Chris Ketter (Queensland, Australian Labor Party) Share this | Hansard source

I rise to join this debate in relation to putting health and education ahead of the tax cuts.

Just firstly, I will address Senator Hanson's contribution. I think it's really important to note that, once again, she may be slightly confused about the Labor position. It's quite clear that Labor has indicated it would support stage 1 of the Personal Income Tax Plan. We wanted to split the bill. In fact, the tax cuts that we wanted to introduce were actually double those that the government is proposing. We understand that households are under pressure, and the relief that we want to provide is far more immediate and more significant than what the government is proposing. But what we don't want to do is to provide relief to the big end of town, where it's not needed and where it won't provide the stimulus to the economy that is actually required at this point in time.

Australia is at a crossroads, and we can either become a more equal society or a less equal society, the choice is with us. I think it is extremely important that Australians understand this crossroads that we are at, and this is a matter of public importance. I say that because I believe that the government is putting us in a position where their fiscal recklessness is endangering the underpinnings of our fair and equitable society.

Health and education are fundamental to the support that we provide to people. It's fundamental to aspiration. If you put those things at risk, then you are ultimately putting the stability of our society at risk. Why do I say those things are at risk? Because I believe, and as credible economic commentators have said, that stage 2 and stage 3 of the personal income tax cuts are particularly unsustainable and fiscally irresponsible. You don't have to believe me when I say that; go to the Grattan Institute submission to the Senate Economics Legislation Committee inquiry into the Personal Income Tax Plan. I think most people would accept that the Grattan Institute is not exactly a cheer squad for the Labor Party, but it has come to a position where it says it is concerned about the Personal Income Tax Plan, particularly stage 3. Mr Daley, when he gave evidence to our inquiry, said:

Six or seven years is a very long time and, economically, the chances of a significant economic downturn over the next six or seven years are pretty large—that's the law of averages historically.

He went on to say:

Inherently, the full package is going to cost the budget, on our estimates, a little over $22 billion in 2027-28.

That was based on the PBO estimates. He added it was going to cost 'about $24 billion in the following year', which is 2028-29. He then said:

It does mean that the Commonwealth budget will inherently have less flexibility in a significant downturn. And it's also an issue that Australia is going to probably go into the next economic downturn with much less of a buffer than it went into the last one.

This is the Grattan Institute. As I said, they're not exactly a cheer squad for the Labor Party, but they have expressed their serious concerns about whether or not these tax cuts are sustainable in the longer term. Most Australians understand that when you legislate significant changes down the track—we know stage 3 is the fastest-growing part of the tax plan, growing at 12 per cent per annum—and when you legislate for significant tax expenditure down the track that is going to grow at that sort of pace, then you are taking a gamble with Australia's future. At risk here is support for our health and education and other fundamental services that we rely on.

It's now, more than ever, that Australians need the protection that only a Labor government can provide. Right now our schools are under attack from this arrogant, out-of-touch Prime Minister, who is prioritising tax breaks to the top end of town over funding to our schools. With his Liberal-National colleagues, he is ripping $17 billion out of schools across the country. Is it a coincidence that this figure is exactly the same amount of money that he wants to provide to his mates in big business through tax breaks to the big banks? These are the same mates that this Prime Minister has shielded for so long, running a protection racket for the banks for 601 days before ultimately being dragged, kicking and screaming, into announcing a royal commission into the banks—once they gave him permission to do so.

How does this Prime Minister justify his protection of the banks? How can he possibly be advocating for billions and billions of dollars in tax handouts to the banks while we're in the middle of a royal commission that's uncovering such abhorrent behaviour? Here are just a couple of the headlines we have seen recently. The Financial Review reported yesterday about how ANZ forced 162 farmers from their land after expanding into agribusiness without adequate preparation or safeguards. On 31 May, we saw a Sydney Morning Herald article reporting revelations that NAB took proceeds from a customer's home sale, which they weren't entitled to, to pay down a small business loan. On 30 April, ABC News, along with many other outlets, reported the resignation of AMP's chairman in the wake of the shocking fee-for-no-service scandal—a dodgy practice also employed by the big banks. It's not just AMP that has to answer for this, but I haven't got all day and so I won't dwell on that issue. On 21 March, the AFR reported evidence that Westpac relied on verification of customer income and expenditure details by car dealers for car loans. Let's not forget the doctoring of kids' Dollarmite accounts by Commonwealth Bank staff who were under pressure to meet incentive targets. This is the tip of the iceberg when it comes to the behaviours being exposed by the royal commission, so how can we possibly reward the very same institutions with a tax cut?

When it comes to the education system, we believe that it has transformative power. I've said this in the chamber before, but I want to give a few examples of what these cuts mean in real terms to some of the schools in my duty electorates. I mention Maranoa, where we see that Warwick State High School will lose $770,000, Warwick West State School will lose $440,000 and Warwick Central State School will lose $240,000. Let's go to Flynn, currently held by Mr O'Dowd, a National MP. Gladstone State High School will lose $1.35 million over two years. Toolooa State High School will lose $870,000. Gladstone Central State School will lose $300,000. Gladstone West State School will lose $570,000. Closer to my home in Brisbane, looking at the outer suburbs, in Petrie and Dickson, held by Liberal MPs Mr Howarth and Mr Dutton respectively, Pine Rivers State High School has had $1.06 million ripped out of the budget, North Lakes State College will lose $2½ million and Dakabin State High School will lose $730,000.

I want to go through what these cuts mean in the Longman electorate, which is very topical. I have had the opportunity on a couple of occasions to go doorknocking with our outstanding candidate Susan Lamb in the seat of Longman. You don't have to talk too hard to the average voters of Longman to understand how out of touch this Prime Minister is and how out of touch this government are in terms of what their priorities are, which are twisted and so far removed from the day-to-day lives of the good people of Longman. In Longman state schools, we see the LNP cutting over $18 million over the next two years. If I had time, I would go through those.

We can talk about TAFE and universities as well. We're seeing $270 million in new cuts to TAFE, and the MYEFO froze funding for university places. These are cuts that Australia cannot afford. When it comes to health, there are hundreds of millions of dollars coming out of hospitals across the country. Caboolture Hospital will lose $2.9 million. Redcliffe Hospital will lose $4.2 million. Prince Charles Hospital at Chermside will lose $7.7 million. Royal Brisbane and Women's Hospital will lose $14.3 million. Lady Cilento Children's Hospital will lose $6.5 million. These are examples of the twisted priorities of this government. As I said, Australia is at a crossroads. We need a federal Labor government to take us in the right direction.