House debates

Tuesday, 11 November 2008

Tax Laws Amendment (Education Refund) Bill 2008

Second Reading

6:21 pm

Photo of Damian HaleDamian Hale (Solomon, Australian Labor Party) Share this | Hansard source

I rise today to voice my strong support for the Tax Laws Amendment (Education Refund) Bill 2008. I acknowledge the contribution of the previous speaker, the member for Lyne. I sat through his first speech and he is very passionate about education. It is great to see the support coming from the crossbenches and I acknowledge as well those on our side of the House who have spoken during this debate.

This bill introduces a 50 per cent education tax refund aimed at assisting families with children undertaking primary and secondary school studies to meet the costs of school education through assistance with certain educational expenses. Under the education tax refund, eligible families will be able to claim a 50 per cent refundable tax offset every year for up to $750 of eligible expenses for each child undertaking primary school—a refund of up to $375 per child per year—and up to $1,500 of eligible expenses for each child undertaking secondary school—a refund of up to $750 per child per year. Families in receipt of family tax benefit part A in respect of one or more children undertaking primary or secondary school studies are eligible for the education tax refund. Those parents with one or more children who are eligible for the family tax benefit part A but for the fact that they or their children receive certain other payment or allowances will also be eligible for the education tax refund. Those students undertaking primary and secondary school studies and receiving an independent rate for income support payments may also be eligible for the education tax refund for their own expenses.

By way of my own background, education is a subject that has always been and continues to be very close to my heart. As I have said before, both my parents were teachers, my grandmother was a teacher, my sister is a teacher and I have almost finished a teaching degree myself. So collectively that is a combined teaching experience of over 80 years. I have to say though that having teachers as parents was not always good, particularly when I was growing up. I remember as a young fellow maybe wanting to be a bit slack. I remember often having early nights on parent-teacher nights just in case the teachers were not glowing in their terms when they spoke about me to my parents. But as a parent now I understand where they were coming from. One of the not negotiable issues for me as a father is ensuring my children receive a great education. I often say, ‘You cannot take anything with you when you’re gone but you sure can leave a lot.’ If there is one thing I want to make sure I leave my children it is the knowledge that they have received a solid education.

This bill is vital to thousands of families in my electorate of Solomon because it provides very important financial assistance in this critical area. Having doorknocked extensively around my electorate in Darwin and Palmerston, I know that education is a galvanising issue that people are passionate about. It does not matter what side of politics you are from, it is one of those not negotiable issues. I have never had anyone say to me that we spend too much money on education or that education is overrated. For Labor, better education is the cornerstone of a decent society. Education is at the forefront of our government’s commitment to the Australian people. An education revolution to create one of the most highly educated and skilled nations on earth is the mandate that Kevin Rudd asked the Australian people for on 24 November last year, and they gave it.

During the election campaign, Labor made it clear that Australia needed nothing less than an education revolution, a substantial and sustained increase in the quality of our investment in education for Australian youth. This is required at every level of education, from early childhood education through to the education of mature age students. Just on that point, as we go through life we have many different forms of education and we never stop learning. In my background, having left school to do an apprenticeship as a greenkeeper, and having studied at the TAFE college in Brisbane as well as doing a university course to become a teacher, learning has been a lifelong exercise. Education is the platform of our economic future; our prosperity rests on what we commit to education now. One thing I have learned from my parents is that education is not something that you just go through the motions with. Education is not something that you just talk about to win an election. Education is the commitment we set for the society we want to become. We need an ambitious national strategy to improve our schools, driven by the goal of higher quality. To thrive in the future we need a schooling system which delivers high-quality education for all students, regardless of their address and regardless of their schools.

