Stephen Jones (Whitlam, Australian Labor Party, Shadow Assistant Treasurer) Share this | Hansard source

I want to take the unusual step, in starting, of congratulating the members of parliament who've returned here to the government side of the benches, because the fact of the matter is that they are some of the most surprised people in Australia that they were returned to government. We know this, because, if you want to see a government that is divided, that has lost its way and that doesn't have an economic agenda, have a look at stage 3 of the tax cuts. Have a look at stage 3 of the tax cuts, because the truth is—and every single one of those members of the frontbench knows it's absolutely true—that this is legislation that they never thought they were going to have to implement. They thought that they were being very, very tricky by loading into the budget a whole bunch of time bombs that were going to blow up on somebody else. They were going to blow up on somebody else's watch. The truth is this: stage 3 of these tax cuts is one part politics and one-part reckless but no part good economic management. It's $95 billion and it's unfunded.

I want to direct some comments to the new members of parliament over there, because at some stage over the next three years they are going to have constituents coming in to their offices. They are going to have constituents coming in to them to complain about the government's approach to deeming rates. They're going to be saying, 'How come, when I go to my bank and I want to invest in a term deposit, the best that I can get is somewhere between one and 1½ per cent, but when it comes to tax time the government assumes that I am getting a deeming rate of 3.25 per cent?' You are going to have to say to them: 'Well, I'm very sorry. We'd like to do something about that, but the fact is we've decided to give $95 billion away in unfunded tax cuts.'

At some stage over the next three years, you're going to have people coming in who are clients of the NDIS. They're going to be after equipment. They're going to be after assistance, whether it's caring assistance or other facilities. They're going to be getting news from the NDIS that their needs are unfunded. They're going to come to you to ask, 'What is the government going to do about it?' and you're going to have to say: 'I'm very sorry. We'd like to do something about your legitimate needs, but we've given $95 billion away in unfunded tax cuts.' At some stage over the next three years—no, at some stage over the next three months you're going to get an elderly person or one of their carers come in to your office. They're going to say: 'We need assistance with an aged-care package. We've had an ACAT assessment and we've been told that we are entitled to a very high level of aged care'—maybe they're on level 3 or 4—'but we've been told that there are no aged-care packages available.' What's more, I believe that there are 110,000 people on a national waiting list. I can see the blood draining out of the faces of those opposite today because they know this is right. They've probably already had these constituents coming to them saying, 'I've been assessed as needing an aged-care place but I can't get one'. You are going to say to them, 'I'd love to do something about those aged-care places, but our priority was an unfunded $95 billion tax cut.' That's one part politics and one part reckless, but no part sound economic management.

What the country needs today is what Labor put forward and what the government has just voted against: fiscal stimulus. We have the Reserve Bank Board and the Reserve Bank Governor saying, 'We've done all we can with monetary policy. We are giving money away. At one per cent we are at historic low rates for the price of money. There is nothing more we can do.' They are saying to the government, 'Over to you, guys.' We need fiscal stimulus. We know that you guys went to the last election without an economic plan. We have provided you with a positive alternative, one that you should have voted for. Instead, you have voted against tax cuts for the majority of Australians and you have voted against the only economic plan going.

I've heard a bunch of people on that side say, 'We have got a mandate.' There are 151 members in this place and we all went to our constituents and we all have a mandate to vote responsibly and vote in the national interest. If the members on that side were doing the right thing by the economy and by their constituents they would have voted for the last amendment and they'll vote for this amendment. (Time expired).

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