House debates

Thursday, 13 May 2021

Questions without Notice

Budget

2:22 pm

Photo of Vince ConnellyVince Connelly (Stirling, Liberal Party) Share this | | Hansard source

My question is to the Treasurer. Will the Treasurer update the House on how the Morrison government's budget is going further in doing what works to secure our recovery in its longstanding commitment to cutting taxes for Australian businesses and families? Is the Treasurer aware of any alternative policies?

12:00 am

Photo of Josh FrydenbergJosh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | | Hansard source

) ( ): I thank the member for Stirling for his question, and I acknowledge his experience in the Australian Defence Force. In the member for Stirling's electorate, more than 60,000 people will get a tax cut as a result of the measures announced on Tuesday night in the Morrison government's budget. Tuesday night's budget is going to help create more jobs. Tuesday night's budget will help Australia's economy grow more strongly. Tuesday night's budget will see taxes for millions of Australians lowered.

We know that this side of the House stands for lower taxes. In fact, more than 10 million Australians are getting a tax cut as a result of the extension of the low- and middle-income tax offset for another year. If you are earning between $48,000 and $90,000, you will get an extra $1,080 in your pocket at the end of the tax year. There's also the immediate expensing, which we believe will support around $320 billion of investment, allowing businesses to write off new machinery and equipment that they purchase. From 1 July this year, small businesses will see their company tax rate cut to 25c in the dollar. We've also brought forward, by two years, stage 2 of the tax cuts.

Stage 3 of our tax plan is legislated. That is an extremely important reform. It abolishes a whole tax bracket, the 37c-in-the-dollar tax bracket. It means 95 per cent of taxpayers will pay a marginal rate of no more than 30c in the dollar. It also remains a very progressive tax system. The Leader of the Opposition said in March of this year at the Financial Review conference that he would tell us the Labor Party's position on stage 3 of that legislated tax plan at budget. More than 12 million Australians who will get a tax cut as a result of stage 3 are waiting on the verdict of the Leader of the Opposition.

We on this side of the House supported those legislated tax cuts, but we know that the Leader of the Opposition likes to have a bet each way. He said that he was for the tax cuts when they passed the parliament, but now he's got the member for Rankin, a shadow of a shadow Treasurer, telling us that he doesn't really like the tax cuts. For those Australians watching today's broadcast, if they are a teacher earning $70,000 they will be $620 worse off if the Leader of the Opposition wants to get his way and abolish those tax cuts. If a tradie is earning $80,000 a year, they will be $900 worse off if the Labor Party doesn't support these legislated— (Time expired)

2:25 pm

Photo of Mr Tony BurkeMr Tony Burke (Watson, Australian Labor Party, Shadow Minister for the Arts) Share this | | Hansard source

My question is to the Prime Minister. Is the cut to real wages in the Prime Minister's budget a deliberate design feature of the government's economic policy or, once again, does the Prime Minister believe it is somebody else's fault?

2:26 pm

Photo of Scott MorrisonScott Morrison (Cook, Liberal Party, Prime Minister) Share this | | Hansard source

Our budget, which is a plan to secure Australia's recovery from the global pandemic, from the global recession, is all about increasing the number of people in jobs. It is all about increasing the ability for Australians to earn more in this country and to keep more of what they earn. In this budget we are delivering, once again, lower taxes for Australians, lower taxes for small- and medium-sized businesses, who, from 1 July, will be paying 25 per cent right across the board—businesses up to $50 million. Lower taxes means more money in the pockets of Australians to invest in the things that they want to put their minds to. What people can take home because of lower taxes, what people can take home because of a strengthening economy, what people can take home because of the fact that they are in jobs in an economy where, if you look around the world, you see that there is no advanced country that can speak of there being more jobs after the pandemic than there were before the pandemic—

Opposition Members:

Opposition members interjecting

Photo of Scott MorrisonScott Morrison (Cook, Liberal Party, Prime Minister) Share this | | Hansard source

But what I am concerned about, as the Treasurer just highlighted, is what we heard from the Labor Party today in their silence, in not being able to say that they won't increase taxes—

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The Prime Minister will pause. The question was not about any alternatives; it was a specific question about the budget. The Prime Minister has the call.

Photo of Scott MorrisonScott Morrison (Cook, Liberal Party, Prime Minister) Share this | | Hansard source

Our budget is about lower taxes. That is what our budget is about. A Labor budget, particularly one when he is in the habit of copying from the member from Maribyrnong—

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The Manager of Opposition Business on a point of order?

Photo of Mr Tony BurkeMr Tony Burke (Watson, Australian Labor Party, Shadow Minister for the Arts) Share this | | Hansard source

The question is about the impact of the budget on wages. It is not about alternatives or taxes; it is about wages.

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

Yes, that's right. The question was about real wages. It had a tag at the end, but that tag doesn't allow the Prime Minister to talk about alternative policies or members of the opposition. The Prime Minister has the call.

