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Wednesday, 12 May 2004
Page: 23049


Senator JACINTA COLLINS (2:31 PM) —My question is to Senator Patterson, Minister for Family and Community Services. Can the minister confirm that the cameo tables presented in last night's budget do not show the actual gain in weekly disposable incomes families will experience after 1 July this year? For instance, Minister, isn't it the case that, for a dual income family with two children—one under five—on $65,000 per annum, the claimed weekly gain of $36.97 per week will translate into a zero dollar actual increase in their weekly family income each week from 1 July? Don't the cameo tables use the second stage of tax cuts that will not be delivered for another year? They attribute a pro rata weekly benefit of the end of year $600 debt offset even though the families don't get it weekly, and the tables also include superannuation co-contribution payments that families will not access for 30 to 40 years. Minister, isn't the government just up to its old tricks again in a bid to get re-elected?


Senator PATTERSON (Minister for Family and Community Services and Minister Assisting the Prime Minister for the Status of Women) —Senator Collins has fallen for the two-card trick: Mr Swan feeds the lines and Senator Collins repeats them. It is just like one of those puppets in a puppet show: Mr Swan sits behind Senator Collins moving his mouth and she speaks. That is what it is like—a mannequin. Senator Collins is the Senate mannequin for Mr Swan. When Mr Swan says something, Senator Collins comes in and repeats it. Senator Collins ought to learn that ever since Mr Swan has been here—when Senator Newman was minister, when Senator Vanstone was minister—we have had to contend with Mr Swan misrepresenting the facts. Senator Collins ought to know better. Senator Collins ought to rise above that. The press gallery and the public know that Mr Swan always tries to twist the truth because he does not want to hear the fact that families on family tax benefit A will get $600 for each child this year. They will get an increase of $600 in their family tax benefit when they put in their tax return this year, next year and the year after, and they will also have the opportunity to take advantage of Senator Coonan's co-contribution. If they were to put away $2 a week, they would get $150 from the government in a top-up.


Senator Sherry —To get the maximum benefit it is $1,000.


Senator PATTERSON —They do not have to have $1,000. It is a maximum of $1,000 when their income is $28,000, and it tapers off. To get any benefit, they only have to put in any amount up to $1,000. The maximum benefit is $1,000—but you would think they have to have the whole $1,000. Families know for the first time in their lives that if they put away $1 they will get $1.50—150 per cent—if their income is less than $28,000.

Labor does not like it. Labor does not want to think about the future, but families are thinking about 30 to 40 years time and the fact that they need to provide for their future. We are giving them that opportunity with a super contribution which is doable for them. With anything up to $1,000, they will be matched $1.50 for every $1 when their income is $28,000, decreasing to $58,000. It benefits families. When Labor was in government and you had $96 billion of debt, you were borrowing from the next generation to pay for this generation.


Senator Sherry —Where do they find the $1,000 if they earn less than $28,000?


The PRESIDENT —Senator Sherry, shouting across the chamber is disorderly.


Senator PATTERSON —We have actually managed this economy. We have reduced debt and we are in a position to give families a social dividend. You do not like that because it does not fit with the fact that when you were in government you had debt, high interest rates and high unemployment.


Senator JACINTA COLLINS —Mr President, I ask a supplementary question. The minister has not addressed the question. She has not dealt with the fact that the budget documents count stage 2 tax cuts 12 months in advance. As another example for the minister, isn't it the case that for a single income family with two children—one under 5—on $30,000 per annum, the claimed weekly gain of $34.62 per week will translate into a zero dollar actual increase in their weekly family income each week from 1 July? Isn't it the case that the cameo tables exclude the income forgone by families to achieve the superannuation co-contribution, when they need that money for their dependent children, and isn't it blatantly misleading to claim a weekly co-contribution gain on the one hand without taking into account the income forgone by these families to achieve it?


Senator PATTERSON (Minister for Family and Community Services and Minister Assisting the Prime Minister for the Status of Women) —What I can guarantee is that families who are eligible for family tax benefit A will get $600. Senator Collins referred to a family with two children. That family is eligible for family tax benefit A. They will get $600 for the first child and $600 for the second child—$1,200—before the end of this financial year and then when they put in their tax return they will get an increase in their family tax benefit A of $600 for the first child and $600 for the second child. That is a significant amount of money.

Some of them may choose to put a small amount of that into Senator Coonan's superannuation co-contribution. If they earn less than $28,000 they will get $1.50 for every dollar they put in. They are getting an additional $600 for each child before the end of the financial year and they are getting an increase of $600 in their family tax benefit A if they eligible this financial year and every financial year after. The Labor Party do not want to hear it because we have managed this economy and now we are giving a social dividend to families. (Time expired)