Jerome Laxale (Bennelong, Australian Labor Party) Share this | Hansard source

The Treasury Laws Amendment (2023 Measures No. 2) Bill 2023 encompasses several schedules, each designed to address crucial aspects of our society and our economy. Most or some might find these Treasury law amendment bills, or TLABs, as we call them, a bit boring.

An honourable member: Shame!

I know! But I really love them. They do the heavy lifting of the policy announcements of other ministers. Think about an ant lifting 30 times its body weight. They're doing the hard tax and financial work for programs initiated by the government of the day. I love the way that these bills, which often slide through without fanfare or attention, can hold within them tangible measures towards progress, equity and resilience. This amendment bill isn't just a collection of policies and provisions; it's testament to the steps that this government is taking towards a prosperous, inclusive and sustainable future for our nation. Each schedule tells a different story, and, as we unpack each of them, we can see the positive impact they'll have on the lives of everyday Australians.

This TLAB No. 2 encapsulates the vision and dedication of a government that is committed to uplifting the lives of all Australians, because as a new government we understand that many Australians are doing it tough and that the cost of living is putting a squeeze on the household budgets of many. We also understand that it's our responsibility to ensure that no Australian is burdened by unnecessary financial strain when it comes to their health.

That's why in schedule 1 of this bill we'll reinforce our commitment to the wellbeing of low-income families and the vital importance of accessible health care. This schedule will deliver an increase in the Medicare levy low-income thresholds for singles, families, seniors and pensioners, aligning them with the outcomes of the consumer price index. By bringing the Medicare levy threshold up to CPI, we'll make sure that the burden of the Medicare levy does not disproportionately affect those already facing financial hardship. It's important to alleviate financial strain on low-income households, and by raising these thresholds we'll provide much-needed relief and ensure that those below the relevant statutory low-income thresholds are exempt from the Medicare levy. By increasing the thresholds, we'll maintain continuity and stability in our approach, ensuring that healthcare costs remain in line with the overall economic landscape and that they become more affordable.

It's estimated that about 1.1 million low-income earners across Australia will directly benefit from this measure. These are individuals and families who are the most vulnerable. They face daily challenges to make ends meet, and for them every dollar counts. This will hopefully empower these families to allocate their resources towards essential needs, and provide stability and security for themselves and their loved ones. Access to quality health care is not a privilege but a right. By easing the financial burden on low-income households, we'll ensure that our world-class healthcare system remains accessible to all Australians.

It's just one more step towards creating a better future, particularly in health. You just need to look at not only the budget that was handed down just recently but also the one before that. Health and access to health care is something that this government is doing with a starkly different approach to that of the former government. Whereas they cut indexation, they froze indexation and they hacked Medicare, this government is restoring sustainability and integrity to the system. There is a $3½ billion boost in the bulk-billing incentive and an indexation increase by $1½ billion. Both of those things have done more for Medicare in one year than anything the previous government did in their entire nine years. This TLAB schedule, and this change to the thresholds, adds to that.

Moving on, we go to another schedule and another story—this time, schedule 3. We find ourselves in a pivotal moment for climate change action and environmental protection. This government and the people of Australia are steadfast in their commitment to combating the challenges posed by climate change and transitioning towards a more sustainable future. In order to achieve our goal of net zero emissions by 2050, it's crucial that primary producers can participate in carbon abatement measures. Currently, income generated from Australian carbon credit units, or ACCUs, do not qualify as primary production income, which means it's restricted from access to tax concessions. This limitation to access to tax concessions hinders the growth and development of sustainable agriculture practices and poses a significant obstacle for primary producers that are committed to implementing environmentally sustainable objections—and many of them are. Schedule 3 of this amendment bill, once applied, will treat ACCU income as primary production income. By recognising the importance of carbon abatement activities as a crucial aspect of primary production, we expand access to essential tax concessions. This measure ensures that primary producers engaged in sustainable practices will benefit from the farm management deposit scheme and income tax averaging. Both of these will provide vital support to farmers as they navigate periods of market volatility and climatic events.

Currently, producers who hold ACCUs are taxed annually based on fluctuations of the value of those units. This can lead to significant tax flow issues. To address this, schedule 3 will change the taxing point for eligible primary producers holding ACCUs to the year of sale. This will provide much-needed relief, enabling prime producers to manage their finances more effectively and plan for the long term. By implementing these measures, we ensure that our concessions remain targeted at primary producers who are actively driving sustainable agriculture practices and embracing their role as environmental caretakers. We know the primary producers that do, have access to greater markets around the world. By incentivising carbon abatement activity within the agricultural sector we are not only reducing emissions but we are also fostering a greener and more resilient environmental future for generations to come. Of course, these measures align with our commitment to combat climate change, protect our environment, grow our economy and ensure that Australia is at the forefront of global efforts to mitigate the impacts of climate change. Compare that to the action of the former government. They didn't take climate change seriously and because of that they were voted out of Bennelong and out of government as well. Schedule 3 represents a significant step forward in our climate change agenda.

Next we have schedule 4. This one is close to my heart: I've run a small business nearly all my life, and decisions like these can make a real difference. This schedule will provide cashflow relief for small- and medium-sized businesses by reducing the adjustment factor to pay on your GST instalments every quarter or so—some pay annually. Under the current formula, the adjustment factor for the 2023-24 financial year sits at 12 per cent. Obviously, our GDP has gone up, reflective of higher commodity prices, terms of trade and inflation. While these factors may work for some large businesses, they do not reflect that throughout the rest of the economy and represent quite a big burden on small and medium businesses. By taking proactive steps to minimise adverse cashflow consequences for small businesses and by reducing that 12 per cent adjustment figure to six per cent, it will help small businesses get through the next financial year. It will ensure that cashflow implications for businesses are alleviated. The reduction in the adjustment factor better reflects the conditions for small businesses, and it ensures and gives them an extra helping hand to navigate the economic challenges ahead and maintain financial stability.

Moving to schedule 5, we go into the Home Guarantee Scheme. Labor believes that everyone deserves an affordable and secure place to live, be that for homeowners or renters. This schedule takes a proactive approach to facilitate pathways for individuals who have not held a property interest in Australia for the past 10 years, providing them with an opportunity to re-enter the property market and regain their footing. This amendment extends the support to single legal guardians of children, acknowledging the unique challenges they face and providing them with the means to realise homeownership sooner. I applaud the government and the minister for taking this initiative. Too often, homeownership help goes to first homeowners, but we know that, because of things happen in life—be they divorce, de-partnering or people having to leave home—sometimes buying a second home is just as important as buying your first. By extending this out to people who haven't owned a home in the last 10 years, it potentially can take more and more people out of renting and back into home ownership. These changes will provide targeted support to those in need, aligns government support to the needs of those who face hardship and ensures that the Home Guarantee Scheme remains focused on providing tangible pathways to home ownership. Already, in the year that we've been in government, in my community of Bennelong 177 families have used this fantastic scheme with this expanded eligibility as proposed in this TLAB, and I'm hopeful more can get access to it and have a safe and affordable home.

This is all I will talk about in regard to this schedule. It gives me great pleasure to commend this bill to the House, and I encourage all those here to support it.

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