Andrew Leigh (Fenner, Australian Labor Party, Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

This bill deals with Medicare, an issue which has been long debated in this parliament. Indeed, elections from 1969 to 1993 were fought in large measure over universal health care. The battle over Medibank was one of the most bitterly fought battles of the Whitlam government. The creation of Medibank was opposed by the coalition, and the 1974 double dissolution was triggered in part by the parliamentary gridlock over Medibank.

When Labor attempted to create Medibank, the coalition health spokesman at the time, Don Chipp, said the scheme would create 'anarchy in Australia'. The coalition were accompanied by the Australian Medical Association, which denounced Medibank as 'socialised medicine'. When the Fraser government won office, it scrapped Medibank, forcing the Hawke government to enact Medicare when it came into office. It was in 1987 that, as Leader of the Opposition, John Howard stated unequivocally that if elected he would dismantle Medicare at the first opportunity. The results of this were acknowledged by Peter Shack, then the Liberal shadow health minister, who in 1990 said candidly:

I want to say with all the frankness I can muster, the Liberal and National Parties do not have a particularly good track record in health, and you don't need me to remind you of our last period in government.

This is not ancient history. It was in 2014 that Senator Anne Ruston told the Senate:

Everybody would like to think that we could go on in life with universal healthcare, with universal education and with all these wonderful things that over the last 20 years Australians have come to accept as a given. Unfortunately, the credit card is maxed out.

It has taken a Labor government to strengthen Medicare, in our last budget tripling the bulk-billing incentive, the largest increase ever. We've increased Medicare rebates for longer consultations, restored bulked-billed telehealth and psychiatry consultations and increased the Medicare rebate for nurse practitioners. Our government is passionately committed to Medicare, as has every Labor government been throughout my lifetime. Medicare is a cornerstone for the Australian healthcare system, but it's also a touchstone for the Australian Labor Party, a point of pride for me and my colleagues.

Over the last year that we've been in office, we've also worked to make medicines cheaper for millions of Australians through 60-day prescribing. We've announced 58 urgent-care clinics across Australia and committed to tackling smoking and vaping to ensure that another generation of Australians doesn't get hooked on nicotine. We've added 85 medicines to the Pharmaceutical Benefits Scheme, strengthened GP practices across the country with GP grants and incentivised team-based care so health workers can do what they're trained to do. We've boosted mental health interpreting services, helped rural graduates build their careers locally and provided more places for nurses and postgraduate psychologists. We've delivered Australia's first endometriosis and pelvic pain clinics, established the National Women's Health Advisory Council and supported a greater role for nurses and midwives in primary care. We've established the National Nurse and Midwife Health Service, funded the new National Lung Cancer Screening Program, delivered life-saving dialysis chairs to rural and remote Australia, delivered the Birthing on Country Centre of Excellence and boosted mental health support for First Nations people.

Quality health care should be a birthright for all Australians. Medicare is a vital part of the Australian healthcare system, and under Labor we are taking better care of the health system in this nation.

James Stevens (Sturt, Liberal Party) Share this | Link to this | Hansard source

I rise to speak on the Treasury Laws Amendment (2023 Measures No. 2) Bill 2023, which obviously has a number of elements. The previous speaker gave a general contribution on Medicare, and indeed my understanding from the second reading speech of the minister is that the relevant Medicare provision in this TLAB is an increase of 3.9 per cent to the low-income threshold for single, families, seniors et cetera, which is effectively achieving a CPI increase on that threshold, which is good and which we support. Of course, CPI is running at twice the rate of wages growth right now, so, unfortunately for those low-income earners, the threshold is going up by CPI but their incomes are growing at half the rate of CPI, which means low-income earners are going backwards in real terms. This will help more people avoid the Medicare levy, but it doesn't help them meet the costs of putting food on the table, filling up car with a tank of petrol or paying the electricity bills they receive, their ever-spiralling rents and so on and so forth. We are in a very difficult time for the cost of living for low-income earners in particular, and under this government we are seeing a dramatic erosion of income and wealth for the Australians doing it the toughest. The government in this bill are increasing by CPI the threshold for the Medicare levy to be put in place, but we regret that there's not an opportunity for us to support a lot of other things that could be helping people who are struggling with a whole range of cost-of-living pressures, not just saving those that are currently paying the Medicare levy but might drop out of that bracket because of this increase.

