Concetta Fierravanti-Wells (NSW, Liberal Party, Parliamentary Secretary to the Minister for Social Services) Share this | Hansard source

I rise in the debate of this matter of public importance to say that the budget not only promotes fairness but also provides opportunity. The sheer hypocrisy of Labor to put forward this motion is breathtaking, given their legacy after six years in government and the lack of fairness and lack of opportunity the Rudd-Gillard-Rudd government created. Six years of chaos, waste and mismanagement delivered higher taxes, record boat arrivals, and debt and deficit as far as the eye can see.

How is it fair to today's Australians that Labor turned nearly $50 billion in the bank into projected net debt of well over $200 billion—the fastest deterioration in debt, in dollar terms and as a share of GDP, in modem Australian history? How is it fair to Australians that Labor's debt is already costing about $1 billion a month in net interest payments, and that is borrowed money? How many hospitals, how many roads, how many services could that have funded? How is it fair to have this country go on paying the mortgage on the credit card?

Where were the opportunities for those wanting employment under Labor? Let us not forget that under Labor the jobless queues grew by over 200,000—200,000 more unemployed!—in stark contrast to the growth in jobs of more than 250,000 under the Howard government. What opportunities did Labor leave to those in need of services, in need of jobs? None, given the debt and deficit disaster that threatens the future prosperity of Australia and creates intergenerational theft.

In contrast to the chaos and debt left behind by Labor, it is a privilege to serve in the Abbott government and to be part of the team which will build a stronger Australia. The coalition has a plan to build a more productive and diverse economy. We have a plan to deliver more jobs and to provide more opportunity. And, we have a vision for a dynamic and confident Australia.

As the Treasurer said last week in his address to the Sydney Institute, the budget is fair. The budget is about ensuring that government support for those in need and other vital services like infrastructure are affordable in the years to come. At the same time, the coalition government is mindful of concerns about fairness. We all want a society that protects the poor and strengthens the weak. That is what we are doing. Perhaps those on the other side missed this or refuse to accept the government's position. As the Treasurer stated last week, we owe it to the community to set the facts straight and to articulate the reasoning behind our decisions. For example, concerns about the demise of universal health care or higher education accessibility are unfounded. Universal health care has not been free to the consumer for decades. In 1960, a five shilling co-payment was first brought in for the Pharmaceutical Benefits Scheme.

The co-payment was a concept championed by Labor leader Bob Hawke, with strong support from then adviser Jenny Macklin and Labor MPs like Andrew Leigh who now support a co-payment. Former Labor Deputy Prime Minister Brian Howe in 1991 introduced a co-payment as a priority for reform, saying it was:

... the judicious use of price signals to encourage both doctors and patients to be more selective in their use of medical services.

The co-payment is a responsible decision by this government to ensure Medicare will remain sustainable, accessible and affordable in the future. The government decided to ask Australians to make a modest co-payment for their healthcare after serious consideration of possible impacts.

Higher education has not been free since Labor introduced fees in 1987. It is, though, the responsibility of government to provide equality of opportunity with a fair and comprehensive support system for those who are most vulnerable. It is then up to individuals in the community to accept personal responsibility for their lives and their destiny.

Our first budget is based on the premise that it is fair for those with the capacity to pay to accept more personal responsibility for their cost of living, the cost of raising their children, their health services and their education. We cannot continue to spend money at existing levels with the knowledge that this spending will not be sustainable and that, in the years to come, we will not be able to adequately assist those in genuine need. This is unfair to those who most need our help and unfair to future generations who must pay the bill. Our welfare system is unsustainable in its current form and it is not well-targeted to those who really need our assistance.

The federal government will spend $146 billion next financial year on welfare—that is, 35 per cent of the federal budget. We spend more on welfare than we spend on any other single policy area including health, education or defence. And spending on welfare will increase. Those opposite have referred to the Household, Income and Labour Dynamics in Australia Survey and suggested that the number of people on welfare is less. Let me correct this. The percentage of the budget used for welfare has risen, and will rise—to 36 per cent in 2017 from 32 per cent when the study was written. Put another way, this increase is to $170 billion in 2017 from $115 billion in 2010.

At the moment, over half of Australian households receive a taxpayer-funded payment from the government. We have a very comprehensive welfare system, but we must recognise that this spending comes out of the pocket of someone. Either it comes out of the pockets of today's taxpayers, or it comes out of the pockets of tomorrow's taxpayers who will repay this debt along with the interest bill.

This year the Australian government will spend, on average, over $6,000 on welfare for every man, woman and child in the country. Given that only around 45 per cent of the population pays income tax, the average taxpayer must pay more than twice this amount in tax to fund welfare expenditure. In other words, the average working Australian, be they a cleaner, a plumber or a teacher, is working over one full month each year just to pay for the welfare of another Australian. Is this fair? Whilst income tax is by far our largest form of revenue, just 10 per cent of the population pays nearly two-thirds of all income tax.

But mostly I want to address the issues in relation to this budget creating opportunity—the opportunity for education and the opportunity for work. By 2018, our reforms will see the Australian government supporting over 80,000 more students in further education and, for the first time, providing financial assistance to apprentices, with a Trade Support Loan of up to $20,000. This will assist them with everyday costs while they complete their apprenticeship.

At the moment, our higher education system means that the 60 per cent of adult Australians who will never hold a degree are paying for 60 per cent of the degree that others will receive. We are creating opportunity. For the first time, universities will be required to direct $1 of every $5 of additional revenue raised towards the Commonwealth scholarship fund, to support access for students from disadvantaged backgrounds. Fairness is the key to our higher education reforms.

We are also creating opportunities for jobs, working to build more jobs in a strong, prosperous economy. The coalition's actions, including the successful negotiations by the Prime Minister overseas, are in large measure about more jobs for Australians.

We cannot have more Australian jobs without stronger Australian businesses. Already it is encouraging to see that full-time employment has strengthened considerably over the first five months of 2014, up by 101,300. It is the largest increase in employment over this period since 2007.

Our Economic Action Strategy is focused on policy that grows jobs in Australia: cutting the company tax rate from 1 July 2015 to encourage investment in Australian businesses and help create jobs— (Time expired)