Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Hansard source

I rise on behalf of the opposition to speak in support of the Tax and Superannuation Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Bill 2015. Labor welcomes the government's legislation to increase the Medicare levy low-income threshold and the Medicare levy surcharge low-income threshold. The bill increases the Medicare levy low-income threshold for individuals and families, along with the dependent child-student component of the family threshold, and the Medicare levy low-income threshold for single taxpayers eligible for the seniors and pensioners tax offset so that they do not have a Medicare levy liability where they do not have an income tax liability. These movements are generally in line with increases in the consumer price index; although in some instances it is higher, depending on taxable income and the number of children. This will mean more people will be under the threshold. The bill also increases the Medicare levy surcharge low-income threshold in line with movements in the CPI. These measures apply to the 2014-15 income year and later income years.

In the debate on this bill in the other place, the shadow assistant treasurer, Dr Leigh, raised the question of why some movements are in line with changes in the consumer price index and others are not. I am unaware of the government having provided an answer to Dr Leigh's question and so the rationale for this remains something of a mystery. I hope that in his summing up the minister might enlighten the Senate as to why it has chosen to increase some thresholds in line with inflation but not others.

As I said at the outset of my contribution to this debate, Labor is pleased to support the government's legislation to increase the Medicare levy low-income threshold and the Medicare levy surcharge low-income threshold. Labor introduced Medicare when in government in 1983 following the Fraser government's abolition of its predecessor, Medibank, which had been introduced 10 years earlier by the Whitlam government. In every subsequent term we have had in government, we strengthened Medicare and made it easier for Australians to get access to health services. Families deserve access to the health care they need, not the health care they can afford. Labor is very proudly the party of Medicare. Our record is strong. We increased bulk-billing to the highest rates ever and we will continue to protect Australia's universal healthcare system, because Medicare is worth protecting and is worth standing up for.

The changes implemented by this bill will mean that there are fewer low-income families and individuals who are required to pay the Medicare levy. We welcome the move to reduce the burden on families, especially given the $2 billion the Abbott government has cut from health and aged care since coming to office. These $2 billion in cuts include cuts to child dental benefits, cuts to dental and allied health for veterans and cuts to dementia and aged-care funding. When Bob Hawke introduced Medicare 30 years ago he warned that without it two million Australians 'faced potential financial ruin in the event of major illness'. Even a passing look at the health outcomes for marginalised Americans shows how far Australia has come in 30 years. The changes contained in this bill will help to ensure that those Australians on the lowest incomes are not burdened with additional taxation at the same time as accessing universal health care. Medicare is worth protecting. What has been achieved is worth being proud of and what it can achieve for future generations, particularly for those who need it most, is worth standing up for. Labor will continue to stand up for Medicare and against this government's short-sighted, unfair cuts that hurt the most vulnerable in our community.