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

Labor is supporting the Tax and Superannuation Laws Amendment (2014 Measures No. 2) Bill 2014. The bill has three parts. It increases the Medicare levy low-income threshold at the point at which the levy starts to be paid for families and their dependent children or students in line with movement in the CPI commencing in 2013-14.

The bill ensures that families who have previously been exempt from paying the levy will continue to be, if their incomes have increased in line with or less than the CPI. As such, it provides more low-income earners with free access to health care.

It contains amendments to protect against situations where taxpayers have anticipated the impact of announcements made by the previous government with regard to tax laws which have been overturned by the current government and, as a result, have been left worse off—this is taxpayers who have filed tax returns, lest anybody listening to this debate today thinks that this might have broader applicability.

Thirdly, it is to introduce an integrity rule to limit the ability of taxpayers to avoid paying tax by dividend washing, which is a taxation loophole created by the tax treatment of franking credits.

The opposition welcomes the government's decision to increase the Medicare levy low-income threshold, but we will not resile from our condemnation of the government's attacks on the universality of health care in this country or its very clear broken promises.

This measure in no way compensates for the savage attack on Medicare that Labor has fought for over the last four decades and we will continue to fight for Medicare.

Brett Mason (Queensland, Liberal Party, Parliamentary Secretary to the Minister for Foreign Affairs) Share this | Link to this | Hansard source

I thank Senator Cameron—I think—for his contribution and commend the bill to the Senate.

Question agreed to.

Bill read a second time.