
<hansard version="2.2" noNamespaceSchemaLocation="../../hansard.xsd">
  <session.header>
    <date>2018-08-21</date>
    <parliament.no>45</parliament.no>
    <session.no>1</session.no>
    <period.no>7</period.no>
    <chamber>Senate</chamber>
    <page.no>0</page.no>
    <proof>1</proof>
  </session.header>
  <chamber.xscript>
    <business.start>
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        <p class="HPS-SODJobDate" style="direction:ltr;unicode-bidi:normal;">
          <span class="HPS-SODJobDate">
            <span style="font-weight:bold;"></span>
            <a href="Chamber" type="">Tuesday, 21 August 2018</a>
          </span>
        </p>
        <p class="HPS-Normal" style="direction:ltr;unicode-bidi:normal;">
          <span class="HPS-Normal">
            <span style="font-weight:bold;">The PRESIDENT (Senator the Hon. </span>
            <span style="font-weight:bold;">Scott Ryan)</span> took the chair at 12:00, read prayers and made an acknowledgement of country.</span>
        </p>
        <p class="HPS-Line" style="direction:ltr;unicode-bidi:normal;">
          <span class="HPS-Line"> </span>
        </p>
      </body>
    </business.start>
    <debate><debateinfo>
        <title>DOCUMENTS</title>
        <page.no>1</page.no>
        <type>DOCUMENTS</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Tabling</title>
          <page.no>1</page.no>
        </subdebateinfo></subdebate.1></debate>
    <debate><debateinfo>
        <title>COMMITTEES</title>
        <page.no>1</page.no>
        <type>COMMITTEES</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Education and Employment References Committee</title>
          <page.no>1</page.no>
        </subdebateinfo><subdebate.2><subdebateinfo>
            <title>Meeting</title>
            <page.no>1</page.no>
          </subdebateinfo><speech>
  <talker>
    <time.stamp>12:01</time.stamp>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
    <electorate></electorate>
  </talker>
  <para>I remind senators that the question may be put on any proposal at the request of any senator.</para>
</speech>
</subdebate.2></subdebate.1></debate>
    <debate><debateinfo>
        <title>BILLS</title>
        <page.no>1</page.no>
        <type>BILLS</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Treasury Laws Amendment (Enterprise Tax Plan No. 2) Bill 2017</title>
          <page.no>1</page.no>
        </subdebateinfo><subdebate.text>
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            <a href="r5867" type="Bill">
              <p class="HPS-SubDebate" style="direction:ltr;unicode-bidi:normal;">
                <span class="HPS-SubDebate">Treasury Laws Amendment (Enterprise Tax Plan No. 2) Bill 2017</span>
              </p>
            </a>
          </body>
        </subdebate.text><subdebate.2><subdebateinfo>
            <title>Second Reading</title>
            <page.no>1</page.no>
          </subdebateinfo><speech>
  <talker>
    <time.stamp>12:01</time.stamp>
    <name role="metadata">Senator GEORGIOU</name>
    <name.id>269583</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>I rise to set the record straight on behalf of One Nation. Let me be clear: we do not support the proposed company tax cuts nor any of the proposed amendments in the Treasury Laws Amendment (Enterprise Tax Plan No. 2) Bill 2017. One Nation has never received any draft legislation from government with any kind of detail where the big banks would be carved out from company tax cuts. In spite of all this, let me make some further points. The proposed company tax cuts are an indictment of where government values and morals lie, and that is in the deep pockets of big business. This government has not provided any policy or attempted to pay down the multibillion-dollar debt. In fact, this government, along with previous regimes, has left zero fat in the budget to pay down any debt.</para>
<para>Until multinational companies are pursued and forced to pay their fair share of taxes, we will stop allowing oil and gas companies to raid our natural resources without paying adequate royalties. One Nation cannot justify tax cuts beyond the $50 million threshold, which the party was instrumental in securing for small- to medium-sized businesses in this country. One Nation has taken a responsible approach for future generations in this country. If the government has billions of dollars to spend, then I look forward to working with the Treasurer and the finance minister on nation-building projects such as new roads, dams, bridges, railways and vital infrastructure that will benefit all Australians, not just the big end of town.</para>
<para>We've got farmers committing suicide. We've got Australians losing their jobs that are being overtaken by 457 visa holders. We've got industry scaling back so fast. Once this country was the lucky country. Now we're quickly becoming the sellout country. One Nation would like to see the Commonwealth work with state governments to look at ways of reducing payroll tax, which is a bigger impost on businesses across the nation. This will help stimulate jobs across Australia.</para>
</speech>
<speech>
  <talker>
    <time.stamp>12:03</time.stamp>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>As a parliament our responsibility is to ensure that Australians today and into the future have the best possible opportunity to succeed, to get ahead. To ensure that happens we need to ensure that the millions of businesses around Australia, who employ nine out of 10 working Australians, have the best opportunity to be successful and to get ahead. Australia is a country with a population of 25 million. We are an open trading economy. We have opportunities to sell more products and services around the world. But we're also globally exposed. We rely on foreign capital to develop our economy, and many parts of our key economic sectors are highly capital intensive. We compete for capital with businesses in other parts of the world, we compete for access to markets overseas and we compete for access to our own markets with businesses overseas. Keeping taxes on business in Australia high when countries around the world have substantially lowered theirs is making it deliberately harder for our businesses to be viable, competitive and successful into the future.</para>
<para>If the Senate votes the Treasury Laws Amendment (Enterprise Tax Plan No. 2) Bill 2017—a proposal for a lower globally-more-competitive business-tax rate—down today the moment will come when this parliament will have to revisit this proposal. This is not only important for Australians today this is also important for future generations of Australians. If we want Australians today and into the future to be able to get a job, to have job security, to have the opportunity to build and develop a career here in Australia and to get wage increases then we need to ensure that the businesses around Australia who create those jobs through their enterprise and who pay those wages have the best possible opportunity to compete with businesses in other parts of the world and have the best possible opportunity to be successful into the future. Australia can only be successful into the future if we ensure that the businesses around Australia have the best possible opportunity to be successful into the future. The businesses that pay taxes on their profits help us fund a world-class health system, a world-class education system and an appropriately generous social safety net.</para>
<para>The opposition leader, at various times, talks about how his priority is jobs. 'Jobs, jobs, jobs', was what he said in one of his Press Club speeches in the past. But the truth is, unlike the coalition, Mr Shorten does not have a plan for jobs. Mr Shorten does not have a plan for jobs and growth. Let me tell you something, jobs don't grow on trees. Jobs are created by successful, profitable businesses. If you make it harder for businesses here in Australia to be successful into the future—guess what?—they will be less successful. I challenge anyone to credibly put forward an argument that a less successful business would hire more people than they otherwise would. A less successful business would hire fewer people. As businesses around Australia find it harder to compete with businesses in other parts of the world that pay substantially less tax and if businesses are hiring fewer people the unemployment rate would go up. That is the consequence of the socialist agenda pursued by Mr Shorten. Less successful businesses will hire fewer people, there will be less competition for workers and wages will go down.</para>
<para>I understand that business tax cuts, which can be described as a tax giveaway to big end of town, are not politically popular, but we don't have a job here in this chamber just to make decisions following the lead of what is popular today. We have a responsibility to make judgements about what is in the best interests of families around Australia into the future. We have a responsibility to make judgements about what is in our national interest into the future, and not just follow the lead of public opinion at one particular point in time.</para>
<para>I was interested to hear Senator Georgiou talk about spending money as we are proposing to lower the corporate tax rate for businesses around Australia. That is not government spending money. That is government taking less of other people's money, so they can invest it in their future success, so they can hire more Australians, so that those Australians who are more successful into the future pay more tax. Do you know what's happened over the 2017-18 financial year? Corporate tax revenue has gone up by about $10 billion compared to what was expected at budget time. That was after we legislated business tax cuts for businesses with a turnover of up to $50 million. Corporate tax revenue has gone up, which helps us pay for the important and essential services provided by government, which Australians expect.</para>
<para>Comments have been made about the big end of town. What we are doing here today, by keeping our taxes on businesses high in Australia, is deliberately making it harder for businesses like Qantas or Thomas Foods International in South Australia, with a turnover of $1.6 billion. I see Senator Storer there. He should have a chat to Thomas Foods International, a meat-processing business in South Australia which competes globally and which will tell you that a higher corporate tax rate in Australia makes it harder for it to be successful, which means it will hire fewer people than it could if only the Senate were to support a lower, globally more competitive business tax rate.</para>
<para>By standing in the way of our global champions out of Australia, by making it harder for the big employers of Australia—our big end of town, supposedly—to be competitive, what we are doing is helping the big end of town overseas. We are helping the big end of town in the US, in France, in Ireland and in the UK—all of these countries where the tax rate is lower. It is 21 per cent in the US. It is going to 17 per cent in the UK. It is going to 25 per cent in France. It is 22 per cent in Sweden. We are helping the big end of town in all of those countries to take business investment and jobs away from Australia, and do you know who is going to be the beneficiary? Workers in all those other countries, at the expense of Australian workers. Do you know who else is going to be the beneficiary? Small and medium-sized businesses in all of those countries, because the bigger businesses in the US, the UK, France and all these countries will not come and procure their products and services from small and medium-sized businesses here in Australia; they will procure their products and services from small and medium-sized businesses in their respective countries.</para>
<para>The Labor Party, of course, used to know all of this, and I would put it to the Senate that the Australian Labor Party still knows today what is in the workers' best interests. They know that a lower, globally more competitive business tax rate is necessary, is in our national interest and is in the best interests of working families around Australia. Bill Shorten has said it many times. I will just use one quote at random:</para>
<quote><para class="block">Cutting the company income tax rate increases domestic productivity and domestic investment. More capital means higher productivity and economic growth and leads to more jobs and higher wages.</para></quote>
<para>Mr Bowen has also said it, and this is the one, I guess, that upsets me the most on behalf of working families around Australia. Seven months before we put a proposal for a lower, globally more competitive business tax rate into our budget, a proposal to reduce the corporate tax rate to 25 per cent—not leading the world but putting us into the average of corporate tax rates around the world—this is what Mr Bowen said:</para>
<quote><para class="block">Shadow Treasurer Chris Bowen says Labor accepts that company tax falls hardest on workers rather than wealthy shareholders, and aims for a 25 per cent company tax rate to spur economic growth.</para></quote>
<para>I'm quoting him:</para>
<quote><para class="block">"I would like to see the corporate tax rate come down over time. I have previously said the nation should be aiming for a 25 per cent corporate tax rate," Mr Bowen said, adding that it would not be easy to do.</para></quote>
<para>Of course, because Labor know that it's not easy to do, they have milked this for all it's worth politically. They know what is right for working families around Australia. They know that the future success of working families around Australia depends on the future success of the businesses that employ them. They know that keeping taxes in Australia high by international standards makes it harder for business in Australia to be successful. They know that making it harder for business to be successful leads to negative consequences for working families around Australia.</para>
<para>Yesterday we had a Greens senator, Senator Bartlett, talk about how we needed to fight poverty. I agree. We must fight poverty, and the way to fight poverty is to increase opportunity for people to get ahead. Stronger economic growth creates better opportunity, in particular, for low-income earners to get ahead. That is demonstrably the case. Proportionately speaking, the beneficial impact of stronger growth is most significant at the low-income end. The people that will suffer the most from making it harder for our businesses to be successful into the future are low-income Australians, who will find it harder to get into the workforce, harder to keep their job and harder to get a better job. If we condemn the businesses around Australia to an uncompetitive business tax rate, if we deliberately help businesses in other parts of the world to take business investment and jobs away from our businesses here, we make it harder, in particular, for low-income earners to get ahead.</para>
<para>Obviously part of the politics of all this is that the Labor Party have become quite good at sharpening their populist political message, and so it's all become about, 'This is just a tax giveaway to the big banks,' which of course is not what this is all about. But in order to ensure a lower company tax rate for the businesses around Australia who are exposed to global competition, whose workers are exposed to global competition, the government did propose to One Nation that we would be prepared to carve out the four big banks. We proposed that to others too. I've got to say I'm somewhat intrigued to hear Senator Georgiou say today, 'We never saw the amendments.' Let me tell you: the offer was very, very clear. We were so committed to ensuring that the businesses around Australia—including, in particular, the bigger businesses around Australia who are on the front line of global competition—have the best possible opportunity to be viable, to be competitive and to be successful into the future that we were prepared to carve out the four big banks. At no point were we prepared to put in a $500 million cap, because that would actually be counterproductive. It would damage the economy. It would cost jobs. As none other than Mr Shorten said—and I couldn't have put it better myself:</para>
<quote><para class="block">… lowering the corporate rate for smaller businesses only … creates an artificial incentive for Australian businesses to downsize.</para></quote>
<quote><para class="block">In worse case scenarios some businesses might actually lay people off to get smaller - and the size based different tax treatment would create a glass ceiling on business workforce growth.</para></quote>
<quote><para class="block">Instead we want a level playing field regardless of the size of the company.</para></quote>
<para>That was a speech from Bill Shorten to ACOSS in Melbourne. Mr Shorten was right then, and he still believes this now. The reason he's arguing a different case is all politics. He is selling out the best interests of working families around Australia on what he perceives to be his ticket to the Lodge. He's very good at running the populist, sharp political lines. But you know what? I'm not here to run sharp political lines. I'm here to stand up for Australian families, to do the right thing by Australian families, today and into the future. That is why we have given this such a red-hot go. The Labor Party, of course, know this too.</para>
<para>A range of other issues were mentioned, like the claim that we needed to do more on multinationals. No government has done more than the Turnbull government to ensure that multinationals pay their fair share of tax. I think this is widely understood. None other than the Commissioner of Taxation, Chris Jordan, has spelt out in some great detail, at various Senate estimates hearings, what a significant impact our measures have had in terms of increased company tax revenue. In recent years we've implemented the multinational anti-avoidance law, the diverted profits tax and tougher penalties against tax avoidance. We've made improvements to transfer pricing laws and in relation to the public disclosure of tax information by large companies. We've pursued measures to implement country-by-country reporting. We've implemented changes to hybrid rules.</para>
<para>We were prepared to do more. We did talk—and it's a matter of public record—to the crossbench, to One Nation and others, about reforming the petroleum resource rent tax arrangements. I see Senator Burston here, a great, honourable man, because he was part of the deal that the government did with One Nation in March. He was there—it's a matter of public record—when we shook hands. You've got to remember that One Nation actually was prepared to back corporate tax cuts for all businesses, when the banks were included. Now Senator Georgiou comes in here and he says, 'I can't vote for this because, yes, the government might have told us that they were prepared to exclude the big four banks, but they never showed us the detailed amendments.' I mean, really? Let me just say that, if the Senate votes against a lower, globally more competitive business tax rate here in Australia, we will be letting down working families around Australia today and into the future. Everybody needs to be very conscious of that.</para>
<para>I will now turn to some of the other issues that were raised, starting with the One Nation suggestion that Senator Hanson made on the record here yesterday. She suggested that we should abolish the petroleum resource rent tax regime and replace it with a royalty regime offshore. We're talking about an industry that has made more than $200 billion worth of capital investment in a particular taxation regime. It is completely ludicrous, and completely reckless and irresponsible, to suggest that, as part of a negotiation for a lower globally more competitive business tax rate, we can make that sort of change to a taxation arrangement.</para>
<para>There's a good reason why Labor in government—the Keating government—introduced petroleum resource rent tax arrangements back in the late 1980s and early 1990s. It has actually served Australia well in helping to attract massive capital investment that has helped generate a significant capital-intensive new industry, to the point where we are going to become the biggest exporter of LNG in the next few years. This has generated a massive number of jobs and massive additional income, which helps to pay for our hospitals, our schools, our Defence Force and you name it. The proposition that somehow a country like Australia, which relies on foreign investment, could turn around and abolish the PRRT arrangements and replace them with a royalty regime as part of a negotiation on reform to our corporate tax laws is completely and utterly unrealistic.</para>
<para>People in this debate have made the point, 'Oh, in the US this hasn't really worked.' In an interview with Fran Kelly last week, I made the point that, on the back of the Trump administration corporate tax cuts, the US recorded in excess of four per cent growth on an annualised basis in this most recent quarter; the US unemployment rate had a three in front of it; wages growth was the strongest it's been in a very long time; and massive capital investment had been returned to the country. I also said that the Trump tax cuts had led to stronger investment, stronger growth, a lower unemployment rate and higher wages.</para>
<para>And do you know what? I got a request from The Conversation to 'please substantiate' my assertions as part of a fact-check process. That was more than a week ago. I provided the evidence that in the US they've secured more than four per cent growth on an annualised basis in the most recent quarter; that the unemployment rate was now 3.9 per cent; that wages growth was the strongest it had been in a very long time; and that massive capital investment had been returned to the country. The IMF, the International Monetary Fund—hardly a right-wing conspiratorial organisation—updated their US growth forecast following the passage of the Trump tax cuts. They said:</para>
<quote><para class="block">The U.S. tax policy changes are expected to stimulate activity, with the short-term impact in the United States mostly driven by the investment response to the corporate income tax cuts.</para></quote>
<para>But some people here will argue that black is white and that white is black. The truth is that, if the Senate stands in the way of a lower globally more competitive business tax rate here in Australia, the Senate stands in the way of the opportunity for working families around Australia today and in the future to get ahead. If we maintain one of the highest corporate tax rates in the world, we will attract less investment and we will generate lower growth than we otherwise would, which means that we will see—</para>
<interjection>
  <talker>
    <name role="metadata">Senator Cameron</name>
    <name.id>AI6</name.id>
  </talker>
  <para>Why are you talking the country down?</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
  </talker>
