2019-2020 Federal Budget-in-Reply Summary

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"A Budget should sketch the big picture. Build for the long term, write Australia large. Be ambitious, be as bold as the Australian people. That's what a Labor Government will do, strive for the best."


Hon Bill Shorten MP
Leader of the Opposition

Overview

Setting out his election manifesto to voters, Opposition Leader Bill Shorten last night used his budget-in-reply speech to put forward his vision of a fairer and more equal society should Labor be successful at the upcoming Federal Election in May.

Moving to dispel criticism of Labor as the party of higher taxes, Shorten unveiled his pitch to younger voters and low-income earners for a fairer economy and tax system, with a tax cut for 3.6 million low-paid Australians who earn $40,000 or less, a plan to boost wages growth, the restoration of Sunday and public holiday penalty rates, an end to the franking credit and dividend imputation system, and changes to negative gearing. The Opposition Leader also promised bigger surpluses over the forward estimates under Labor.

Central to Shorten's address was a massive funding boost to two key pillars of Labor's platform - public healthcare and education.

The key plank of Shorten's healthcare pitch was the biggest investment in Medicare in a generation: a new $2.3 billion Medicare Cancer Plan to slash expenses for cancer patients. Shorten also promised massive capital and recurrent expenditure on TAFE, schools and early childhood education.

The Opposition Leader also used his speech to put forward Labor's ambitious, comprehensive plan for the environment and energy generation. Shorten also promised big spending on infrastructure, the National Disability Insurance Scheme and the ABC.

The Opposition Leader's speech can be watched in full here.

Announcement Highlights

The Opposition's three key areas of investment in Shorten's budget reply centred around healthcare, education and the environment and energy.


Health

Both  the Government and the Opposition have set healthcare as a key election battleground. Central to Shorten's big spend in public healthcare is a $2.3 billion Medicare Cancer Plan that will cover out-of-pocket medical expenses for cancer patients, including:

  • $600 million towards eliminating the out-of-pocket costs for diagnostic imaging – this will mean 6 million free cancer scans funded by Medicare;

  • $433 million to immediately cover specialist consultations for cancer patients - meaning an additional 3 million appointments will be bulk-billed with no out-of-pocket costs;

  • Affordable medicine guarantee with every drug recommended by the independent expert be listed on the Pharmaceutical Benefit Scheme, cutting the cost of cancer medication; and,

  • $20 million investment in the Olivia Newton-John Cancer Research Institute.

Shorten also committed to investing in hospitals, medicines, primary and preventative care to ensure that the nation's health system remains world class. Key budget reply commitments include:

  • $2.8 billion for the establishment of the Better Hospitals Fund;

  • $9.3 million for a national telephone referral service and a new online community of practice; and,

  • $15.2 million breastfeeding package, aimed at improving the health outcomes of newborns and mothers alike.


Education

Having previously announced $1.75 billion to fund early childhood education for three-year-olds, Shorten continued Labor's education funding program by doubling of the Rebuilding TAFE Fund, with up to $200 million being allocated to renovate campuses in regional and outer-suburban Australia.

Shorten also announced that Labor will pay the upfront fees for 100,000 TAFE places to get more Australians training in high-priority courses, with 20,000 of these places to be allocated to a new generation of aged care workers and paid carers for the National Disability Insurance Scheme. Shorten's pitch also outlined:

  • $14.1 billion in funding for public schools;

  • $300 million for students with a disability;

  • Uncapped university places, opening the doors of higher education to an additional 200,000 Australians;

  • $174 million for a University Pathway Fund to provide support for disadvantaged and underrepresented Australians who wish to attend university; and,

  • A $300 million University Future Fund for higher education infrastructure and priorities.


Environment + Energy

Shorten in his reply stated: “Climate change is real.” Using his budget reply to lay out Labor's comprehensive policy on environment and energy, Shorten reiterated his commitment to reducing Australia's pollution by 45 per cent on 2005 levels by 2030, net zero pollution by 2050, and a target of 50 per cent renewable energy in Australia's electricity mix by 2030. Headline measures in environment and energy included:

  • $2000 rebates for solar batteries for 100,000 households (with a target of 1,000,000 batteries by 2025);

  • The introduction of a National Electric Vehicle policy, with a target of 50 per cent new car sales being electric cars by 2030;

  • Extension of existing pollution cap (with an exemption for farmers and the forestry industry);

  • Establishment of a Strategic Industries Taskforce and $300 million Strategic Industries Reserve Fund to assist emission intensive trade exposed industries.

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