Craig Thomson (Dobell, Australian Labor Party) Share this | Hansard source

I rise today to lend my support to the Tax Laws Amendment (2008 Measures No. 2) Bill 2008. In starting, I have to make some comments in relation to the contribution—if we can call it that—from the member for Bowman. I think it is quite extraordinary that, in relation to his contribution, we had a 20-minute rant which at no time at all addressed the bill that is before the House today. Consistent with the contributions made from this side of the House, I will be addressing the bill and indicating the areas where I support this important legislation.

Tax policy is an area that always can be improved. There is no doubt in my mind that our current taxation arrangements are creaking with age. We need a good, hard look at our system before it becomes a significant hindrance to our economic growth. I look forward to a comprehensive tax review during this 42nd Parliament. I welcome the Prime Minister’s comments following the very successful 2020 Summit that the time has come for a root and branch review of taxation and, further, the Treasurer’s announcement last night in the budget for the most comprehensive review of taxation since World War II. The bill that is before the parliament today does not regard the root and branch review, but there are positive aspects nonetheless. Though I see the need for a root and branch approach to tax reform, it does not hurt us at this stage to do some pruning. We are a government that gets on with the job and that is why this legislation is here before the parliament before we do the root and branch analysis of the taxation system.

In particular I wish to support schedules 4, 5 and 6 of this bill. Schedule 4 exempts the Endeavour executive awards and the Endeavour research fellowships from income tax for all recipients in respect of the amounts received on or after 1 July 2007. These research fellowships allow our best and brightest to study here and abroad. The length of a scholarship ranges from four months to three years, depending on the particular award. They are worth between a minimum of $25,000 for a short-term scholarship to a maximum of $160,000 for a long-term scholarship, depending on the specific award. The Department of Education, Employment and Workplace Relations administers the program and it is funded by the Commonwealth government. While some Endeavour award programs are exempt from tax because their recipients are studying full time, others are not fully tax exempt because the recipients are classed as only studying part time. We seek to change this in this bill. To me, this is an important small step in combating the brain drain at the high end of business, industry, education and government.

I also seek to make some comment in relation to the early completion bonuses for apprentices. This is a commitment from this government to make sure that those who complete their apprenticeship early, those who are helping to resolve the skills shortage that this government has inherited from those opposite, effectively get the full value of that particular bonus. It is important that we saw last night a further 85,000 apprenticeships announced in the budget—an indication of the commitment from this side of the House to address the skills shortage that so threatens to constrain our economy. The Prime Minister, Kevin Rudd, and his government are committed to the education revolution. This amendment in the bill is a small step in the right direction.

Schedule 6 updates the list of deductible gift recipients. Among the list of organisations added to the list by this schedule are the World Youth Day 2008 Trust, the Council for Jewish Community Security, the Memorials Development Committee, the AE2 Commemorative Foundation, Ian Thorpe’s Foundation for Youth, the Amy Gillett Foundation and Wheelchairs for Kids Inc. I want to talk in a little bit more detail about one of those organisations: Wheelchairs For Kids. Wheelchairs for Kids Inc. is one that will benefit from being included in the deductible gift recipients list. This organisation has a wonderful story to tell. They build wheelchairs and send them overseas to countries not as lucky as our own.

As of this month, Wheelchairs for Kids Inc. have built 14,149 wheelchairs and shipped them overseas. Their organisation’s website tells a very interesting story. The Rotary Club of Surfers Sunrise had the idea of helping disabled kids in distressing circumstances by providing wheelchairs made partly of components retrieved from salvaged bicycles. After a lucky break with television fundraising, they asked other Rotary Clubs to join and the project grew. Through a family connection, the Rotary Club of Scarborough in Western Australia took it a stage further and involved prison inmates from two prisons and three schools in the task of making the chairs. The Rotary Club had been assisted by Christian Brothers, sponsoring Olly’s Workshop, a fully trained facility for troubled youth. The obvious synergy saw that the workshops became the nucleus of the operations of Wheelchairs for Kids. In the interests of quality and efficiency, production in the schools and prison workshops has discontinued now that the workshop has been set up properly.

Recognising that demand was virtually limitless and that more funds could be raised, further expansion was planned. At the same time it was realised that better wheelchairs could be economically produced from new materials. Wheelchairs for Kids soon moved into larger dedicated premises, financed by the Scarborough Rotary Club and Christian Brothers. The modern manufacturing workshop in the light industry area of Wangara in Western Australia is well equipped with power tools and all equipment needed for manufacturing, mostly donated by tool manufacturers and suppliers. All work is voluntary; no wages or salaries are paid, with Rotary and Christian Brothers providing the administration. The labour to turn the tubing and dozens of other components into shippable chairs comes from more than 100 retired volunteers. They work mornings on a self-imposed roster as a very effective and good humoured team, drilling, bending, assembling, checking out and, finally, packing. Today’s versions reflect feedback from the field—rough paths, lack of maintenance facilities and exposure to harsh weather all need to be accommodated. The wheelchairs have aluminium square-section tube frames, powder-coated steel axles and wheels with soft but puncture-proof tyres. A photo of this model—a strong, non-folding, three-wheeled chair that will negotiate a rough surface—can be seen on the organisation’s website. I recommend that colleagues have a look at the type of work that they are doing.

Wheelchairs for Kids are fortunate that the large cartons used for shipping the wheelchairs and their transport to the airport or to container packing centres on the east coast are donated. The overseas transport is provided by various aid agencies, who help with foreign import problems and distribution in remote locations. In 2007 almost $500,000 was donated, the suppliers were generous and 3,500 wheelchairs were made. The increase in cash received allowed Wheelchairs for Kids to purchase components in larger quantities and set up 2008 for significant growth at a constrained cost. The demand is for thousands, and the team has the capacity to easily double or triple output. All that is needed is money to buy the components and materials that must be bought.

Every $100 raised provides a child with a wheelchair. The organisation can do this because all of their manufacturing and administration labour is voluntary; administration is provided free by the Rotary Clubs, with the workshop manager, Brother Olly Pickett, provided by the Christian Brothers; suppliers provide materials at discounted prices and, in some cases, free, and transport is usually donated; rent for the now three workshop units is paid for by the government of Western Australia, and that needs to be acknowledged in this place today; and overhead costs are met by the Rotary Club of Scarborough. Every cent donated goes towards making and delivering a wheelchair to one of these seriously disabled children. No donated money is spent in any other way. This is an organisation worthy of support in our tax system. I commend the work that Wheelchairs for Kids are doing to make the lives of disabled children around the world that little bit easier. I also commend this bill to the House for the tax break that it provides in schedule 6 for organisations such as Wheelchairs for Kids.

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