  <para>This was actually the Labor Party position. Nobody in Australia believes that you're taking a principled stand on this. Everybody knows that you are putting populist politics ahead of the national interest, and in history you will stand condemned for it. If this goes down today, there is no doubt that the Australian parliament will have to revisit this before long in order to protect our economic security into the future. On that basis, I commend the bill to the Senate.</para>
</continue>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>The question is that the bill be read a second time.</para>
<para>Bill read a second time.</para>
</interjection>
</speech>
<division>
            <division.header>
              <body>
                <p class="HPS-DivisionPreamble">The Senate divided. [12:28]<br />(The President—Senator Ryan)</p>
              </body>
            </division.header>
            <division.data>
              <ayes>
                <num.votes>35</num.votes>
                <title>AYES</title>
                <names>
                  <name>Abetz, E</name>
                  <name>Anning, F</name>
                  <name>Bernardi, C</name>
                  <name>Birmingham, SJ</name>
                  <name>Brockman, S</name>
                  <name>Burston, B</name>
                  <name>Bushby, DC (teller)</name>
                  <name>Canavan, MJ</name>
                  <name>Cash, MC</name>
                  <name>Colbeck, R</name>
                  <name>Cormann, M</name>
                  <name>Duniam, J</name>
                  <name>Fierravanti-Wells, C</name>
                  <name>Fifield, MP</name>
                  <name>Gichuhi, LM</name>
                  <name>Griff, S</name>
                  <name>Hinch, D</name>
                  <name>Hume, J</name>
                  <name>Leyonhjelm, DE</name>
                  <name>Macdonald, ID</name>
                  <name>Martin, S.L</name>
                  <name>McGrath, J</name>
                  <name>McKenzie, B</name>
                  <name>Molan, AJ</name>
                  <name>Paterson, J</name>
                  <name>Patrick, RL</name>
                  <name>Payne, MA</name>
                  <name>Reynolds, L</name>
                  <name>Ruston, A</name>
                  <name>Ryan, SM</name>
                  <name>Scullion, NG</name>
                  <name>Seselja, Z</name>
                  <name>Smith, DA</name>
                  <name>Stoker, AJ</name>
                  <name>Williams, JR</name>
                </names>
              </ayes>
              <noes>
                <num.votes>34</num.votes>
                <title>NOES</title>
                <names>
                  <name>Bartlett, AJJ</name>
                  <name>Bilyk, CL</name>
                  <name>Brown, CL</name>
                  <name>Cameron, DN</name>
                  <name>Carr, KJ</name>
                  <name>Chisholm, A</name>
                  <name>Collins, JMA</name>
                  <name>Di Natale, R</name>
                  <name>Dodson, P</name>
                  <name>Faruqi, M</name>
                  <name>Gallacher, AM</name>
                  <name>Georgiou, P</name>
                  <name>Hanson-Young, SC</name>
                  <name>Keneally, KK</name>
                  <name>Ketter, CR</name>
                  <name>Lines, S</name>
                  <name>Marshall, GM</name>
                  <name>McAllister, J (teller)</name>
                  <name>McCarthy, M</name>
                  <name>McKim, NJ</name>
                  <name>Moore, CM</name>
                  <name>O'Neill, DM</name>
                  <name>Polley, H</name>
                  <name>Pratt, LC</name>
                  <name>Rice, J</name>
                  <name>Siewert, R</name>
                  <name>Singh, LM</name>
                  <name>Smith, DPB</name>
                  <name>Sterle, G</name>
                  <name>Storer, TR</name>
                  <name>Urquhart, AE</name>
                  <name>Watt, M</name>
                  <name>Whish-Wilson, PS</name>
                  <name>Wong, P</name>
                </names>
              </noes>
              <pairs>
                <num.votes>3</num.votes>
                <title>PAIRS</title>
                <names>
                  <name>Fawcett, DJ</name>
                  <name>Steele-John, J</name>
                  <name>O'Sullivan, B</name>
                  <name>Farrell, D</name>
                  <name>Sinodinos, A</name>
                  <name>Kitching, </name>
                </names>
              </pairs>
            </division.data>
            <division.result>
              <body>
                <p class="HPS-DivisionFooter">Question agreed to.</p>
              </body>
            </division.result>
          </division></subdebate.2><subdebate.2><subdebateinfo>
            <title>In Committee</title>
            <page.no>5</page.no>
          </subdebateinfo><speech>
  <talker>
    <time.stamp>12:31</time.stamp>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>I table a supplementary explanatory memorandum relating to the government amendments to be moved to this bill. I seek leave to move government amendments (1) to (37) on sheet JP186 together.</para>
<para>Leave granted.</para>
<continue>
  <talker>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
  </talker>
  <para>I move the amendments:</para>
<quote><para class="block">(1) Clause 2, page 2 (after table item 9), insert:</para></quote>
<quote><para class="block">(2) Clause 2, page 3 (table item 17), omit the table item.</para></quote>
<quote><para class="block">(3) Schedule 1, page 8 (after line 4), after item 5, insert:</para></quote>
<quote><para class="block">5A Subsection 3 ( 1 )</para></quote>
<quote><para class="block">   Insert:</para></quote>
<quote><para class="block"> <inline font-style="italic">   large ADI </inline>has the same meaning as in the <inline font-style="italic">Income Tax Assessment Act 1997</inline>.</para></quote>
<quote><para class="block">Note: For a consolidated group, the head company is the large ADI.</para></quote>
<quote><para class="block">(4) Schedule 1, page 8 (after line 6), after item 6, insert:</para></quote>
<quote><para class="block">6A Subsection 23(1A)</para></quote>
<quote><para class="block">   Omit "section 23A", substitute "sections 23A and 24".</para></quote>
<quote><para class="block">(5) Schedule 1, item 7, page 8 (line 10), omit "section 23A", substitute "sections 23A and 24".</para></quote>
<quote><para class="block">(6) Schedule 1, item 8, page 8 (lines 12 to 14), omit the item, substitute:</para></quote>
<quote><para class="block">8 Paragraph 23 ( 3 ) (b)</para></quote>
<quote><para class="block">   Repeal the paragraph, substitute:</para></quote>
<quote><para class="block">   (b) in respect of the standard component:</para></quote>
<quote><para class="block">      (i) unless subparagraph (ii) applies—27.5%; or</para></quote>
<quote><para class="block">      (ii) if the company is a large ADI for the year of income—30%.</para></quote>
<quote><para class="block">(7) Schedule 1, item 13, page 9 (lines 5 and 6), omit the item, substitute:</para></quote>
<quote><para class="block">13 Paragraph 23A(a)</para></quote>
<quote><para class="block">   Repeal the paragraph, substitute:</para></quote>
<quote><para class="block">   (a) in respect of the ordinary class:</para></quote>
<quote><para class="block">      (i) unless subparagraph (ii) applies—27.5%; or</para></quote>
<quote><para class="block">      (ii) if the company is a large ADI for the year of income—30%; and</para></quote>
<quote><para class="block">(8) Schedule 1, page 9 (after line 6), after item 13, insert:</para></quote>
<quote><para class="block">13A After section 23A</para></quote>
<quote><para class="block">   Insert:</para></quote>
<quote><para class="block">24 Rate of tax payable by large ADIs</para></quote>
<quote><para class="block">      The rate of tax in respect of the taxable income of a company (other than a life insurance company or an RSA provider) that is a large ADI for the year of income is 30%.</para></quote>
<quote><para class="block">(9) Schedule 1, item 15, page 9 (lines 14 to 18), omit the item, substitute:</para></quote>
<quote><para class="block">15 Paragraph 28(a)</para></quote>
<quote><para class="block">   Repeal the paragraph, substitute:</para></quote>
<quote><para class="block">   (a) if paragraph 98(3)(b) of the Assessment Act (about beneficiaries that are companies) applies:</para></quote>
<quote><para class="block">      (i) unless subparagraph (ii) applies—the rate specified in subsection 23(2); or</para></quote>
<quote><para class="block">      (ii) if the beneficiary is a large ADI for the year of income—the rate specified in section 24; and</para></quote>
<quote><para class="block">(10) Schedule 1, item 19, page 10 (line 7), omit "Paragraph 23(3)(b)", substitute "Subparagraph 23(3)(b)(i)".</para></quote>
<quote><para class="block">(11) Schedule 1, item 23, page 10 (line 15), omit "Paragraph 23A(a)", substitute "Subparagraph 23A(a)(i)".</para></quote>
<quote><para class="block">(12) Schedule 1, item 27, page 11 (line 7), omit "Paragraph 23(3)(b)", substitute "Subparagraph 23(3)(b)(i)".</para></quote>
<quote><para class="block">(13) Schedule 1, item 31, page 11 (line 15), omit "Paragraph 23A(a)", substitute "Subparagraph 23A(a)(i)".</para></quote>
<quote><para class="block">(14) Schedule 1, item 35, page 12 (line 7), omit "Paragraph 23(3)(b)", substitute "Subparagraph 23(3)(b)(i)".</para></quote>
<quote><para class="block">(15) Schedule 1, item 39, page 12 (line 15), omit "Paragraph 23A(a)", substitute "Subparagraph 23A(a)(i)".</para></quote>
<quote><para class="block">(16) Schedule 1, page 12 (after line 18), after Part 8, insert:</para></quote>
<quote><para class="block">Part 8A—Amendment of the Income Tax Assessment Act 1997</para></quote>
<quote><para class="block"><inline font-style="italic">Income Tax Assessment Act 1997</inline></para></quote>
<quote><para class="block">40A Section 960 ‑265 (at the end of the table)</para></quote>
<quote><para class="block">Add:</para></quote>
<quote><para class="block">40B Subsection 960 ‑270 ( 3 )</para></quote>
<quote><para class="block">   After "item 14", insert "or 15".</para></quote>
<quote><para class="block">40C Subsection 960 ‑275 ( 6 )</para></quote>
<quote><para class="block">   After "item 14", insert "or 15".</para></quote>
<quote><para class="block">40D Subsection 960 ‑280 ( 6 )</para></quote>
<quote><para class="block">   After "item 14", insert "or 15".</para></quote>
<quote><para class="block">40E Section 960 ‑290 (heading)</para></quote>
<quote><para class="block">   Omit "levy threshold for the major bank levy", substitute "thresholds for major bank levy and large ADIs".</para></quote>
<quote><para class="block">40F Subsection 960 ‑290 ( 1 )</para></quote>
<quote><para class="block">   Omit "the amount mentioned in the provision listed at item 14", substitute "an amount mentioned in a provision listed at item 14 or 15".</para></quote>
<quote><para class="block">40G Subsection 995 ‑1 ( 1 )</para></quote>
<quote><para class="block">   Insert:</para></quote>
<quote><para class="block"> <inline font-style="italic">   applicable reporting standard</inline> has the same meaning as in the <inline font-style="italic">Major Bank Levy Act 2017</inline>.</para></quote>
<quote><para class="block">40H Subsection 995 ‑1 ( 1 ) (paragraph (aa) of the definition of <inline font-style="italic">indexation factor</inline> )</para></quote>
<quote><para class="block">   Omit "for the amount mentioned in the provision listed at item 14", substitute "for an amount mentioned in a provision listed at item 14 or 15".</para></quote>
<quote><para class="block">40J Subsection 995 ‑1 ( 1 ) (paragraph (b) of the definition of <inline font-style="italic">index number</inline> )</para></quote>
<quote><para class="block">   Omit "the amount mentioned in the provision listed at item 14", substitute "the amounts mentioned in the provisions listed at items 14 and 15".</para></quote>
<quote><para class="block">40K Subsection 995 ‑1 ( 1 )</para></quote>
<quote><para class="block">   Insert:</para></quote>
<quote><para class="block"><inline font-style="italic">   large ADI</inline>: an Australian resident company is a <inline font-style="italic">large ADI</inline> for an income year if:</para></quote>
<quote><para class="block">   (a) disregarding subsection 701‑1(1) (the single entity rule) both of the following apply:</para></quote>
<quote><para class="block">      (i) the company is an *ADI;</para></quote>
<quote><para class="block">      (ii) the amount equal to the total liabilities of the ADI for any *quarter in the income year, as reported under an *applicable reporting standard, exceeds the *large ADI threshold for the quarter; or</para></quote>
<quote><para class="block">(b) the company is the *head company of a *consolidated group and paragraph (a) applies to one or more *subsidiary members of the group for the income year.</para></quote>
<quote><para class="block">Note: The effect of this definition for a consolidated group is that, if paragraph (a) applies to any member, the head company is a large ADI. The head company's status as a large ADI affects the rate of tax payable on the head company's taxable income (worked out on the basis that subsidiary members are part of the head company): see subsection 701‑1(1) (the single entity rule) and the <inline font-style="italic">Income Tax Rates Act 1986</inline>.</para></quote>
<quote><para class="block"> <inline font-style="italic">   large ADI threshold</inline>: the <inline font-style="italic">large ADI threshold</inline> for the *quarter starting on 1 July 2017 is $500 billion. The amount is indexed quarterly.</para></quote>
<quote><para class="block">Note: Subdivision 960‑M shows how to index amounts.</para></quote>
<quote><para class="block">(17) Schedule 1, page 13 (after line 25), after subitem 41(8), insert:</para></quote>
<quote><para class="block">   (9) The amendments made by Part 8A of this Schedule apply to the 2023‑24 year of income and later years of income.</para></quote>
<quote><para class="block">   (10) The amendments made by Parts 5 and 8A of this Schedule also apply for the purposes of determining the corporate tax rate for imputation purposes for the 2023‑24 income year.</para></quote>
<quote><para class="block">Note: This ensures the amendments made by Parts 5 and 8A can be applied to the 2022‑23 income year for the purposes of working out the corporate tax rate for imputation purposes for the 2023‑24 income year.</para></quote>
<quote><para class="block">(18) Schedule 2, Part 1, page 14 (line 3) to page 17 (line 20), omit the Part, substitute:</para></quote>
<quote><para class="block">Part 1—Amendments commencing 1 July 2023</para></quote>
<quote><para class="block"><inline font-style="italic">Income Tax Assessment Act 1997</inline></para></quote>
<quote><para class="block">1 Subsection 995 ‑1 ( 1 ) (definition of <inline font-style="italic">corporate tax rate</inline> )</para></quote>
<quote><para class="block">   Repeal the definition, substitute:</para></quote>
<quote><para class="block"><inline font-style="italic">   corporate tax rate</inline>:</para></quote>
<quote><para class="block">   (a) in relation to a company that is a *large ADI—means the rate of tax in respect of the taxable income of a company covered by section 24 of that Act; or</para></quote>
<quote><para class="block">   (b) in relation to another entity—means the rate of tax in respect of the taxable income of a company covered by subsection 23(2) of that Act.</para></quote>
<quote><para class="block">2 Subsection 995 ‑1 ( 1 ) (definition of <inline font-style="italic">corporate tax rate for imputation purposes</inline> )</para></quote>
<quote><para class="block">   Repeal the definition, substitute:</para></quote>
<quote><para class="block"><inline font-style="italic">   corporate tax rate for imputation purposes</inline>, of an entity for an income year, means:</para></quote>
<quote><para class="block">   (a) unless paragraph (b) applies—the rate of tax for the income year in respect of the taxable income of a company covered by subsection 23(2) of the Income Tax Rates Act 1986; or</para></quote>
<quote><para class="block">   (b) if the entity was a *large ADI for the previous income year—the rate of tax for the income year in respect of the taxable income of a company covered by section 24 of that Act.</para></quote>
<quote><para class="block">(19) Schedule 3, item 1, page 19 (lines 5 to 15), omit the item, substitute:</para></quote>
<quote><para class="block">1 Subsection 160AAB ( 1 ) (definition of <inline font-style="italic">statutory percentage</inline> )</para></quote>
<quote><para class="block">   Repeal the definition, substitute:</para></quote>
<quote><para class="block"><inline font-style="italic">   statutory percentage</inline> means:</para></quote>
<quote><para class="block">   (a) if the year of income is the 2002‑03 year of income or a later year of income before the 2024‑25 year of income—30%; or</para></quote>
<quote><para class="block">   (b) if the year of income is the 2024‑25 year of income or a later year of income and the policy concerned was issued by a company that is a large ADI (within the meaning of the <inline font-style="italic">Income Tax Assessment Act 1997</inline>) for the year of income—30%; or</para></quote>
<quote><para class="block">(c) otherwise:</para></quote>
<quote><para class="block">      (i) if the year of income is the 2024‑25 year of income—27.5%; or</para></quote>
<quote><para class="block">      (ii) if the year of income is the 2025‑26 year of income—27%; or</para></quote>
<quote><para class="block">      (iii) if the year of income is the 2026‑27 year of income—26%; or</para></quote>
<quote><para class="block">      (iv) if the year of income is the 2027‑28 year of income or a later year of income—25%.</para></quote>
<quote><para class="block">1A Subsection 177A ( 1 ) (definition of <inline font-style="italic">standard corporate tax rate</inline> )</para></quote>
<quote><para class="block">   Repeal the definition, substitute:</para></quote>
<quote><para class="block"><inline font-style="italic">   standard corporate tax rate</inline> means:</para></quote>
<quote><para class="block">   (a) unless paragraph (b) applies—the rate of tax in respect of the taxable income of a company covered by subsection 23(2) of the Income Tax Rates Act 1986; or</para></quote>
<quote><para class="block">   (b) if the relevant taxpayer is a large ADI (within the meaning of the <inline font-style="italic">Income Tax Assessment Act 1997</inline>) for a year of income in which the DPT tax benefit is obtained, or would be obtained—the rate of tax in respect of the taxable income of a company covered by section 24 of the <inline font-style="italic">Income Tax Rates Act 1986</inline>.</para></quote>
<quote><para class="block">(20) Schedule 3, item 2, page 19 (line 19), after "Company A", insert "(which is not a large ADI)".</para></quote>
<quote><para class="block">(21) Schedule 3, item 3, page 20 (line 12), after "Company E", insert "(which is not a large ADI)".</para></quote>
<quote><para class="block">(22) Schedule 3, items 6 and 7, page 20 (line 28) to page 21 (line 8), omit the items, substitute:</para></quote>
<quote><para class="block">6 Subsection 65 ‑30 ( 2 )</para></quote>
<quote><para class="block">   Repeal the subsection, substitute:</para></quote>
<quote><para class="block">   (2) However, reduce the *tax offset by the amount worked out by multiplying your *net exempt income by:</para></quote>
<quote><para class="block">   (a) unless paragraph (b) applies—0.275; or</para></quote>
<quote><para class="block">   (b) if you are a *large ADI for the income year—0.3;</para></quote>
<quote><para class="block">if you have a taxable income for the income year.</para></quote>
<quote><para class="block">7 Subsection 65 ‑35(3A)</para></quote>
<quote><para class="block">   Repeal the subsection, substitute:</para></quote>
<quote><para class="block">   (3A) In reducing *net exempt income for an income year under subsection (3):</para></quote>
<quote><para class="block">   (a) unless paragraph (b) applies—each 27.5 cents of *tax offset reduces the net exempt income by $1; or</para></quote>
<quote><para class="block">   (b) if you were a *large ADI for the year—each 30 cents of tax offset reduces the net exempt income by $1.</para></quote>
<quote><para class="block">(23) Schedule 3, Part 1, page 21 (after line 21), at the end of the Part, add:</para></quote>
<quote><para class="block">8A Subsection 713 ‑545 ( 6 ) (definition of <inline font-style="italic">ordinary class tax rate</inline> )</para></quote>
<quote><para class="block">   Omit "a life insurance company", substitute "the life insurance company".</para></quote>
<quote><para class="block">(24) Schedule 3, item 9, page 22 (line 5), after "Company A", insert "(which is not a large ADI)".</para></quote>
<quote><para class="block">(25) Schedule 3, item 10, page 22 (line 30), after "Company E", insert "(which is not a large ADI)".</para></quote>
<quote><para class="block">(26) Schedule 3, item 13, page 23 (line 13), omit "Subsection65‑30(2)", substitute "Paragraph 65‑30(2)(a)".</para></quote>
<quote><para class="block">(27) Schedule 3, item 14, page 23 (line 15), omit "Subsection65‑35(3A)", substitute "Paragraph 65‑35(3A)(a)".</para></quote>
<quote><para class="block">(28) Schedule 3, item 16, page 24 (line 5), after "Company A", insert "(which is not a large ADI)".</para></quote>
<quote><para class="block">(29) Schedule 3, item 17, page 24 (line 30), after "Company E", insert "(which is not a large ADI)".</para></quote>
<quote><para class="block">(30) Schedule 3, item 20, page 25 (line 13), omit "Subsection65‑30(2)", substitute "Paragraph 65‑30(2)(a)".</para></quote>
<quote><para class="block">(31) Schedule 3, item 21, page 25 (line 15), omit "Subsection65‑35(3A)", substitute "Paragraph 65‑35(3A)(a)".</para></quote>
<quote><para class="block">(32) Schedule 3, item 23, page 26 (line 5), after "Company A", insert "(which is not a large ADI)".</para></quote>
<quote><para class="block">(33) Schedule 3, item 24, page 26 (line 30), after "Company E", insert "(which is not a large ADI)".</para></quote>
<quote><para class="block">(34) Schedule 3, item 27, page 27 (line 13), omit "Subsection65‑30(2)", substitute "Paragraph 65‑30(2)(a)".</para></quote>
<quote><para class="block">(35) Schedule 3, item 28, page 27 (line 15), omit "Subsection65‑35(3A)", substitute "Paragraph 65‑35(3A)(a)".</para></quote>
<quote><para class="block">(36) Schedule 4, page 28 (lines 3 and 4), omit the heading.</para></quote>
<para>We also oppose schedule 4 in the following terms:</para>
<quote><para class="block">(37) Schedule 4, items 1 and 2, page 28 (lines 5 to 14), to be opposed.</para></quote>
<para>In the interests of a compromise, the government is willing to move these amendments to exclude the large authorised deposit-taking institutions, the big four banks, from accessing the reduced company tax rate. The government has faithfully sought to implement our enterprise tax plan policy. We secured passage of the first stage of company tax cuts in March 2017. In May 2017, we then introduced this further bill to implement the remainder of the enterprise tax plan. We have continued to negotiate, respectfully, with the crossbench over many months.</para>