Photo of Scott MorrisonScott Morrison (Cook, Liberal Party, Prime Minister) Share this | | Hansard source

Thank you, Mr Speaker. The budget is indeed about wages—the wages of Australians in work. Under this government, there are more people in work today than before the pandemic. The unemployment rate is lower than when we came to government. Our budget is about driving that unemployment rate down, and that will be achieved by the policies of the Liberal and Nationals, not the co-opted policies of the member for Maribyrnong carbon-copied onto the Leader of the Opposition.

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

No; the Prime Minister will resume his seat.

2:29 pm

Photo of Angie BellAngie Bell (Moncrieff, Liberal National Party) Share this | | Hansard source

My question is to the Treasurer. Will the Treasurer update the House on how this week's budget goes further in doing what works to secure our recovery by delivering on the Morrison government's longstanding goal of creating more and more jobs for all Australians?

Photo of Josh FrydenbergJosh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | | Hansard source

I thank the member for Moncrieff for her question and acknowledge her experience and background in small business, and the fact that the tax cuts announced on Tuesday night in the Morrison government's budget will see more than 70,000 taxpayers get a tax cut in the member for Moncrieff's electorate. That is the reality of the policy supported by those on this side of the House.

Tuesday night's budget was our plan to create another 250,000 jobs. We've seen around 500,000 jobs created since last year's budget in October and we've seen the unemployment rate come down to 5.6 per cent. We've seen more people now in work than before the crisis began; we've seen the unemployment rate now lower—even after the COVID recession—than when we came to government; and we have seen Australia become the first of the major advanced economies around the world to have employment levels above their prepandemic levels.

The budget has been very well received in a number of quarters. The Business Council of Australia said:

This budget propels Australia out of the pandemic and lays the foundation for a jobs-led recovery.

The Australian Industry Group said that the budget:

… locks in the recovery from recession and shifts gears from emergency measures to investing in the economy for the longer term.

And Fitch Ratings said that the budget:

… confirms that the recent strong economic and labour market recovery has resulted in an improvement in public finances, …

S&P global ratings said after the budget that Australia's success in containing the coronavirus and targeted emergency economic support is propelling a strong economic rebound. They are the words of independent voices.

This budget was all about locking in the gains of our strong economic recovery and investing more in skills, extending the JobTrainer program to now provide 450,000 training places—including for 33,000 people in the care workforce. It was about extending our successful apprenticeship scheme, a $2.7 billion investment to create another 170,000 apprentices. It was about a record $15 billion of infrastructure spending to maintain that $110 billion 10-year pipeline.

And, of course, it was about tax relief—tax relief for more than 10 million hardworking low- and middle-income workers, putting more money in the pockets of their families so that they can spend it as they see fit. (Time expired)

2:32 pm

Photo of Clare O'NeilClare O'Neil (Hotham, Australian Labor Party, Shadow Minister for Senior Australians and Aged Care Services) Share this | | Hansard source

My question is to the Prime Minister. Aged-care workers are some of the lowest-paid people in our nation. Attracting and retaining these critical workers is the only way older Australians will get the care they deserve. What part of the Prime Minister's budget pays aged-care workers more?

Photo of Greg HuntGreg Hunt (Flinders, Liberal Party, Minister for Health and Aged Care) Share this | | Hansard source

Indeed, there is $17.7 billion of additional value and investment in aged care—

Opposition Members:

Opposition members interjecting

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The minister will pause. The member for Hotham has asked her question. She will not interject, nor will others interject.

Photo of Greg HuntGreg Hunt (Flinders, Liberal Party, Minister for Health and Aged Care) Share this | | Hansard source

Firstly, there are retention bonuses for nurses: $3,700 for full-time nurses and $2,700 for part-time nurses. Secondly, in relation to this, there is $3.2 billion which goes to the $10-a-day uplift fee, and that will flow through to our staff. Thirdly, there is $3.9 billion—

Mr Brian Mitchell interjecting

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The minister will pause. The member for Lyons will leave under standing order 94(a).

The member for Lyons then left the chamber.

Photo of Greg HuntGreg Hunt (Flinders, Liberal Party, Minister for Health and Aged Care) Share this | | Hansard source

Thirdly, there is $3.9 billion—and this is an opportunity to go through pretty much most of the measures in the aged-care reform package—which goes to 200 care minutes a day. For the first time we are mandating that level of care, as recommended by the royal commission, which also includes specifically 40 minutes a day from our nursing staff—

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The minister will pause for a second. The member for Hotham on a point of order.

Photo of Clare O'NeilClare O'Neil (Hotham, Australian Labor Party, Shadow Minister for Senior Australians and Aged Care Services) Share this | | Hansard source

Mr Speaker, it's on direct relevance. The question was specifically about aged-care workers' wages. The minister is listing a bunch of initiatives that are not going to do anything about that problem.

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The minister has the call; he'll be relevant to the question.

