Teresa Gambaro (Brisbane, Liberal Party) Share this | Link to this | Hansard source

I will continue from where I left off last night when I was speaking about the Appropriation Bill (No. 1) 2015-2016 and cognate debate, and what a wonderful budget this was. At that time I was particularly quoting Mr Behrens, of the Chamber of Commerce and Industry Queensland, who said the budget:

… will materially benefit the State's 403,000 small businesses that employ more than one million Queenslanders …

He went on:

The budget will benefit many small businesses through boosting confidence rather than detracting from it, as occurred last year.

When coupled with the range of stimulus measures small business is obviously the biggest winner from this budget. In 20 years I cannot recall such a small business friendly federal budget.

Mr Behrens also said that the budget recognised the imperative to tackle the embedded structure deficit that existed and to commence paying down the debt. The CCIQ also sounded a warning to the opposition on these budget measures and, in so doing, he had this to say:

The Senate and Opposition needs to avoid holding the Budget to ransom with a populist, negative campaign.

The Senate has struck fear into the business community and the general lack of collaboration between the Federal Government and independent Senators has unquestionably undermined business confidence and in turn investment.

This Budget, in our view, strikes the right balance in trimming government spending, but also in securing sensible tax reform and, in turn, economic growth and job creation.

Getting Australia and Queensland back on a strong growth footing must be the top priority. We cannot afford another year of reform gridlock.

So my message to Labor is this: simply listen. Listen to your small business constituency out there. Get on board and get out of the way. They want to grow. They want to employ people. They want to improve and add to the economic growth of this country.

In terms of infrastructure for Brisbane and Queensland, the government is investing some $13.4 billion to build infrastructure, with $1.6 billion to be funded in the 2015-16 period, with a further $16,170,607 being provided to the Brisbane City Council in the Roads to Recovery program. This is a very good program. It funds roads at a grassroots level and it has had an enormous impact in communities in Brisbane.

Under the Stronger Communities program, Brisbane also will receive $150,000 per year over two years for small capital projects. A number of community groups, schools and sporting organisations will benefit enormously. It will make a big difference to the many hundreds of volunteers who roll up on Saturday mornings during the week, who contribute to our local society and who are an important part of the fabric of our everyday communities. Under the Community Development Grants program, the Brisbane Broncos will receive $5 million in 2015-16, $250,000 will go to the Jeeps Rugby Club for a facilities upgrade and $750,000 will go to the Brisbane inner north sporting community to develop a community centre at Hickey Park.

I am absolutely delighted by a smaller amount—while it is only $125,000, it is fantastic—that is going to OzHarvest, which has expanded into Queensland. They have a really valuable program to help the homeless. The grant will fund a new van that will help them distribute food to shelters and groups that provide assistance to homeless people. I will be launching that program and its new funding next week. Matt Moran, one of our country's most famous chefs, will also be on board—he is an ambassador for OzHarvest—along with Ronni Kahn, who was one of Australia's Local Heroes a few years back. She won that much coveted award for her work in starting OzHarvest. I am delighted to be joining them at the formal ceremony to hand over the money to buy that much needed van. I commend the excellent work that OzHarvest does around this country.

I want to make special reference to those measures in the budget that impact on women. We need to get the country out of debt, we need to ensure the economy is strong and we need to ensure that services are targeted to those in need. There is a simple fact here that seems to completely elude Labor and the Greens: no woman can be better off in a country that spends beyond its means. That is a recipe for long-term disaster. The good news is that under this budget Australian women and their families will be better off. The budget supports women in achieving that better balance between their work and family life, as well as helping them to improve their economic security while contributing to a strong economic future for Australia.

That is what is in this budget. We are delivering $4.4 billion to make our childcare system much more affordable, accessible and flexible. This will help bring more women into work. The families package will provide greater choice to more than 1.2 million families by delivering affordable access to quality child care and early childhood learning, particularly to low-income families. It was a pleasure to have the Hon. Scott Morrison visit the Lyndhurst childcare centre last week.

The Jobs and Small Business package will provide tax relief and other incentives to encourage investment and grow small business. This will help the 480,000 women who are small business owners, as well as entrepreneurs and job seekers. We have designed wage subsidies, including a new subsidy for parents on income support who register with Job Active and have been dealing with employment services for six months or more. This will particularly help young mothers.

I am excited about the additional investment of more than $63 million in new and existing microfinance initiatives that will also help to build the financial resilience of women and ensure the wellbeing of their families, as well as the $600 million investment in better access to medicine, in supporting women affected by late stage breast cancer and in providing more effective cervical cancer screening that will save the lives of 140 women a year. In addition to these very important initiatives, there is $25 million of additional funding to deliver front-line legal support to women and children experiencing domestic and family violence and there is $230 million for a two-year extension of the National Partnership Agreement on Homelessness, which will prioritise those victims of domestic violence facing homelessness.

The budget will help shiftworkers. The pilot program that will provide $246 million for the nanny trial is very well thought of, and it will help nurses, police and other emergency services in my electorate in particular, so I am absolutely delighted by that. I am also delighted by the opportunity for women to participate more fully in the workforce. They are the most underutilised source of skills and entrepreneurship. Every woman that participates in the workforce contributes to our GDP; and, if we had six per cent more women participating in work, it has been shown that GDP would increase to $25 billion a year. These are staggering figures.

I am particularly impressed by the Green Army spending in the budget, $179 million over the four years. We will have the largest on-the-ground environmental Green Army program and it will continue with funding of $704 million over the forward estimates. It was great to see Green Army projects in my electorate funded: the Banks Street Reserve, Kedron Brook catchment and Ithaca Creek. These are fantastic local projects that will be delivered this year.

I thank the Minister for the Environment, Greg Hunt, for the investment in the Great Barrier Reef and all that he is doing to protect our waters. We are investing $100 million in the Reef Trust, in addition to our election commitment and initial contribution of $40 million. There has been much improvement through water quality and coastal habitation initiatives, as well as the protection of threatened and migratory species, especially dugongs and turtles. I also applaud Minister Hunt for the UNESCO result the other day and I thank him very much. Since coming into government, we have taken unprecedented steps to address the concerns of the World Heritage committee which were raised while Labor were in government, so I was very pleased to see that Barrier Reef result the other day.

In the short time left for me to speak, I also want to commend the allocation of $10.2 million to be spent on the Enhanced Land Force stage 2 project at Gallipoli Barracks at Enoggera. Queensland is home to 22,000 Defence Force personnel, and I thank them for all they do for our country. (Time expired)

Lucy Wicks (Robertson, Liberal Party) Share this | Link to this | Hansard source

This is a budget that delivers the growth, jobs and opportunities that people on the Central Coast deserve. It is a 'have a go' budget that builds on the commitments this government has already made to the people of my electorate, and I am proud to be part of a government that is delivering not only a great plan for our nation but a fantastic plan for the Central Coast in a way that Labor never did over the six years that they represented people in my electorate on the Central Coast.

As I will outline in this speech today, we are standing up for the coast by delivering more jobs, more growth opportunity for small businesses and more opportunities for our community to thrive. This is a budget I am really proud of. It is a budget that has already been well received across the electorate by families, small businesses and indeed my community. It is fair, it is balanced and it is good for the Central Coast because it unlocks the potential of our region. As a passionate 'coastie' I believe we are on track to build a stronger region, thanks to many of the initiatives in this budget.

One of the major highlights of this budget is our Growing Jobs and Small Business package. There are practical measures to help small businesses on Central Coast to invest, to hire, to grow and to thrive. There is the lowest company tax rate for small businesses in almost 50 years. There are tax cuts of 1.5 per cent for incorporated small businesses with an annual turnover of up to $2 million. Unincorporated small businesses will get a five per cent tax discount, up to $1,000 a year. Start-ups will be allowed to immediately deduct professional expenses, providing cash-flow benefits. We are also expanding tax concessions for employee share schemes.

In some of the best news from this budget, small businesses with a turnover of less than $2 million can claim an immediate tax deduction for each and every asset purchase of up to $20,000, up to 30 June 2017. For many businesses on the Central Coast, this means they can now buy machinery or equipment costing up to $20,000 for their businesses and deduct the full amount immediately from their taxable income. This is about creating an environment where people with real ambition and enterprise are out there creating jobs, because we know it is not government that creates jobs; it is business that creates jobs. Our small businesses, who are the engine room, the backbone, of our economy, can have a go and can grow, thrive, prosper and succeed.