<para>The opposition, of course, have been running around the country claiming that the reason that they do not support this bill is that it provides a tax cut to the big banks. Well, the Labor Party now has the opportunity to support our amendments, to vote in favour of our amendments and to support opportunity for working families around Australia to get ahead. If you're genuinely concerned about a tax giveaway to the big banks, you now have the opportunity to vote in favour of these amendments to exclude the four big banks, to carve them out, and still protect jobs for working Australians around Australia by helping to ensure that our businesses around Australia can be internationally competitive. If you vote against these amendments, you will be exposed for the absolute hypocrisy of the political attack that you've been running for the last two years. If you genuinely care about working Australians, if you genuinely care about working families, you will help ensure that businesses around Australia who compete with businesses in other parts of the world have the opportunity to be viable, to be competitive and to be successful into the future. If it's all about the big banks, no doubt you will vote in favour of these amendments, and you will then vote in favour of the legislation as a whole.</para>
<para>So here is the proposition. These amendments will reduce the cost of corporate tax cuts for the period to 2027-28 by $7.9 billion. So this corporate tax reform package now costs $7.9 billion less. We've already indicated that we are prepared to pursue reforms to our petroleum resource rent tax arrangements, which would not have an impact over the forward estimates but which should have a positive revenue impact over the medium term and beyond.</para>
<para>Here we are. As a result of the vote by the Senate on the second reading, the Senate now has the opportunity to act in the best interest of working families around Australia for today and into the future. I urge the Senate to take that opportunity. I urge the Senate to support our amendments. If Labor votes against this amendment and this bill then it will be proof that Bill Shorten doesn't care about jobs, he doesn't care about investment into Australia, he doesn't care about economic growth and he's essentially just interested in the politics; he's just interested in doing everything he can to prevent the elected government of Australia from implementing our plan for more jobs and stronger growth.</para>
</continue>
</speech>
<speech>
  <talker>
    <time.stamp>12:35</time.stamp>
    <name role="metadata">Senator CAMERON</name>
    <name.id>AI6</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>What a pathetic performance that was from Senator Cormann, from a pathetic government that's on the rocks. It is a government that doesn't know what it's doing, a government that doesn't have an economic plan for this country, a government that would sacrifice working families, a government that would put big business before working families. This is not just about the banks; this is about an ideological obsession from this government: if you simply cut tax jobs will be created.</para>
<para>Contrary to what Minister Cormann has just indicated, wages are not growing in the United States. The Canadians have done this on a couple of occasions, and the companies that benefitted from the tax cuts produced fewer jobs than companies that did not benefit from tax cuts. This is an absolute joke. This is trickle-down economics in action. How disgraceful it is that we have One Nation again doing a deal to get us into a position where trickle-down economics is what this is all about. We have seen Senator Cormann stand up here and try, in my view, in vain, to defend trickle-down economics. He put up all these propositions. We don't know what this government is doing from one day to another. We certainly do not understand where this government is going. Whether it's on climate change or on economics, this government cannot be trusted. This is a government in absolute chaos. With this government you don't know who the leader will be from one day to another, because the battle is on within this government as to who is going to be the Prime Minister of this country. The sooner we go to an election and the sooner we get it resolved the better. We need to get to a position where working people can elect a government that truly cares about them and truly looks after them, and the sooner the better.</para>
<para>We've heard Senator Cormann say that this is about stopping an elected government doing what the elected government has promised to do. The elected government promised to hand over $80 billion to the big end of town. We saw their party room panic today, and we just saw Senator Cormann panic on the floor of the Senate when he tried to concede and give in on what they said was something they would not do: apply differential tax rates for different companies in this country. That's exactly what they've done.</para>
<interjection>
  <talker>
    <name role="metadata">Senator Ian Macdonald</name>
    <name.id>YW4</name.id>
  </talker>
  <para>That's what you've been advocating. You've been advocating for that.</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator CAMERON</name>
    <name.id>AI6</name.id>
  </talker>
  <para>I'll tell you what we're advocating, Senator Macdonald. We're advocating for fairness and decency in this country. We're advocating for a government that is a stable government. We're advocating for a government that can stand up and deliver for the working class of this country. That is something that you have never done and that the coalition has never done. Cast your mind back to when this government came in. They had their first budget in 2014-15, and their big economic argument then was that they would be increasing the GST. That's what they did. They said, 'We'll increase the GST.' Who suffers from that? It's working families.</para>
</continue>
<interjection>
  <talker>
    <name role="metadata">Senator Ian Macdonald</name>
    <name.id>YW4</name.id>
  </talker>
  <para>Who said that?</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator CAMERON</name>
    <name.id>AI6</name.id>
  </talker>
  <para>Who said it? Go back and have a look, Senator Macdonald. You had propositions going up to increase the GST. Then you had propositions going up to hand taxation back to the states. Both of those propositions did not last very long. They didn't last very long at all. Then, when those failed, what did it become? Trickle-down economics. That's what you've got at the moment. And before you got to them, you had an austerity budget in 2014 that Senator Cormann was right behind—celebrating cutting the pensions with the big, fat Havana cigar. Remember that? That's what we saw: austerity budgets cutting support mechanisms for the working poor in this country. That's what this mob were all about. They cannot be trusted on economic issues, they can't be trusted on the environment and they can't be trusted on power prices. This government are an absolute disgrace. They are a government that in absolute chaos. They are a government that have just not got it.</para>
<para>The sooner we get to an election where the public can once again make a determination on these issues, the better. Remember Senator Cormann during the by-elections recently? That was going to be a test of the government's tax cuts. Well, the people in Longman and the people in Braddon made their point: they did not support this. That test failed. And it was going to be a test of the Prime Minister's leadership. Well, the voters around the country in those five by-elections made a call on that as well and said that this Prime Minister should not be leading the country. So both the Prime Minister's test and Senator Cormann's test, which they set for themselves, failed.</para>
<para>The test this morning is in the party room of the coalition. Malcolm Turnbull nearly failed that test again, and it's only a matter of time before this Prime Minister hits the wall. So instead of going through all the contortions of who's going to be the leader and what changes you are going to make to your policies, take your policies to an election and let's give the public in this country, the citizens of this country, an opportunity to make a determination about this rabble of a government—this government that would cut social services, would cut health and would cut education.</para>
<para>This is a government that no-one trusts. We've got a leader who not even the coalition party room trusts. We've got a leader who is on his last legs, a Prime Minister who, in the first challenge, was almost knocked off. If the other part of this government—the National Party—had been in that party room this morning, we would have had a new Prime Minister this morning. That's exactly what would have happened, because there is huge division in this government. Why any crossbencher would give any succour to this declining, deteriorating, decaying government, I don't know. We need a proposition here that indicates that this government will go to the election and take these issues to the public. That's what we should be doing.</para>
<para>I will quickly ask Senator Cormann: Minister, can you confirm the cost, over the forward estimates and the medium term, of the tax cuts that we are debating today?</para>
</continue>
</speech>
<speech>
  <talker>
    <time.stamp>12:44</time.stamp>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>These numbers have, of course, all been provided in public, and I'll confirm again that the cost of the tax cuts that are in front of the Senate today, as published in the explanatory memorandum, is $35.6 billion in the period to 2027-28, and the fiscal impact of the amendments that I've circulated over the period to 2027-28 is an increase in revenue of $7.9 billion.</para>
<para>As I'm on my feet, let me just deal with some of the comments that have just been made by Senator Cameron. It is so important for our future economic security and prosperity as a nation that we truly get our head around this. When Senator Cameron talks about trickle-down economics, that is a socialist insult to the free market. I happen to have seen the impact that different economic policy models have had on the quality of life of individuals, their families and the communities they live in. I happen to have seen the impact of the socialist model, the income and wealth distribution model where we want to pursue equality of outcome instead of offering equality of opportunity. I've seen the impact of that. It makes people poor. It makes people poor as individuals. It makes people poor as families. It makes communities poor. It leaves them worse off, because it removes the incentive to be the best you can be. It removes the incentive for people who can succeed and lift everybody up to do the best they can.</para>
<para>The reason I'm a Liberal, the reason I'm a proud member of the Liberal Party and of the Turnbull government, and the reason I'm standing here proudly promoting the benefits for Australian families of a lower, globally more competitive business tax rate is that I believe that policies of promoting freedom, free enterprise, reward for effort and encouraging people to risk themselves and take risks deliver the best possible opportunity for a high quality of life for individuals, their families and the communities they live in—yes, with an appropriately generous social safety net. And do you know what? That's what Paul Keating and Bob Hawke used to believe. That's what Bill Shorten and Chris Bowen used to believe when they were in government. That's what Chris Bowen used to believe as recently as 22 September 2015.</para>
<para>There's only one reason the Labor Party have taken the position that they have. It is because, in the lead-up to the 2016 election, Bill Shorten made a political decision that this was going to offer him the best political prospect to differentiate himself from the Turnbull Liberal-National Party government and that he could run an antibusiness populist agenda which would win him votes and help him, ultimately, to secure his political aspiration of becoming Prime Minister. He doesn't believe that he's pursuing the right agenda for Australia. Let me tell you: if we end up with a government that is elected on an antibusiness agenda of the politics of envy, class warfare and equality of outcome, all Australians will end up poorer, because an antibusiness agenda, making it harder for businesses to be successful across Australia, means that we'll have fewer jobs. We'll end up with fewer jobs. And do you know what happens when we create fewer jobs in the economy? There are more people unemployed and, as more people are unemployed, the wages of workers around Australia go down because there's less competition for workers. Less demand and increased supply means lower wages.</para>
<para>If we want to ensure that families around Australia today and into the future have the best possible opportunity to get ahead, we need to ensure that there is incentive for businesses to invest in their future growth. We've got to ensure that business has an incentive to take risks, to pursue opportunities and to sell Australian products and services around the world and here domestically. If we make it harder for Australian businesses to sell Australian products and services overseas and here in Australia, if we make it easier for businesses overseas to take business and investment away from us, we will be sending jobs from Australia overseas, and our children and grandchildren will not thank us for that.</para>
<para>Again, this is something that the Australian Labor Party used to understand. The Australian Labor Party used to understand that, in order to ensure that workers around Australia could succeed, the businesses that employed them had to have the opportunity to succeed. But this has changed under Mr Shorten as opposition leader and Leader of the Labor Party—sadly, supported by the Australian Greens and by a number of others, though not the majority in the Senate so far. A majority in the Senate was clearly prepared to give the government's plan for a lower, globally more competitive business tax rate the benefit of the doubt and is prepared to have this debate in committee, and we thank the Senate for that.</para>
<para>If we allow ourselves to be dragged down into this rhetoric around trickle-down economics and anti-business class-warfare politics-of-envy rhetoric Australians will end up poorer for it. Low-income Australians will be worse off as a result. We need to vote in support of business creating more jobs and attracting more investment so that the increased competition for workers around Australia drives up wages. As I said in my summing-up speech in the second reading debate, the evidence is very clear that in the United States, as a result of the Trump administration's tax cuts, that is precisely what is happening. That is what we should offer to workers here in Australia. The government, by moving the amendments that I've moved, is removing and carving out the big four banks. Let's take them out, but let's make sure that all of those big employers across Australia competing with big businesses from other parts of the world have the best possible opportunity to successfully compete with them so they can continue to hire millions of Australians and can continue to buy products and services from small and medium-sized businesses here in Australia—instead of helping businesses overseas hire people overseas and buy more products and services from small and medium-sized businesses overseas.</para>
</speech>
<speech>
  <talker>
    <time.stamp>12:51</time.stamp>
    <name role="metadata">Senator HINCH</name>
    <name.id>2O4</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>First of all, I don't want to let Senator Cameron off the hook with his Scottish brogue about this rabble of a government, which is his normal speech. What we're forgetting here is that if, or when, a Labor government comes in, they will want to cut the benefits already fought for for small and medium-sized businesses that have a turnover of more than $2 million. We may get them through Senator Wong and we may get them up to $10 million, but we've already legislated, and the government has folded to us and given us a $50 million turnover limit. That was organised last year. Labor wanted $2 million; former senator Jacqui Lambie and I got it to $10 million; and Senator Hanson, through One Nation, and I got it to $50 million. That's where it sits now.</para>
<para>But that makes a joke of Senator Cormann's saying we don't want a two-tier system of taxation. You've got one now. You agreed to it last year. Anybody who has a turnover of $50.1 million doesn't get it. In the same way, I'm pleased to see you're now carving the banks out, because I proposed that on Sky back in March. I'm pleased that you agreed to it. I will vote for your amendment to carve out the banks—the robber banks—who should never have been in there in the first place. At the royal commission, daily, we see what they are doing. Daily, we see the way they've been stealing money from estates. Daily, as I said yesterday, we see they have been doing what Mick Young, the Labor hero, used to say: stealing pennies from dead men's eyes. We see the disgraceful behaviour of the banks, and not just the big four but AMP and other people as well. And we have seen also what their superannuation funds have done. They do not deserve a tax cut. I'm thrilled, Senator Cormann, that you realise finally that the banks deserve to be carved out of this.</para>
<para>But don't give me this rubbish about a two-tier system, because, as I said back in March—and I've got an amendment coming up here in committee shortly—I believe what you should be doing now is taking the threshold from $50 million to $500 million. At the same time, I'd vote for you if you put up an amendment that said, 'I want to advance the tax cuts for the smaller companies from 27½ per cent to 25 per cent,' and that moved the cuts forward by one or two years. I wouldn't mind. I'd vote for that as well, because I believe in company tax cuts. I believe they should be there, but out there in the real world—the voter world—they don't believe you. You proved it in Longman. You made Longman an unofficial plebiscite on company tax cuts. You also made it a popularity contest between Prime Minister Turnbull and Bill Shorten, and that didn't work very well, did it?</para>
<para>I would say to you, think again. Bring in an amendment that says $500 million. You have much vauntedly said, 'We'll take it to the election.' The Treasurer, Scott Morrison, has said, 'We'll take it to the election.' You said in this chamber last week, 'We'll take it to the federal election.' Well, take it to the election. I give you a pledge now that if you take it to the election in April or May—or if you change prime ministers and have one earlier, take it there as your major proposal—and the people of Australia vote you in on it I'll look at it again. In the meantime, the Justice Party has said since March, and we've stood firm despite all the things you've thrown up: 'We will go to $500 million for companies.' That will improve things for the business—and the workers, as you put it—of about 4,000 more companies. You're the one, Senator Cormann, along with Scott Morrison, who said to me that 'compromise' is the buzzword in Canberra and that 70 per cent of something is better than 100 per cent of nothing. Well, a $500 million company limit, giving 4,000 more companies tax cuts, is more than 70 per cent of something, and you should think it through again.</para>
</speech>
<speech>
  <talker>
    <time.stamp>12:55</time.stamp>
    <name role="metadata">Senator WHISH-WILSON</name>
    <name.id>195565</name.id>
    <electorate>Tasmania</electorate>
  </talker>
  <para>I have a couple of questions, Minister. Firstly, you mentioned, in response to Senator Cameron, what this is going to cost. I'll be a little bit more specific with my question: what is excluding the banks or ADIs over $500 billion going to cost your revenue projections? You said that was all in the explanatory memorandum, but I can't find any dollar figures in the explanatory memorandum at all. And could you explain to the Senate why you've chosen $500 billion as your cut-off point for a large ADI, when, for the purposes of legislation around the bank levy, a large ADI was $100 billion? Why the difference in this legislation versus what we saw in the bank levy?</para>
</speech>
<speech>
  <talker>
    <time.stamp>12:56</time.stamp>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>I did actually explain before that, over the medium term to 2027-28, the revenue impact of removing the four big banks is increased revenue of $7.9 billion. Over the forward estimates, there is no impact, and the reason for that is that, under the Ten Year Enterprise Tax Plan, the banks of that size don't actually become eligible for the lower corporate tax rate in that period. You've also got to remember that, while the banks are carved out from the enterprise tax plan altogether, they are still subject to the major bank levy, which is raising more than $2 billion a year from those banks.</para>
<para>In relation to why we have chosen the $500 billion threshold, that is based on advice that that was the appropriate threshold to put in. You've got to remember that the banks below that threshold are involved in putting competitive pressure on the major banks in a domestic context, and a number of them are also involved internationally. The four major banks are the ones that, essentially, have their activities concentrated domestically in Australia and, as such, arguably are less exposed to global competition.</para>
</speech>
<speech>
  <talker>
    <time.stamp>12:57</time.stamp>
    <name role="metadata">Senator IAN MACDONALD</name>
    <name.id>YW4</name.id>
    <electorate>Queensland</electorate>
  </talker>
  <para>I have a couple of questions I'd like to ask the minister, but before that can I just say that I was stuck in the chamber yesterday afternoon and I listened to Senator Hinch when he was talking about the amendment he was proposing. I thought he made some sense, and I'm pleased that his call in relation to the banks has been heeded by the government. I address the same comments to Senator Hanson. I know that Senator Hanson, a fellow senator from my home state of Queensland, has long campaigned, loudly and strongly, against giving the banks anything, for reasons which Senator Hanson and I well understand, coming from Queensland and seeing some of the things the banks have done to the citizens of our state, our constituents, in the past. I can well understand Senator Hanson's call.</para>
<para>Longman has been mentioned in this debate. I stood at the same polling booth in Longman with Senator Hanson's Queensland leader and with a team of Labor workers. At one stage, I seem to recall, both Senator Ketter and Senator Watt turned up to Caboolture East. I have to say it was mainly when their leader came around and the television cameras were around, but, notwithstanding that, they were there. And if I heard it once, I heard it a thousand times that day: the Labor Party—and, I might say, Senator Hanson's party—saying to voters, 'Don't give money to the big banks.' That was their main rhetoric as people walked into the polling booths: 'Here's a how-to-vote card, and don't let the government give money to the big banks.'</para>
