Helen Polley (Tasmania, Australian Labor Party) Share this | Hansard source

The incorporated speech read as follows—

Mr President, thank you for allowing me this opportunity today in the Senate to speak on the Tax Laws Amendment (Education Refund) Bill 2008.

This Amendment was one of our key election commitments. It will enable thousands of Australian school children to obtain necessary items for their schooling.

Parents understand the importance of their children’s education. That’s why Australian parents work so hard to give their children the best possible start in life. Parents make sacrifices so their children can succeed. Parents face a range of pressures and they have many responsibilities.

The Education Tax Refund comes in the wake of reports over several years that have highlighted the difficulties of schooling costs for low-income families.

For example, the Brotherhood of St Laurence’s 2007 Education Costs Survey found 72 per cent of respondents could not afford items for that would ‘improve the education experience of their children’ and two-thirds did not have a home computer with Internet access. About 60 per cent had difficulty paying for books and almost half reported difficulty paying for equipment.

Federal Labor believes that Australian parents are doing a great job. But we also understand that parents appreciate a bit of extra help when it is available.

The cost of equipping children for school is significant. Computers, printers, scanners, computer software, internet connection, text books—these all add up.

Families are already facing a range of cost pressures—mortgages, petrol prices and grocery bills, just to name but a few. Add the costs of getting your kids ready for school, and then supporting them throughout the year with uniforms and school camps fees present a real challenge for a lot of families.

Research from the Department of Families, Community Services and Indigenous Affairs suggests that the costs of raising a child increase as children grow older.

The costs for one child can increase from $8,300 a year for a six year old, to over $10,000 a year for a 14 year old. These are gross costs, before government payments and child care costs.

We recognise this, and that is why we are offering this help.

Surveys show that parents of primary school children can expect to pay between $58 and $129 in books alone, and an average of over $1,300 for computer and Internet costs. For secondary school children it can cost parents from $148 to $619 for books, and an average of over $1,600 for computer and Internet costs. This survey is across government, Catholic and Independent schools.

Investment in education is central to the next wave of economic reform that will position Australia as a competitive, prosperous, knowledge-based economy that can compete and win in global markets.

If Australia is to continue to succeed economically it needs a highly skilled and productive workforce. The key to building such a workforce is ensuring that all kids get a world-class education.

Our $4.4 billion Education Tax Refund builds on Labor’s Education Revolution - a core part of Labor’s strategy to drive Australia’s long-term economic prosperity.

The Rudd Labor Government is committed to implementing an Education Revolution. We recognise that education is the engine room of prosperity and helps create a fairer, more productive society.

Ultimately, it is the most effective way we know, to build prosperity and spread opportunity.

The Education Revolution is a key element of the Australian Government’s agenda as it is central to the goals we have for this nation:

• Building a Stronger Future—Increasing Australia’s capacity to sustain higher economic growth with low inflation through increasing the skills base of the labour force and aligning that skills base with the needs of the economy.
• Building a Fairer Australia—Raising the skills and capacity of all Australians, particularly those with low skill levels, is essential to ensuring equity in the economic, social and political life of the nation and
• Preparing for Future Challenge—Australia faces significant changes to its social and economic environment through an ageing population and increasing international competition.

The nation must invest in developing a world class education system and drive development of a workforce that is highly skilled, flexible and adaptable in responding to increasing global competition for skills.

If Australia is to rise to these challenges, we need a revolution in the quality of our education outcomes, the nature of our investment in education and in collaboration between governments and the education and training sectors.

The Australian Government considers that the COAG reform agenda must deliver real changes in three core areas:

1.

Raising the quality of teaching in our schools.

2.

Ensuring all students benefit from schooling through strategies based on high expectations of attainment, engagement and transitions for every student, especially in disadvantaged school communities.

3.

Improving transparency and accountability of schools and school systems at all levels.

A key part of our education revolution is helping parents meet the everyday costs of their children’s education.

We want to helping parents meet the costs of the books and the computers and the software our kids need, to get the best start.

That’s why the Federal 08/09 Budget included $4.4 billion to create a new Education Tax Refund.

The Education Tax Refund is a refundable tax offset of 50 per cent of eligible education expenses for children undertaking primary and secondary school studies.

About 1.3 million families, with 2.7 million students, will be eligible for the Refund.

Under the plan eligible families will be able to claim 50 per cent of eligible education expenses up to $750 for each child undertaking primary school, to provide a maximum tax offset of $375 per child, per year.

For children undertaking secondary school studies families will be able to claim 50 per cent of their eligible expenses up to $1,500 per child, to give a maximum tax offset of $750 per child, per year.

Families entitled to Family Tax Benefit Part A for children in primary or secondary school in the relevant financial year are eligible for the Education Tax Refund.

