Janelle Saffin (Page, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Health and Ageing. Will the minister please explain to the House the impact on Australian households of the opposition blocking changes to the Medicare levy surcharge?

Nicola Roxon (Gellibrand, Australian Labor Party, Minister for Health and Ageing) Share this | Link to this | Hansard source

I thank the member for this question. It is particularly timely given the previous question about the sorts of tax relief that might be able to be provided in these difficult circumstances. The Rudd government’s plans to provide immediate tax relief to 330,000 Australians is being blocked by the Liberal Party opposition at a time when the Treasury spokesperson sitting opposite says that we should consider providing tax relief to Australians. It is her party that is blocking that relief being provided to 330,000 Australians immediately if the Liberal Party were to change their position. Our government’s decision to increase the thresholds is the first time that these thresholds have been revisited since they were established in that vastly technical way—over a bottle of whiskey with the former minister for health.

Since the government announced these changes, I am sure that many people, both on the other side of the House as well as on our side of the House, have been receiving correspondence from residents. It may be that as health minister I am receiving more of those than most. I thought that this would be a good opportunity to take the House through some of the examples of what working Australians are saying about the Liberal opposition blocking this measure.

Let me take, for example, David from Western Australia, who wrote the following on behalf of his son: ‘My son’s situation is a clear example of why it is grossly unfair to impose the levy on those earning just $50,000. With penalty rates, he earns $52,000 per year, or $750 per week after tax. He has an average mortgage on a three-bedroom home and pays $550 a week. His unavoidable expenses for utilities and car registration are $100 per week, leaving him with $100 per week for food, entertainment, clothing and fuel. If the government is refused the opportunity to amend the threshold, he will also be forced to pay health insurance out of what is left of his $100 a week.’ This is an example of a working person who is being let down by the Leader of the Opposition at a time when they can scarcely afford it.

I will read another example, this one from Mark in the ACT. He clearly articulates why the government has taken this step. He says: ‘I, like many thousands of Australian taxpayers, was forced by the Howard government into a lose-lose situation. The losers are the taxpayers; the only winners are the private health funds.’

This morning there was a glimmer of light—a small sign that maybe the Leader of the Opposition was thinking of changing his mind on this matter. This morning, the Leader of the Opposition said, ‘At a time when you want to stimulate the economy, raising taxes is not a very good idea.’ Here he has an opportunity to lower taxes. Here is a chance for him to put an end to this bracket creep, which every year has been catching more and more Australians unfairly in its clutches. I call on the Leader of the Opposition to do more than simply say that he believes in lowering taxes and instruct his party to vote for this measure to provide this relief to 330,000 Australians across the country. This is a real test of whether the Leader of the Opposition is prepared to provide tax relief. He can do it today in this House; he can do it tomorrow in the Senate. We put out the challenge: do you want to lower those taxes? Here is the opportunity.