<para>I've acknowledged Senator Hinch and Senator Hanson for their campaigns. I should perhaps, in fairness, acknowledge the Labor Party for that campaign too. But here we are today accepting what has been put to us by other parties, and quite frankly by many people within Australia, and yet the Labor Party are still choosing not to support it. I will interpret that—and I will interpret that very loudly back in my home state of Queensland—to mean the Labor Party are not in favour of not helping the banks. If you put that in another form, the Labor Party now seem to be helping the banks that they were so critical of. They weren't talking about other things at the Longman by-election; they were talking about, 'Don't let the government give the money to the big wealthy banks who've been such horrible people.' Here we are. We've listened to that. We're a government that acts in the best interests of people, and a government that listens. We're a government that actually is prepared to change policy where we're convinced that the Australian people are not with us. So here we are doing this and yet we still have opposition from the Labor Party. Forget about the Greens, because we know they'll always vote against the coalition regardless of what.</para>
<para>I would appeal to my Queensland colleague Senator Hanson, and her team, to seriously consider the new regime. I say to them: 'Well done; you've succeeded. I now urge your support for this package, with the banks excluded.' Senator Cameron rabbits on with his rhetoric in his 'broad Scottish brogue', as Senator Hinch said, about looking after the workers. But as I always say in this chamber—I think it's one statement I say that I get universal agreement on—I'm not very bright, but I can work out that companies need to have alternatives, options, on where to invest their money. If they can invest in country A and make a profit of 100, but they only pay 15 per cent tax on that profit, and if they can invest in country B—the same investment, the same return of 100—but they have to pay 25 or 30 per cent tax, then you don't have to be very bright to work out where they will make their investment. And, of course, if you don't have companies making investments in Australia, you don't grow industry and you don't employ people.</para>
<para>The Labor Party are all talking about how they're interested in the welfare of workers. We know they're not. In fact, I came across an article just recently about Senator Wong's favourite union. They're not my favourite union, I have to say, but Senator Wong's a member of CFMMEU. I see that even the CFMMEU has warned the Queensland government that its ambitious 50 per cent renewable energy target is 'not realistic' and that Labor should instead back new 'clean coal' power stations. This article, by Jared Owens, says:</para>
<quote><para class="block">The influential union, which represents workers at coalmines and generators, wrote to the—</para></quote>
<para>Queensland—</para>
<quote><para class="block">government in May cautioning it against rushing to "unreliable and expensive" green energy.</para></quote>
<para>The CFMEU, as I say, not a union I usually quote, go on to say:</para>
<quote><para class="block">The 50 per cent renewable target is not realistic. Whilst you can build solar and wind generation to achieve the target on paper, what do we expect is going to happen at night?</para></quote>
<para>They say to read the advice of Treasury, released under the right to information laws. The quote from that is:</para>
<quote><para class="block">During the summer months it is still very warm into the evening … you will have high demand, no solar and potentially little wind generation.</para></quote>
<para>I do remember the CFMEU. I remember them very fondly from when, as forestry minister back in 2004, I worked with Michael O'Connor, who was then the head of the forestry section of the CFMEU and who's now the boss of the bigger union. I remember how in those days, back in 2004, we worked together because we were interested in the jobs of workers in the forestry industry. And I have to say that, working in very close concert with the forestry section of the CFMEU at the time, we did achieve that. For a while, we saved the jobs of forestry workers. The CFMEU and Michael O'Connor were very courageous in standing up to the Labor Party in those days, because they knew what was best for their workers and for workers across Australia at the time.</para>
<para>Now, as I say, it's a bit of deja vu that I'm onside with the CFMEU in relation to renewable energy and clean coal. I agree with the CFMEU because I have an interest in the coal workers of North Queensland. The mines are not far from where I live. I know the wealth that's there. I know the jobs that are created there, and so do the CFMEU. I'm delighted to see that they are showing the same courage they had in the 2004 forestry debates by now getting stuck into the Labor Party for their stupidity on renewable energy.</para>
<para>I only mention that in this debate because, again, Senator Cameron talked about looking after the workers and looking after the poor people. I don't believe him, and neither does the CFMEU, I have to say, in the two instances I met. But, if Senator Cameron and the Labor Party are correct about not favouring the big banks, as they were talking about at the Longman by-election—I heard them all day; all day they were talking about not giving money to the big banks—if it's a win for them, well, so be it. But here we have a piece of legislation which excludes the big banks.</para>
<para>As I say, I was impressed with Senator Hinch's speech yesterday, and he's more or less repeated that just now. I concede that I'm not always one of those who take much notice of Senator Hinch, and some of the things he talks about we're directly opposed to. But I thought his contribution on this was very important.</para>
<para>As to what the limit is, that's something that Senator Cormann's answered. I will seek from Senator Cormann some additional explanation of that because I'm trying to understand what Senator Hinch is proposing. Dare I repeat, Senator Hinch, that you've had a success on the banks, but I would hope that, regardless of where the government goes on the other issue, you will at least support us in this amended legislation so that we can get it through. I think you accept, Senator Hinch—I think most of the crossbenchers do accept—that you don't relate to the Labor Party's rhetoric about looking after the poor people.</para>
<para>You understand, as I do—and, as I say, you don't have to be very bright to understand this—that, when companies have money to invest, they're going to invest in a place where they can keep the majority of their profits, and that is in a low-tax country. If we don't get that sort of investment in our country, we're not going to have the growth of industry. We're not going to have the jobs that we need in many of these industries, which these mainly foreign companies invest in. It's so simple. So I'm just begging Senator Hinch and Senator Hanson and her colleague to think in the broader picture. We do need that investment. I think they all accept that. But then we get tied down on where the cut-off should be. I'm going to ask Senator Cormann to again explain to me what exactly Senator Hinch is proposing and why the government isn't looking at it. Until I hear that, heaven knows where I will end up. It might even be that the government should look at it, but I don't fully understand it at this time.</para>
<para>I conclude by again appealing to my Queensland colleague Senator Hanson and her colleagues in One Nation to look at the bigger picture of investment in Australia and, for us, investment in Queensland. Senator Hanson, you and your colleague and Senator Hinch have had a success on the banks' carve-out. The government's gone along with that. I appeal to you because I'm interested in jobs for Queenslanders. I'm even interested, Senator Hinch, in jobs for Victorians. They're going to have a better chance of getting a job if there is investment coming into this country, and there won't be investment if companies can make more money by investing in a country with a lower tax regime. So, Minister, will you again explain, for my simple mind, what the government is proposing on the cut-off, what Senator Hinch is proposing on the cut-off and why one is better than the other?</para>
</speech>
<speech>
  <talker>
    <time.stamp>13:11</time.stamp>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>I thank Senator Macdonald for that question. It's a very good question. When we legislated the first three years of our business tax cuts in March 2017 to a threshold of $50 million—which is the threshold that came into effect in the 2018-19 financial year, and that takes us now, in terms of our Ten Year Enterprise Tax Plan, to 30 June 2019—it was always on the basis that we would seek to legislate the entire enterprise tax plan. Being able to make the case for lower, globally more competitive business tax rates for businesses with more than $50 million in turnover is hard enough. If we now lock in a $500 million cap we will never, ever revisit that. It'll be absolutely impossible to go to the Australian people and say, 'We want you to now support a lower, globally more competitive business tax rate just for businesses with a turnover of more than $500 million.' The practical effect of that is that we would be locking in, in a structural sense, on an ongoing basis, a five per cent higher tax rate on profits for businesses with a turnover of more than $500 million. So, as soon as you are a business that goes from $500 million to $500 million plus $1, you would end up getting hit with a five per cent tax increase on 100 per cent of your profits—from your first dollar in profit to, essentially, 100 per cent of your profits.</para>
<para>What that means is that we would be providing a perverse incentive to businesses around Australia who've been somewhat successful to downsize. Any business that is able to generate $500 million worth of turnover has been somewhat successful. They've proven that they've got the entrepreneurial flair, the ideas, the products, the services, the know-how, the workers, the team and the capacity to generate economic activity, generate jobs and pay wages. But, if we say to that business, 'If you have one additional dollar of turnover, we will hit you with a five per cent increase in tax on 100 per cent of your profits,' that is a massive disincentive to further growth. As Mr Shorten used to assertively argue, it provides a perverse incentive to downsize.</para>
<para>The reason we're so committed to lowering the corporate tax rate for all businesses, irrespective of their turnover—carving out the four big banks, but for all other businesses—is that we want to show that, down the track, they will have the benefit of a lower, globally more competitive business tax rate. They're making investment decisions now based on their expectations of future after-tax profitability. If you talk to fund managers around the world, they will tell you that what they consider when making investment decisions is the expected after-tax return on that investment.</para>
<para>Do you know what the biggest source of foreign direct investment into Australia is? The biggest source of foreign direct investment into Australia is the United States. And do you know what has happened in the United States? Their corporate tax rate, earlier this year, went from 35 per cent to 21 per cent. We compete with businesses in the United States for investment into Australia, and in the US, their home market, the corporate tax rate went from 35 per cent to 21 per cent. So how can we here in Australia—with a comparatively small population, a large continent, lots of opportunity, capital intensive industries and significant reliance on foreign capital in order to continue to generate stronger growth and create more opportunities for workers around Australia—say that we're going to tie the arms of our businesses behind their backs and we're going to put rocks into their backpacks to make it harder for them to compete with businesses overseas?</para>
<para>The impact of putting a cap in place that would likely never be able to be shifted would be that we would provide an incentive to bigger businesses to become smaller businesses, when what we should be wanting to do is provide an incentive to smaller businesses across Australia to become bigger businesses. If we say to a smaller business or one approaching the $500 million cap that if they are even that little bit more successful we're going to hit them with a five per cent additional corporate tax rate, the enthusiasm to pursue further growth opportunities will be hampered. And we shouldn't hamper that, because, in the end, who gets hurt when a business is less successful? The people who miss out on getting a job in that business.</para>
<para>The people in the US won't mind if we make it harder for businesses here to compete with businesses over there. We have to remember that the US has a big population and a big domestic capital market, comparatively speaking. The reason they were able to have a 35 per cent corporate tax rate for so long is that, the need for them to have a competitive business tax rate—compared to Australia; in a comparative sense—was actually less urgent. It is much more urgent for a country like Australia—an open trading economy, a globally focused but also globally exposed economy—to have a globally competitive business tax rate so that we can continue to attract capital investment into Australia from other parts of the word and continue to build our businesses here in Australia. People say, 'Big businesses is unpopular.' But, hang on: if big businesses employ more people, where do those people go to shop, to have their coffees, to go to restaurants? The flow-on effect goes throughout the economy.</para>
<para>I see Senator Brockman, from the great state of Western Australia, is here. We are a trading economy in many ways. We are part of a trading nation. We have got some big companies. FMG didn't exist in 2003; today it's a big company. BHP is a big company in Western Australia. They are exposed to changes in commodity prices which we don't influence. We don't have any control over them. We are price takers. When the iron ore price, which is 20 per cent of national export income and a significant proportion of the economic activity in Western Australia, goes from $180 a tonne down to $45 a tonne, forcing iron ore businesses and other businesses to seriously cut their costs in order to remain viable and competitive, what happens in the rest of the economy? It means less opportunity for small and medium-sized business. It means lower job security. It has an impact all the way through the economy. But that is something that is outside our control. Our tax rate is directly under our control. If we keep taxes in Australia high, it is a deliberate decision to make it harder for our businesses in Australia to compete with businesses in other parts of the word. It's a deliberate decision to make it harder for workers in Australia to get a job and pursue a career here in Australia, compared to workers in other parts of the world.</para>
<para>I see Senator Macdonald. Qantas was set up by three people in Longreach in Queensland. It was a small business that started with a mail run. Today they employ 30,000 people, and 3,000 small and medium-sized businesses supply goods and services to them. They operate in a fiercely competitive international industry. If Qantas has less opportunity to be viable, to be competitive, to be profitable and to be successful into the future, it has a direct impact on the job security of people working at Qantas. It has a direct impact on the job security of the many Australians working in small and medium-sized businesses supplying goods and services to Qantas. It has a direct impact on the job security of the many Australians working in cafes, restaurants and shopping centres around Australia, serving the people who work for Qantas and all of their suppliers. In Townsville, I believe there is a business that has secured the contract to paint the Qantas planes. Senator Macdonald is nodding. These are the sorts of things that a successful business can do.</para>
<para>If we here in Australia, as policymakers, make a deliberate decision to make it harder for our global champions—the businesses that have grown from employing three people to employing 30,000 people—and to put them at a competitive disadvantage in the global economy, it will hurt families around Australia, hurt our economy and cost jobs. If we genuinely want the best possible opportunity for Australians today and Australians in the future to get ahead, to get a job, to be able to build a career and to get wage increases, we've got to ensure that our policy settings facilitate business success, because nine out of 10 working Australians work for private sector businesses, and their future job opportunities, job security, career prospects and wage increases depend on the future viability, competitiveness, profitability and success of the businesses that employ them.</para>
<para>That is why I'm urging the Senate to get behind this very important reform. In an absolute sign of good faith and a demonstration of how important we believe this is, we have put forward these amendments to carve out the four big banks, because clearly, in the political debate, that was an issue that was making it harder for people to support otherwise good policy and otherwise important reform. So, given this concession by the government, we really would urge the Senate to reflect on the national interest here and to reflect on all of the things that Mr Shorten, Mr Bowen and Senator Wong have said in the past about how important it is for Australia to have a globally competitive business tax rate.</para>
<para>Senator Hinch is right. He was on the record for a long time. The reason I always heard him say that he wanted to put in the $500 million cap was that he wanted to exclude the big banks. Well, we want to exclude the big banks, but without hurting those businesses employing millions of Australians that are exposed to global competition. That is what we're putting to the Senate. Work with us. We have taken a step towards you—a significant step. Let us come together in the national interest. Let us come together in the interests of working families around Australia whose future job opportunities, job security and wage increases depend on the future success and profitability of businesses around Australia which employ them.</para>
</speech>
<speech>
  <talker>
    <time.stamp>13:22</time.stamp>
    <name role="metadata">Senator PATRICK</name>
    <name.id>144292</name.id>
    <electorate>South Australia</electorate>
  </talker>
  <para>Centre Alliance will not be supporting these late-landing amendments. These amendments do carve out the banks. Of course, we understand the politics of that. The royal commissioner has found the conduct of not only banks but also other financial institutions to be poor, if not abhorrent. But the best way to deal with that conduct is directly, not indirectly by saying, 'We're going to carve you out of something else.' You need to take that on directly, and that means you need to have much tougher laws and regulations around the banks. You need to have very strong whistleblower laws so that every executive inside a bank understands that someone inside their organisation will call out misconduct and that, when they do so, they will be protected and those protections will be strong. It also includes having good enforcement. That's how you deal with misconduct in the banks: solid, strong enforcement. That includes criminal proceedings against executives that have breached criminal law. It also means stronger regulators—so making sure that ASIC, APRA and the ATO do their jobs properly. That's the way in which you tackle misconduct inside the banks. So that's the reason we won't support this. It's not good policy. You need to take on the banks directly in respect of their conduct.</para>
</speech>
<speech>
  <talker>
    <time.stamp>13:24</time.stamp>
    <name role="metadata">Senator WATT</name>
    <name.id>245759</name.id>
    <electorate>Queensland</electorate>
  </talker>
  <para>I want to take a couple of moments to bring to the chamber's attention the reason we are now in the in committee stage and why the position Senator Hanson takes at the third reading stage, when we get to it, will be crucial to the outcome of this bill. I know today is a bit of a crazy day in Canberra. There's lots happening. I think as I speak we see Mr Dutton, the next Liberal Party leader, having a press conference to explain his actions. There is all of that craziness within the government. There has also been a bit of confusion about what's happening here on the vote regarding the company tax cuts.</para>
<para>What happened a little while ago was the vote on the second reading. It was lost, from the Labor Party's perspective, 35 to 34, so 35 people voted in favour of the second reading of the bill and 34 voted against it. What was very notable in that vote was the absence of one particular senator—Senator Hanson. My understanding is that she was not paired for that vote. It wasn't as if there were a prearranged situation where she wouldn't vote and someone else would refrain from voting as well. Senator Georgiou did come in here and vote with the opposition against the company tax cuts, but Senator Hanson was missing. As a result of that, the government succeeded in passing this bill at the second reading stage.</para>
<para>The vote was 35 to 34. If Senator Hanson had been here and had voted with Senator Georgiou, as they had indicated publicly they would do to kill off these company tax cuts, then the vote would have been tied at 35 all, which would have meant it would have been lost and we wouldn't be having this debate now. Senator Hanson's failure to vote or her abstention has meant that the government got the legislation through at the second reading stage by one vote, and that's why we're continuing to debate it now.</para>
<para>No-one seems very clear about what Senator Hanson's actions were based on—whether it was deliberate on her part to miss that vote or whether she had some legitimate reason why she was not here to cast her vote. Whether it was accidental or deliberate, her absence from that vote allowed the government to succeed in passing this bill at the second reading stage and has given new life to the possibility of these company tax cuts going through.</para>
<para>Government senators: Hear, hear!</para>
<continue>
  <talker>
    <name role="metadata">Senator WATT</name>
    <name.id>245759</name.id>
  </talker>