Eligibility for the Education Tax Refund also extends to parents with school children who would be eligible for Family Tax Benefit Part A but for the fact that the child is receiving certain payments or allowances, such as Youth Allowance, ABSTUDY Living Allowance, Disability Support Pension, payments under the Veteran’s Children Education Scheme and payments under the Military Rehabilitation and Compensation Act 2004.

We have also taken into consideration families with shared care arrangements. In this instance, arrangements for the Education Tax Refund will be shared, just as Family Tax Benefit Part A is shared.

Families with home-schooled students, who are registered with their State or Territory government, may also be eligible to claim the Education Tax Refund. It is important to note that students undertaking school studies who are independent of their parents may also be eligible.

For students making the transition from primary to secondary school in a single financial year the full Education Tax Refund, based on the secondary-school rate, can be claimed. Families with students who enter or leave school in any school year are able to claim the Education Tax Refund for the half of the financial year that they attend school.

Eligible expenses that have been incurred by a parent or guardian with more than one child with an Education Tax Refund entitlement can be pooled and claimed against the children’s combined Education Tax Refund entitlement, provided that the children all have access to the purchased items.

As you can see, this program is available to many students. This program will help so many working families meet their children’s educational expenses. This Government cares about working families, and, unlike the previous Government, we are not going to deny our children of the education they deserve.

Eligible expenses for the purposes of the Education Tax Refund are laptops, home computers, printers, paper, education software, school textbooks and associated materials and trade tools.

This includes purchase, lease, hire or hire-purchase costs of these items. In addition, the expenses of establishing and maintaining a home Internet connection are also included.

This measure is designed, together with other measures in Labor’s Education Revolution, to lift school retention rates long-term —where Labor’s target is to increase year 12 equivalent retention to 90 per cent by 2020.

According to research by the OECD, the growth rate of the economy would be up to 1 per cent higher if the average education level of the working-age population was increased by one year.

This plan is an excellent example of how the Rudd Labor Government is doing the right thing by working families.

The tax offset will apply to eligible expenses incurred from 1 July 2008. Those eligible for the Education Tax Refund should start keeping receipts to allow them to claim the tax offset in their 2008-09 income tax return from 1 July 2009.

For those not required to lodge an income tax return, they will be able to access their entitlement to the offset through the Australian Tax Office by lodging a separate form at the end of the 2008-09 financial year.

This scheme will help families invest in their children’s education —at the same time that the Government is investing in a better education system.

Federal Labor believes that better education is the cornerstone of a decent society. We know that education increases productivity and participation, it builds prosperity, and it also offers the hope of breaking the intergenerational cycle of poverty.

While our predecessors spoke of improving Australia’s education system, we are getting on with the job of real education reform. Those opposite should be ashamed of their record on education.

May I take this opportunity to remind the Senate that the Howard Costello 2007 Federal Budget delivered private schools a $1.7 billion increase over the next 5 years to rise to $7.5 billion, while public schools received only $300 million to rise to $3.4 billion.

It is shame that those opposite used their position in the Senate to underfund our public school system and blatantly spoon feed money to private schools.

In our first Budget we allocated $19.3 billion to education initiatives over the next four years to help deliver our commitments on:

• A national curriculum in English, Maths, the Sciences and History;
• $1.2 billion Digital Education Revolution;
• $2.5 billion Trades Training Centre program; and
• Guaranteed funding to both government and non- government schools.

The Liberal Government talked about teacher training, performance standards, literacy and numeracy, but after 12 years, 24 reports and 220 recommendations, there was nothing much to show of it.

No national teaching standards. No national curriculum. Too many kids still leaving school too early. Too many who are unable to read or write. We understand there is much to do to right to the wrongs of the past. We have to make up for 12 years of neglect.

Our Prime Minister Kevin Rudd and Deputy Prime Minister and Minister for Education Julia Gillard are working very hard and acting now for Australia’s long-term future.

During last years’ Federal election campaign, Kevin Rudd did something that hadn’t happened at national level in 12 years. He put education at the front and centre of the public policy debate in this country.

On November 24 last year, the Australian people voted in favour of the Education Revolution and voted against the 12 years of neglect administered by the Howard Government.

After 12 long years of neglect, we can’t deliver an education revolution overnight. But, the Rudd Labor Government has made a solid start because we want every child to get the best possible start in life.

The Rudd Government is committed to creating an education revolution to build a world class education system, which would establish Australia as one of the most highly educated and skilled nations.

This commitment recognises the central role that education plays in the economic and social strength of our nation. Education not only drives productivity but also empowers individuals to reach their full potential, and helps overcome disadvantage.

So I say to the eligible parents in Australia of this Education Tax Refund, KEEP YOUR RECEIPTS!

I commend this Bill to the Senate and I encourage those opposite to do the same. Working families need this support. Our children deserve to be equipped with the best technology that will enable them to learn and be equipped for the future. A key part of the Education Revolution is helping parents meet the costs of their children’s education.