Like I say, there will be people who currently pay the Medicare levy that don't, because even though the threshold is increasing by CPI their own incomes are not growing by the same amount. So, even though that's a good thing, it's a stark situation when people are in a position where their real wages are going backwards so dramatically. It would be great to see some kind of broader plan from the government on helping these low-income earners, because what this does on the Medicare levy is nowhere near as much as what people need right now. They need a lot of help because all their costs are going up and at the same time their real wages are going down.

There are a few other matters that come up, but the one I want to contribute on is the NHFIC provisions. It's currently called NHFIC; I think it's having its name changed to Housing Australia. This is one of the real focuses of the government: changing the names of agencies. It's apparently really important. We've done it to things like Jobs and Skills Australia. It's very Humphrey Appleby, the way all these pieces of legislation we're talking about seem to have renaming agencies as one of their core elements. That doesn't really have a big impact in achieving anything meaningful or practical on the ground for people that are facing challenging circumstances.

Nonetheless, on this amendment around NHFIC's remit, I make the point that this is a good opportunity to talk about just how dire the housing situation is in this country right now. In particular, there are things we can do at the Commonwealth level in housing. In serving on the housing affordability inquiry that was held in the last parliament, I certainly found—we all understand this instinctively, but it's worth reminding people—that there are some very significant levers around housing that are available to the state and territory governments. There are significant levers with local government, and we too at the Commonwealth level have levers. Those policy levers are on the supply side and the demand side.

We've just seen a state budget in Victoria which has shown how dramatically a state government can change for the worse an entire housing market and housing outlook with significant, dramatic and outrageous changes to the investment certainty environment for investors. The worst part about that is, with rents climbing as dramatically as they are right now in the state of Victoria, as surely as night follows day, if investors' costs on their investment properties increase they will pass those costs onto the poor people that pay them rent for those properties.

The market is very tight. It is growing dramatically, and the Andrews government in Victoria have now effectively put in place a series of measures that are going to dramatically aggravate and increase rental pressures on people that can least afford to meet those costs right now. The other frightening thing with wall-to-wall Labor governments is that no doubt some other state Labor governments will look at what Dan Andrews has done and say: 'That's a good way of bludgeoning more money out of the lowest-earning people in our economy. We might have a crack at that as well.' The Andrews government are bragging about the fact that, through the tax deductibility of these higher state taxes, investors can pass on these taxes where they're offsetting those costs of property investment on their income tax. I'm sure the Treasurer is looking forward to also wearing those bills on behalf of the state Labor government in Victoria and potentially other state Labor governments around the country that like the look of this policy.

We do regret that while the government are doing some things in housing this TLAB bill, they're not looking at doing anything serious that could assist people that are really struggling dramatically and substantially in that area. One of the opportunities that the government has is to cooperate with their state government and local government counterparts, who, as I say, hold significant policy levers. I've certainly indicated in the past that I think there's a big opportunity to apply the city deal concept of three levels of government working together, federal, state and local—to think about how a city deal model could potentially be applied to the huge challenge of the housing crisis that we have all round the nation that manifests itself in slightly different ways, depending on the part of the country you're in.

We've got 1½ million people coming into our nation through the migration program, and we see no plan to accommodate those numbers. Housing is the obvious and most acute challenge right now. There are obviously broader, significant social and economic infrastructure challenges around that growth as well. We know that, when these enormous migration numbers are put into the Treasury modelling, a very good dividend comes out—from the models that Treasury use in their budgets. That money should be used to invest in the services that are needed to support that growth in population, and we're not seeing that. So that is a missed opportunity in this bill as well. With those comments, I conclude my contribution.

Jerome Laxale (Bennelong, Australian Labor Party) Share this | Link to this | Hansard source

The Treasury Laws Amendment (2023 Measures No. 2) Bill 2023 encompasses several schedules, each designed to address crucial aspects of our society and our economy. Most or some might find these Treasury law amendment bills, or TLABs, as we call them, a bit boring.

An honourable member: Shame!

I know! But I really love them. They do the heavy lifting of the policy announcements of other ministers. Think about an ant lifting 30 times its body weight. They're doing the hard tax and financial work for programs initiated by the government of the day. I love the way that these bills, which often slide through without fanfare or attention, can hold within them tangible measures towards progress, equity and resilience. This amendment bill isn't just a collection of policies and provisions; it's testament to the steps that this government is taking towards a prosperous, inclusive and sustainable future for our nation. Each schedule tells a different story, and, as we unpack each of them, we can see the positive impact they'll have on the lives of everyday Australians.