Labor claims that they had a scheme as well. But Labor linked it to a failed mining tax which did not actually raise any money, whereas we have integrated it into our responsible long-term economic plan which also involves us getting back to surplus in a credible way. Labor put something on the table that was not funded and which was designed to distract people, but our budget engages our local businesses and encourages them to help boost our economy. I spoke with the regional manager of the New South Wales Central Coast Business Chamber, Dan Farmer. He said that five years ago the small business community was not even mentioned on budget night, but now it is front and centre of the budget commentary. He described this budget as a 'small business budget.' He said that the cut in company tax rate and the asset purchase reduction is a massive boost and that this may allow the small business owner to employ that extra apprentice, or extend the hours of a current employee.

I spoke with Logan, Erika and Peter, the owners of a very popular cafe called Fahrenheit Cafe in East Gosford. It is a great cafe. They actually taught me how to make a coffee a couple of weeks ago! They said they are actually thinking of buying a new fridge to get their cafe up and running in the local community. Edgar Adams, the editor of the Central Coast Business Review—a very esteemed business publication on the Central Coast—said, 'At last, a budget that recognises small business. Accolades to Minister Billson.' Accolades to Minister Billson indeed, and to this coalition government led by Prime Minister Tony Abbott.

This budget is also a jobs budget for the Central Coast. We have committed to locating a Commonwealth agency in a purpose-built building in Gosford CBD. There will be 600 new jobs for the region—600 new jobs that will be a game changer for the Central Coast. This will be the catalyst for an economic multiplier effect of hundreds of more jobs. There are 500 coming from the Australian Tax Office and 100 from complementary agencies run through our region.

As I have said in this place many times before, we originally promised 300 new jobs and we have now doubled that and this budget confirms that we are working with the ATO to have this centre of excellence up and running by the end of 2017. I am pleased to say that the ATO has advised that they have received an extremely positive response to the expressions of interest, with significant interest in building this in Gosford. This is great news, because it helps to drive innovation and competition, and it attracts serious investors to our region. John Mouland, the CEO of Regional Development Australia Central Coast told me that for so long in our region we have had plans and strategies but now we are finally moving forward as a region. He said that we are getting smarter, that we are using really good data and that we are getting results.

Residents from across the Central Coast are welcoming this budget. Raymond Field from Umina Beach was one of the first to respond on my Facebook page, saying 'It's nice to see the Central Coast being taken seriously as its own region.' The budget also revealed a $10 million funding injection to Somersby Industrial Park as part of the National Stronger Regions Fund, which is part of a $28 million project being driven by Gosford City Council. I do commend them for this initiative. Economic modelling demonstrates that this upgrade is set to create more than 3,000 new jobs on the Central Coast and to bring a $267 million boost to the local economy. It will do this by helping to transform the industrial park in Somersby, with significant upgrades to roads, stormwater drainage and sewerage pipes, making it business-ready and making it easier and cheaper for businesses to locate in the Somersby Industrial Park. It is believed that this will see over 960 jobs coming directly from the upgrade, with new businesses locating there, and another 2,100 across the Central Coast once the project is complete as part of an economic multiplier effect.

These 3,000 jobs are another important way that this budget delivers for our region. But, sadly, Labor opposes the National Stronger Regions Fund. I have previously said in this House that by opposing it they are actually opposing the more than 3,000 jobs that the economic modelling indicates could be created by this $10 million investment in the Central Coast. Recently, I called on Labor's representative for the Central Coast, Senator O'Neill, to explain why Labor opposes the National Stronger Regions Fund. And while the Senator responded with a media release, she ducked and avoided the question. Senator O'Neill's media release said, 'There is not one Coastie who has a single one of these jobs because they only exist on Lucy's Christmas wish list.' She said, 'I'll believe this government can deliver jobs for the Coasties when it happens.'

I say to Senator O'Neill and I say to the Labor Party: believe it. Believe it, because it is already happening. There have already been around 250,000 more jobs created since September 2013, when we came to government. Locally, as I have indicated, the economic modelling suggested around 3,000 jobs could be created in addition to the 600 new jobs that are coming to Gosford. I say to Senator O'Neill, please stop complaining about our plan for the Central Coast just because it is not your plan. Get behind our plan and start supporting it to make the Coasties Christmas wish list not just Lucy's Christmas wish list come true. I know so many people on the Central Coast want to see more local jobs for Gosford, more local jobs for the Central Coast, more jobs for our young people so they can have a go and get ahead.

This budget also demonstrates that we are delivering on the $7 million we committed to the Kibbleplex Centre in the Gosford Centre in the Gosford CBD. As it stands, the Department of Infrastructure and Regional Development is working with the council so a final funding agreement can be prepared. The department and Gosford City Council are working with the State Library of New South Wales, who is producing a final report on the fit-out. We have also committed to other projects in the growth plan for the Central Coast, including $3.5 million for the upgrade of Woy Woy oval. This upgrade is well under way, and I was out there just the other week to see Gosford council demolishing the grandstand and commencing to build a structure that will be a fantastic civic centrepiece for the peninsula and a great home ground to our local sporting clubs like the Woy Woy Roosters and the Woy Woy Lions.

We are also building the roads infrastructure the Central Coast needs—$675,000 to help fix the black spot at Langford Drive and Woy Woy Road at Kariong has been confirmed in this budget. The budget also delivers $1.6 million of roads funding for the Central Coast for black spots in my electorate of Robertson at places like East Gosford, Green Point, Umina Beach, Gosford and Woy Woy. On top of that, we have also seen a doubling of funds for the Roads to Recovery program, which also helps our local councils meet local priorities.

A division having been called in the House of Representatives—

Sitting suspended from 10:21 to 10:37

As I was saying, in relation to roads we have also doubled the Roads to Recovery investment for the next financial year, which means that Gosford City Council will receive $1.9 million next financial year to direct local road funding to where it is most needed. Importantly, we are also delivering NorthConnex, the M1/M2 missing link. Funding of $405 million has been committed and construction is underway. This means that there are around 8,700 jobs on the way as well.

This is a government that is also determined to help job seekers, especially young job seekers, to find and to keep a job. There is the $18 million national work experience program that provides job seekers on the Central Coast with the opportunity to undertake work experience in businesses for up to 25 hours per week for four weeks. There is a new $1.5 billion wage subsidy pool so that more job seekers are eligible for wage subsidies sooner. It also helps employers to access wage subsidies earlier to help with the up-front costs of hiring and training. This budget provides a new $212 million transition to work service to help young job seekers most at risk of long-term unemployment improve their chances of finding and keeping a job, and we announced $106 million for new pilot programs to help young job seekers, such as those with a mental illness or those from a refugee or migrant background, to move from welfare to work.

This budget also delivers for families through our $4.4 billion Jobs for Families package. This is about giving Central Coast parents more choice and more opportunity to work. I have spoken about this in the House before, and I intend to continue doing so, because it is fantastic news for the Central Coast. As part of a consultation process in relation to balancing work and family responsibilities, I have consulted with thousands of families from my electorate. The feedback I have received from people who live in Kariong, Kincumber, Woy Woy and many other suburbs in my electorate is that so many Central Coast families are faced with significant costs when parents want to return to work, and this budget helps to make it easier for families to be able to juggle and to be able to access child care. I commend the government for their initiative.

The response to the budget measures for pensioners has also been very, very positive. Importantly, pensions will continue to rise twice a year, just as they always have. More than 90 per cent of pensioners will have no change to their pension and will receive a higher pension. Because of this budget, more than 170,000 pensioners with modest assets will have their pensions increased by an average of $30 a fortnight. We are also reversing our proposals on indexation and, unlike Labor, we will not increase taxes on superannuation.

Local organisations on the Central Coast could also receive a significant boost in the 2015 budget through the stronger communities program. This program will provide $45 million over two years across Australia to fund small capital projects in local communities, which is great news for my electorate of Robertson. Our community in the Robertson electorate will receive funding of $150,000 per year over two years to support projects that deliver social benefits. This is a great initiative. I already know of several local projects that could really benefit from this. There are several local community organisations who I am sure will really welcome the opportunity to apply for this grant program. I will certainly consult widely with local community organisations across the Central Coast in Killcare, Springfield on the peninsula, Evocca, Terrigal and Gosford to identify high priority projects. Under this program between $1,000 and $20,000 will be made available to not-for-profit organisations like Rotary groups or progress associations that reflect and truly represent the lifeblood of our community on the Central Coast. Grants will fund projects that will yield significant social benefits and that can be delivered within the two-year life span of the program and that will help them get ahead. I look forward to seeing new local projects for a stronger community and also to the people of the Central Coast being able to benefit from this program.

