Catryna Bilyk (Tasmania, Australian Labor Party) Share this | Hansard source

You are right Senator Collins; it is complete fraud. If you want to scrap the schoolkids bonus, why not present it to this place as the 'Schoolkids Bonus Repeal Bill 2014'. At least that would be open and honest rather than sneakily hiding it in the MRRT repeal bill.

The schoolkids bonus delivers parents some extra help to meet the large costs associated with sending a child to school. It is paid automatically to eligible parents just when they need it to buy uniforms, school books, laptops or tablets, stationery and any other things that their children might need for school. Those opposite are including it in this bill simply to make the financial impact of this bill look artificially better than what it actually is. It is why discontinuing the RDAF and regional infrastructure funding are included too. It is pretty disingenuous. When the schoolkids bonus was introduced those opposite opposed it because they claimed it was not specifically targeted to education. They called it a 'cash splash' and they did not trust Australian families to spend it on the educational needs of their children. They said the education tax refund was a better way, despite the fact that millions of families were not getting their full entitlements as receipts often got misplaced throughout the year. Now the Liberal-National government are scrapping the schoolkids bonus and not even reintroducing the education tax refund. And, although they supported the education tax refund and promised to increase it if elected at the 2010 election, no, they are just scrapping it. Scrapping the whole measure! Scrapping the measure that replaced it and replacing it with nothing—zilch!

They do not care about supporting Australian families at all. They do not care about supporting the education of Australian children as their recent double backflip on education shows. We know those opposite hate those on Newstart payments—a number of the previous speakers have already mentioned this. As well as attacking the young with the draconian new measures to create high levels of homelessness for those under the age of 30, this bill would also abolish the income support bonus, a tax-free payment to help people prepare for unexpected living costs such as medical expenses or car repairs. If the proposed abolition is successful, around 1.1 million low-income Australians, primarily people receiving Newstart or youth allowance, will lose the payment.

The income support bonus is an income-tax-exempt, indexed, non-means-tested payment made twice every year to eligible social security recipients. It was introduced in early 2013 'in recognition of the fact that the current rates of income support allowance payments are manifestly inadequate'. The bonus provides $210 a year to single recipients and $350 a year to most couples where both partners are eligible. The bonus is paid in instalments in March and September each year and is vital for people receiving income support to make ends meet. This is just another cruel attack on people on Newstart from those opposite. That is what this government is about—attacking those that they think won't hit back. But I believe they will and I believe that the Australian people have had enough.

This bill shows just how little those opposite care about small business as well. This bill will increase taxes on up to 2.7 million small businesses and close the loss-carry-back scheme, taking away tax breaks for up to 110,000 businesses. Often the interests of big businesses and small businesses do not align, but the coalition's plan to remove these small business investment incentives has united big and small business in opposition, with both the Australian Industry Group and the Council of Small Business of Australia speaking out against the removal. The Abbott government is uniting Australia through hatred of its policies.

Even the coalition's friends in the Australian Industry Group do not support the provision that would reduce the small business asset write-off threshold. In evidence given to the Senate Economics Committee's inquiry into this bill, Dr Burn, from the Ai Group, stated that the existing arrangement provides a very important boost to a company's cash flow 'at a time when they need it most and at a time when it is going to be most critical in ensuring the survival of that business'. He also informed the committee that the Australian economy faced a 'large gap in investment, particularly outside the mining sector'. He stated that the proposal to remove the instant write-off facility for small business would have a material effect on them and 'decrease investment at the time it is needed most'. In his view, waiting for the tax review in these cases is 'poor timing' and that the 'timing needed is right now'.

Those opposite believe the purpose of being in government is to overturn everything the previous government did. Well, guess what? It isn't; it is to lead in the interests of the Australian people, not big business mates. Those opposite got elected on those wonderful three-word slogans!

Senator Cash interjecting—

Governing is about more than three-word slogans, glib sound bites and relentless negativity. Now they have to explain to the Australian people why a bill called repeal of the mineral resource rent tax means they are going to lose their schoolkids bonus. Now they have to explain to 2.7 million small businesses why they are getting a tax hike. The senators opposite need to explain—

Senator Cash interjecting—

Maybe if you were quiet and listened you might learn something on that side.