  <para>As I said that, government backbenchers were cheering Senator Hanson on. Their hopes in passing this bill and getting these company tax cuts through rest on Senator Hanson's actions from here on in. If we are to take Senator Hanson at her word and believe her when she says that it was an accidental abstention and that she actually does intend to vote against these company tax cuts, as she has been indicating over the last 24 hours, fortunately for her there is an opportunity for her to come in here and make amends. When we get to the third reading stage of this bill she will have the opportunity to cast her vote and to follow through on her claims to oppose these company tax cuts by voting with the opposition to kill off this bill.</para>
<para>The acid test is really on Senator Hanson. Whether she actually supports these company tax cuts, whether she's going to vote against them with the opposition or whether she will simply abstain from that vote again and help the government out, Senator Hanson needs to be under no illusions what the consequences of her decision will be. If she does assist the government in passing these company tax cuts, then I think she knows very well what is coming her way. She needs to have a very close look at the results in the Longman by-election to understand what battlers in outer suburban areas and regional Queensland think about these company tax cuts. Let's hope she is telling the truth in having accidentally missed that vote and let's hope that she does make amends and, to make sure that these company tax cuts do not pass, votes with the opposition when we get to the third reading stage.</para>
</continue>
</speech>
<speech>
  <talker>
    <time.stamp>13:29</time.stamp>
    <name role="metadata">Senator PATERSON</name>
    <name.id>144138</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>I'm very pleased to have an opportunity to contribute to the debate on this very important legislation in the committee stage—the government's enterprise tax plan. I'm very pleased that the government has already been able to secure the first stage of this plan. I'm very pleased about the early results of the success of the first stage of the government's plan. In a moment, Minister, I'll be asking you about some of those results, but I want to take the opportunity, since we are in the committee stage, to revisit some of the issues that we've considered in this debate.</para>
<para>As the minister said in an answer to a previous question, Australia is in a global economy. Although we are an island geographically we are not isolated from the rest of the world. The rate of company tax that we charge our companies here in Australia does have bearing on how much investment we have here in Australia. We can pretend if we like that that's not the case. We can dig our heads in the sand and think that it doesn't matter that the rest of the world is moving on the company tax rate and that company tax rates around the world are falling. But, ultimately, we will see the results of that. Ultimately, we will pay the price of that.</para>
<para>It's not just the United States, as Senator Cormann mentioned, that has dramatically lowered their company tax rates but other major trading partners in similarly arranged economies like the United Kingdom have drastically cut their corporate tax rate. In our region, we are now dangerously uncompetitive with our corporate tax rate. Even in the OECD—not exactly renowned for being a club of low-taxing countries—on the corporate tax rate average, we are getting dangerously out of step and we will soon be one of the highest company taxing countries within the OECD.</para>
<para>Investors don't invest in Australia just because we have great weather, because we have nice beaches and because we have cute animals; they invest in Australia because they can get a good return on investment in Australia. The relative return on investment that they need to justify an investment in Australia is going to be higher for every percentage point higher our company tax rate is. A like-for-like return on investment between New Zealand and Australia, with a lower corporate tax rate in New Zealand, means that dollar of investment is going to go to New Zealand instead of Australia.</para>
<para>The multinational corporations who operate in this country have to justify to their parent companies internationally why they are deserving of investment here in Australia. Why the best return on investment for them will be here domestically. Their task in doing so, their task in convincing head office that Australia is a great place to invest, only becomes harder when our company tax rate becomes dangerously out of step.</para>
<para>Minister, I want to return though to the question that I flagged earlier in my contribution. Of course, the government has already legislated part of the enterprise tax plan for small businesses. I'm interested to know from you what the result of that legislation has been in many aspects, but in particular what the result of that has been in terms of receipts from company taxes for the federal government. The reason why I ask that question, Minister, and why I flag that question to you, is that often it is the case—and I'd be interested to know the data from Australia—that when rates of tax are cut internationally, whether that be company tax or personal income tax, revenue from companies doesn't decrease, as you might intuitively expect it to, but it increases for a range of reasons. Companies are encouraged to invest more, they are encouraged to employ more and they are encouraged to deploy more capital. Their economic activity increases and so their profits increase. And sometimes they even choose to bank more of their profits, if it's an option for them, within a jurisdiction that now has a lower rate of tax. Minister, I'm interested whether you could enlighten the Senate on what the results on company tax revenues have been from the first stage of the company tax cut plan.</para>
</speech>
<speech>
  <talker>
    <time.stamp>13:33</time.stamp>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>I thank Senator Paterson for that question. As I said in my summing up speech, in the period since we legislated the first three years of company tax cuts for businesses with a turnover of up to $50 million, economic growth is up, employment growth is up and just under $10 billion in higher company tax receipts have been collected compared to our expectations in the 2017-18 budget. If you look at the 2017-18 budget and you compare that with the actual performance as reported in the monthly financial statements, what you will be able to see is that company tax receipts are actually going up, which is very good news in terms of our objective to put funding for important social services, for health, for education and for national security on a fiscally sustainable foundation trajectory for the future.</para>
<para>In the end, a strong economy is central to everything. It is central to making sure that Australians today and into the future—Australian families today and into the future—have the best possible opportunity to get ahead, to reach their full potential, to have a great quality of life. It is also central to making sure that the government can generate the necessary revenue moving forward. The experience on the back of our plan for stronger growth and more jobs is that, as more jobs have been created, not only have more company tax receipts been collected but also we've had significant increases in personal income tax receipts compared with what was expected.</para>
<para>The good news doesn't end there. We've had significant reductions in expenditure on welfare payments because more people are in jobs than was expected. So we've got more revenue—more revenue from company tax, more revenue from personal income tax—and we've got less expenditure on welfare, because more people are in employment than had been anticipated. I would have thought that would be something everyone in the Senate would and should welcome. In fact, the proportion of working-age Australians on welfare today is at its lowest level in 25 years. That is one of the proud achievements of the Turnbull government. That is why we say that our plan for a stronger economy, our plan for more jobs, our plan to help families around Australia to have the best possible opportunity to get ahead, is the best recipe against poverty.</para>
<para>But, if we make it harder for business to be successful, low-income earners will be hurt the most, because it is low-income earners around Australia who are the most exposed to the negative impact of lower growth, who are the most exposed to the negative impact of lower business growth, because invariably it is at the lower income end that people are trying to break into the jobs market. It is often at the lower-income end that people are most exposed to the variability in hours worked. Stronger growth means a better opportunity for more working hours, a better opportunity for permanent employment instead of casual employment.</para>
<para>These are all things that come from helping to ensure that businesses around Australia have the best possible opportunity to be successful. I say again what I said in my summing-up speech: if we make decisions that make it harder for business to be successful, they will be less successful. And as businesses are less successful they will hire fewer people than they otherwise would have and will invest less in their future growth. As businesses around Australia hire fewer people than they otherwise would have, employment growth will be less, the unemployment rate will be higher, the demand for workers will be less, the supply of workers will be higher, the wages that can be secured by workers will be lower and the revenue for government will be less.</para>
<para>So, it is lose, lose, lose, lose, whereas what we have demonstrated—certainly the data is obvious in our monthly financial statements, and later in September the Treasurer and I will be releasing the final budget outcome for 2017-18. People will be able to see how the Australian economy and Australian businesses have performed in 2017-18 compared with what was estimated in May 2017. And people will be able to see, based on the data that I've already released, that company tax receipts, even in just the one calendar year, are substantially higher than what had been anticipated, to the tune of nearly $10 billion.</para>
<para>To put that into context, the cost of the remaining unlegislated business tax cuts, per the explanatory memorandum that was tabled with the legislation, is $35.6 billion to 2027-28. So, just in 2017-18 we have raised $10 billion more than had been anticipated. The cost for the remaining unlegislated tax cuts to 2027-28 is $35.6 billion. We've put an amendment on the table in relation to the four major banks which, I'm advised, would reduce the cost of corporate cuts to 2027-28 by $7.9 billion. We've already flagged that we are considering reforms to the petroleum resource rent tax arrangements, which would not have an impact over the short term, over the forward estimates, but which also would have a revenue impact over the medium term, further reducing costs.</para>
<para>If you look at the cost of the opportunity to make businesses around Australia internationally competitive, it is actually very low when you put it next to the opportunity to create more jobs, create more personal income tax revenue for government and create more company tax revenue for government on the back of stronger growth, rather than on the back of higher taxes. As certainly as night follows day, the Labor Party agenda—the Labor Party antibusiness, politics of envy, higher taxes agenda—would lead to less investment, lower growth, fewer jobs, higher unemployment and, on the back of higher unemployment, lower wages; whereas our agenda, which is all about encouraging business to invest more by making sure that businesses have the best possible opportunity to sell Australian products and services around the world and in Australia, is all about attracting more investment to deliver stronger growth and more jobs. As more jobs are created and the unemployment rate continues to come down, the increased competition for workers drives up wages. As more people are employed and as wages go up, personal income tax revenue goes up, as does company tax revenue, on the back of more profitable businesses. That is the win-win-win that we believe Australian families deserve and that is the win-win-win that we are asking the Senate to support.</para>
</speech>
<speech>
  <talker>
    <time.stamp>13:41</time.stamp>
    <name role="metadata">Senator STORER</name>
    <name.id>275424</name.id>
    <electorate>South Australia</electorate>
  </talker>
  <para>This amendment appears to emerge from the public concern surrounding the behaviour of the big banks, uncovered by the royal commission. There is no doubt that many of the practices that have been exposed have been appalling and that many ordinary people have suffered greatly. Many of the senators have spoken about this today and at other times in this place. But I have made it clear that I regard a consideration of the company tax cuts to be distinct and separate from the behaviour of the big banks, and I said as much to the government, and publicly, when I opposed the consideration, in March, of the initial legislation. I have considered the case for and against the company tax cuts thoroughly, on their merits and on the basis of evidence, but I do not believe that the government bringing forward legislation today to exclude the big banks is the appropriate way to prosecute their case, which they have been doing consistently for the past months in which I've been here as a senator.</para>
<para>I spoke yesterday regarding the bill as presented previously, and my focus was on that and on the future of the economy and the future of our families. I am, as a South Australian, a passionate advocate of South Australian businesses—and I note that Senator Cormann referenced a South Australian business today. I do note that business is the backbone of the economy and I will do all that I can to encourage business growth and prosperity. But my review of the evidence to date about the tax cuts legislated already is that they have not delivered the changes in employment and wages, as indicated by the modelling provided to me by Treasury and other sources, upon which this legislation was based. I have consistently noted that I found the legislation too narrowly based and the benefits too small to outweigh the costs. Whilst they've now been reduced from $35.6 billion to perhaps $7.9 billion less, they are still very considerable in terms of the future need for funds to tackle the budget deficit and growing government debt and also the services that Australian people wish to have. I reference the intergenerational reports, which indicate a further and growing need, particularly in aged care and retirement as the populace grows older. So I see the tax cut itself, even with the big banks removed, as not true tax reform. I don't believe that it's in line with the clear principles outlined within the Henry tax and transfer review. There were at least seven principles, of which a company tax cut was one, and Senator Cormann has noted that with me previously. But it was one of seven principal feature reforms that were all to be brought about together.</para>
<para>So I will not be supporting these amendments. I believe that the conduct of the banks should be referenced in another forum—be it the royal commission findings or APRA and other entities set up to do so—and that putting forward a piece of legislation just to remove the big banks in order to gain support is not an appropriate way to move forward. So I remain opposed to the extension of the tax cuts as legislated, even with the removal of the big banks or, under Senator Hinch's proposal, a threshold of $500 million in turnover. The evidence I've seen on the changes from 2015 is that they have not delivered what was indicated, and we have significant gross government debt and future requirements for services that need to be funded.</para>
<para>There are arguments that many foreign investors are looking at Australia in terms of many, many aspects alongside, but outside of, the company tax rate headline figure, which is often quoted by government senators and other advocates of this. It's a misleading argument because, to date, we have gained significant foreign investment into Australia against other economies, even in our region, that have much lower headline company tax rates. Investors come to Australia for a variety of reasons. So to indicate that there's going to be a massive problem with investors choosing not to invest in our country, given our headline tax rate compared to the headline company tax rates of other countries, is slightly misleading.</para>
<para>In summary, I have considered the case for and against these company tax cuts thoughtfully, on their merits and on the basis of evidence, and I remain opposed to any extension of the tax cuts as legislated, even with the changes made today.</para>
</speech>
<speech>
  <talker>
    <time.stamp>13:47</time.stamp>
    <name role="metadata">Senator IAN MACDONALD</name>
    <name.id>YW4</name.id>
    <electorate>Queensland</electorate>
  </talker>
  <para>I am interested in this debate, and I am listening to contributions made by other senators. In relation to the last contribution, as I keep saying, I'm not terribly clever, but you don't have to be clever to work out what companies will do with their investment strategies. If they can get a cheaper tax rate in a similar country to Australia, they're looking at their profits, and so they'll make their investment in a country that gives them and their shareholders the greatest return. That's relatively easy to understand. We are a country that does need investment, particularly foreign investment, but the foreign investors have plenty of options. As Senator Cormann mentioned in answer to a previous question of mine, most of the foreign investment that comes into Australia is from the United States. They are reducing their taxes to a much lower rate, and I'm sure it makes investors in the United States wonder why they should be investing in Australia when they can invest in their own country and return a lot more of their profits to their shareholders.</para>
<para>Senator Cormann, in answer to a previous question from me, spoke about Qantas and spoke about it being a Queensland company that started off with three people and now employs tens of thousands right around the world and supports lots of small businesses. That sort of brought it home to me. We tend to talk in the abstract in this place and throw around billions of dollars and use Treasury terminology. It's always very easy to get out of the realm of reality, and this building is very good at doing that.</para>
<para>Again I come back to Senator Hinch's amendment of companies over $500 million turnover being excluded. I've asked the minister's advisers to give me some information, which they have. But I find it difficult to accept that this is what Senator Hinch's amendment would do, because the companies that would not receive the reduced tax, which means they'd be paying more, are companies like Mackay Sugar. The company, self-grown in the Mackay area of my state, just down the road from where I live, owns quite a few sugar mills. It crushes the cane of thousands of farmers in the Mackay region and it employs thousands of workers in its mills. But, under Senator Hinch's amendment, Mackay Sugar would pay more tax than other companies.</para>
<para>The same applies to Sun Metals, a Korean company set up in Townsville to refine zinc. That is a company which made an investment in Australia some years ago, when energy was cheap, I have to say—when electricity was cheap. That's one of the reasons they came to Australia, and I suspect they often regret it nowadays, with the cost of electricity, particularly in North Queensland. But that's a company that can make investments anywhere in the world. Are they going to put more investment into Townsville when they know that a bigger share of any profit they make is going to be taken from them and their shareholders than if they invested their money somewhere else? They have refineries in other parts of the world, so why would they invest in Australia and create more jobs for Australians if they're going to be penalised by paying more tax?</para>
<para>I note in this list of companies—I can't believe it's true, but I'm sure it is if it was given to me by the minister's advisers—is Mantra Group, which owns a lot of hotels around Australia and employs thousands and thousands of Australians. But, under Senator Hinch's amendment, they're going to be paying a penalty tax rate not paid by some of their competitors. JJ Richards & Sons are a waste collection group. I think they're based in Brisbane; they certainly have lots of operations around my home state of Queensland. They fall into the category that would be caught by Senator Hinch's amendment. And I know they're a family company. I've heard presentations they've made before, and they are a home-grown company. But they will be penalised in the tax they pay, if I understand what's being proposed.</para>
<para>Brisbane Airport, another group that, according to my figures, has a turnover of well above the $500 million mark, will be paying more tax than its competitors. The Kilcoy Pastoral Company are an Australian food manufacturing company in Queensland. Senator Hanson would know the Kilcoy Pastoral Company well because it employs a lot of Queenslanders. I dare say, her party having stood at the Longman by-election and seen who took whose card—Kilcoy is, I think, in the Longman electorate. If it's not, certainly the workers at Kilcoy would be living in the electorate of Longman. Kilcoy would pay a penalty rate of tax.</para>
<para>I'm pleased to see Senator Hinch coming back into the chamber. I'm just saying, Senator Hinch, a lot of the companies that would be caught by your amendment about $500 million turnovers—so they'd be getting less of a tax cut—are little companies like the Kilcoy Pastoral Company that Senator Hanson and I know well. I mentioned Brisbane Airport; JJ Richards and Sons; and Sun Metals, the refinery in Townsville. These are all companies that will pay more tax than their competitors. And I repeat, again for your benefit, Senator Hinch—</para>
<interjection>
  <talker>
    <name role="metadata">The TEMPORARY CHAIR</name>
    <name.id>250216</name.id>
  </talker>
  <para>Senator Macdonald, I will just remind you to direct your remarks through the chair.</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator IAN MACDONALD</name>
    <name.id>YW4</name.id>
  </talker>
  <para>I beg your pardon, Chair; you're quite right. I just wanted to repeat for other senators' benefit what I'd said earlier. Sun Metals is an international Korean company that came to Townsville a couple of decades ago to refine zinc. They have refineries all around the world, and if they're going to expand, they can make investments anywhere, which means that they won't invest in Australian plants, which means fewer jobs for Australians. A couple of weeks ago I was opening the Mount Isa Rodeo Hall of Fame, and I met Australians who work for Sandvik Mining and Construction, a Swedish company that earns more than $500 million in income and thus will not be eligible for the tax cuts, which means the guys I was talking to at the rodeo may find that their head company in the future invests more in Africa or South America than they do in Mount Isa.</para>