Time does not permit me to speak on the many other positive aspects of this budget, including national security and our measures to assist with domestic violence. I hope to be able to do so in the House at another time in the near future, but may I just say that this budget, which I have been able to respond to today, is the next step in the government's responsible long-term economic plan to build a strong, safe and prosperous future. (Time expired)

Rick Wilson (O'Connor, Liberal Party) Share this | Link to this | Hansard source

The 2015 budget, as contained in the Appropriation Bill (No. 1) 2015-2016 and related bills, is a big win for families, small businesses and farmers. My electorate of O'Connor has an abundance of families, small businesses and farmers, so that means the budget is a huge win for my electorate. While the budget has been generally well received across the board, there are some budget measures that specifically benefit the different regions of my electorate.

Before I discuss some of the budget measures I am really proud of, we cannot forget the reason Australia is in this situation. This government inherited a deficit of $48 billion. The deficit for the 2015 budget is estimated to be $35 billion and is forecast to reduce each and every year to below $7 billion over the next four years. Gross debt in a decade will be more than $110 billion lower than we inherited from the previous government. Net debt is projected to peak at 18 per cent of GDP or $313.4 billion in 2016-17 before falling considerably to 7.1 per cent of GDP by 2025-26. Our action on the budget has allowed us each year to lower taxes. In 2014 we removed the carbon and mining taxes. In 2015 we are reducing taxes for 90 per cent of all Australian small businesses. Taken together, all of our decisions since coming to government have reduced the overall tax burden by $5.4 billion.

The government's 2015 budget is a historic, unprecedented game-changing budget for small business. The Growing Jobs and Small Business package is the biggest economic recognition of the sector in Australia's history. Small business has been and continues to be the engine room of the economy. It is an enduring focus and priority for this government. We are committed to working to ensure that Australia is the best place to start and grow a small business.

Our budget package was developed from extensive consultation with small business owners and employees. The corporate tax rate will be reduced from 30 per cent to 28.5 per cent for small businesses with an annual turnover of under $2 million. Small business will pay less tax for income in years that commence on or after 1 July 2015. The accelerated depreciation arrangement for small business and primary producers is the centrepiece of the budget's small business package. The change will amend the small business simplified depreciation rules in the tax law to increase the threshold for immediate deductibility from $1,000 to $20,000. This is a significant increase in the threshold and a massive gain to the cash flow for small businesses.

Our budget measures reflect our understanding of the complex nature of small businesses across our country. We know small businesses are at the very heart of rural and regional Australia and, with this in mind, changes have been implemented to amend tax laws to provide a simplified acceleration depreciation rule for all farmers. Farmers will be able to immediately deduct all capital expenditure on fencing and water facilities, while fodder storage assets will be deductible over three years. In an unprecedented move, we are simplifying the tax system for farmers and encouraging investment that will improve our farming communities' resilience to drought and other extreme weather events.

The accelerated depreciation arrangements for farmers and small business can be claimed for expenditure from budget night, making it more attractive for them to invest in new assets and grow. The changes will assist farmers with cash flow, improve resilience and reduce red tape by removing the need for farmers to track expenditure over time. A farmer can immediately deduct the cost of a water facility or fencing—for example, an $80,000 irrigation system previously was deducted over three years but now can be deducted immediately, giving a $53,000 deduction in the first year and so reducing the farmer's tax burden. A $25,000 new fence was previously deducted over 30 years but now can be deducted immediately, giving a $24,167 deduction in year one.

In my electorate, child care is a huge issue. The farmers that we have just been talking about and the shift workers, like many people in Kalgoorlie-Boulder, find it hard to get carers for their children. The Jobs for Families package will provide greater choice for these people by delivering more affordable access to quality child care and early childhood learning. Eligibility for the childcare subsidy will be determined by a stronger activity test. The good news is a broad range of activities will meet the activity test requirements. These include being self-employed, doing unpaid work in a family business such as a farm, looking for work or setting up a business and studying. The activity test includes a requirement to undertake a minimum of eight hours of activity per fortnight to access any subsidy, unless exempt. Eight hours of activity per fortnight results in up to 36 hours of childcare subsidy.

Another important issue is the zone tax offset. In the goldfields, specifically in Kalgoorlie-Boulder, I know that many are happy with the change to the zone tax offset. From 1 July 2015, the zone tax offset is only available to individuals genuinely living in remote and regional Australia. It is very important to my constituents to be recognised as genuinely living in a remote area for the purposes of the zone tax offset. The zone tax offset was introduced in 1954 in recognition of the disadvantages of residing in remote parts of Australia, in particular the isolation and high cost of living associated with living regionally. For too long Perth residents involved in fly-in fly-out and drive-in drive-out roles have had access to this allowance. In the 2012-13 financial year, more than half a million Australian residents with taxable income claimed zone tax offsets totalling $284.3 million. It is estimated that around 20 per cent of all those claimants do not live full-time in the zones.

While this allowance is only small for most of my constituents, it does recognise the high cost of living in regional WA. As my constituents know, FIFO workers do not face the same challenges of remote living that the zone tax offset was designed to address, as their genuine place of residence is elsewhere. FIFO workers do not have any additional costs; they eat at the work mess; they are not buying bread and milk at the local shop or paying for the increased freight costs; in fact they do not spend one cent in the region they work in.

The system was rewarding people in circumstances where they are not spending any money in the area, and this has now changed. On top of being of benefit to my constituents, this budget measure will gain revenue of approximately $110 million per year starting from the 2016-17 financial year. I would like to see some further reform on the zone tax offset, including the addition of a greater range of farm areas and, most importantly, for the offsets to be increased. People living in remote areas do not have access to the same level of publicly funded services as metropolitan areas, and they pay substantially more for the services that are available. We should increase the zone tax offsets to compensate for that.

The current zone tax offset is split into three categories: zone A, an offset value of $338; zone B, an offset value of $57; and special zone areas, an offset value of $1,173. I find it hard to believe that someone living in Esperance, some 700 kilometres from Perth, is financially only $57 worse off compared to someone living in Perth. I would like to see the zone tax offset for zone B reflect the real cost of living in such a remote regional town.

Youth allowance is an issue I have fought very hard for, and there were two very important issues I took to the 2013 election. One was rural health and the other one was youth allowance. I want to take a moment to discuss two recent announcements that substantially affect regional Australia and my electorate. Recently the government announced positive changes to youth allowance. From 1 July 2016, the family asset test and the family means test will be removed from the youth allowance parental income test. These changes will mean that farming families will not have farm assets counted toward the test for their children accessing youth allowance. Another change is that all family tax benefit children in the family pool will be included in the income-testing arrangements. These changes are great for rural and regional families, and specifically for students aiming for dependent youth allowance. As more students achieve dependent youth allowance status they will not have to take a gap year, which will lower university deferral rates.

However, the job is not done. I would like to see a reduction in the youth allowance waiting period from 18 months to less than 14 months, at least. This would allow each student in my electorate to start university after a one-year gap rather than a two-year gap. The current 18-month waiting period means that many students in my electorate are disadvantaged. Instead of taking a one-year gap to qualify for an allowance, they have to wait two years or start university without accessing the independent youth allowance. If a student finishes school in late November, that student is looking at May, at least, before qualifying for youth allowance. Without a job in the city, this makes starting university in late February almost impossible. I often receive calls from parents of children who are struggling to make ends meet while studying in the city and waiting for the allowance. In one instance, a student had started university after one year but was down to his last $150 while he waited for Centrelink approval for youth allowance.

I commend the students in my electorate who do the hard work to attend university despite being disadvantaged. A city student, of course, has the option of living at home with their parents while studying at university, and may also be able to continue in the same part-time job they had during the holidays while they were at school. A country student has to move to the city and find a new job—ideally one that pays reasonably—to support themselves because they are not living at home. A country student has to move out of home for the first time and move to the city, sometimes hundreds of kilometres from their home, and then pay to make ends meet in that city. The costs of covering rent, food and travel to and from home is a lot to ask from students who cannot work in their home town. Reducing the youth allowance waiting period will ensure regional and rural students in my electorate are only one year behind students who come from the city. I will continue to fight for a reduction in the youth allowance waiting period for as long as it takes, to ensure country students can further their education without being disadvantaged.

