Louise Markus (Macquarie, Liberal Party) Share this | Hansard source

I rise to speak on the Labor 2013-14 Budget Savings (Measures No. 1) Bill 2014. I rise to speak on this important bill because, as this government forges forward to alter the trajectory of the financial situation left by those opposite, there would be an expectation that those who helped create this problem would assist and contribute to solving it. This, as we know, has not been the case. As we saw last year, with so many of the cost-saving measures that this government attempted to introduce being negated by those opposite in an attempt to block legislation, they would rather risk a downward trajectory of this country's financial situation than see the changes required for our nation to remain strong and prosperous, grow small business, create jobs and maintain a safety net for the future for those who need it.

This is what we are seeing yet again with the personal income tax cuts linked to the Clean Energy Future package. The former Labor government introduced two rounds of personal income tax cuts, which were included in the 2011-2012 Mid-Year Economic and Fiscal Outlook. These two rounds were introduced through the Clean Energy (Income Tax Rates Amendments) Act 2011 and the Clean Energy (Tax Laws Amendments) Act 2011. Whilst the first round of personal income tax cuts commenced on 1 July 2012, the second round of personal income tax cuts, which was legislated to commence on 1 July 2015, never eventuated. In fact, they were deferred by the previous government.

How can a government that said in its 2013 Budget speech, as Labor did, 'We have always put the interests of working Australians first,' defer a personal tax cut? In fact, Labor have now voted twice against this legislation which implements this budget repair measure and helps Australian workers, the very people Labor claim to represent. By passing on the savings from the removal of the carbon tax, this government delivered to Australian households a saving of $550 per year for the average home. In opposition, we committed to keep the first round of personal income tax cuts and associated pensions and benefit increases—and they have been retained.

If Labor returns to government, their intention is to bring back the carbon tax. The Labor Party have forgotten what they have left us by way of debt and deficit and they are not helping to contribute to a remedy. This is mind-boggling. The former Treasurer's second round of personal income tax cuts could have resulted in $1.5 billion worth of savings over the forward estimates at that time—not being implemented, and with two additional years since, that equates to a saving to the budget of $2.8 billion over the next four years.

This bill will give Labor the opportunity to keep their promise. This government wants to get on with the job that we said we would do. We want to give Australians the opportunities they deserve. Labor have demonstrated their view on taxes with the carbon and mining taxes and now they have announced a superannuation tax policy. The repeal measures in this bill will mean that the tax free threshold will remain at $18,200 rather than increasing to $19,400. The second personal marginal tax rate will remain at 32.5 per cent rather than increasing to 33 per cent. The maximum value of the low-income-tax offset will remain at $445 rather than falling to $300. The withdrawal rate for the low-income tax offset will remain at 1.5 per cent rather than falling to one per cent. This means the threshold below which a person may receive the low-income tax offset will remain at a taxable income of $66,667 rather than increasing to a taxable income of $67,000. This represents real measures to assist individuals, families and households.

These real measures have not been supported by Labor. And whilst Labor is delaying beneficial measures, this government will continue building a strong and prosperous economy. We are strengthening small business, the backbone of our economy, and, in doing so, giving small business the certainty to grow and produce jobs. Small businesses provide 4.5 million Australians with jobs and an income that enables them to spend and develop their own lifestyles in a real, credible way.

Since the last election, this government has created a quarter of a million new jobs and, with this budget, we plan to create more. This budget will ensure small business see the lowest company tax rate since 1967. We will give an immediate tax deduction for any individual asset valued at up to $20,000 that a small business buys. This measure will assist some 11,000 small businesses in the electorate of Macquarie who choose to take advantage of it. This budget will help, not stifle, small businesses.

This budget also delivers for families. Additionally, we are reducing the cost for small businesses to employ job seekers through initiatives such as wage subsidies and assisting job seekers to gain valuable work experience by providing $18 million over four years. This government wants to see jobs. We know how difficult it can be, particularly for the young, and that is why the government will support wage subsidies which will also be available for mature-age workers through the Restart initiative. This government's wants to help families. The $4.4 billion Jobs for Families package will give parents more choice and opportunity to work, making childcare simpler, more affordable, more flexible and, most importantly, more accessible.

Ours is a budget for a stronger economy and jobs. Only this coalition government has a responsible, long-term economic plan that will grow the economy and fix Labor's debt and deficit disaster. Those opposite spend their time simply criticising the budget and criticising this government without presenting any credible alternative. They reject assistance measures which they themselves proposed. These measures will put money back into the hands of those who earned it so that they can choose how to spend it and invest in their own lives and futures. But this appears to be the central theme of Labor, with their superannuation tax policy again denying choice to those that earned the income, and, instead, designing to tax it. In contrast, the coalition, as the Treasurer has said, is introducing this bill that will facilitate the Labor Party keeping their promise. That is what we are doing: we are giving those opposite the opportunity to keep a promise.

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