<para>The list goes on. ERM Power, a homegrown Australian electricity supply company, will not be in the same race competitively with tax. Aurizon, a company involved in railway transportation in Queensland, partly owned by the Queensland government, will not get the same tax cuts as other people in the transport industry. Senator Cormann mentioned Qantas in response to my question. Not only Qantas but also Virgin Airlines will not benefit from increased investment, because they're not going to get the tax cut.</para>
<para>I continue with the higher-range turnovers: Wilmar Australia Holdings. In the town that I live in, Wilmar is not always the best name to mention—although they own four or more sugar mills, crush the cane and employ thousands of workers. They're a Singaporean company who can and do invest anywhere in the world. Why would they be interested in increasing investment in Australia when they can invest in other parts of the world and take home more of the profits they earn? Similarly Glencore, which now operates the Mount Isa mines, is a Swiss company. They can invest in Australia, or they can invest in Africa or the Americas. They know that, if they do that, they'll get a better return, because they'll pay less tax, since the Australian tax system is not competitive.</para>
<para>Teys Australia Ltd, a homegrown Rockhampton based meat-processing company with processing facilities in Rockhampton and Biloela, is on this list. They're not going to be eligible for reduced tax. Teys compete against some big multinationals in the meat-processing area. I know Senator Hinch is very keen on processing meat within Australia, and here is an Australian company doing it. With the limit Senator Hinch is proposing, Teys will not have the benefit of reduced taxes, which means their investment will be more circumspect. I go to the bigger companies. Myer employs tens of thousands of Australians in its various operations. This list goes on and on.</para>
<para>Progress reported.</para>
</continue>
</speech>
</subdebate.2></subdebate.1></debate>
    <debate><debateinfo>
        <title>SHADOW MINISTERIAL ARRANGEMENTS</title>
        <page.no>21</page.no>
        <type>SHADOW MINISTERIAL ARRANGEMENTS</type>
      </debateinfo><speech>
  <talker>
    <time.stamp>13:59</time.stamp>
    <name role="metadata">Senator WONG</name>
    <name.id>00AOU</name.id>
    <electorate>South Australia</electorate>
  </talker>
  <para>by leave—I advise that the Leader of the Opposition, Mr Shorten, has announced variations to the composition of the shadow ministry. These involve the promotion of three women, two of them in the other place, Ms Burney and Ms Butler, and in this place I congratulate Senator Jenny McAllister on her appointment as the shadow assistant minister for families and communities.</para>
<para>Senator McAllister will also represent the shadow minister for climate change and energy in the Senate, and I thank Senator Moore for her previous work in this area. I also congratulate Senator Louise Pratt on her appointment as shadow assistant minister for universities and shadow assistant minister for equality. Senator Pratt will also represent in the Senate the shadow minister for young Australians and youth affairs. While the changes do not directly affect the portfolio responsibilities of other shadow ministers in the Senate, there are changes to representing responsibilities, which are set out in the document I now table. Can I also indicate the opposition will advise in due course on the replacement for Senator McAllister as Deputy Whip. I seek leave to table the revised shadow ministry list and to have it incorporated into <inline font-style="italic">Hansard</inline>.</para>
<para>Leave granted.</para>
<para class="italic"> <inline font-style="italic">The document read as follows—</inline></para>
<quote><para class="block">Each box represents a portfolio except for (1) which is in the Education portfolio and (2) which is in the Health portfolio. Shadow Cabinet Ministers are shown in bold type.</para></quote>
</speech>
</debate>
    <debate><debateinfo>
        <title>QUESTIONS WITHOUT NOTICE</title>
        <page.no>23</page.no>
        <type>QUESTIONS WITHOUT NOTICE</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Liberal Party Leadership</title>
          <page.no>23</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>14:01</time.stamp>
    <name role="metadata">Senator McALLISTER</name>
    <name.id>121628</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>My question is to the Minister for International Development and the Pacific, Senator Fierravanti-Wells. Does the minister retain full confidence in Prime Minister Malcolm Turnbull?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:01</time.stamp>
    <name role="metadata">Senator FIERRAVANTI-WELLS</name>
    <name.id>e4t</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>Yes.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator McAllister, a supplementary question?</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:01</time.stamp>
    <name role="metadata">Senator McALLISTER</name>
    <name.id>121628</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>Can the minister guarantee that she did not support the member for Dickson, Peter Dutton, in the vote against Prime Minister Turnbull?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:01</time.stamp>
    <name role="metadata">Senator FIERRAVANTI-WELLS</name>
    <name.id>e4t</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>I think that as a former president of the Labor Party you know that what happens in the party room stays in the party room.</para>
<para>Opposition senators interjecting—</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Order! I will call Senator McAllister when there is order in the chamber. Senator McAllister, a final supplementary question?</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:02</time.stamp>
    <name role="metadata">Senator McALLISTER</name>
    <name.id>121628</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>Given Prime Minister Turnbull has abandoned action on climate change, abandoned his beliefs in the republic and has been positioning to abandon his centrepiece big business tax cut, what is the point in Prime Minister Turnbull?</para>
<para>An opposition senator: What does he stand for?</para>
<para>Honourable senators interjecting—</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Order! I will call Senator Fierravanti-Wells when there is order. Senator Fierravanti-Wells.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:02</time.stamp>
    <name role="metadata">Senator FIERRAVANTI-WELLS</name>
    <name.id>e4t</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>Thank you, Senator McAllister. This government—and can I just focus if I may on what is actually happening in my portfolio and what is happening in the portfolio of international development, because we don't seem to have much interest in this area from those opposite. Can I just say that in relation to the Pacific this government is very much—</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Wong on a point of order?</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">Senator Wong</name>
    <name.id>00AOU</name.id>
  </talker>
  <para>A point of order on direct relevance. The minister has been asked to explain what the point of the Prime Minister is, and she's avoiding the question. I would have thought a loyal minister would want to explain why the Prime Minister should be backed.</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Cormann on the point of order.</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">Senator Cormann</name>
    <name.id>HDA</name.id>
  </talker>
  <para>Labor, as they so often do, ask a highly political question, and, of course, the ministers on this side are providing, as they always do, a proper policy based answer. Senator Concetta Fierravanti-Wells is doing an outstanding job in being directly relevant to a political question.</para>
<para>Opposition senators interjecting—</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Order! Everyone in the chamber: it will be a very long question time if it is this noisy. On the point of order, Senator Wong, if questions of such a broad nature relating to the government are asked, it is entirely within order for a minister to address—</para>
<para class="italic">Senator Ian Macdonald interjecting—</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Macdonald! Can senators please not yell while I'm ruling on the point of order.</para>
<para class="italic">Senator Wong interjecting—</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Wong! Senator Wong, I'm ruling on the point of order.</para>
<para class="italic">Senator Ian Macdonald interjecting—</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Macdonald, I was calling another senator to order. I would appreciate not being yelled at. If a minister is asked a question like that, it is entirely in order for them to address their portfolio, because it relates to the government and the portfolio that they are appointed to by the Prime Minister. Senator Fierravanti-Wells to continue the answer.</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator FIERRAVANTI-WELLS</name>
    <name.id>e4t</name.id>
  </talker>
  <para>Can I say that for Australia the highest priority is security and prosperity in the Pacific.</para>
<para>Opposition senators interjecting—</para>
</continue>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Order!</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator FIERRAVANTI-WELLS</name>
    <name.id>e4t</name.id>
  </talker>
  <para>Australia, as part of our overseas development assistance, is primarily focusing its assistance of about $4 billion on overseas development assistance, and a third, approximately $1.3 billion, of that is actually spent in the Pacific.</para>
</continue>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>I am going to ask senators to at least count to three between me calling order and the interjections recommencing.</para>
</interjection>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Manufacturing</title>
          <page.no>24</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>14:05</time.stamp>
    <name role="metadata">Senator PATERSON</name>
    <name.id>144138</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>My question is for the Minister for Jobs and Innovation, Senator Cash: Can the minister update the Senate on how the Turnbull government's policies are helping the manufacturing sector in Australia?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:05</time.stamp>
    <name role="metadata">Senator CASH</name>
    <name.id>I0M</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>I thank Senator Paterson for his question. As Senator Paterson and those on this side of the chamber would know, when it comes to putting in place the right policies so that businesses are able to prosper and grow and create jobs for Australians, the Turnbull government is doing exactly that. Since September 2013, when the coalition was elected to office, the economy has created in excess of one million jobs. In fact, we're almost at 1.1 million jobs. This doesn't happen by accident. This happens because you put in place the right policies. As a result of our strong economic management, we've also seen an improvement in the number of manufacturing jobs in Australia. And today members and senators would have seen pleasing reports that Holden Engineering is now increasing its workforce in Australia by 150 employees. So, what we're going to see is Holden's engineers in Australia working on the next generation of autonomous, electric and hydrogen vehicles that will then be sold on the global scale.</para>
<para class="italic">Senator Kim Carr interjecting—</para>
<interjection>
  <talker>
    <name role="metadata">Senator Cash</name>
    <name.id>I0M</name.id>
  </talker>
  <para>Senator Carr, I'm delighted to take your interjection because, under the former Labor government, under which you were minister, we actually saw one in eight manufacturing jobs disappear in this country. Under Senator Kim Carr, we saw one in eight manufacturing jobs disappear in this country. Senator Carr, you may well like to know that in the last 12 months under the Turnbull government we have seen the number of manufacturing jobs in Australia increase by 47,700. Again, this doesn't happen by accident. It happens because you put in place the right policies, which allow our businesses to prosper and grow, and, when they prosper and grow, they create jobs.</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Paterson, a supplementary question.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:07</time.stamp>
    <name role="metadata">Senator PATERSON</name>
    <name.id>144138</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>How have the government's policies, which have lowered costs for Australian businesses, impacted on these results?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:07</time.stamp>
    <name role="metadata">Senator CASH</name>
    <name.id>I0M</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>Again, when you create the right economic framework—and that obviously includes policies that are good for business, for example, lower taxes, less regulation, investing in infrastructure and signing on to free trade agreements—you see positive results across the entire economy. And under the Turnbull government's positive economic policies we are seeing jobs created across the board. As I have said, almost 1.1 million jobs the economy has created since we came into office, and this includes in manufacturing. The manufacturing sector in Australia is transforming, and what we're doing as a government is putting in place those policies which are supporting our manufacturers to innovate, and, through their innovation, they are able to create more jobs. For example, through our industry-led growth centres initiative, we're investing in sectors that we know have a competitive strength and opportunities to go global. And a number of businesses that were once just here in Australia are now operating to a global— <inline font-style="italic">(Time expired)</inline></para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Paterson, a final supplementary question.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:08</time.stamp>
    <name role="metadata">Senator PATERSON</name>
    <name.id>144138</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>Is the minister aware of any risks to this important sector?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:08</time.stamp>
    <name role="metadata">Senator CASH</name>
    <name.id>I0M</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>The answer is yes.</para>
<para>Opposition senators interjecting—</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Order on my left!</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">Senator Cash</name>
    <name.id>I0M</name.id>
  </talker>
  <para>I can hear him from the other side—Senator Carr!</para>
<para class="italic">Senator Kim Carr interjecting—</para>
<para class="italic">Senator Cameron interjecting—</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senators Carr and Cameron.</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator CASH</name>
    <name.id>I0M</name.id>
  </talker>
  <para>Senator Carr was responsible for Labor's antibusiness and antimanufacturing policies which saw manufacturers in Australia leave this country. It is a fact that, under the policies which Senator Carr presided over, one in eight manufacturing jobs in Australia disappeared. <inline font-style="italic">(Time expired)</inline></para>
</continue>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Liberal Party Leadership</title>
          <page.no>25</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>14:09</time.stamp>
    <name role="metadata">Senator GALLACHER</name>
    <name.id>204953</name.id>
    <electorate>South Australia</electorate>
  </talker>
  <para>My question is to the Minister for Regional Communications, Senator McKenzie. Does the minister retain full confidence in Prime Minister Malcolm Turnbull?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:09</time.stamp>
    <name role="metadata">Senator McKENZIE</name>
    <name.id>207825</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>Yes, I do.</para>
<para class="italic">Senator Kim Carr interjecting—</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Order! Senator Carr, your colleague is waiting to ask a question. Senator Gallacher, a supplementary question.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:09</time.stamp>
    <name role="metadata">Senator GALLACHER</name>
    <name.id>204953</name.id>
    <electorate>South Australia</electorate>
  </talker>
  <para>Does the Nationals party room retain full confidence in Prime Minister Malcolm Turnbull?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:10</time.stamp>
    <name role="metadata">Senator McKENZIE</name>
    <name.id>207825</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>Well, the Nationals party room, led by Deputy Prime Minister Michael McCormack and me, have made very, very clear our support of the Prime Minister.</para>
<para class="italic">Senator Cameron interjecting—</para>
<para class="italic">Senator Kim Carr interjecting—</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senators Cameron and Carr, you have been particularly voluble this question time, and we're only 11 minutes in. Senator Gallacher, a final supplementary question.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:10</time.stamp>
    <name role="metadata">Senator GALLACHER</name>
    <name.id>204953</name.id>
    <electorate>South Australia</electorate>
  </talker>
  <para>Can the minister confirm that, had this morning's leadership ballot been a vote of a joint party room, the Hon. Malcolm Turnbull would not be Prime Minister?</para>
<para>Opposition senators interjecting—</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>On my left, I remind senators that question time is generally a forum for the opposition—you take up your own time. Senator Gallacher, you will be aware of standing orders that mean that questions should not include hypotheticals. I will call the minister to address the parts of the question that she wishes to, but, for questions for the remainder of question time, senators should keep that in mind.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:11</time.stamp>
    <name role="metadata">Senator McKENZIE</name>
    <name.id>207825</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>Senator Gallacher—through you, Mr President—the coalition is made up of two separate parties. One is nearly 100 years old—the National Party, of which I'm deputy leader. And for the 45-odd years that the Liberal Party have been in existence—we don't vote on their leadership matters. We never have and we never will, because we're two separate parties, and that is how it should be.</para>
<para>Opposition senators interjecting—</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Order!</para>
<para class="italic">Senator Jacinta Collins interjecting—</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Collins! If I call senators to order I expect them to be silent for at least a short period.</para>
</interjection>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Climate Change</title>
          <page.no>26</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>14:12</time.stamp>
    <name role="metadata">Senator HANSON-YOUNG</name>
    <name.id>I0U</name.id>
    <electorate>South Australia</electorate>
  </talker>
  <para>My question is to the Minister representing the Prime Minister, Senator Cormann. Today, Minister, 117 bushfires are burning across the country, 100 per cent of the state of New South Wales is officially in drought and climate change is baking the Murray-Darling and the Great Barrier Reef. Instead of demonstrating genuine climate leadership, your government has caved in to the right wing of your own party room, abandoning emissions reductions and investment certainty. Your government shows no commitment to promoting clean energy, no commitment to reducing carbon emissions and no commitment to tackling climate change. When can we expect this government to stop knifing its leaders and get on with governing the country?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:13</time.stamp>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>I thank Senator Hanson-Young for her question. I reject the premise of the question, and I would point out that driving up the price of electricity for families and pensioners and driving up the price of electricity for business by pursuing a 45 per cent emissions reduction target—or whatever it is that the Greens want to support today—by imposing higher taxes and higher electricity prices would not have prevented the drought or the fires that you are complaining about.</para>
<para>Obviously we're all concerned about the drought, and our government, the Liberal and National Party government, led by Prime Minister Turnbull and Deputy Prime Minister Michael McCormack, is taking very strong action to support farming communities in those drought-affected areas. We are taking the appropriate measures to ensure that we can bring down the price of electricity, to ensure that our energy supplies are more reliable and that we meet the emissions reduction target that we signed onto in Paris, but to do so in a way that is sensible, that is responsible, that doesn't hurt families and pensioners around Australia and that doesn't hurt our economic growth and job creation opportunities into the future. You go right ahead; you go to the next election with a policy to push up the cost of electricity when you know that it will hurt families and pensioners and will hurt our economy and cost jobs. We will go to the next election promising to deliver our plan for stronger growth and more jobs, to bring down the cost of electricity and to meet our emissions reduction targets in the way that is economically responsible.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Hanson-Young, a supplementary question.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:14</time.stamp>
    <name role="metadata">Senator HANSON-YOUNG</name>
    <name.id>I0U</name.id>
    <electorate>South Australia</electorate>
  </talker>
  <para>Yesterday, Wesfarmers announced it has pulled out of the Great Barrier Reef Foundation. Minister, is this because they are embarrassed at your government's complete abandonment of carbon emission reduction targets or any action on climate change, the root cause of damage to the Great Barrier Reef? Doesn't this make a complete mockery of your bandaid solution to saving the reef?</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>I remind senators that supplementaries must relate to the primary question. That question approached the limits.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:15</time.stamp>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>When I last looked at my list of ministerial responsibilities, I don't believe I saw that I have ministerial responsibility for Wesfarmers. Wesfarmers, of course, is a great Australian business. But what motivates them to make their decisions is entirely a matter for Wesfarmers. If you want to know what has motivated Wesfarmers to take a particular course of action, I'm quite happy to pass on the phone number of their managing director or their government relations person.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Hanson-Young, a final supplementary question.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:15</time.stamp>