Rural health is another critical issue in my electorate. Eleven towns will now find it easier to attract doctors under the overhauled General Practice Rural Incentives Program. Under the changes, 450 Australian country towns will receive increased subsidies to attract and retain doctors. The overhauled, much fairer GP rural incentives program means that smaller rural communities will be able to more easily attract and retain GPs. The system will be fairer for small towns, redirecting money to attract more doctors to towns that have genuine difficulty attracting and retaining them. It made no sense that, under the previous system, $50 million a year was being used to pay incentives for doctors to live in 14 large regional cities—including Townsville, which has a population of 175,000, and Cairns, which has a population of 145,000. This money will now be spent attracting doctors to towns like my home town of Katanning, which has a population of 5,000, and our neighbouring town, Kojonup, which has a population of 2,000. It makes more sense to use the GP fund to attract doctors to where the greatest shortages are—small and remote communities, not big regional cities. The highest incentive paid to work in remote regional Australia will jump from $47,000 to $60,000 per year. The maximum incentive to work in a town of less than 5,000 in regional Australia will increase from $18,000 to $23,000. Other changes include that doctors will be able to take leave from a rural practice for up to five years with no loss of their incentive status on their return. Four existing programs have been streamlined into a single group retention payment, and doctors will need to stay in a regional or rural longer than two years, up from the current six months, before they receive the incentive.

As a final note on regional health, I am very pleased to announce that the Royal Flying Doctors received an extra $20 million over two years, increasing their funding from $58 million per annum to $68 million per annum. It is a vital service in my electorate of O'Connor.

To conclude, I want to touch on the government's commitment to infrastructure and how important infrastructure investment is. While I am disappointed to have only one successful project under round 1 of the National Stronger Regions Fund, I was thrilled the city of Albany was successful in their application for the relocation of the Albany Visitor Centre. This project will deliver an iconic building that will house a new tourist information hub and showcase regional produce, involving co-location with the Albany Visitor Centre and the Albany Public Library. This news is on top of the Roads to Recovery program, the Black Spot Program, the Heavy Vehicle Safety and Productivity Program and the Bridges Renewal Program.

Roads to Recovery has $350 million allocated, and this year an extra $350 million is being funded. More than 2,300 projects have already been listed for funding under the current 2014-19 program. The Black Spot Program has $60 million allocated annually to target dangerous areas where crashes are occurring. We have almost tripled black spot funding for the next two years, with an extra $100 million being allocated in 2015-16 and 2016-17 to accelerate road safety improvements. A total of 382 projects across five states and territories have already been announced for 2015, with further announcements being made in the coming weeks. Then we have the announcement of the Stronger Communities Program: $45 million over two years to fund small capital projects in local communities. Between $1,000 and $20,000 will be made available to reputable not-for-profit organisations for local projects. When the guidelines are released, I will be promoting this program in my electorate and encouraging eligible organisations to apply.

The 2015 budget is a great budget for Australia and particularly for O'Connor. I congratulate the Treasurer, the Minister for Small Business, the Minister for Finance and the Prime Minister on their hard work. For me, it is a good combination of repairing Australia's financial situation and giving people a chance to have a go.

Sarah Henderson (Corangamite, Liberal Party) Share this | Link to this | Hansard source

It is my great pleasure to rise and speak on the appropriation bills before the parliament. I am delighted to reaffirm our government's commitment to a budget which is responsible, measured and fair. It is a budget for small business, for families, for jobs growth and for opportunity. It is responsible because we remain committed to stabilising the nation's finances and reducing Labor's debt, key to building a stronger economy for Australians. It is measured because we understand the importance of balancing the fiscal challenge with the need to drive confidence and jobs investment. And it is fair because it delivers for those who most need our help—pensioners, low- and middle-income families, young people, job seekers, the vulnerable and the disadvantaged.

Before I speak about the wonderful benefits the budget delivers to my electorate of Corangamite, I want to remind everyone—those watching and those reading this speech in Hansardthat we must never forget Labor's legacy: $123 billion of cumulative deficits; $667 billion of net debt; the world's biggest carbon tax, which destroyed jobs, destroyed incentive and damaged small business; and of course six years of chaos and dysfunction. I am reminded of that chaos and dysfunction today in a report in The Australian newspaper under the heading 'Rudd was a bully; Gillard betrayed me: old wounds reopened'. It is a report about a documentary made by the ABC, The Killing Season, which is going to be aired next week. It talks about Ms Gillard alleging that Mr Rudd was physically intimidating towards her, describing a bullying encounter in which he acted in a menacing and angry way after a dispute about parliamentary tactics in 2007. It opens deep divisions of the chaos and dysfunction that absolutely crippled the government for six years and really set this nation backwards. Mr Rudd rejects this accusation. He says it is false. He accuses Ms Gillard of treachery and betrayal, falsifying events to justify her ambitions and colluding with former minister Mark Arbib to bring him down. For Australians who want to be reminded why we must never elect Labor at the next federal election, I think The Killing Season on the ABC next weekis compulsory viewing.

There is wonderful news in this year's budget for the electorate of Corangamite. I want to start by speaking about the National Stronger Regions Fund grant to the Norlane community hub, which delivers a community space, affordable housing and aged care. It is a wonderful $40 million project with a $7.2 million grant by the federal government.

When it comes to the National Stronger Regions Fund—and I reflect, Madam Deputy Speaker Wicks, on your comments—it is very disappointing that the Labor Party is opposing this $1 billion being invested into regional Australia over five years. It is a wonderful fund, driving incredible investment into regional Australia. I would encourage all eligible organisations, including local councils, to look at the criteria and make an application for this round, which is currently open.

There is $1.3 million for our local jobs fund, Geelong Employment Connections. I have been very proud to deliver this very specific fund which is geared towards retrenched workers, particularly in the manufacturing sector. It adds to another $500,000 that we have already delivered. It is a $1.8 million fund for the Geelong region. It is very proudly an example of how we are working at a grassroots level on the ground to help those who have lost their jobs move into new work. I am very, very proud of that.

There is our stronger communities program. This is a new program which will deliver $300,000 over two years for every federal electorate, including Corangamite, to fund important local projects to deliver social benefits. That is another great program. I say to all not-for-profit organisations across Corangamite, 'When the criteria are announced, please have a look at that program. It is a wonderful way for the federal government to support your organisation and to support the wonderful work that you do.'

I have to say with enormous pride that I was so proud to turn the sod on our $371 million duplication of the Princes Highway between Winchelsea and Colac just a number of weeks ago. This is an incredible project and one that I fought so hard for for so many years—since 2009. What a joy it is to see this being delivered. It is an incredible commitment for the people of Corangamite and south-west Victoria. It will be a duplication that will drive jobs investment, make the road much more safe, which will help families, and really open up so many opportunities for places such as Birregurra, Winchelsea, Colac and beyond. I am very, very proud.

That is along with our $50 million upgrade of the Great Ocean Road, with $25 million from the federal government. This is a project that I fought so hard for. This is an iconic road. Very unfortunately, this is funding that the Labor Party oppose, which is extraordinary. This is one of Australia's most iconic roads. It is a road that was built by returned servicemen between 1919 and 1932. It is extraordinary that the Labor Party continue to oppose the upgrade of this road. Now we read that the Victorian government, state Labor, want to put a road tax on the Great Ocean Road, imposing a $10 fee on anyone who visits the 12 Apostles. It is an absolute and utter disgrace. I will fight that tooth and nail. It just goes to show how little Labor appreciate and understand the importance of regional roads, particularly one as important as the Great Ocean Road. It is a very important project and one that I am very proud of.

Speaking of roads, we have our $3 billion commitment to the East West Link which remains on the table. I cannot find the words to describe the utter recklessness of state Labor, with the opposition leader, Bill Shorten, and the member for Corio standing by and doing absolutely nothing when Labor tore up that contract, costing at least $640 million and 7,000 jobs. We need a proper western link from Geelong into Melbourne. I am fighting tooth and nail for that link. We are looking at the Western Distributor. We are considering it. But it falls well short of the benefits that were going to be delivered to the people of Geelong with the western section of the East West Link. What a grotesque waste of money. What a grotesque act in destroying those jobs. In Victoria we are now left with very little infrastructure happening at the moment compared to states like New South Wales. It is a very poor reflection on Labor.

