businesses through initiatives such as the development of a destination marketing strategy to attract more visitors to our region.

For viable businesses with a demonstrated track record of profitability, which would normally be profitable but for the coronavirus crisis, temporary loss carry-back measures have been introduced to allow companies with turnovers of up to $5 billion to offset losses against previous profits on which tax has been paid to generate a tax refund. It is estimated up to one million financially sustainable companies which employ up to 8.8 million workers will be eligible for loss carry-back relief. Losses incurred up to 2021-22 can be carried back against profits made in or after 2018-19. Eligible companies may elect to receive tax refunds when they lodge their 2020-21 and 2021-22 tax returns. This measure is estimated to deliver $4.9 billion in tax relief to businesses over the forward estimates and $3.9 billion over the medium term.

Focused on the future economic recovery, the budget introduces tax incentives such as temporary full expensing for productive assets which are designed to promote investment by the private sector in plans and equipment, boosting productive capacity and creating local jobs. Ninety-nine per cent of Australian businesses will be eligible. A wide range of businesses in my electorate will benefit from the full tax deductibility of assets such as delivery trucks, office furniture, commercial kitchen equipment, industrial machinery, power tools, earthmoving equipment, computers and electrical appliances.

The Morrison government is investing $1.3 billion through the Modern Manufacturing Initiative to support manufacturing research and development. With this funding, government will co-invest with our world-leading manufacturers to help them achieve scale, commercialise our world-leading research in intellectual property and connect with international markets. This will support commercialisation of some of the collaborative projects with industry being undertaken at the School on Engineering at Edith Cowan University, led by Professor Daryoush Habibi and his team. In addition the government is investing an initial $2 billion in the research and development tax incentive, supporting more than 11,400 companies which currently claim this incentive.

The budget allocates $245 million in federal funding to Edith Cowan University, based in my electorate, to establish a new campus specialising in creative industries, businesses and technology courses. A satellite campus, which will be based in Perth's central business district and house the Western Australian Academy of Performing Arts, is scheduled to open in 2025 at a total cost of $695 million, with the university contributing $300 million and the WA state government providing land worth $150 million. For residents of my electorate, it means a wider range of courses and subjects to choose from, access to a broader range of learning facilities, and educational resources to equip them for future careers in the workforce. This investment by the federal government transcends electoral boundaries. The Perth city campus will complement the courses offered at ECU's main Joondalup campus, based in the Moore electorate, and is expected to accommodate more than 8,000 students and 1,200 staff. During the construction phase, the project is expected to deliver $1.5 billion of economic activity and create more than 3,100 local jobs, adding to the government's economic stimulus program.

In our rapidly developing regional city of Greater Joondalup, investment in infrastructure is the key to meeting the needs of a growing population in Perth's northern suburbs. Since the onset of the coronavirus pandemic, $14 billion has been spent to boost demand and create jobs over the next four years, supporting 40,000 jobs over the construction period. This investment is part of the government's 10-year transport Infrastructure Investment Program, which has been expanded to $110 billion nationally and is already supporting 100,000 jobs across the nation. Locally, we will see the extension and widening of the Mitchell Freeway, grade separation of Ocean Reef Road and Joondalup Drive, the extension of the northern suburbs railway to Yanchep, upgrades to the Reid Highway and completion of the NorthLink project. The connection of Whitfords Avenue to a realigned Gnangara Road maintains a priority project, essential to promote economic development.

The budget provides an additional $3 billion towards fast-tracking shovel-ready projects that create jobs. This includes $2 billion to deliver small-scale road safety projects, as well as an additional $1 billion of funding for the Local Roads and Community Infrastructure Program. Funding will be provided to state and local governments, such as the City of Joondalup, on a 'use it or lose it' basis, ensuring that road upgrades and safety projects are completed within the agreed time frames. Locally, this will provide an economic boost to local earthmoving contractors, civil construction firms and a range of engineering consultants.

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