Tony Zappia (Makin, Australian Labor Party) Share this | Hansard source

Over the last quarter of a century, beginning with the September 11 twin towers attacks in New York, the world has gone from one crisis to another. Major conflicts in so many parts of the world, the global financial crisis of 2007 to 2009, the 2013 to 2017 ISIS years, the COVID pandemic between 2020 and 2023, the war in Ukraine and now the attack on Iran have all caused disruption and uncertainty throughout the world. Living costs have risen everywhere, and there is a growing global humanitarian crisis that impacts every country, including Australia. Governments and political leaders are now frequently toppled, whilst political divisions grow wider. Meanwhile, the superwealthy accumulate even more of the world's money.

It is in that context that the Albanese government's 2026-27 budget was framed and why it is a responsible budget for the times. No government could have managed the Australian economy better than what the Albanese government has done over the past four years. Whilst the critics scramble to find flaws in the budget, they fail to articulate credible alternatives.

Importantly, the 2026-27 budget is not just a temporary fix to the economic stresses and financial pressures people face today but provides long-term enduring reforms for the Australian economy. All this has been achieved whilst the Albanese government delivers substantive long-term cost-of-living support and social justice reforms to communities throughout Australia, including but not limited to the $10.7 billion long-term fuel security investment, 137 bulk-billing Medicare Urgent care clinics to take the pressure off hospitals while saving out-of-pocket gap payments for patients and the 20 per cent cut to student HECS debts. It also includes making free TAFE permanent; introducing tax cuts for all working Australians; cutting the price of medicines; investing $47 billion into housing; securing Australian fuel supplies and increasing fuel reserves right now, whilst cutting fuel excise by over 50 per cent for three months; increasing defence spending; providing another $25 billion for public hospitals and $5.9 billion to list new medicines on the PBS.

In my home state of South Australia, public hospitals will receive a total of $15.2 billion over five years, which is an additional $2 billion in funding. There have now been over 15,000 visits to the Para Hills Medicare Urgent Care Clinic in Makin since its opening on 1 October 2024. There are also now 16 Medicare bulk-billing practices in the Makin electorate, an increase of 10 since Labor's bulk-billing changes. That all equates to people receiving better health care with fewer out-of-pocket costs.

Of course, some hard decisions had to be taken in the budget, and I accept that some people will be disappointed with some proposed changes. In particular, tightening the NDIS eligibility rules and benefits will impact NDIS recipients. However, the scheme is simply unsustainable under its current trajectory. Similarly, the reduction in the private health insurance rebate for those over 65 years of age to around 24 per cent, which brings it in line with the rebate for everyone else, will mean people over 65 years of age will pay on average $240 a year more for private health cover.

The other notable tax changes are negative gearing, capital gains tax and discretionary trusts. The proposal is that, from 1 July 2027, negative gearing for residential property investments will be limited to new builds and the 50 per cent capital gains tax discount for individuals, trusts and partnerships will be replaced with cost indexation and a 30 per cent minimum tax rate on capital gains. These changes are prospective. Properties held before the announcement will be exempt from the negative gearing changes. Additionally, investors who buy new builds will be able to choose either the 50 per cent capital gains tax discount or indexation and the minimum tax when they sell their property. These changes commence on 1 July 2027.

For discretionary trusts, which have enabled a lower tax rate through income splitting, the government is introducing a 30 per cent minimum tax from 1 July 2028.

These changes are fair, reasonable and consistent with the Albanese government's strive to deliver intergenerational equity. And I expect to say a lot more about the budget in speeches in the coming days.

House adjourned at 19:59

The DEPUTY SPEAKER (Ms Lawrence ) took the chair at 09:30.

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