In our budget, we are also seeing the rollout of $3.5 million for Ocean Grove's Shell Road Reserve and $2½ million for Colac's Central Reserve. I was there on the weekend, at the Colac Tigers—another great win for the Colac Tigers. Boy, oh, boy—there is great excitement at our very substantial commitment to upgrade Central Reserve and to build a new community pavilion and grandstand. Again we see Labor completely deserting that project. From the Labor candidate for Corangamite, who previously ran in the state seat of Polwarth, there was not a dollar of commitment. She deserted the people of Colac by not fighting for an extra train service, she deserted the people of Anglesea by not committing to funding for the Anglesea Bowling Club, and she has deserted the young people of Colac by not fighting for or delivering a dollar to assist with the upgrade and redevelopment of Colac's Central Reserve.

For Torquay's Banyul-Warri Fields, there is a wonderful $500,000 commitment. There is over $4 million for the Golden Plains food production and employment precinct, a wonderful reflection of our commitment to agriculture and the benefits that flow to our region from that. There is $10 million for the new Geelong Library and Heritage Centre project and $3 million for the Geelong Centre for Emerging Infectious Diseases.

One of the other fantastic projects of which I am so proud is the new Australian Bureau of Statistics Centre of Excellence which will be established in Geelong in early 2016, bringing with it 250 jobs. Here we have another Commonwealth agency moving to our region after a very hard-fought battle, bringing those jobs, and here is a government that I am very proudly a part of, delivering those jobs to our region. The National Disability Insurance Scheme is being rolled out across Geelong and Colac—across Corangamite—with offices in both Geelong and Colac for the Barwon trial and with the NDIA national headquarters in Geelong. That is incredibly exciting.

The NBN is being delivered to some 40,000 premises across Corangamite, areas of Corangamite that were completely ignored by Labor but that we are strongly committed to—the small towns that matter: Alvie, Coragulac, Cororooke, Barongarook, Forrest, Warncoort. They go on and on. This is a government which cares about small regional communities, and that is why we are rolling out the NBN to those communities which need it the most. My battle and my fight to make sure that the NBN is expedited into Geelong continues, because we know how important fast broadband is to ensuring that we can become an innovation hub of Australia—and Geelong has that enormous potential.

There is no doubt that one of the absolute highlights of our budget is our Growing Jobs and Small Business package. Boy, oh, boy—there is great excitement on the ground. We have held small business forums with the small business minister, Bruce Billson, in both Geelong and Colac. For the first time, small businesses have been heard, and that is what they are saying. There is a 1.5 per cent cut in the company tax rate, to 28.5 per cent, the lowest in almost 50 years. Unincorporated small businesses will get a five per cent tax discount, up to $1,000 a year. The unincorporated small businesses, which make up two-thirds of all small businesses, were completely forgotten by Opposition Leader Bill Shorten in his budget reply speech. He just left them out altogether, as if they do not even exist, which just goes to show again that Labor do not get it. They do not understand small business, and we are the proud champions of small business.

Another incredibly popular measure is that small businesses can claim an immediate tax deduction for each and every asset purchased up to $20,000 from budget night until 30 June 2017. This is an extraordinary opportunity. It is already seeing great consumer confidence ripple throughout the community and delivering immediate benefits not just to small businesses which are eligible—those with a turnover of $2 million or less—but to the bigger companies which act as an important supply chain to small business. I was very proud to speak on our Tax and Superannuation Laws Amendment (Employee Share Schemes) Bill, and that is another wonderful measure in our support for small business, particularly start-up companies.

Importantly we are very focused on getting people back into work; we have had a terrible failure of labour, particularly with youth unemployment. We are focused on driving incentives and opportunities, particularly for young people. Through our $1.2 billion National Wage Subsidy Pool, there will be $6500 for employers who hire job seekers under 30. We also have the important $331 million Youth Employment Strategy, which includes the $212 million Transition to Work program to help young, disengaged people aged between 15 and 21 become job ready. Of course, we also have our National Work Experience program for young job seekers and the new weekly $10 Newstart bonus for those who do some volunteer work. We are also reversing the six-month waiting period for Newstart, bringing it down to five weeks—which reflects the fact that we have listened. I am very proud to have made representations to the social services minister on this, and I am incredibly impressed with the package that he has helped to deliver to ensure that we can drive these important opportunities for young people.

We have just seen a charade in the main chamber where the Labor Party was trying to shut down debate on our small business measures—it is very unfortunate. Perhaps they are trying to hide the fact that some 519,000 people lost their jobs in small business over six years under Labor. Small business is the engine room of our economy. There are two million small businesses, which employ 4½ million people. Our government is incredibly proud of the support we are giving small business, families and, of course, farming enterprises. This is a great budget for jobs, for opportunity, for small business and for families. I commend the bills to the House.

Warren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

As this 2015 appropriations debate draws to a close, I want particularly to summarise some of the highlights and features of this budget, especially in my own portfolio area, for regional Australia and my electorate of Wide Bay. This year's budget certainly delivers a wide range of initiatives that support families, promote small business and create jobs, while continuing the budget repair after the wasteful and reckless spending of the Rudd-Gillard-Rudd Labor government.

The coalition's Jobs for Families package will provide $4.4 billion to make it easier for working families to access child care. The package also includes $840 million to extend preschool education for all. The budget recognises that small business is the powerhouse of our economy and the 2015 budget contains tax cuts to small business and improvements to depreciation so small businesses can keep more of the money that they earn. Jobs are a priority for the government and the budget contains initiatives to strengthen the economy and encourage jobs growth, especially in areas of high unemployment.

The 2015-16 budget is good for all Australians, but it is especially poised to deliver better outcomes for rural and regional Australia with the coalition government committed to driving growth in the infrastructure, employment and small business sectors. The initiatives contained in the budget are the second step in the coalition government's economic strategy to build a strong, prosperous economy for a safe and secure Australia. The federal government's new jobs package is an important initiative for electorates like Wide Bay where the unemployment rates are traditionally higher than other parts of the country. It contains wage subsidies for older and younger unemployed people to encourage businesses to create more jobs to give older and younger job seekers more opportunities to work. The Work for the Dole scheme will also be expanded to help keep job seekers active and learning while providing them with experience and encouragement to find work.

Small businesses will receive a major boost from accelerated depreciation for items under $15,000, freeing up more money to invest in new equipment and to increase their efficiency and productivity, and there will be a tax cut for all small businesses to stimulate growth and job creation and encourage entrepreneurship. The federal budget contains a wide range of initiatives to help ensure that our tax system is fairer—including cracking down on multinational companies and ensuring that they pay their fair share of tax. GST will be imposed on imported services to create a more level playing field for Australian-based businesses. An extra $603 million has been provided to fund new PBS listings, allowing people to access new pharmaceuticals for the treatment and alleviation of diseases. Especially of interest to people in country areas like my own, around 450 communities will find it easier to attract doctors under an overhauled General Practice Rural Incentives Program. Under the previous government's scheme, around $50 million a year was being used to pay incentives for doctors to live in large regional centres—regional centres that are able to offer their own attractions without the need for this additional support. By concentrating the assistance on needy small rural communities, the provision of rural medical services across the country will become more balanced, and it will ensure that some smaller country communities, including many in my electorate, will be able to attract and maintain and keep a doctor for a long period of time.

The government has saved $278 million by closing immigration detention centres because the government's Operation Sovereign Borders has been successful in stopping illegal boat arrivals. Our regional and rural areas are also certainly benefiting from our record $50 billion infrastructure investment program, the biggest in Australia's history. It is creating tens of thousands of jobs, it is working on eliminating congestion in our capital cities, and it is increasing the economic capacity of our freight routes and improving safety for all road users. In my electorate of Wide Bay, the budget commits funding to progress the Cooroy to Curra four-lane upgrade of the Bruce Highway. It delivers funding to complete section A of the Cooroy to Curra project and to start work on section C between Traveston and Gympie. When sections A and C are completed, there will be a four-lane highway all the way from Melbourne to Gympie. This is an investment that will have an enormous benefit for the local community and for industry as the highway is a part of the lifeblood—it is the lifeline—of our communities. The upgrade will deliver a faster, safer road and one that is less prone to flooding.