    <name role="metadata">Senator HANSON-YOUNG</name>
    <name.id>I0U</name.id>
    <electorate>South Australia</electorate>
  </talker>
  <para>The capitulation of the Prime Minister has left Australia with no plan to reduce energy emissions, no plan for transport emissions, no plan to capture emissions in land use and no plan to set up agriculture for the 21st century. Minister, what would a Prime Minister Dutton do?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:16</time.stamp>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>I completely reject the premise of the question. I refer Senator Hanson-Young to my answer to her first question.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Before I call Senator Fawcett, I again remind senators about hypothetical questions.</para>
</interjection>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Defence Equipment</title>
          <page.no>27</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>14:16</time.stamp>
    <name role="metadata">Senator FAWCETT</name>
    <name.id>DYU</name.id>
    <electorate>South Australia</electorate>
  </talker>
  <para>My question is to the Minister for Defence, Senator Payne. Can the minister update the Senate about the capability of Australia's new P-8 Poseidon aircraft and how that's contributing to Australia's maritime and national security?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:16</time.stamp>
    <name role="metadata">Senator PAYNE</name>
    <name.id>M56</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>I thank Senator Fawcett for the question and for his ongoing interest in matters aviation more broadly. The P-8A Poseidon maritime surveillance aircraft reached its initial operating capability in March of this year, which was five months ahead of schedule. It has already been used in a range of operations and exercises in Australia and, indeed, around the Indo-Pacific, proving to be a very versatile, highly capable aircraft. For example, we deployed the P-8A Poseidon to Japan in April of this year to support the enforcement of the UN Security Council sanctions against North Korea with our international partners. The Poseidon was very successfully deployed to operate at long range and high speeds and to conduct its maritime surveillance functions with state-of-the-art equipment, contributing to that international effort to enforce sanctions.</para>
<para>We also deployed the aircraft as part of our longstanding Operation Gateway maritime surveillance patrols. We've supported border protection operations and we've contributed to maritime search-and-rescue missions. Indeed, two weeks ago, at RIMPAC in Hawaii, which I know a number of senators, including Senator Fawcett, attended, an Australian Poseidon successfully fired a Harpoon missile for the first time, demonstrating that the Poseidon is also a highly capable maritime strike aircraft, capable of defending our maritime approaches.</para>
<para>I want to acknowledge the decision of our neighbours in the New Zealand government, who have announced that they will also acquire four Poseidon aircraft. That is going to further significantly strengthen our interoperability with the New Zealand air force and the New Zealand Defence Force and our ability to jointly respond to regional challenges. The Poseidon is already proving itself as a highly capable replacement to the venerable P-3. Importantly, it is already making a significant contribution to regional security.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Fawcett, a supplementary question.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:18</time.stamp>
    <name role="metadata">Senator FAWCETT</name>
    <name.id>DYU</name.id>
    <electorate>South Australia</electorate>
  </talker>
  <para>Defence doctrine indicates that the first of the fundamental inputs to capability is individual training. Can you update the Senate on the investment in training for aircrew and maintenance crews that shows that the Poseidon training is at the leading edge of what is available?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:19</time.stamp>
    <name role="metadata">Senator PAYNE</name>
    <name.id>M56</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>Indeed it is; Senator Fawcett is quite right. On Friday, I was again in South Australia at RAAF Base Edinburgh, where the Royal Australian Air Force has recently established its new P-8A training facility. It's a $470 million investment by the coalition government, which is a step change in the way the Royal Australian Air Force trains its personnel. It's home to a series of advanced simulators that enable both our aircrews and our maintenance teams to conduct more of their training there and therefore leave the aircraft available for operations, for exercises, for activities, reducing fatigue on the aircraft and freeing them up, as I said, with more time to be deployed.</para>
<para>The facility is the beginning of a broader investment at RAAF Base Edinburgh which will see it form part of a larger intelligence, surveillance and reconnaissance precinct. That precinct is going to support a number of our new ISR platforms and ensure that the personnel have access to the modern training facilities they need so they're able to do the tasks that government seeks of them.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Fawcett, a final supplementary question.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:20</time.stamp>
    <name role="metadata">Senator FAWCETT</name>
    <name.id>DYU</name.id>
    <electorate>South Australia</electorate>
  </talker>
  <para>Could the minister update the Senate as to what investments in other fundamental inputs to capability the government is making to support the introduction of the Poseidon aircraft?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:20</time.stamp>
    <name role="metadata">Senator PAYNE</name>
    <name.id>M56</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>As well as modernising our training facilities, the government is investing in a range of supporting infrastructure around Australia. As well as the works that I referred to at RAAF Base Edinburgh, which is the Poseidon's main operating base, we're also investing in upgrades to forward operating bases: RAAF Base Pearce, in Western Australia; RAAF Base Darwin; and RAAF Base Townsville.</para>
<para>And last month, of course, the government announced that we will also acquire the MQ-4C Triton long-range remotely piloted surveillance aircraft. That is going to complement our fleet of Poseidons with the ability to conduct sustained operations at very long ranges.</para>
<para>Both of those aircraft will complement each other, will enable greater interoperability with our key allies—including, of course, the United States—and will enable us to contribute more effectively, more often, to regional security. Those are investments by the Turnbull government which provide Australia with one of the most sophisticated maritime surveillance capabilities in the world and demonstrate our commitment to securing Australia's long-term national security.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Liberal Party Leadership</title>
          <page.no>28</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>14:21</time.stamp>
    <name role="metadata">Senator STERLE</name>
    <name.id>e68</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>My question is to the Minister representing the Prime Minister, Senator Cormann. I refer to reports that, following this morning's leadership ballot in the Liberal party room, Prime Minister Turnbull is considering calling an election rather than risk another challenge. Are these reports accurate?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:21</time.stamp>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>No.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Sterle.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:22</time.stamp>
    <name role="metadata">Senator STERLE</name>
    <name.id>e68</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>Yes, I do have another one, thank you, Mr President. Can the Prime Minister rule out calling an election prior to the next meeting of the Liberal party room?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:22</time.stamp>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>As I indicated to Senator Wong before, we will do you slowly. The next election is not due until the first half of next year.</para>
<para>Opposition senators interjecting—</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Order on my left!</para>
<para>Honourable senators interjecting—</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Order! I will call Senator Sterle when I can hear the question.</para>
<para class="italic">Senator Kim Carr interjecting—</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Carr, you were quiet last week, and you're making up for it today—so please!</para>
<para>Government senators interjecting—</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>On my right! Senator Sterle, a final supplementary question.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:23</time.stamp>
    <name role="metadata">Senator STERLE</name>
    <name.id>e68</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>In response to reports that Prime Minister Turnbull is considering calling an election rather than risk another challenge, one Liberal backbencher has said, 'Eff me dead; we'll be annihilated!' Does the Prime Minister agree?</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Sterle, while I don't have the rule—</para>
<para>Honourable senators interjecting—</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Order! While I don't have on me President Parry's ruling regarding the use of unparliamentary language, I will come back to the chamber after I review the transcript, because there was so much noise I couldn't hear it. I'll ask you to continue your question, Senator Sterle, but I'll come back to the chamber when I review the audio because I could not hear it.</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator STERLE</name>
    <name.id>e68</name.id>
  </talker>
  <para>All right. I just said after that—I was just quoting a backbencher, but I'm just asking the minister: does the Prime Minister agree with that comment from the backbencher?</para>
</continue>
</speech>
<speech>
  <talker>
    <time.stamp>14:23</time.stamp>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>As I've already indicated to the chamber, the election is due in the first half of next year, and that is when I expect it—</para>
<para>Opposition senators interjecting—</para>
<continue>
  <talker>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
  </talker>
  <para>The first half of next year. There's nothing new there. What I would also say when it comes to the timing of elections is that we of course all know that Mr Shorten has been predicting for some time to his party room or his caucus that an election is imminent. Perhaps that helps him with keeping his own support locked away. I remember that he was telling people last year that there would be an election before Christmas, which is, of course, why he didn't let the Australian people know that there were people on his side of the chamber that had problems with their citizenship and section 44. Let me tell you: the election will be at the normal time, as much as Mr Shorten might have wishful thinking of getting to the election sooner rather than later.</para>
</continue>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Pensions and Benefits</title>
          <page.no>29</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>14:25</time.stamp>
    <name role="metadata">Senator BROCKMAN</name>
    <name.id>30484</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>My question is to the Minister representing the Minister for Social Services, Senator Fierravanti-Wells. How is the budget giving greater choice to age pension recipients, particularly in covering short-term expenses?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:25</time.stamp>
    <name role="metadata">Senator FIERRAVANTI-WELLS</name>
    <name.id>e4t</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>I thank Senator Brockman for his question. I welcome the opportunity to update the Senate on the work that the Turnbull government is doing to deliver for all Australians and most especially for Australians of age pension age. In the budget, the government outlined a full package that helps age pension recipients take control of their finances and their future in the More Choices for a Longer Life package.</para>
<para>Of course, this includes important changes to the Pension Loans Scheme. The Pension Loans Scheme is, of course, a voluntary scheme and can provide a reverse mortgage type loan that can offer a fortnightly income stream to participants, and this can help age pensioners enjoy a higher standard of living in retirement by allowing them to receive regular additional payments from the government. The government is expanding the scheme for older Australians. From 1 July next year, the scheme will be expanded, with the available fortnightly loan-plus-pension amount increasing from 100 to 150 per cent of the maximum rate of the fortnightly pension, which is currently $907.60. Around 6,000 eligible pensioners of age pension age are expected to take up a loan under the scheme over the next four years.</para>
<para>What were those opposite going to do to pensioners and to self-funded retirees?</para>
<para class="italic">Senator Abetz interjecting—</para>
<continue>
  <talker>
    <name role="metadata">Senator FIERRAVANTI-WELLS</name>
    <name.id>e4t</name.id>
  </talker>
  <para>Of course, they were going to raid their pockets—raid them. Absolutely, Senator Abetz—raid their pockets. These are people who have worked very, very hard for their retirement, and what are you guys opposite going to do? You're going to put your hands in their pockets and raid their pockets. It's their hard-earned cash, and that's what you were going to do.</para>
</continue>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Brockman, a supplementary question.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:27</time.stamp>
    <name role="metadata">Senator BROCKMAN</name>
    <name.id>30484</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>Thank you for that answer, Minister. How is the Pension Loans Scheme providing more support to age pension recipients who are part pensioners and self-funded retirees?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:27</time.stamp>
    <name role="metadata">Senator FIERRAVANTI-WELLS</name>
    <name.id>e4t</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>Thank you, Senator Brockman. This is a very important point. The government's policy will indeed provide more support to Australians of age pension age who are part pensioners and self-funded retirees. This change will benefit, for the first time, pensioners of age pension age who currently receive the maximum rate and cannot access the existing scheme. It will also allow self-funded retirees, who are precluded from the existing Pension Loans Scheme due to both the pension income test and the assets test, to apply for a loan. Pension-rate age pensioners and self-funded retirees with an existing loan will also be able to increase it up to the new amount. This is another way that the Turnbull government is delivering for older Australians.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Brockman, a final supplementary question.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:28</time.stamp>
    <name role="metadata">Senator BROCKMAN</name>
    <name.id>30484</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>Is the minister aware of any other policies that might impact on self-funded retirees or age pension recipients?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:28</time.stamp>
    <name role="metadata">Senator FIERRAVANTI-WELLS</name>
    <name.id>e4t</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>Again, thank you, Senator Brockman, for your question, particularly because there is a very real contrast that is plain for all Australians to see. This government has a clear plan to support Australians to live a healthy, independent, connected and safe life in their retirement, and this includes our increase and extension of the pension work bonus to back older Australians who want to continue doing some work as they get older. Unfortunately, Labor also have a plan, and that is a sledgehammer to the savings of pensioners and retirees with their unfair retiree tax, because that's what they want to do. They want to put their hands in retirees' pockets and take out the savings of people who have worked very, very hard for their retirement. That's what those opposite want to do.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry</title>
          <page.no>30</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>14:29</time.stamp>
    <name role="metadata">Senator ANNING</name>
    <name.id>273829</name.id>
    <electorate>Queensland</electorate>
  </talker>
  <para>My question is to the Minister representing the Attorney-General. Since the Senate agreed to my motion for the terms of reference for the royal commission into banking to be extended to include examination of the conduct of administrators and insolvency practitioners, particularly where these entities act against farmers, to include the dispute resolution process of financial service entities, to extend the reporting period for 12 months, and to increase funding for the royal commission to allow it to hear more submissions and to undertake these additional investigations, has the government advised the Governor-General to request letters patent to be sent to Commissioner Hayne changing his terms of reference in line with my motion?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:30</time.stamp>
    <name role="metadata">Senator CASH</name>
    <name.id>I0M</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>I thank Senator Anning for his question. I don't have a brief in relation to that, and I will need to take it on notice.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Anning, a supplementary question.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:30</time.stamp>
    <name role="metadata">Senator ANNING</name>
    <name.id>273829</name.id>
    <electorate>Queensland</electorate>
  </talker>
  <para>Without knowing what you're going to let me know, since the necessary independence of the royal commission and what it is to investigate are entirely separate, and since precedents for government's extending the terms of reference for royal commissions after their commencement exist—such as the Costigan royal commission into the painters and dockers union—could the government let me know if they are going to comply with the express wishes of the Senate?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:31</time.stamp>
    <name role="metadata">Senator CASH</name>
    <name.id>I0M</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>Again, Senator Anning, I will need to take that question on notice.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Anning, a final supplementary question?</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:31</time.stamp>
    <name role="metadata">Senator ANNING</name>
    <name.id>273829</name.id>
    <electorate>Queensland</electorate>
  </talker>
  <para>No necessity, I don't think. Thank you, Mr President.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Thank you. Before I call you, Senator O'Neill, Senator Sterle, I have been advised by the Clerk that there was no profane language used. You used a letter. It is up to the judgement of every senator as to what language they allude to. I just thought I would correct the record from earlier. Thank you, Senator Sterle.</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">Senator Sterle</name>
    <name.id>e68</name.id>
  </talker>
  <para>It's not in my nature to swear like that.</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>I will take your word for it, Senator Sterle.</para>
</interjection>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Liberal Party Leadership</title>
          <page.no>30</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>14:31</time.stamp>
    <name role="metadata">Senator O'NEILL</name>
    <name.id>140651</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>My question is to the Minister representing the Minister for Health, Senator McKenzie. I refer to reports that the member for Dickson, Peter Dutton, was running a joint ticket with the member for Flinders, Greg Hunt, for the leadership and the deputy leadership of the Liberal Party. Can the minister guarantee that the Minister for Health was not running a joint ticket with the member Dickson, Peter Dutton, in the vote against Prime Minister Turnbull?</para>
<interjection>
  <talker>
    <name role="metadata">Senator Cormann</name>
    <name.id>HDA</name.id>
  </talker>
  <para>On a point of order: even with the greatest amount of generosity, I can't detect how this relates to the minister's portfolio responsibilities.</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">Senator Wong</name>
    <name.id>00AOU</name.id>
  </talker>
  <para>On the point of order, this is a question to the minister in her representing responsibilities and goes directly to the conduct of the minister she is representing, a member of the cabinet who is bound by cabinet solidarity. I would submit to you, Mr President, that these sorts of questions have been asked and answered. My recollection is that Senator Abetz asked similar questions of Senator Conroy when we were on that side of the chamber. It goes directly to the tenability of Mr Hunt as a cabinet minister. What could be more relevant to his role as a minister than his loyalty to the cabinet and to the Prime Minister, consistent with the <inline font-style="italic">Cabinet Handbook</inline> and with the principles of Westminster government.</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Wong, firstly, questions about the <inline font-style="italic">Cabinet Handbook</inline> should go to the Minister representing the Prime Minister in the first instance. Secondly, ministers can be questioned about public statements they have made outside that don't relate to their portfolio. Ministers representing other ministers in the other place can, of course, be questioned about matters of public administration within their representational portfolio. I will come back to the chamber in some detail on this. I will invite the minister to say if there is anything she wishes to add. I'm not going to rule the question out of order in this, because I'm going to allow the minister to add something if she wishes.</para>
