House debates

Tuesday, 22 February 2011

Tax Laws Amendment (Temporary Flood Reconstruction Levy) Bill 2011; Income Tax Rates Amendment (Temporary Flood Reconstruction Levy) Bill 2011

Second Reading

7:58 pm

Photo of Rob MitchellRob Mitchell (McEwen, Australian Labor Party) Share this | Hansard source

I speak in support of the government’s Tax Laws Amendment (Temporary Flood Reconstruction Levy) Bill 2011. As members in this place know, we recently stopped to remember and reflect on the Black Saturday bushfires which so tragically devastated my electorate on 7 February 2009. That was a day on which bushfires ravaged communities. It was a fire of a ferocity that we had never seen or experienced before. It claimed on that day 173 lives and destroyed thousands of homes and businesses, schools, buildings, sport centres and communities. Two years on, we are still facing the process of rebuilding and recovering, with signs of the disaster still present both in the trees that will never grow again and in the many homes that will not be rebuilt on the same foundations. Emotions are still raw, but people are battling on in the true Australian spirit.

All levels of government have learnt many lessons from that tragic day, not only about bushfire preparedness but also, importantly, about the process of rebuilding and recovering communities devastated by Mother Nature’s fury. One of the biggest lessons we should have learnt is that we need to support communities—to stand with them to rebuild vital infrastructure, get services back in place and ensure a sense of normality returns as quickly as possible.

The most common message that my community has been telling me is that we need to get to normality—or the ‘new normal’ as it is called—as soon as possible, because it is paramount. But it seems that those opposite have not listened. It is quite clear that without the infrastructure in place you cannot support a community to recover quickly and effectively. That is why this levy is important. Without open, safe roads and bridges, communities remain disconnected. Without local schools being rebuilt, normality and routine are taken away from our children. Without health centres being rebuilt, communities will not recover physically and emotionally. Without information hubs and community centres, people remain uninformed and disengaged. There is a vital need to stimulate the economies of flood affected regions through government infrastructure projects. It is about getting people back into jobs, getting them working again, getting them spending and getting their economies back on the move.

The key to success of any recovery process is the involvement of locals at every step of the way in identification and planning for their future. Survivors in communities do not want a handout; they want us to chip in and give a mate a hand. The Gillard government is reaching out to the people of Queensland, and we will be with them until they can stand again on their own. The flooding in Queensland and other states has been unprecedented, spreading across the state. It is the size of France and Germany combined, or the size of New South Wales. Coal, gas and mining companies have been drastically affected, which is resulting in millions of dollars of lost production and a great loss to Australia’s wealth. Similarly, Australia’s agriculture sector has been severely hit again, with crops destroyed. This means that food prices will rise and farmers will struggle to make ends meet. This will affect every Australian no matter where they live.

The communities in my electorate rallied behind our northern neighbours, with the people of Kinglake raising over $60,000 and the people of Marysville raising over $22,000. And they continue to raise funds and help their fellow Australians. In a local monthly publication in Kinglake, the Mountain Monthly, I came across a letter to the editor which I want to share with members of this place. It reads:

Dear Editor,

Hello to all in the suburbs and surrounds of Kinglake.

My name is Rebecca. I have just come across a news article that your town of Kinglake has raised money and donated it to us up here in Queensland for the current flood crisis.

Speaking for all Queensland residents, I would love you to please extend our thanks to the people in this town for their amazing support and generosity to the people here that have been affected by the floods.

I sat here with a tear rolling down my face, reading the news about what the people of Kinglake have done for us, even when they are still rebuilding from their own disaster. They have opened their hearts to others in such an amazing way.

Please extend the thanks that we, as Queenslanders, feel for these people. As you have stated, the generosity of the Queenslanders will never be forgotten. That goes the same for each and every one of you there.

Thanks again. I cannot say that enough. Rebecca, Queensland.

Although there are many communities better off than mine, they are still supporting those in need. For that I praise them and thank them. Helen Kenney, who is the captain of the St Andrews CFA and is on the St Andrews Bushfire Recovery Committee, said it is crucial that a flood levy is introduced because infrastructure needs to be rebuilt. I agree wholeheartedly with her. That is from someone who lived through the Black Saturday disaster, so she knows exactly what she is talking about. No matter where I travel across the bushfire affected areas, those who are continuing the journey of rebuilding and reconstruction have been unanimous in their support for this levy. Most of these people will not qualify to pay the levy, but they know firsthand the need for public infrastructure to be replaced and for their communities to get back on their feet as soon as possible.

The flood recovery levy will ensure that we can rebuild, repair and recover vital infrastructure that has been damaged as a result of the flooding. To assist in rebuilding Queensland, we will need to invest about $5.6 billion into the regions affected, due to the scale of the destruction and devastation. Two-thirds of this will be delivered through spending cuts and the remaining one-third is to be delivered through a very modest 12-month levy. The government has also made $2.8 billion in budget savings which will also be redirected towards the rebuilding effort. Infrastructure projects worth $1 billion will be deferred, freeing up funds and skilled workers at a time when we have a skilled labour shortage around the country—a legacy of the former government.

The flood recovery levy will be applied at the rate of 0.5 per cent on taxable income between $50,001 and $100,000 in the 2011-12 income year, and a levy of one per cent will be applied on taxable income over $100,000. The recovery levy will not apply to low-income earners with a taxable income of $50,000 or less, nor will anyone directly affected by the floods have to pay the levy. With the indulgence of the House, I want to show what most people in my electorate will be giving up per week: one small tin of Coles tuna. That is what we are asking people to give up—just a small token to help people get back on their feet and get their lives back to normality.

Levies are a common occurrence from the Commonwealth. We are all aware that the previous Liberal government, which Mr Abbott was part of, were the champions with their flood of levies. Prime Minister John Howard imposed six levies in 12 years. We understood it was in the interests of the nation; we supported them. We put politics aside and, for the good of our nation and its people, we stood with the government on many of these levies. As recently as last year, the Leader of the Opposition tried to impose a levy to pay for his election promises. If a levy was good enough for Tony Abbott to pay for his election promises just months ago, how is it not good enough now to help support Australians to get back on their feet?

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