Some are concerned that the new Queensland government may not support funding of regional roads, or may seek to walk away from some of the projects that were committed to in the Commonwealth-state road rail partnership agreement. I have received assurances from the new state minister that the new government is indeed committed to that contractual program, so we look forward to their cooperation in ensuring that the upgrade of the Bruce Highway will continue. I acknowledge that there has been a slowdown in some of these projects with the election of a new government; perhaps that is to be expected with the new government still endeavouring to find their way. But I hope that there will be early approval of the various projects that have been committed to, so that there will not be any delays in the job creation and in the work that is currently underway, and so that this exciting and visionary project can be seen promptly through to fruition.

There are lots of other projects on the Bruce Highway, including some in my electorate which have been committed to as part of the government's $8.5 billion Bruce Highway Upgrade Programme. For instance, $16 million is being provided to commence the reconstruction of the Tinana interchange, which will deliver a safer and more welcoming entrance to Maryborough and the Fraser Coast. There is also additional money for passing lanes and for safety improvements to the highway. These kinds of projects are very important for the future of my region, but upgraded roads and rail will also make a difference to the efficiency of our nation. The program also includes a wide range of new initiatives in that regard: there is funding for black spots; and there is funding, also in my electorate, for the heavy vehicle upgrading program to ensure that roads are able to carry the new heavy vehicles that are on our roads and to do it more safely.

The government has committed to a range of measures under the Roads to Recovery Program. Local governments in my electorate and right across Australia will receive a double payment—an extra $350 million for local roads and streets in this budget. More than 2,300 projects have already been listed for funding under the 2014-19 program. These are projects that will make a real difference to local roads and streets.

The Black Spot Program will continue to reduce crashes on our roads, with $60 million allocated annually. We are almost tripling the black spot funding for the next two years, with an extra $100 million being allocated in 2015-16 and 2016-17 to accelerate road safety improvement. That work includes some projects in my own electorate that were announced quite recently. Projects to improve the intersection of Lennox and Albert streets in Maryborough, the intersection of Pilwera and Yerra roads at Yerra, and Sandy Creek Road at Victory Heights have all been funded as part of the Black Spot Program.

We are also working enthusiastically to deliver the Bridges Renewal Program, a commitment of the federal government at the last election—and, for that matter, the previous one at which we were not elected. We are providing $300 million over four years to help repair and replace some of the nation's dilapidated bridges. Applications for the second round of that program will be called fairly soon.

The government's new Stronger Communities Program will provide $45 million over two years to help fund small capital projects in local communities. In addition, the first 51 successful projects in our billion-dollar Strong Regions Program were announced on budget night. That starts the process of trying to provide some support and impetus to those parts of Australia which are disadvantaged—areas with high levels of unemployment and low socioeconomic profiles. These are projects that will make a difference, that will help redress the imbalance, help address the reasons those areas are disadvantaged and ensure there are opportunities.

Right across the nation our government is funding major projects, including in our capital cities. There is the Gateway North in Brisbane. There is the Toowoomba Range project, a truly visionary project to provide a new bypass around the city of Toowoomba. In Sydney there is WestConnex and NorthConnex and the magnificent work that will be done on the Pacific Highway. There is sufficient funding in this budget to complete the Pacific Highway at least a decade ahead of when it would have been completed by the previous government. There is funding in South Australia for the north-south corridor and for a range of projects in Perth, as well as for the rural roads and highways between Perth and Darwin and in other locations.

There was also funding in the budget for Victoria—substantial funding. But unfortunately the state government has chosen not to accept the funding for the biggest project in Melbourne. That is going to have a serious impact on the economy of Melbourne and will be a blow to the national road-building program. Victoria has no other projects that are ready to start that have anything like the scale of that east-west project. So several years are likely to be lost in Victoria.

I have been particularly amazed that the Labor opposition continues to make outrageous claims that somehow or other funding for roads has been cut in this budget. Labor throws the word 'cut' around with gay abandon, but they are being dishonest in those claims. Even the Leader of the Opposition in his budget reply made erroneous statements, presumably fed to him by the shadow minister, claiming that there was going to be a 17 per cent cut in the federal budget for road and rail.

That is completely wrong. If you go to the budget papers, it is absolutely clear that expenditure for road transport will increase from $4.214 billion in 2014-15 to $5.935 billion in 2015-16 and increase again to $8.401 billion in 2016-17. That is almost a doubling of the funding over that period. It is not a cut; it is a doubling of funding. Likewise, with rail transport, the funding will increase from $740 billion in 2014-15 to $1.079 billion in 2015-16 and up to $1.303 billion in 2016-17—again, not a cut; almost a doubling of funding over that period.

And we get similar stories about cuts to health funding and cuts to education funding, when in fact the budget papers make it absolutely clear that funding is increasing to the states for health and education. Indeed, the Queensland Minister for Health was commenting in my local newspaper just a few days ago about the improved performance of hospitals in my area. There is no question that the hospitals improved enormously under the term of the Newman government, and they deserve great credit for that. But the Queensland Minister for Health acknowledged that a significant part of the reason for the improvement in health was increased federal funding—increased federal funding—and yet the next day he was out complaining about cuts in funding. In fact, health funding for Queensland will go up by 27 per cent over the next four years—not cuts; increases by 27 per cent, way above the level of inflation.

The opposition needs to be honest about the budget. No, we cannot do everything that we would like to do, but this is a budget that is about building a better future for Australia, and it is about ensuring that we are able to live within our means. But we can do that by boosting the economy, making it stronger and giving opportunities to Australians, and they will be with us then in building a stronger nation. (Time expired)

Clive Palmer (Fairfax, Palmer United Party) Share this | Link to this | Hansard source

This budget, we feel, does not take up the challenge or take up the torch for what Australians really want to happen in our country at the moment. There are so many challenges which remain unanswered. The main issue facing Australians today is what Australians can do to regain Australia's status as a lucky country. Australians want to know and Australians need to know how their life can be better, how their life can be improved for them and their families, not, as we constantly hear, in 30 years or 20 years time but right now. Domestic demand is at an all-time low. Interest rates are at an all-time low, not because the economy is doing well but because there is no economic demand. Because our economy is spiralling down and shrinking, our people hold their savings in fear. We are all on Struggle Street together. It is our country, and it is our responsibility to do all we can to make the lives of all our citizens better.

Since the last budget, the Palmer United team in parliament has, as you have seen in this budget, stopped the co-payment, stopped changes to university, stopped $10 billion in cuts in social security, freed over 436 children from detention and 1,500 people from Christmas Island, assisted the government in resolving 30,000 cases in detention and come up with the idea of the safe haven enterprise visas. We have moved in the Senate to save the low-income super for over two million Australians and kept the schoolkids bonus.

When the carbon tax was abolished, we ensured that electricity prices were reduced by 10 per cent Australia wide. We moved 15 changes to Direct Action in the Senate, which all passed, and then we passed Direct Action. We have seen the results of our amendments in the recent announcements by the Minister for the Environment. We have saved the Climate Change Authority, saved the Clean Energy Finance Corporation and saved ARENA, and we have helped set a new renewable energy target.

We have fixed pensions for all veterans and ex-servicemen over 55 in accordance with our policy, and we have seen the defeat of the Campbell Newman government. During the course of parliament, we have set up, with the government, three new inquiries: into trade and investment growth, into the Australia Fund and, more recently, into the Queensland government. We voted to abolish the carbon tax and abolish the mining tax. We have recently introduced a bill on the foreign death penalty. We have protected maritime workers' jobs and proved that the government debt was not a problem for Australia, as we heard last budget. And we are happy that the Prime Minister adopted our policy, once he was elected, to ban lobbyists from party positions. We have introduced in the House of Representatives a private member's bill to kill off the GrainCorp takeover before the Treasury make this decision, and in electoral reform we now have pens taking the place of pencils. We voted in the Senate to keep Qantas in Australian hands and we have stopped changes to the income tax threshold and stopped the financial incentive to sell public assets, saved Australian jobs offshore in the gas industry and stopped the slashing of university research grants.

Australia is the only developed economy in the world to have recorded no annual recessions during the past 23 years, placing it alongside high-growth economies such as China and India. Australian government debt is one of the lowest in the world. In October 2014 the IMF estimated the Australian government's net debt would be 16.6 per cent of GDP in 2015, well below the 74.1 per cent forecast for advanced economies. Actually, Australia's debt is only around 14 per cent of GDP, less than the 40 per cent under Bob Menzies' government, which many Liberals would say was a highlight of Australian administration.

