Bert Van Manen (Forde, Liberal Party) Share this | Hansard source

To the member for Lindsay, I can assure her that that is exactly what this government is trying to do—ensure that the NDIS is fully funded and provided for, unlike the system provided by her colleagues when they were on this side of the House. I am pleased to speak on the Treasury Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Bill, which is designed to provide relief and certainty for some of the most vulnerable in our community. The bill is a response by this government to the faith that individuals across Australia place in us every day. Health care, and in particular affordable health care, is one of the things that sets this nation apart from the rest of the world. It is one of the things that makes us the greatest country in the world, and this government should be very proud of so effectively continuing that tradition.

This year's budget is all about protecting those essential services that so many Australians rely on, and it is only this government that has a plan to make sure these services are fully funded into the future. I have heard those opposite talk about people earning $60,000 and those earning $180,000 and all the rest of it. As a bit of an education for them on who currently pays what in our system, somebody earning $60,000 a year is paying approximately $11,000 in tax, plus about $1,200 in Medicare levy, and the subsequent increase will add another $300 to that, taking it to about $12,500 in tax. That is not allowing for any welfare they receive back in family tax benefits and all those sorts of things.

Somebody on $180,000 a year is paying $54,000 in tax and paying $3,600 in Medicare levy. And they are about to add another $900 to that, which takes that to $4,500. So, they pay about $3,000 a year more on their Medicare levy, and they pay some $40,000-odd more in tax. In total, they are paying about $45,000 a year more than those on low to middle incomes. I think it shows the progressive nature of our tax system and why the arguments of those opposite are full of hypocrisy and fallacy.

The important part of this bill is that we are ensuring the long-term integrity of the system. I know this is an issue that is of vital importance to many Australians. Indeed, in my electorate of Forde I regularly speak with people who are ardent about maintaining their access to quality health care and passionate about making sure that the government defends their ability to receive it. Many of these people are still living with the effects and concerns created by the grubby 'Mediscare' campaign perpetrated on the Australian people by those opposite at the last election.

Those opposite are part of a dishonest party that is in the business of scaring voters and the vulnerable, including our elderly and our young families. It was interesting to reflect on the contribution of the member for Lindsay about hypocrisy. Well, I have been in this place for about seven years, and I have seen plenty of hypocrisy on that side. It is the party opposite that has to resort to blatant lies to get ahead, trampling over our most needy along the way. But health care is not about scaremongering and point scoring. It is a vital service for Australian communities, and this government knows that. This government will continue to focus on providing those services and ensuring that we provide support to the people who need it most. And we will make sure that these people have the confidence and the security that those services will be provided and will be funded, and that is exactly what we are seeking to do in this budget.

This bill increases the Medicare levy low-income thresholds for singles, families, pensioners and seniors in line with increases to the CPI. In addition, and importantly, it provides a concession to low-income households—the Medicare levy low-income thresholds that make sure that people who pay no personal tax because of their eligibility for offsets do not incur the Medicare levy. It is estimated that some one million individuals will benefit from this increase to the low-income thresholds, as it means that some low-income individuals will no longer have to pay the Medicare levy. For others on low incomes, it will also mean that they now have to pay less Medicare levy than they would if the thresholds were not increased.

It is estimated that in 2016-17 around 10 million individuals will pay some Medicare levy after accounting for the increase in the thresholds. This means that just over one in every two adults are contributing to Medicare, and, importantly, the National Disability Insurance Scheme, through the Medicare levy. And I think all of us in this House could say that is fair. It recognises that these levies act as a proxy insurance scheme for both Medicare and the National Disability Insurance Scheme, under which all Australians are covered. We know that Australians are watching and hoping this parliament will live up to this test of fairness that the government has set to ensure that the National Disability Insurance Scheme is fully funded once and for all.

I hope that when the opportunity for those opposite comes up in the weeks to come that this parliament will respond positively to the increase in the Medicare levy, to ensure that the National Disability Insurance Scheme is fully funded. I note the comments from the member for Moreton earlier that those opposite do support the measure in this particular bill to increase the thresholds. I welcome that support. It is important. But the important bit will be when we get to the increase to the Medicare levy, to ensure that that funding is there, to create the certainty and peace of mind that is necessary for the NDIS to be fully funded.

As I have explained, under this government, and with our tax system, if you are on a lower income you will pay less and if you are on a higher income you will pay more. I have gone through some of those figures already. That is the way our tax system has been for many years. It is appropriate that those earning higher incomes, who have the capacity to pay higher taxes and a higher proportion of the Medicare levy, do pay that and support the system. Most Australians are happy with that. They recognise that in having the capacity to pay they are willing to pay to support those in our community who need it most. That is the way our system is set up. It is fair, rational and sensible. We will not ask people to pay more than they can give, but we will make sure that all are provided for.

The government is ensuring that this fairness remains central to the Medicare levy and that all us together will also share in the responsibility of helping those fellow Australians, and their families, as the member for Lindsay has quite rightly pointed out, who either are living with a disability personally or are family members of someone who has a disability. We need to give them the assurance that this vital service provided through the National Disability Insurance Scheme will be there for them not only now but, importantly, into the future—and not just for them but for those who may need it through whatever circumstances in the future—for any and all Australians who could be forced to live with a disability.

This government is providing peace of mind in guaranteeing Medicare. We are making sure that all Australians can be assured that Medicare is not only here to stay but will be strengthened in the future so that our children will continue to benefit from it. This government is looking forward to establishing the Medicare Guarantee Fund, from 1 July, to pay for all the expenses in the Medicare Benefits Schedule and the Pharmaceutical Benefits Scheme. An additional contribution from income tax will also be paid into the fund to make up the difference. This will provide transparency in the cost of Medicare and a clear guarantee as to how we are going to pay for it. This bill is designed to give people financial confidence, confidence go to the doctor without fear, confidence to have children and grow our population, and confidence to speak openly and honestly with their GP about their vital health care needs. This is what we need. We want an Australia that is healthy, vibrant and ready to meet the challenges of our modern world. Medical care and assistance are not something only the wealthy deserve. An affordable health care system is the way you move a country forward, both for those who require it currently and for those in the generations to come. It is this government that is seeking to provide that reliability, that certainty and that transparency. I commend the bill to the House.

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