Photo of Greg HuntGreg Hunt (Flinders, Liberal Party, Minister for Health and Aged Care) Share this | | Hansard source

With great respect, Mr Speaker, this is absolutely directly about wages. I started with the $3,700 and $2,700 of direct wage supplement. In addition to that, there is $3.2 billion, which goes to the ability to provide additional support for our personal care workers and for our nurses.

Honourable members interjecting

That's how they're paid. They aren't paid directly by government; they are paid by the people who employ them. That is providing support to the employers to support the employee.

Honourable members interjecting

I have a feeling that they're not actually that interested.

Mr Butler interjecting

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The member for Hindmarsh!

Photo of Greg HuntGreg Hunt (Flinders, Liberal Party, Minister for Health and Aged Care) Share this | | Hansard source

The third element, of course, is for the 200 minutes, or $3.9 billion. A fourth element is in relation to what we're doing with home-care support. The additional funding of $6½ billion for home care, which is 80,000 places, will be all about employing and paying those very people who are delivering the care to our aged-care sector.

Ms Kearney interjecting

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The member for Cooper!

Photo of Greg HuntGreg Hunt (Flinders, Liberal Party, Minister for Health and Aged Care) Share this | | Hansard source

Fifth, we have 33,800 aged-care training places. This training is about bringing in new people who will be delivering the services, all of whom are going to be paid as a result of this. In addition to that, in the Indigenous community we have over $600 million that is being paid to support those who are working in rural and remote areas or to create the facilities where they will be working. In addition to all of those elements, we have the Aged Care Quality and Safety Commission, which will oversee over 4½ thousand audits. These will protect both the residents and the workers. All of these elements go towards ensuring that the conditions are better for both workers and residents.

2:36 pm

Photo of Nicolle FlintNicolle Flint (Boothby, Liberal Party) Share this | | Hansard source

My question is to the Minister representing the Minister for Women. Will the minister inform the House what steps the Morrison government is taking to improve the safety of women and children, including through this year's budget?

Photo of Sussan LeySussan Ley (Farrer, Liberal Party, Minister for the Environment) Share this | | Hansard source

I thank the member for Boothby for her question. In this budget, this government is investing $1.1 billion to help keep women and children safe. This is the single largest Commonwealth investment in women's safety. It is a down payment, with further investment to come following consultations with the states and territories at the National Women's Safety Summit at the end of July. The goal is to stop it at the start so we can all live, grow and work free from violence. But we know that this is not yet our reality and that women and children are too frequently victims of abuse. We must do all we can to hold perpetrators to account and ensure that victims are supported in their pursuit of justice. That's why this budget is funding a new measure of $4.1 million for a coordinated enforcement and support to eliminate domestic violence trial. This trial will expand on the good work being done by jurisdictions such as New South Wales to identify and monitor high-risk offenders, keeping victims safe.

Two weeks ago I met with the New South Wales Police commissioner, Mick Fuller, who told me about the work and successes of the high-risk offender teams instituted by the commissioner and the former New South Wales minister for the prevention of domestic violence, Pru Goward. Our frontline police are not only keeping victims safe; they're working to prosecute the perpetrators. Domestic violence liaison officers are truly the front line, making critical life-saving decisions to protect victims and to support them through to freedom and justice. We know that conviction rates for sexual violence crimes are unacceptably low. This budget is opening doorways to justice that have been out of reach for too many for too long. We're investing $85 million to more than double the number of family advocate support services, which not only provide duty lawyers but secure wraparound mental and social support to victims of family violence who are before the family law courts. We will explore the development and integration of specialist court capabilities for sexual violence offences.

We must continue to have the difficult but honest conversations about curbing the scourge of domestic abuse—in our homes, in our hospitals, in our police stations and in our parliaments. As we develop the next national plan to reduce violence against women and their children, the Morrison government is determined to leave no-one behind.

2:39 pm

Photo of Jim ChalmersJim Chalmers (Rankin, Australian Labor Party, Shadow Treasurer) Share this | | Hansard source

My question is to the Treasurer. On page 2-15 of last year's Budget Paper No. 1, the government said that a faster-than-expected COVID vaccine rollout would boost the economy by $34 billion. Where is the estimated cost of the bungled rollout in this year's budget paper? What is the cost?

Hon. Members:

Honourable members interjecting

2:40 pm

Photo of Josh FrydenbergJosh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | | Hansard source

As my colleagues point out—why is the shadow Treasurer smiling at the fact that it is important we roll out the vaccine as quickly as possible? More than 400,000 people received the vaccine over the course of the last week. There is a key assumption in the budget about the vaccine rollout. It is in Budget Paper No. 1 on page 36, where it states:

It is assumed that a population-wide vaccination program is likely to be in place by the end of 2021.

It's based on those assumptions, including around border closures, including about how we deal with and manage outbreaks when they occur, that we have made some of the other forecasts across the economy. But the key to Australia's economic recovery, as the Secretary of the Treasury and the Treasury maintain, is our ability to suppress those outbreaks when they occur. This is first and foremost a health crisis, and our ability to suppress the virus will determine the speed of the economic recovery, which is now well underway.