Australia's pool of funds under management is the third largest in the world and the largest in the Asian region. Growth in productivity is outpacing labour costs. Australia has enjoyed a sustained period of labour productivity growth, exceeding the growth in real wages. Over 23 years, with Australia's compound annual growth rate of 1.8 per cent, real unit labour costs have fallen by 0.5 per cent each year. There has been strong labour productivity growth of 1.9 per cent in 2012-13 and 2.6 per cent in 2013-14. Real unit labour costs have broadly remained stable, and the effective cost of labour has remained in line with productivity improvements. You would not believe that if you heard the rhetoric that goes on in this place.

Australia is No. 1 in the world in tertiary education entry rates. Australia's entry rate into tertiary education is at 102 per cent, including international students. This is well above the OECD average of 58 per cent, the USA at 71 per cent and the UK at 68 per cent. Australia's tertiary education rate is also much higher than South Korea, at 69 per cent. Japan is 52 per cent and China is 18 per cent. High rates of tertiary education underpin Australia's position as the No. 1 developed country in terms of real GDP growth over the last 24 years. Australia is one of the most culturally diverse countries in the OECD. The availability of multilingual, culturally diverse and highly skilled personnel means Australia has access to a workforce well equipped with cultural understanding and language capabilities to service international business in their own images.

Australia has the second-largest stock market in the Asian region, and the eighth largest in the world. With total capital exceeding US$1.12 trillion, Australia's market capitalisation is greater than China's, at US$1.06 trillion, and double Hong Kong's, at US$528 billion. It is around four times the capitalisation of the Singapore market. Australia's $1.6 trillion superannuation system is the fourth largest in the world and is a major driver behind Australia's globally significant funds management industry. The pool of assets is expected to grow to $7.6 trillion, or 180 per cent of GDP, over the next two decades. We should not tamper with the pension—we do not need to. Our superannuation pool is strong—Australians provide for their long-term retirement through their own efforts.

This budget is flawed. Reducing company tax by 1.5 per cent for small business will not stimulate the economy. Companies and small businesses have to make a profit before they pay tax. With such low-level demand in the economy, companies are not making a profit. Small businesses are not making a profit so tax is not relevant to them. Profit comes before you pay tax. With low demand and limited money supply, small businesses are losing profitability. We must create demand by increasing the money supply. People have to have money to buy goods and services for companies to make a profit before paying tax. Projected company tax receipts for 2015 exceed $70 billion. Instead of companies paying tax before they make a profit, the $70 billion should be left in enterprises' hands for 12 months to boost the economy. Australians can spend it better than government. This would create real demand and massive job growth, wipe out deficits and make our economy stronger—$70 billion spent by individual taxpayers gets the government 10 per cent GST each time the money is spent. We could have better hospitals, better schools and better services from our government. Money should be circulating in the economy, creating jobs and family enterprises. At the end of the year the government gets the $70 billion tax as well. If money circulates four times a year before government gets it, we get an extra $28 billion. It will cost around two per cent, at current interest rates—about $850 million—to implement such a change to provide an extra $30 billion or more in government revenue.

This budget had the opportunity—but failed—to stimulate our construction sector. We need to make the first $10,000 paid on a home loan each year tax deductible. Australia needs to again have the dream of homeownership. We can boost the construction industry and increase homeownership to satisfy demand and increase revenue for the government. By growing demand and government revenue, we could have the opportunity to reduce tax by 15 per cent for all Australians. The Australian taxpayer would have an extra $2,500 in their pocket every year, or $50 a week. This increase in demand and activity could boost jobs and investment in small business, and it is an opportunity which has been lost by this budget.

We need to stimulate our economy. We know our citizens can spend money better than the government can. We see that the budget and the government need to support the states. Attempts to privatise our schools and our hospitals, and turn people away, were rejected by the people of Queensland at the recent state election, and they will be rejected at the next federal election if the government continues with that policy. We need to stimulate our economy as President Obama has done in the United States and as Europe is doing now for its economy. We have to act, rather than follow the example set by Greece of constant contraction of the economy and reduction in fundamental demand levels.

The cost of health care in the United States is 17 per cent of GDP; still, 60 million Americans are not covered. In Australia, the government spends around nine per cent of GDP on health care and complains that it wants to make more cuts in the four coming years. We cannot desert the sick and dying. In the days of Prime Minister Menzies, our debts were around 40 per cent of GDP, which would still only make us 60 per cent or the OECD average. We need to use this ability we have to generate more capital and more demand, to push our economy to even greater heights than it is at today. We must do whatever is needed to be done to fix health once and for all.

The Australian government is the main petitioner of bankruptcy and company liquidations across Australia. As companies close, employees lose their jobs, the government loses group tax, people are transferred from gainful employment to Centrelink, company taxes are destroyed and services spiral down. Government must stop driving businesses to the wall. We must keep the system going to keep people employed productively. Transferring people from gainful employment to unemployment just guarantees misery. We need a chapter 11, like they have in the United States, where, when companies fail, the business continues—so families keep their jobs, government keeps their taxes and the nation keeps its exports.

As has been said, ignorance and illiteracy, unskilled workers and school dropouts are the failures of an education system in the past that bred failures in our social and economic system, such as delinquency, unemployment, chronic dependency, a waste of human resources, loss of productive power and purchasing power, and an increase in tax-supported benefits. The loss of only one year's income due to unemployment is more than the total cost of education to high school level over 12 years. Failure to improve our educational performance is not only poor social policy; it is poor economic policy. At this time, we need to invest—and the government has not done enough of that in this budget—in ourselves. If we do not have confidence in ourselves, who will have confidence in us? We must educate our children, as our most valuable resource. The problems that have been made by Australians can be solved by Australians as well, so we need to attack the issue of confidence to show leadership and vision for this country.

We need to support regional Australia. The government had a great opportunity to introduce regional zonal taxation but missed it with this budget. Japan has become the world's third largest economy by processing Australian resources. The cost of energy in Japan is more expensive. Japan suffers from the tyranny of distance and its wages are higher; yet Australia sells its mineral resources at $40 to $100 a tonne to Japan, they process it and sell it for $20,000, creating exports for and an economic powerhouse of Japan, while Australians in South Australia, Victoria, Tasmania, New South Wales and Queensland, and even Western Australia, go without any hope for themselves.

Minerals from Western Australia and Queensland should be processed in New South Wales, Victoria, Tasmania or elsewhere in Australia. Let Australians do what they do best, using our natural advantages in the world so that we can provide real competition on a massive scale. No longer should we give up the future of our children in this country or the opportunities that we have to countries in Asia and others north of us. Some of those resources can be processed in this country. Because of the high cost of establishing plants like this—$6 billion or $7 billion or more—the Japanese, Chinese and Korean governments have learnt that it requires government leadership and innovation to make this happen. Yet our government has done nothing in this area for over 30 years and we have lost these opportunities in Asia.

We see declining unemployment in places like Tasmania and other places. We would have to grasp the nettle and realise that there is a real opportunity in the future to process our resources in this country, to return Australia to a large, highly skilled technological manufacture base. This is an opportunity that could have been addressed in this budget, as could the chapter 11 provisions, which were not. They are opportunities lost and forgotten for Australians, and I think it is a matter of great regret. We can only look to the future and hope the government in next year's budget will look at some of these things that they could have done today.

Michael McCormack (Riverina, National Party, Parliamentary Secretary to the Minister for Finance) Share this | Link to this | Hansard source

It is a pleasure to sum up the second reading debate on the supplementary additional estimates appropriation bills and the budget appropriation bills. These bills underpin the government's expenditure decisions for what remains of the current financial year and the financial year to come.

Before I go on to recap the appropriations that these bills give effect to and the major items associated with those appropriations, I would like to touch on some of the issues canvassed in this wide-ranging debate. The centrepiece of this budget is undoubtedly our small business package. We are giving Australian small businesses a reason to have the confidence to invest now, to hire now, to back their ingenuity and to have a go. As the economy continues to transition from mining-led growth to broader based growth, we need small business firing on all cylinders. The member for Page hit the nail on the head when in this debate he remarked:

… every public sector dollar, every taxpayer dollar, that you want to spend on many worthy causes has to come from a healthy private sector.

That is why in this budget we gave small business a real incentive to invest in growing their business, to back their ingenuity and, as I said before, to have a go.

