Nigel Scullion (NT, Country Liberal Party, Deputy Leader of the Nationals) Share this | Link to this | Hansard source

My question is to the Leader of the Government in the Senate, Senator Evans. I refer to the $75 million given to non-Australian residents living overseas as part of Rudd Labor’s failed December cash splash. How does that help stimulate the Australian economy?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

The Economic Security Strategy payments to pensioners were, as the Senate will understand, a down payment on long-term pension reform. I appreciate the support we received from the opposition in passing that—something that seems to have been forgotten in recent times. In that package, we made it very clear that this was a down payment on the more fundamental reform that was necessary for the payment of pensions and the level of pensions. As a down payment on that pension reform, the ESS payment was made to some pensioners resident overseas who are part of longstanding international social security arrangements. They are entitled because of this international regime. If pensions increase in Australia, these longstanding arrangements suggest that those increases should flow to all those receiving the Australian pension, including those overseas.

Australia currently has 22 international social security arrangements. They were, up until now, bipartisan policy. It seems that is no longer the case. For the record, at least 388,000 overseas pensions are paid in Australia, with an annual value of $1.6 billion. Australia currently pays an estimated $517 million in pensions to people overseas. So, in net terms, because of those international social security arrangements, more than $1 billion comes into Australia each year. In other words, we have a net win, if you like, out of those arrangements. These payments will be paid to all those in the receipt of a pension because it is part of a down payment on the pension rate—which, as I say, is being considered by the Harmer report and which the government will respond to in the next budget. It is on that basis that they have been paid. (Time expired)

Nigel Scullion (NT, Country Liberal Party, Deputy Leader of the Nationals) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Will an eligible Australian taxpayer who paid tax and lodged a tax return in the 2007-08 financial year, but who has departed Australia permanently, receive a payment from the government’s most recent $42 billion cash splash? If that is the case, how does giving Australian taxpayers’ money to overseas residents help stimulate the Australian economy?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

I do not think that is necessarily a supplementary question. It is the same political theme, but it is not a supplementary question. It is not on the question of the pension bonus; it is about another entitlement.

Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Of course it is—it’s about stimulus packages, you goose!

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Senator Abetz, calling me a goose does not change the facts. The fact is that the question went to a separate issue. I am happy to take the supplementary question on notice, because I am not sure I caught the whole detail in the question. But in basic terms, as I made clear to you, because we considered the payments to pensioners a down payment on an increased pension rate, we decided that they would be paid to all those in receipt of the pension. That is the government’s policy. That was explicit in the measure you voted for at the time. (Time expired)

Nigel Scullion (NT, Country Liberal Party, Deputy Leader of the Nationals) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Will the minister confirm that the estates of now deceased taxpayers who lodged tax returns for 2007-08 may be eligible for payment as part of the $42 billion cash splash—that is, the most recent one? How does giving money to the deceased help stimulate the Australian economy?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

It was not clear in the question, but I assume it referred to the tax bonus payments.

Nigel Scullion (NT, Country Liberal Party, Deputy Leader of the Nationals) Share this | Link to this | Hansard source

The $42 billion; that’s correct.

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

No, the $42 billion was made in a number of payments. As I understand the question—it was not clear—you are asking about the tax bonus paid to those who paid tax in the 2007-08 year. I will take that on notice and make sure that I get the answer to the senator’s question because, given the amount of detail in that question, I want to make sure we get it right. I do not have that immediately to hand but I will get that as soon as I can for the senator.