Senate debates

Thursday, 16 October 2008

Tax Laws Amendment (Medicare Levy Surcharge Thresholds) Bill (No. 2) 2008

In Committee

12:13 pm

Photo of Rachel SiewertRachel Siewert (WA, Australian Greens) Share this | Hansard source

by leave—I, and also on behalf of Senator Xenophon, move Greens amendments (1) to (6) on sheet 5625:

(1)    Schedule 1, item 2, page 3 (line 15), omit “$75,000”, substitute “$70,000”.

(2)    Schedule 1, item 4, page 4 (line 21), omit “$150,000”, substitute “$140,000”.

(3)    Schedule 1, item 4, page 4 (line 21), omit “$153,000”, substitute “$143,000”.

(4)    Schedule 1, item 7, page 5 (line 7), omit “$75,000”, substitute “$70,000”.

(5)    Schedule 1, item 8, page 6 (line 14), omit “$150,000”, substitute “$140,000”.

(6)    Schedule 1, item 8, page 6 (line 14), omit “$153,000”, substitute “$143,000”.

These amendments change the threshold limit to $70,000 for singles and to $140,000 for couples. In moving these amendments, I think it should be understood that the Greens and Senator Xenophon have entered into a dialogue and an understanding that we want to see changes made. The Greens never believed that the $50,000 threshold was an adequate threshold and we believe that a move to $70,000 as a single threshold is a step in the right direction. Having said that, we are extremely pleased that we are going to be using AWOTE or tying the threshold to an earnings indexation. We are also, of course, extremely pleased that the government accepted our original amendments to ensure that the threshold was indexed and that the AWOTE indexation method will be used in order to index the threshold.

This will deliver benefits to a quarter of a million Australians at a very important time in Australia when families and singles need help, and it will also ensure that this threshold is now keeping pace, finally, with indexation from when this measure was first introduced in 1997. Having said that, we also seek assurance from the government that, as the government has stated previously, there will be no negative impact on the public hospital system and that they will look at any negative impact on the public hospital system. My next amendment deals with the review mechanism that will facilitate that.

We understand and we hope that the government accepts these new threshold levels. We all believe that we have moved substantially in order to achieve an outcome that we can all live with. I said to somebody last night that the Greens are used to consensus decision-making processes and are pleased that we have been able to reach a level of consensus. It would be fair to say that nobody is entirely happy with the outcome in terms of my stated position, which has been that the Greens do not support the rebate in the first place and we do not support a surcharge. But this is a significant step in the right direction.

We are very pleased that the government has agreed to indexation and has agreed to the AWOTE indexation mechanism, and that will have very clear regard for any impacts on the hospital system. We have been working very hard to ensure that there are no negative impacts on the public hospital system. We believe that, in the long term, this will result in a stronger public health system in Australia. That is at the bottom of where the Greens are coming from. We are strong believers in a strong public health system, and we believe this is a step in achieving that strong public health system.

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