A common refrain in this debate has been just how enthusiastic small businesses are about the tax cut we have delivered for small businesses whether they are incorporated or not, and our two-year $20,000 instant asset write-off. By allowing small businesses to keep more of the money they work so hard to earn, we are providing a real incentive that will make a real difference to small business. It is a message I have heard as I have travelled right across the Riverina in recent weeks. It is why it is important that we continue to invest for growth by unlocking trade opportunities, supporting job seekers into employment and building the infrastructure Australia needs.

Our small business package will make a real difference to the ability of small businesses to realise the benefits of the preferential trade agreements we have struck with South Korea, Japan and China. These deals open up market access to important export markets, the benefits of which will continue to be felt for decades to come. On the horizon is a deal with India that I know the Minister for Trade and Investment is working tirelessly to secure. These agreements are going to be transformational for Australian growers of food and fibre, particularly those in regional Australia. China is already Australia's second largest market for dairy exports and that will continue to grow, with tariffs on dairy products being eliminated over time—in some cases in as little as four years. Japan is Australia's second largest trading partner and, under the agreement struck last year, tariffs on canned tomatoes, peaches and pears, and fruit and vegetable juices will disappear entirely. Other agricultural tariffs, some as high as 219 per cent, will be substantially reduced. Our agreement with South Korea will see tariffs on wine eliminated, which gives Australian producers such as those around Griffith in the Riverina—who produce, did you know, one in four glasses of all Australian wine—an advantage over French, Spanish, Italian and Chilean competitors.

This budget is also good for farmers and their communities looking to take advantage of these opportunities by providing immediate deductions for new fences and new water infrastructure, and a three-year write-off for new hay sheds and silos—all from 1 July 2015. This is so important to regional Australia and particularly to Riverina farmers, who produce so much of the nation's food and fibre, as well as exporting to the world. They can now invest in on-farm infrastructure with confidence, and in many cases they can do it right from budget night—right from when the member for North Sydney stood and delivered that fine speech. As the member for Calare rightly remarked in his contribution:

… in regional Australia … they actually do things; they dig them up, they make things and they grow things.

We have just heard from the Deputy Prime Minister, Leader of The Nationals, Minister for Infrastructure and Regional Development, and member for Wide Bay. He has lots of titles. I tell you what, he is a busy boy and he has been very busy in regional Australia lately. He has been busy delivering the $300 million Bridges Renewal Program over four years. This includes 29 bridges across New South Wales—I know that will please the member for Grayndler—including Carrathool Bridge, and Gobarralong Bridge near Gundagai. This program is very, very important. Unfortunately, as the Deputy Prime Minister pointed out, the Melbourne East West Link is not being supported by the Victorian Labor government. There is a doubling of Roads to Recovery funding, which is so important to local government areas right throughout Australia. Members, as I say, right across this wide brown land, at least those on the government side, have highlighted the real results that this budget delivers for their communities.

As my neighbour the member for Hume pointed out, this is a budget about solving real problems. It delivers better roads through our Roads to Recovery program, mentioned by the Deputy Prime Minister. It fixes dangerous road black spots. It delivers a better National Broadband Network sooner. It delivers the community infrastructure which really makes a difference to the lives of local people through our $1 billion National Stronger Regions Fund and our new stronger communities program.

The other area where I know this budget does a lot of good is in getting people, particularly young people, into work or on a pathway to work. We are investing in a new $6.8 billion jobactive employment services model to better meet the needs of job seekers and employers. We are revitalising Work for the Dole to give people who are unemployed a better sense of connection to their community and skills which may provide a pathway to work. As the member for Parkes noted in his fine contribution to this debate, if you are serious about breaking the cycle of intergenerational poverty you need to allow people to have the dignity of work—and he would know. That is why we are giving eligible job seekers the opportunity to undertake work experience in businesses for up to 25 hours per week for four weeks—and that is important. Participants will continue to receive their income support payment and a supplement to assist with the costs of participation. Employers who go on to offer a young person paid employment can receive a wage subsidy of up to $6,500 over 12 months. It is just one way we are getting Australia back to work.

This budget takes the necessary steps towards continuing to repair the budget, with sensible savings and a responsible approach to spending. We were elected to restore the nation's finances, and this year's budget shows the headway we have made in doing just that. Deficits over the forward estimates are reducing each and every year, from $35.1 billion in 2015-16 to $6.9 billion in 2018-19, and this is despite the fact that we have lost $90 billion in expected tax revenue.

Rather than squibbing the hard decisions and throwing up our hands in despair, we are taking a responsible, measured and fair approach to getting the nation's finances back on track, back where people expect them to be. We are back doing the job that we were elected to do in September 2013. Labor have been running the line since the budget was handed down that we have indulged in a piece of budget trickery, claiming our plan to return to surplus is based wholly and solely on including the Future Fund earnings in the underlying cash balance. The member for Fraser made much of this in his contribution to this debate. I know that his Senate colleagues have been doing their best in estimates committee hearings to accuse us of cooking the books. But I can assure the chamber that there is no trickery at play here. There is no grand conspiracy. What the budget papers reflect is that from 2020-21 the earnings of the Future Fund will be available to offset the cost of paying Australian government civilian and military superannuation benefits, which was the stated intention of the parliament when it legislated to establish the Future Fund back in 2006. In fact, it was always intended that Future Fund earnings would be shown in budget projections from 2020-21 onwards. Labor themselves made this very point in their 2012-13 budget. I will say this for the member for Fraser: he may be an economist but he is no historian in that regard. Even if you cannot remember quite that far back, the Intergenerational report released in March of this year made it clear that, once draw-downs from the fund commenced, the earnings of the fund would be included in the underlying cash balance. This is not something that we have tried to hide. Far from being a piece of budget trickery, this is clear evidence of the legacy of the last coalition government at work.

I would like to remind the House of the more specific features of the bills before us. Appropriation Bill (No. 5) 2014-2015 seeks approval for additional appropriations from the Consolidated Revenue Fund of just under $377 million for 2014-15. Under this bill, the Department of Immigration and Border Protection would receive just under $248 million in 2014-15 to fund resettlement activities and costs associated with delays in processing illegal maritime arrivals. Appropriation Bill (No. 6) 2014-2015 seeks further approval for appropriations from the Consolidated Revenue Fund of just under $423 million for 2014-15. The majority of proposed funding in the bill relates to the Department of Defence, which would receive just under $412 million, reflecting funding for supplementation for foreign exchange movements and the net effect of the reallocation of funds between running costs and capital.

Appropriation Bill (No. 1) 2015-2016, Appropriation Bill (No. 2) 2015-2016 and the Appropriation (Parliamentary Departments) Bill (No. 1) 2015-2016 form the principal bills underpinning the government's budget. Appropriation Bill (No. 1) 2015-2016 seeks authority for meeting the expenses of the ordinary annual services of the government for 2015-16. The bill seeks approval for appropriations from the Consolidated Revenue Fund of just under $81 billion. Just under $29 billion is proposed to be appropriated for the Department of Defence to keep our nation safe and to pursue our national interests. In the social services portfolio, the Department of Social Services would receive just under $5.8 billion, including funding to support families with flexible, accessible and affordable child care so they can move into work, stay in work, train, study or undertake other recognised activities.

The Department of Health would receive just over $6.2 billion, including $2.4 billion for primary healthcare, including primary and mental healthcare services, and healthcare services for Aboriginal and Torres Strait Islander peoples and people in rural and remote areas. Just over $4.9 billion would be provided to the Department of Foreign Affairs and Trade for the advancement of Australia's international strategic, security and economic interests, the protection and welfare of Australians abroad, consular support and an effective Australian government presence overseas.

Appropriation Bill (No. 2) 2015-2016 seeks approval for appropriations from the Consolidated Revenue Fund of just over $15 billion for 2015-2016. Under this bill, the Department of Communications would receive just under $7.4 billion to continue its investment in the National Broadband Network in 2015-16, and the Department of Infrastructure and Regional Development would receive just under $3 billion. This includes a provision for a Commonwealth concessional loan of up to $2 billion to accelerate the delivery of stage 2 of the WestConnex project in Sydney. Further, the Department of Defence would receive just under $2.9 billion in capital funding.

The purpose of the Appropriation (Parliamentary Departments) Bill (No. 1) 2015-2016 is to provide funding of just over $233 million for the operations of the parliamentary departments. Just over $28 million would be provided to enhance cybersecurity.

Details of the proposed expenditure are set out in the schedule for which money has been appropriated to the bills and in the portfolio supplementary additional estimates statements tabled in the parliament. I commend these bills to the House.

Question agreed to.

Bill read a second time.