This TLAB No. 2 encapsulates the vision and dedication of a government that is committed to uplifting the lives of all Australians, because as a new government we understand that many Australians are doing it tough and that the cost of living is putting a squeeze on the household budgets of many. We also understand that it's our responsibility to ensure that no Australian is burdened by unnecessary financial strain when it comes to their health.

That's why in schedule 1 of this bill we'll reinforce our commitment to the wellbeing of low-income families and the vital importance of accessible health care. This schedule will deliver an increase in the Medicare levy low-income thresholds for singles, families, seniors and pensioners, aligning them with the outcomes of the consumer price index. By bringing the Medicare levy threshold up to CPI, we'll make sure that the burden of the Medicare levy does not disproportionately affect those already facing financial hardship. It's important to alleviate financial strain on low-income households, and by raising these thresholds we'll provide much-needed relief and ensure that those below the relevant statutory low-income thresholds are exempt from the Medicare levy. By increasing the thresholds, we'll maintain continuity and stability in our approach, ensuring that healthcare costs remain in line with the overall economic landscape and that they become more affordable.

It's estimated that about 1.1 million low-income earners across Australia will directly benefit from this measure. These are individuals and families who are the most vulnerable. They face daily challenges to make ends meet, and for them every dollar counts. This will hopefully empower these families to allocate their resources towards essential needs, and provide stability and security for themselves and their loved ones. Access to quality health care is not a privilege but a right. By easing the financial burden on low-income households, we'll ensure that our world-class healthcare system remains accessible to all Australians.

It's just one more step towards creating a better future, particularly in health. You just need to look at not only the budget that was handed down just recently but also the one before that. Health and access to health care is something that this government is doing with a starkly different approach to that of the former government. Whereas they cut indexation, they froze indexation and they hacked Medicare, this government is restoring sustainability and integrity to the system. There is a $3½ billion boost in the bulk-billing incentive and an indexation increase by $1½ billion. Both of those things have done more for Medicare in one year than anything the previous government did in their entire nine years. This TLAB schedule, and this change to the thresholds, adds to that.

Moving on, we go to another schedule and another story—this time, schedule 3. We find ourselves in a pivotal moment for climate change action and environmental protection. This government and the people of Australia are steadfast in their commitment to combating the challenges posed by climate change and transitioning towards a more sustainable future. In order to achieve our goal of net zero emissions by 2050, it's crucial that primary producers can participate in carbon abatement measures. Currently, income generated from Australian carbon credit units, or ACCUs, do not qualify as primary production income, which means it's restricted from access to tax concessions. This limitation to access to tax concessions hinders the growth and development of sustainable agriculture practices and poses a significant obstacle for primary producers that are committed to implementing environmentally sustainable objections—and many of them are. Schedule 3 of this amendment bill, once applied, will treat ACCU income as primary production income. By recognising the importance of carbon abatement activities as a crucial aspect of primary production, we expand access to essential tax concessions. This measure ensures that primary producers engaged in sustainable practices will benefit from the farm management deposit scheme and income tax averaging. Both of these will provide vital support to farmers as they navigate periods of market volatility and climatic events.

Currently, producers who hold ACCUs are taxed annually based on fluctuations of the value of those units. This can lead to significant tax flow issues. To address this, schedule 3 will change the taxing point for eligible primary producers holding ACCUs to the year of sale. This will provide much-needed relief, enabling prime producers to manage their finances more effectively and plan for the long term. By implementing these measures, we ensure that our concessions remain targeted at primary producers who are actively driving sustainable agriculture practices and embracing their role as environmental caretakers. We know the primary producers that do, have access to greater markets around the world. By incentivising carbon abatement activity within the agricultural sector we are not only reducing emissions but we are also fostering a greener and more resilient environmental future for generations to come. Of course, these measures align with our commitment to combat climate change, protect our environment, grow our economy and ensure that Australia is at the forefront of global efforts to mitigate the impacts of climate change. Compare that to the action of the former government. They didn't take climate change seriously and because of that they were voted out of Bennelong and out of government as well. Schedule 3 represents a significant step forward in our climate change agenda.

Next we have schedule 4. This one is close to my heart: I've run a small business nearly all my life, and decisions like these can make a real difference. This schedule will provide cashflow relief for small- and medium-sized businesses by reducing the adjustment factor to pay on your GST instalments every quarter or so—some pay annually. Under the current formula, the adjustment factor for the 2023-24 financial year sits at 12 per cent. Obviously, our GDP has gone up, reflective of higher commodity prices, terms of trade and inflation. While these factors may work for some large businesses, they do not reflect that throughout the rest of the economy and represent quite a big burden on small and medium businesses. By taking proactive steps to minimise adverse cashflow consequences for small businesses and by reducing that 12 per cent adjustment figure to six per cent, it will help small businesses get through the next financial year. It will ensure that cashflow implications for businesses are alleviated. The reduction in the adjustment factor better reflects the conditions for small businesses, and it ensures and gives them an extra helping hand to navigate the economic challenges ahead and maintain financial stability.

