Mr DUTTON (Minister for Revenue and Assistant Treasurer) (1:17 PM) —in reply—Can I start by thanking those members who have contributed to this very important debate. The first part of the Tax Laws Amendment (2007 Budget Measures) Bill 2007 increases the dependent spouse tax offset from $1,655 to $2,100, with effect from 1 July 2007. This change also allows a dependent spouse to earn more income before the offset phases out, increasing the separate net income at which the tax offset completely phases out from $6,901 to $8,681.

The second part of this bill increases the Medicare levy low-income thresholds for individuals and families in line with increases in the consumer price index. The low-income thresholds in the Medicare levy surcharge provisions are similarly increased. These changes ensure that low-income individuals and families will continue to be exempt from the Medicare levy or surcharge. The Medicare levy low-income threshold for pensioners below age-pension age is also increased to ensure that, where these pensioners do not have a tax liability, they will not have a Medicare levy liability. The amendments to the Medicare levy low-income thresholds apply to the 2006-07 income year and later income years.

The measures in this bill continue to build on the strength of the Australian economy. They are really what the government is about in terms of running a strong economy, from returning dividends to Australian families and to Australian small business in particular to making sure that the government continues sound economic management in this country so that we can have young people and mature-age workers returning to the workplace, providing a brighter future not just for them but for our country as well.

What this government will never do is go back to the days of Labor. Labor let the trade unions run this country, and the ultimate mess that the economy ended up in was a disgrace not just for them but for the Labor leadership as well. At the moment the very clear message to the Australian people is that, if there is a change of government in this country, there will be a change in the way in which the economy is managed. People from Queensland, in particular, know that one of the greatest threats to the Australian economy is the member for Lilley. The shadow Treasurer is known best by people in our own state of Queensland. They know his disastrous record of contributing to economic debates in this country. They know that Wayne Swan would be a wrecker of the Australian economy. That is a very salient message at this point in time.

This government has been and continues to be about listening to the Australian people. This is the way in which we deliver good economic outcomes. What do we mean when we talk about good economic outcomes? We mean that we want to run the economy well so that we can continue to lower taxes, so that we can continue to drive down unemployment and so that we can continue to put more money into the families of Australia and into small businesses to create an atmosphere where people can, for years to come, as they have over the last decade, enjoy life in the way in which they have become accustomed. The greatest threat if there were a change of government in this country would be the reality of a return to union domination. We know that, in the eighties and in previous times when Labor has been in government, it provided a situation where the union bosses and the union hacks dominated economic policy, which resulted in bad economic outcomes.

How do we know that Labor would pose a great threat to the Australian economy? Not just because of their past track record, where Australian families were paying 17 per cent and small businesses were paying 20 per cent interest rates—people know; they suffered during that time. But how do we know that Labor would wreck the Australian economy into the future, given the opportunity again? We know that because they have facilitated the return of even more union bosses to the front bench after this election. If Labor were elected we would be in the position where 70 or 80 per cent of the people sitting around a Labor government cabinet table making decisions on the national economy would be those people. We know, from times past, and from comments present, that the Labor Party, and the union bosses in particular, do make economic decisions not in the best interests of this country but in their personal best interests. Labor cannot be trusted with the economy today, as they have not been able to be trusted with the economy in past times in government. I want to take the opportunity to thank all of those again who have participated in this debate. I commend the bill to the House.

Question agreed to.

Bill read a second time.