Mark Furner (Queensland, Australian Labor Party) Share this | Hansard source

I rise today as a Queensland senator to support the Gillard Labor government’s initiative to implement a temporary flood levy to help rebuild the devastated flood and cyclone affected regions of Australia, including in my state of Queensland. In December and January, Queenslanders experienced the worst natural disaster in our state’s history. Lives were lost, homes were lost, schools were lost and infrastructure was lost. The damage bill is now in the billions. To this day, many people are still cleaning up their homes and their businesses and getting their lives back together.

Even though weeks have passed some Queenslanders are not yet able to move back to their homes and in some devastating situations are not able to move back at all. Businesses which were devastated by the floods are still closed. Stamford Plaza, the Jellyfish Restaurant and the Boardwalk Bar and Bistro in Brisbane, just to name a few, are still closed, and in some really sad cases some businesses no longer exist. While people in those areas are trying to get their lives back on track, another natural disaster took place: Cyclone Yasi was one of the biggest cyclones to hit Queensland in recent generations. This is why it is important for all of us to come together today and support these important pieces of legislation: the Tax Laws Amendment (Temporary Flood and Cyclone Reconstruction Levy) Bill 2011 and the Income Tax Rates Amendment (Temporary Flood and Cyclone Reconstruction Levy) Bill. This legislation is necessary to help rebuild roads, bridges, railway lines, hospitals and schools damaged by flooding.

The federal government have estimated it will cost $5.6 billion to rebuild vital infrastructure in our flood affected areas—$1.8 billion will be raised through the temporary flood levy, which will apply to only those who earn an income above $50,000 a year. The federal government have natural disaster relief and recovery arrangements with all state and territory governments and have agreed to meet 75 per cent of the rebuilding cost in declared areas. This is what the flood levy will pay for. The levy will only apply to the 2011-12 financial year and will automatically be deducted by the Australian tax office—in the same way the Medicare levy is collected. It will be charged at 0.5c per cent of taxable income for those who earn more than $50,000 and one per cent of taxable income for those who earn in excess of $100,000. The federal government understand that those who have been directly affected by the floods have already incurred financial costs. This is why they will be exempt from the flood levy. This will be determined by claims made to Centrelink for the Australian government disaster recovery payment. Those who claim an AGDRP will not have the levy deducted from their 2011-12 income.

It is sad to see the opposition still refusing to come on board with this levy to help rebuild those areas affected by natural disasters. Just last week opposition Treasury spokesman Joe Hockey said:

We want to see Australia get back on its feet as quickly as possible. In fact, we believe that the government must do whatever it takes and whatever is required to rebuild infrastructure, rebuild communities and rebuild families as quickly as possible

Contrary to this and directly after this disingenuous claim, he stated 10 reasons why the coalition are not supporting a flood levy—a contradiction in massive proportions. It is also contradictory of the coalition to criticise the flood levy claiming that it is not the right way to raise funds to rebuild. Let us not forget levies are not unprecedented, and the Howard government did not get through its 12 years without implementing its own levies. In fact, every single year the coalition were in government they implemented levies, even though there were surpluses. From 1996 to 2005, a superannuation surcharge levy was implemented to impose extra taxes on the superannuation contributions of high-income earners. It raised $1.4 billion in the first four years. From 1996 to 1997, their gun buyback levy raised $500 million. From 1998 to 2006, their stevedoring levy raised more than $100 million. From 2002 to 2009, an 11c per litre levy was imposed on milk. From 2003 to 2006, a 3c per kilo levy was imposed on sugar which raised nearly $100 million. Additionally, the Howard government’s Ansett Airline levy collected $369 million from 2001 to 2003. Clearly their form on levies shows the coalition do not believe rebuilding infrastructure is worthy enough to impose a levy!

During the last election Mr Abbott promised to implement a paid parental leave scheme and fund it with, yes, a levy—a levy to allow men and women who earn over $150,000 a year to continue to receive full wages while they are on maternity leave. On 9 March, Mr Abbott told ABC AM:

My preference is always to see taxes lower but sometimes for very, very important social reasons, for national interest reasons you have got to say we need the money and we can’t summon the money out of thin air ...

Does he think that rebuilding roads, bridges, railway lines, schools and hospitals is not in the national interest? These people are still in this parliament and they supported the implementation of those levies, yet now they are turning their backs on Queensland communities who are in desperate need of vital infrastructure which was destroyed. But this is what the coalition and their leader, Mr Abbott, say to everything: no, no, no. They take the term ‘opposition’ to the extreme.

What about working families? What about working Australians who need access to roads, bridges and railway lines to get to their employment? If we do not rebuild this vital infrastructure, these working Australians will struggle to buy their weekly groceries and to pay their mortgages or their rent. It is essential to get their lives back on track after these natural disasters.