Moving to schedule 5, we go into the Home Guarantee Scheme. Labor believes that everyone deserves an affordable and secure place to live, be that for homeowners or renters. This schedule takes a proactive approach to facilitate pathways for individuals who have not held a property interest in Australia for the past 10 years, providing them with an opportunity to re-enter the property market and regain their footing. This amendment extends the support to single legal guardians of children, acknowledging the unique challenges they face and providing them with the means to realise homeownership sooner. I applaud the government and the minister for taking this initiative. Too often, homeownership help goes to first homeowners, but we know that, because of things happen in life—be they divorce, de-partnering or people having to leave home—sometimes buying a second home is just as important as buying your first. By extending this out to people who haven't owned a home in the last 10 years, it potentially can take more and more people out of renting and back into home ownership. These changes will provide targeted support to those in need, aligns government support to the needs of those who face hardship and ensures that the Home Guarantee Scheme remains focused on providing tangible pathways to home ownership. Already, in the year that we've been in government, in my community of Bennelong 177 families have used this fantastic scheme with this expanded eligibility as proposed in this TLAB, and I'm hopeful more can get access to it and have a safe and affordable home.

This is all I will talk about in regard to this schedule. It gives me great pleasure to commend this bill to the House, and I encourage all those here to support it.

Andrew Leigh (Fenner, Australian Labor Party, Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

by leave—First, I would like to thank the members for Bradfield, Sturt and Bennelong, who have contributed to this debate, and welcome the opposition's support on this crucial measure. Schedules 1, 3 and 4 of the bill will amend our tax laws to provide targeted support to low-income households, primary producers and small and medium businesses. In line with the government's commitment to provide targeted cost-of-living relief in this year's budget, the bill increases the Medicare levy low-income threshold for singles, families, seniors and pensioners by 3.9 per cent. This means that singles with a taxable income of up to $24,276 will not be liable for the Medicare levy—an increase of almost $1,000. The change to thresholds to reflect the CPI increases is consistent with increases introduced by previous governments and will support 1.1 million individuals.

The bill also assists our primary producers to reduce their carbon emissions by providing concessional tax treatment for Australian carbon credit unit income. We will also change the taxing point for eligible primary producers holding ACCUs. Instead of being taxed as the value changes each year, they will be taxed in the year of sale. Doing so will help farmers distribute uneven income across multiple financial years, support cash flow and support primary producers to diversify their business into carbon abatement activities.

The final tax measure presented in the bill reduces the GDP adjustment factor used to work out the amount of Pay as you go on GST instalments payable for the 2023-24 income year from 12 per cent to six per cent. The reduced GDP adjustment factor of six per cent strikes a balance. It will minimise cash flow impacts while helping businesses avoid tax debts through the contribution of reasonable tax instalments throughout the year.

Schedules 2 and 5 of the bill amend access to government guarantees. As part of the privatisation of the Commonwealth Bank, the Australian government provided a guarantee to ensure that pre-privatisation members would not risk losing their superannuation following privatisation. The bill assures that these members will continue to benefit from the existing guarantee following a planned merger involving Commonwealth Bank Group Super. This will enable the merger to go ahead, as the superannuation fund trustee can only transfer its members to another fund without their consent if it is satisfied that those members will enjoy 'equivalent rights' in the new fund.

Finally, the bill enables the National Housing Finance and Investment Corporation, soon to be renamed Housing Australia, to provide assistance to more Australians in need. Previous governments' failure to act seriously on housing has led to significant challenges across the country. It has meant homeownership is out of reach for many ordinary Australians. The bill will expand assistance to those who've not held a property interest in Australia in the preceding 10 years. This will allow those who have fallen out of home ownership, often due to financial hardship or a relationship breakdown, to re-enter the property market with government assistance. It also expands eligibility for single parents to include single legal guardians of children such as aunts, uncles and grandparents. The expansion in eligibility recognises the importance of stable and secure housing in providing a foundation for social and economic wellbeing. I commend the bill to the House.

Question agreed to.

Bill read a second time.

Ordered that this bill be reported to the House without amendment.