Joe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | Hansard source

What the senator did raise was the Medicare levy surcharge, which we understand those opposite are blocking, but they might change their minds between now and when the bill comes on for debate. If those opposite were interested in reducing the inflationary pressures, they would pass the government’s budget. Despite the scaremongering over this measure from those opposite, the Medicare levy surcharge changes will bring welcome tax relief to 465,000 Australians. Opposing this form of tax relief will hurt many working Australians. Many working Australians will be hurt as a consequence of your opposition to this measure.

The Senate committee report on the Medicare levy surcharge revealed that, in 1997-98, when this measure was introduced, 167,000 high-income earners paid this tax penalty as a result of not taking out private health insurance. By 2005-06, because of the previous government’s failure to change the threshold, a massive 465,000 people were paying this tax, many of them now earning below the average wage. That is the reason for this measure—immediate tax relief for almost half a million working men and women who have been hit with an unjust tax slug.

I am surprised at the position those opposite have taken with respect to this. They want to stand in the way of removing this unjust tax slug on working families, especially at a time when many families are doing it tough. In fact, the Leader of the Opposition last week indicated that he did not think the policy should ever change. I will tell you a result of that absurd policy position. (Time expired)