Medicare Levy surcharge
Thursday, 14 May 2009 02:18
Mr Speaker, yet again Labor has done the right thing by working families.
Increasing the Medicare Levy Surcharge thresholds to $100,000 for individuals and $150,000 for families from 1 July 2008 will be yet another measure to take the pressure off working families.
This measure, like our tax cuts, like our education support measures, like axing WorkChoices, will help working families.
The guts of this issue is this.
As a result of this change, many individuals will be up to $1000 a year better off. Couples will be up to $1500 better off.
And the 400,000 Australians without private health insurance who were being hit with this unfair tax, will receive immediate tax relief.
Mr Speaker, 400,000 Australians will be better off under this budget measure.
Within my own electorate of Corangamite, this measure will have a very significant impact.
Let’s have a bit of a look at what it will do in Corangamite.
Based on calculations using census data, approximately 4,100 families will directly benefit from this measure.
These local Corangamite families will be up to $1,500 a year better off Mr Speaker.
$1,500 is enough to pay sports fees for kids for a year for an average family Mr Speaker. It is a lot of money for the average working family, and I think this is something the Opposition just don’t get.
So, it is about immediate financial relief to working families. Thousands of families on my own electorate alone Mr Speaker.
But there's another issue at play here to Mr Speaker. The issue of choice.
This decision provides Australians with more health choices.
As we know Mr Speaker, Liberal tradition, is supposed to be all about choice.
The Liberal theory was all about individuals of free will, exercising choice.
Today, as indicated by this debate, we know the Liberals have abandoned their tradition yet again.
They have abandoned choice, just like they have abandoned working people.
Our Government supports working people and our Government believes Australians deserve a real choice when it comes to their health care.
Mr Speaker there is a couple of other historical things I want to point out about this measure.
Firstly, it's been 10 years since this Medicare Levy threshold has moved.
The threshold has been frozen for a decade.
When most other similar measures have been adjusted for changing circumstances, time has stood still on this one.
In a way it has mimicked the Liberals.
It's moved about as far as the Member for Higgin's leadership bid. That's nowhere, Mr Speaker.
The only difference is that this hasn't been frozen by fear. It's been frozen because of Liberal policy paralysis.
And of course Mr Speaker, we all know the former Treasurer is now frozen again, this time at the end of the plank.
Will he jump, or will have crawl back aboard, grab a cutlass and join the cutthroats on the Liberal ship?
Mr Speaker, this Labor Government, in contrast to the mutineers on the other side, is working with the states and territories to turn around the public health system.
We are totally committed to our public health system and Medicare, something we know the others are not.
We have invested an additional $1 billion over the next 12 months through the Australian Health Care Agreements.
We are investing an additional $600 million for those on elective surgery waiting lists.
That's part of a broader $3.2 billion investment in health and hospitals in this year's Budget aimed at improving the quality of our hospitals, keeping people well, and out of hospital.
Mr Speaker, when those on the other side attack us over health funding, they really are having a lend.
Can I ask what they thought the impact would be when they sliced around $1 billion out of the hospitals budget in 2003?
We are the Party that believes in looking after the health of all Australians, not just those who can afford it.
We are the party that believes in doing what we can to take pressure off working families.
Mr Speaker, I have read about the concerns from insurers about growing outlays.
It is not unusual to hear these concerns. And it is not surprising the health business would bring this to the fore in protecting their turf and market share.
Truth is, I can't remember ever having heard insurers say outlays might be normal in any calendar year.
But the fact is, outlays paid by insurers have decreased over the past decade from around 87% to 82%.
That's a 5% drop.
Mr Speaker, I haven't heard that fact widely disseminated in the media by the industry recently.
Realistically Mr Speaker, while the participation rate may be lower in the short term, this also results in lower benefit outlays for insurers.
The underlying growth in private health insurance coverage over the next four years is expected to more than account for the loss in coverage from the surcharge threshold increase.
While benefits paid are a significant contributor to private health insurance premiums, the amount of benefits paid does not give the whole picture of the financial position of the insurer, and ongoing need for premium increases.
For example, it does not take into account investment income, management expenses, contribution income and membership growth.
It is important when making decisions to take into account the complete picture and this is what our Government has done.
Mr Speaker, it is very important that decisions are made on facts not flummery.
And in this debate we have had a lot of flummery.
Just one example.
We've had two different estimates recently of the numbers of people who will opt out of private health insurance from AHIA chief executive Michael Armitage.
The estimates were a week apart. One said 400,000, another 900,000.
Mr Speaker, that's a margin of error of 125%.
I note that one of these estimates came from research by the well known firm Textor Crosby.
Let's hope they don't allow for this margin of error in their election polling for the Liberals Mr. Speaker - or maybe that was the explanation for the debacle when the Libs took their policies to the Australian people last year.
Of course, there are other reports on the private health insurance industry impacts. A number which greatly undercut and discredit the Opposition's fear mongering and exaggerated assertions on this issue.
Mr Speaker, we do absolutely support the private health insurance rebates, as we always said.
We want to give people incentives to take out private health insurance, not wack them with a tax slug they can't afford.
Labor is committed to decent health care for all Australians.
In addition to our other commitments to health and hospitals, including an additional $1 billion for hospitals this year, we have committed to;
• up to $600 million to clear elective surgery waiting lists,
• another $780 million for dental health,
• $275 million for GP Super Clinics, and
• the establishment of the Health and Hospitals Fund, which demonstrates the Government's commitment, in partnership with state and territory governments, to equipping Australia's health and hospital system for the future.
Mr Speaker, Labor is the party of more investment in health care.
The Liberals are the party that loathes Medicare. For years they tried to axe it. They would still like to do it. And they would do it, only Medicare is so incredibly popular with Australians.
Labor is the Party that brought in universal health care and a system to which the rest of the world looks as a model.
We did this to help all Australians, and now we are making our health system even better with this measure Mr. Speaker.
Thank you.
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