Jennie George (Throsby, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Health and Ageing. Will the minister explain to the House the benefits to working families of passing 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 Throsby for her question. She will be very delighted, as will her constituents, to know that the Senate, just before we commenced question time today, passed the Medicare levy surcharge bill. This means that working families earning under $140,000 or singles earning under $70,000 will get immediate tax relief as a result of these measures. Two hundred and fifty thousand Australians will receive these immediate tax cuts and for many people it will be $1,200 and $1,300 that is very much needed for working families at this time. At a time of economic uncertainty, an agreement having been reached in the Senate provides certainty to these hundreds of thousands of Australians. At a time of tight family budgets, it gives those families the choice about how they will spend their money. And at a time when economic stimulus is needed, it is putting money back in the pockets of 250,000—one quarter of a million—Australians. And at a time when there is, of course, importance in a strong budget surplus, this is delivering $380 million to the budget bottom line. But as I have said, perhaps most importantly this bill removes an unfair tax trap for every Australian earning under $70,000 and every family earning less than $140,000—not just today, with the measure being passed in the Senate, but into the future. The new Medicare levy surcharge thresholds will be indexed for wages growth, meaning that the community will never again be able to be stuck in the tax trap created by the previous government.

I want to take the opportunity to acknowledge the efforts of senators from the minor parties: the Greens, Senator Xenophon and Senator Fielding. They have been very constructive and reasonable in their discussions. I do have to say that it is a bit remarkable—and in some ways disturbing—that these senators have shown much appreciation of the economic circumstances that we are in, and much preparedness to discuss a sensible resolution of this matter, when the Liberals have had no such inclination at any time. At this time of great global economic uncertainty, Senators Xenophon and Fielding and the Greens have recognised the need for economic responsibility—something that the Liberals seem incapable of doing.

I do want to remark that it seems to me that the vote in the other place earlier today has really highlighted a problem for the parliament. The problem is that those opposite us, even at a time of global economic uncertainty, are more interested in giving tax cuts to the alcohol industry than they are in giving tax cuts to working families. I am proud of this measure, and people on this side of the House will be delighted that we are providing relief to many thousands of Australians—something that the Rudd government has long argued for and will always stand behind.