During the campaign, I know this election commitment was received really well by all parents and kids that I spoke to. I speak to students, parents and teachers all the time. They tell me about their schools and their communities and I am always impressed by the quality of the young people our schools produce, the professionalism of our teaching staff and the dedication of our parents. I would like to take this opportunity to thank the staff of all the schools in my electorate of Solomon. They do a fantastic job. I am excited to speak in support of this bill because I know that mums and dads and families are doing it tough in Solomon. I know that mums and dads and families in Solomon welcome the Rudd Labor government’s initiative.

This bill will assist with the expenses associated with providing a solid education. It will take a bit of pressure off the family budget. This bill will assist with costs of things such as laptops, home computers, printers, paper, education software, school textbooks and associated materials as well as trade tools. The Rudd Labor government is delivering on its election commitment by providing this education tax refund. Around 1.3 million Australian families will be eligible for this education refund. $4.4 billion will be invested in financial support to help working families meet the growing costs of educating their children. It will put money back into the pockets of the many Australian families with school aged children. I am sure that the eligible parents of the children in the 50-odd schools in Solomon will appreciate being able to claim this rebate. In fact, it is estimated that this measure will help the families of around 2.7 million school aged children to meet the costs of their education.

As a parent of kids in both primary and secondary school, I am acutely aware of the costs associated with properly equipping your kids for school. These costs are particularly evident after Christmas and during the Christmas school holidays when families need to start buying necessary items for the start of the new school year. As children progress through primary school to secondary school, the cost of schooling over those years is certainly significant, particularly in recent times.

Delivery of education has changed dramatically. We all know technology plays a huge role in how we educate our children. The Prime Minister has said on several occasions that computers are the toolbox for the 21st century. Through computers and the internet, primary and secondary students are linked to the world. Computer and internet technologies continue to evolve at a fast pace and we must ensure that the education of our kids keeps up. We have to make sure our kids are not left behind; Australian children must be computer literate.

The digital economy is a fundamental component of every aspect of business and of our daily lives. ABS data tells us that around three-quarters of Australian households have a computer at home. Unfortunately, figures also tell us that less than 50 per cent of low-income households have a computer. This has been termed the ‘digital divide’, a divide between those who have access to a computer and the internet at home and those who do not. It is sad that this divide means that some children in our community are disadvantaged by not having access to a computer or the internet at home. Thankfully, this bill will help turn this sad situation around. It will help break down the digital divide by supporting low- and middle-income households with assistance to provide the educational equipment needed for their children to perform at school. That is why the expenses of establishing and maintaining a home internet connection are also included in this bill. The refund will apply to eligible expenses incurred from 1 July 2008. I would also like to take this opportunity to remind the good people in Solomon eligible for the education tax refund to keep their receipts so that they can claim them on their tax return from 1 July 2009. And those people who are not required to lodge an income tax return will be able to access their entitlement through the tax office at the end of the financial year.

This bill goes a long way towards providing relief to hardworking families who are struggling to pay their household expenses. Rising petrol prices, mortgage repayments and grocery bills all add up and can leave families wondering how they will pay for the necessities associated with their children’s education. It is particularly important in times like today, when we are in the midst of a global financial crisis, that we continue to focus on and provide relief to families. The $10.4 billion Economic Security Strategy will assist Australians who need it most. I know that pensioners and families in Solomon can now look forward to some much-needed relief before Christmas. The Economic Security Strategy, alongside this bill, demonstrates just how committed we as a government are to helping families deal with the cost of living. I will quote what the Prime Minister said in his address to the National Press Club in August this year to demonstrate our commitment to the delivery of an education revolution. He said:

… I want people to understand that our reforms are essential to Australia’s future—because quality education is good for our economy, good for our community and good for individuals. It will help create jobs and higher wages, and will create better opportunities for all Australians.

The Government wants the next generation of Australians to be the best educated, best skilled, best trained in the world.

We don’t apologise for this ambition.

Today, we take one further practical step towards achieving the education revolution that Australia needs.

One step further to building a stronger, fairer and more secure Australia, and one capable of handling the great challenges of the 21st century that now lie before us.

I could not agree more. I commend the bill to the House.

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