Cathy O'Toole (Herbert, Australian Labor Party) Share this | Hansard source

I am proud to rise in this place as a Labor member because I know that it is only Labor that will fight for and protect Medicare for all Australians. Australia has one of the best health systems in the developed world, and it is thanks to the Labor Party's vision and commitment to universal health care under the Hawke government. Labor clearly understand that the health of the nation has a direct impact on productivity and the economy.

This was also made evident in the PwC report Creating a mentally healthy workforce:return on investment analysis. This report focused on the cost of poor mental health to productivity and the economy, and the results were somewhat amazing. The report identified a total cost of $10.9 billion annually to productivity and the economy, and it comes from specific areas. Most surprising to me was $1.6 billion from presenteeism—that is, people at work, performing at 50 per cent. Absenteeism, people not at work at all, is $4.7 billion. Only $145.9 million is due to compensation claims. I say 'only' in comparison to the costs of presenteeism and absenteeism.

We are witnessing a rise in diabetes, renal failure, heart disease and cancer. Clearly, the best way to address rising tertiary care costs is by funding prevention and early intervention, including in the space of mental health—and that is the role of primary health care.

This government constantly talks about all of the drugs it has added to the PBS, which is commendable. But have they not realised that, if one cannot afford to visit the GP and/or a specialist, these drugs are completely useless, because people cannot write their own prescriptions? Adding to this situation, we see that no growth in wages—in my electorate, unemployment is incredibly high—and cuts to pensions are leaving a number of families and other people forced to choose between which prescriptions they can afford to have made up and which they will just have to let go. Properly funded Medicare care is essential if we are to be a society that creates a growing economy. Growing economies require flourishing societies.

This government labels its budget as fair, but tell me what is fair about a system that challenges people to access affordable healthcare services. Clearly, a budget that locks in a $2.2 billion cut to GPs, specialists and allied health services does not in any shape or form seem fair to me or, more importantly, to the people in my electorate of Herbert. A budget that commits only 1.2 per cent of the funding that has already been ripped out, being directed to lift the Medicare freeze in the next financial year, simply highlights a $2.2 billion shortfall over the next four years, which is clearly not fair. It is a budget that plans to index only seven per cent of Medicare radiology services, which equates to only 59 services out of a total of 891, and that will not come into effect until 2020. GPs in my electorate are not happy. In fact, I have been told that this measure, the lift on the Medicare freeze, will return 12c per visit for two years and will then grow to $2 per visit. That is nothing to be overjoyed about. The government's Medicare guarantee is not worth the paper it is printed on.

For the Turnbull government to say they presented a fair budget is a disgrace when it comes to Medicare, because in reality this government's budget is a massive insult to every Australian who relies heavily on Medicare to stay healthy. It proves yet again that the government are still determined to make Australians pay more when it comes to health. How completely out of touch can they be? The government also plan to increase the Medicare levy by 0.5 per cent, to use their words, 'to fully fund the NDIS'.

The NDIS was created by Labor. In fact, the coalition was dragged kicking and screaming to acknowledge the importance of the NDIS and the transformational change that it would bring for people living with a disability. I have worked in the community sector for more than 15 years. I have worked in the disability sector. I can tell you that the NDIS is the most transformational change that people living with a disability will have seen in their lifetime and in the lifetime of those that have gone before them. The NDIS gives every person living with a disability a chance to live a life of purpose, meaning, choice and citizenship. For this government to say that Labor did not fully fund the NDIS is a complete insult and an utter myth.

The reality is that the government have chosen to give corporate business a $65 billion tax cut, which has left them with no alternative but to increase the Medicare levy. That is not fair on low-income earners. To add insult to injury, members of the coalition government, including the Treasurer, are calling the Medicare levy a progressive tax. I think the Treasurer and his comrades may be a bit confused about the meaning of progressive taxes and flat taxes. But once again I am more than happy to clear things up for the government right here, right now. A progressive tax is a tax that takes a larger percentage from high-income earners than it does from low-income individuals, whereas a flat tax is merely a system that applies the same tax rate to every taxpayer regardless of their income bracket, and that is exactly what this increase does. This government has chosen to increase the Medicare levy for every wage earner by 0.5 per cent of their income. Under Malcolm Turnbull's plan, someone earning $55,000 pays $275 more tax and someone earning $80,000 pays $400 more tax. In order to not put further pressure on low-income earners, Labor is proposing that this increase be applied only to the top two tax brackets. This is much fairer, and Labor actually understands the meaning of the word 'fair'.

So it is very clear where the Turnbull government stands when it comes to supporting low-income earners. Low-income earners are families, pensioners, teachers, nurses, blue-collar workers—people who keep the cash flowing in our economies. The government's priorities are to give tax cuts to millionaires and multinationals and to increase tax on ordinary low-income workers, once again only further disadvantaging the already disadvantaged and vulnerable. Wage growth is at the lowest it has been since the Great Depression. In my electorate alone, unemployment sits at 11.3 per cent and youth unemployment at 21.7 per cent, yet this government continues to attack the vulnerable. How are these people expected to afford much-needed health care. We need real action by this government, not broken promises and taxes that create further disadvantage.

A Shorten Labor government will reverse Malcolm Turnbull's Medicare freeze immediately, because Labor knows that every day until the freeze ends is another day on which Australians will be paying more for health care or simply not accessing health care, because they cannot afford it. In fact, since the government introduced their Medicare freeze in the 2014 midyear economic forecast, out-of-pocket costs are at an all-time high. Non-referred GP attendances are now $33.45, up 14 per cent under their freeze. Specialist attendances are now $69.75, up 19 per cent under their freeze. Allied health is now $40.45, up 21 per cent under their freeze. Despite this, Australians will be left waiting years and years for relief, impacting on many of Australia's most vulnerable patients, such as those needing critical oncology treatment, obstetric services and paediatric treatment.

Malcolm Turnbull said he had gotten the message on Medicare, but it seems he has missed the mark entirely. Labor is the party that built Medicare and only Labor can be trusted to fight for and protect Medicare. Labor knows that 804,000 Australians delay seeing a GP, due to the out-of-pocket cost. We know that 600,000 Australians who need specialist care delay a visit, due to cost. We know that 300,000 Australians are deciding to forgo vital diagnoses every year, due to costs. Labor understands that every single Australian will continue to pay more for their health care as a result of this budget. Labor believes this is simply not good enough. Labor will support a Medicare levy rise only for people earning more than $87,000 a year.

Under Labor's fairer alternative 80 per cent of Australians are protected from a tax increase and the budget is $4.5 billion better off over the next decade. Labor believes that people who are the lowest income earners in society should not be expected to pay more for proper health care. At the election, Malcolm Turnbull promised the Australian people that no-one would pay more to see a GP, yet we are waiting for this government to drop its cuts and to start acting for the most vulnerable people in our society, because, sadly, they are generally the people who need health care the most.

I have taken action in the Herbert electorate by forming a health reference group, which consists of representatives from a range of local health services and sectors. The group consists of representatives from the general and private hospitals, the mental health sector, Northern Australia Primary Health Limited, allied health services, the Torres Strait Islander health service, home doctor services, dental services, youth services, access to therapy services and many more. The purpose of this reference group is for me to listen to and receive expert advice from the professionals who currently work within the industry. In my opinion, there is no point forming policy if you have not spoken with those who are on the ground and know the issues of concern. The difficulty for our low-income Australians is the reason that Labor is committed to a progressive solution rather than a flat tax on everyone earning over $21,655.

I condemn this government for giving a tax increase to low and middle income families, while giving big business a tax cut. When inequality rises our tax system should be more progressive, not less. There is nothing fair about raising taxes on middle Australia and cutting taxes on multinationals and millionaires. This government needs to acknowledge that raising the Medicare levy is a flat tax change and letting the budget repair levy expire is a regressive tax change. For this government to continually call the levy progressive is simply untrue and provides only false hope to the Australian people. You cannot trust this government on Medicare and I think it is about time they started working for all Australians.

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