<para>What I will say is that, I think, without reference to materials, this is a stretch because it does not relate to the portfolio responsibilities of the minister, a public statement made by the minister or the minister she is representing. Senator McKenzie, if you wish to say something in response to the assertions in that question, you may, if not I will move on and provide Senator O'Neill with an opportunity to ask a supplementary question.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:34</time.stamp>
    <name role="metadata">Senator McKENZIE</name>
    <name.id>207825</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>Thank you, Mr President. I have no response to Senator O' Neill's question. I don't respond to speculation from the Labor Party.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator O'Neill, I would urge you to take into account what I just said.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:34</time.stamp>
    <name role="metadata">Senator O'NEILL</name>
    <name.id>140651</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>Does the Minister for Health retain full confidence in the Prime Minister?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:34</time.stamp>
    <name role="metadata">Senator McKENZIE</name>
    <name.id>207825</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>I have nothing to add to my first answer.</para>
<interjection>
  <talker>
    <name role="metadata">Senator Bernardi</name>
    <name.id>G0D</name.id>
  </talker>
  <para>Mr President, as a point of order, a supplementary question is meant to be designed in response to the answer given. If a minister says, 'I have no business in answering the question,' or, 'I don't want to answer the question,' how can you have a supplementary question?</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Wong, on the point of order.</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">Senator Wong</name>
    <name.id>00AOU</name.id>
  </talker>
  <para>This goes to the confidence a cabinet minister has in the Prime Minister. That was precisely the ambit of the initial question—whether or not that cabinet minister is loyal.</para>
<para class="italic">Senator Canavan interjecting—</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">Senator Wong</name>
    <name.id>00AOU</name.id>
  </talker>
  <para>Well, you can get up and take a point of order and tell us what your vote would have been too, Senator Canavan, if you want. I've made my first point. The second point I'd make is that I note this is precisely the same question that was asked of Senator Fierravanti-Wells and Senator McKenzie previously, and now Senator McKenzie is refusing to respond in relation to the Minister for Health, a cabinet minister.</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Cormann, on the point of order.</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">Senator Cormann</name>
    <name.id>HDA</name.id>
  </talker>
  <para>On the point of order, Senator Wong is being incredibly disingenuous here, because there is a significant difference between a minister representing a minister in the other place, in relation to the sort of question that was asked, and a minister who is a portfolio minister in this chamber, who of course can directly answer in relation to conduct that is in their direct personal knowledge. I don't think it is appropriate or reasonable or that it can be expected for a minister representing a minister in the other place to answer on their behalf in relation to matters that do not relate to public administration, do not relate to public statements and are only in the personal knowledge of an individual concerned. There is no way that Senator McKenzie could possibly provide an answer in relation to that question based on the knowledge that she can reasonably be expected to hold herself.</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Do you wish to add to your earlier comment, Senator Wong, on the point of order?</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">Senator Wong</name>
    <name.id>00AOU</name.id>
  </talker>
  <para>Yes, I do, Mr President, if I may. This goes to whether or not a member of the cabinet has confidence in the Prime Minister. I would have thought that is self-evidently a matter that should be permitted under the standing orders.</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Canavan was next on his feet. Senator Bernardi, I will come back to you, and after your response—given you raised an initial point of order—I will then rule.</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">Senator Canavan</name>
    <name.id>245212</name.id>
  </talker>
  <para>Just going back to Senator Bernardi's original point of order, which has not been dealt with by Senator Wong—Senator Wong was referring to other issues that were not raised by Senator Bernardi, around topics of questions—Senator Bernardi's point of order went to the proper construction of supplementary questions. I refer you, Mr President, to <inline font-style="italic">Odgers</inline>, which says:</para>
<quote><para class="block">On 14 April 1986 President McClelland made a statement concerning the use of supplementary questions.</para></quote>
<para>He said:</para>
<quote><para class="block">Since that time—</para></quote>
<para>the time of the introduction of supplementary questions—</para>
<quote><para class="block">successive Presidents have consistently ruled that supplementary questions are appropriate only for the purposes of elucidating information arising from the original question and answer.</para></quote>
<para>I put to you, Mr President, that this question has not satisfied that condition and therefore should be ruled out of order.</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Collins, I indicated before that I was going to let Senator Bernardi respond, because he raised the initial point of order. I have given Senator Wong a couple of opportunities. Do you wish to say something before I rule, Senator Bernardi?</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">Senator Bernardi</name>
    <name.id>G0D</name.id>
  </talker>
  <para>I think <inline font-style="italic">Odgers</inline> says it all.</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Okay. On the first point of order raised by Senator Bernardi, that reference to <inline font-style="italic">Odgers</inline>, I would contend that the Senate has become, whether it should or not, somewhat more liberal in its application of those provisions since 1986, when I was 13 years old. I might say, having spent time in this building in the nineties, it's become somewhat more liberal over the last 25 years as well. If senators want supplementary questions to not just relate to the question but also relate to the answer given, question time will become very different, and I'm happy to raise this matter with the Procedure Committee. So I'm not going to uphold your point of order, Senator Bernardi, given the custom and practice for the last decade has been that the questions must relate to the primary question, not the answer as well.</para>
<para>On the second point of order, relating to the capacity of the minister to answer for a minister they represent, I am of the view a minister can be asked about statements their representational minister gave, statements or actions of a minister they represent, or policies in the portfolio of a minister that they represent. A minister cannot have a window into another's soul. Quite frankly, to ask a minister about a non-portfolio, non-public-statement matter or about the state of mind of a minister that they are representing is inappropriate. The earlier question to Senator Fierravanti-Wells was in order because it was directed at Senator Fierravanti-Wells as a minister in the government. This question is fundamentally different. Senator O'Neill, do you have a final supplementary question on this matter, given what I've just said?</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:40</time.stamp>
    <name role="metadata">Senator O'NEILL</name>
    <name.id>140651</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>Can the minister guarantee that the Minister for Health did not support the member for Dickson, Peter Dutton, in the vote against Prime Minister Turnbull? If not, will the Minister for Health be resigning from the executive?</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator O'Neill, given what I've just said, I'm ruling that supplementary question out of order. With all respect, I just made a statement about what are appropriate questions to representational ministers. I will come back to the chamber in some detail, and I'll raise this matter at the Procedure Committee when it meets later this week.</para>
</interjection>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>National Security</title>
          <page.no>32</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>14:41</time.stamp>
    <name role="metadata">Senator MOLAN</name>
    <name.id>FAB</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>My question is to the Minister representing the Minister for Law Enforcement and Cyber Security, Senator Fifield. Will the minister update the Senate on actions the government is taking to give our law enforcement and national security agencies the power they need to disrupt and prosecute serious organised criminals and terrorists in the online environment?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:41</time.stamp>
    <name role="metadata">Senator FIFIELD</name>
    <name.id>D2I</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>I thank Senator Molan for his question, and I acknowledge his past service in keeping Australia safe and secure and his ongoing efforts in that regard. As colleagues would know, we have had the telecommunications intercept powers in this country for almost 40 years. When they were first legislated, we had just one telco that had recently changed its name from the PMG to Telecom. There were no mobile phones in Australia, and the World Wide Web was still a decade from being invented. A lot has changed. The number of telcos, connected devices and even forms of communication have grown exponentially. Our laws haven't kept pace with technological innovation. In fact, if we don't act, we will be giving serious criminals a place to hide, whether they be drug dealers, terrorists, paedophiles or others who seek to cause harm.</para>
<para>It is concerning when our agencies advise that, in the last 12 months alone, we've had 200 operations investigating very serious offences, where the penalties are seven years or more, where the current legislative framework has thwarted or inhibited their ability to collect the evidence we need to prosecute and disrupt serious criminal and national security threats. The legislation that the Minister for Law Enforcement and Cyber Security released for public consultation last week is designed to address these issues. Public consultation is important. We're willing to take the time to listen to make sure that we get this right. This government does have a proven track record of balancing individual freedoms alongside the safety and security of Australians, and this is the next step in that regard.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Molan, a supplementary question.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:43</time.stamp>
    <name role="metadata">Senator MOLAN</name>
    <name.id>FAB</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>Minister, why does the government support strong encryption?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:43</time.stamp>
    <name role="metadata">Senator FIFIELD</name>
    <name.id>D2I</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>The government acknowledges that encryption is a vital piece of security for every user of the internet. It protects all of us as we go about our lives online, securing banking, shopping, communications and other services. That's why the proposed measures expressly prevent the weakening of encryption or the introduction of back doors. The government is absolutely committed to maintaining the integrity of Australia's personal information, devices and communications.</para>
<para>However, these technologies are also increasingly being used, as I said, by terrorists, foreign agents and serious criminals to conceal their illegal activities. It's imperative that our law enforcement and security agencies can access information to investigate serious crimes and combat threats to Australia's national security. This government will ensure that those agencies have the powers that they need to do their job, because the safety and security of all Australians is our shared collective first priority.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Molan, a final supplementary question.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:44</time.stamp>
    <name role="metadata">Senator MOLAN</name>
    <name.id>FAB</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>Thank you, Minister. Why do our law enforcement and national security agencies need these powers?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:45</time.stamp>
    <name role="metadata">Senator FIFIELD</name>
    <name.id>D2I</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>Put simply, we can't give criminals a place to hide. If we don't act, they will continue to hide on those applications and platforms that they believe protect their activities. That's why the legislation that the government has released for public consultation provides a contemporary framework that will allow law enforcement and national security agencies to work in the increasingly complex digital environment.</para>
<para>The premise of the legislation is not new. An obligation to assist law enforcement and national security investigations currently applies to the domestic communications companies in Australia, and any request for an individual's data will remain subject to warrant processes.</para>
<para>As Senator Molan knows well, we must act, and we must act very shortly. I call on all colleagues in this place to join with the government in supporting these important reforms.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Liberal Party Leadership</title>
          <page.no>33</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>14:45</time.stamp>
    <name role="metadata">Senator McCARTHY</name>
    <name.id>122087</name.id>
    <electorate>Northern Territory</electorate>
  </talker>
  <para>Mr President, my question is to the Minister representing the Minister for Foreign Affairs, Senator Payne. In an interview on 2GB radio yesterday, when asked whether she supports Prime Minister Turnbull, Minister Bishop said: 'I certainly believe that Malcolm Turnbull will lead us to the next election. He has my support as leader.' Given that media speculation about a leadership challenge against Prime Minister Turnbull has been building since Friday, why did it take four days for the deputy Liberal leader and Minister for Foreign Affairs to express support for Prime Minister Turnbull?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:46</time.stamp>
    <name role="metadata">Senator PAYNE</name>
    <name.id>M56</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>As Senator McCarthy said herself, the Deputy Leader of the Liberal Party and Minister for Foreign Affairs said the Prime Minister has her support. She made her position perfectly clear.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator McCarthy, a supplementary question.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:46</time.stamp>
    <name role="metadata">Senator McCARTHY</name>
    <name.id>122087</name.id>
    <electorate>Northern Territory</electorate>
  </talker>
  <para>Minister Bishop was asked whether she would serve as deputy leader to a Prime Minister Dutton. Minister Bishop did not rule it out. Why did the minister fail to rule out serving as deputy leader to a Prime Minister Dutton?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:47</time.stamp>
    <name role="metadata">Senator PAYNE</name>
    <name.id>M56</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>As even those opposite should have worked out by now, the Deputy Leader of the Liberal Party and Minister for Foreign Affairs was unanimously returned as the Deputy Leader of the Liberal Party and therefore the Minister for Foreign Affairs. There is no question to answer in terms of Senator McCarthy's proposition.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator McCarthy, a final supplementary question.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:47</time.stamp>
    <name role="metadata">Senator McCARTHY</name>
    <name.id>122087</name.id>
    <electorate>Northern Territory</electorate>
  </talker>
  <para>Will Minister Bishop stand up for her leader, Prime Minister Turnbull, or is she keeping her options open to serve as deputy to a fifth leader?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:47</time.stamp>
    <name role="metadata">Senator PAYNE</name>
    <name.id>M56</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>As I said and will repeat, Minister Bishop has absolutely affirmed her support for Prime Minister Turnbull. She has been re-elected unopposed by the Liberal Party party room. That is her firm position and the one that I know she will continue to prosecute.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Pensions and Benefits</title>
          <page.no>33</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>14:48</time.stamp>
    <name role="metadata">Senator STOKER</name>
    <name.id>237920</name.id>
    <electorate>Queensland</electorate>
  </talker>
  <para>My question is for the Minister representing the Minister for Social Services, Senator Fierravanti-Wells. Could the minister update the Senate on the recent release of the Australian Priority Investment Approach to Welfare 2017 <inline font-style="italic">Valuation report</inline>?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:48</time.stamp>
    <name role="metadata">Senator FIERRAVANTI-WELLS</name>
    <name.id>e4t</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>I thank Senator Stoker for her question because it goes to the heart of what this government is doing to help support Australians to live a better life and to combat intergenerational welfare dependency. We are seeing strong jobs growth in our economy, and we are focused on helping Australians take advantage of these new opportunities. We have also seen welfare dependency of working-age people fall to the lowest levels in 25 years—can I underline that: 25 years—and this is very good news.</para>
<para>Recently the government released the Australian Priority Investment Approach to Welfare 2017 <inline font-style="italic">Valuation </inline><inline font-style="italic">r</inline><inline font-style="italic">eport</inline>. The valuations of the social security system help the government target funding towards programs and policies that help people move into education or employment, reducing lifetime welfare dependency and of course reducing the lifetime welfare bill.</para>
<para>What that data reveals is that the reduction in the number of people accessing welfare payments has led to a $43 billion decrease in Australia's total future lifetime welfare cost. It also provides telling insights into groups at particular risk of welfare dependency. It reveals, for example, that young people aged between 22 and 24 who've spent more than 80 per cent of their childhood with parents or guardians receiving income support are nearly three times more likely to be on welfare than children whose parents did not receive income support.</para>
<para>This government takes addressing intergenerational welfare dependency very seriously, and this latest report again helps us guide our efforts. Since we have come to government, as Senator Cash keeps reminding us, over one million jobs have been created, including a record of more than 400,000 last year.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Order, Senator Fierravanti-Wells. Senator Stoker, a supplementary question.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:50</time.stamp>
    <name role="metadata">Senator STOKER</name>
    <name.id>237920</name.id>
    <electorate>Queensland</electorate>
  </talker>
  <para>Why is a priority investment approach significant for the future of Australia's welfare system?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:50</time.stamp>
    <name role="metadata">Senator FIERRAVANTI-WELLS</name>
    <name.id>e4t</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>Can I thank Senator Stoker for that question, because a priority investment approach is, of course, significant for the future of our welfare system. It helps us target our efforts into policies that can help groups most at risk of welfare dependency, and that is exactly what we have done through the government's $96 million Try, Test and Learn Fund. For example, in tranche 1 the government has committed more than $23 million across 14 initiatives targeted at helping particular cohorts. Under tranche 1, these efforts were focused on helping young carers, young parents and students at risk of long-term unemployment. Through tranche 2, we are continuing these important efforts, because the government believe that the best form of welfare is a job and we are targeting programs and policies that help people move into education or employment, therefore ultimately reducing the lifetime welfare bill.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Order, Senator Fierravanti-Wells. Senator Stoker, a final supplementary question.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:51</time.stamp>
    <name role="metadata">Senator STOKER</name>
    <name.id>237920</name.id>
    <electorate>Queensland</electorate>
  </talker>
  <para>Could the minister please provide an update on the government's Try, Test and Learn Fund?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:51</time.stamp>
    <name role="metadata">Senator FIERRAVANTI-WELLS</name>
    <name.id>e4t</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>I'm pleased to provide an update on this next tranche of the Try, Test and Learn Fund. Tranche 2 of the fund will build on the success and learnings of the first tranche, investing up to $50 million in policy responses to support new priority groups with innovative ideas to help them become self-reliant. These are older Newstart allowance recipients, working-age carers receiving a carer payment, at-risk young people on income support, and migrants and refugees on income support. Applications are also welcome for other groups appropriately justified through evidence. Tranche 2 of the fund is open for grant applications to support these priority groups until 28 September this year, and the first batch of successful projects will be announced soon.</para>
<para>Can I reiterate that this government believe that the best form of welfare is a job and we are targeting our programs at helping people get into employment or education.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Liberal Party Leadership</title>
          <page.no>34</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>14:52</time.stamp>
    <name role="metadata">Senator MARSHALL</name>
    <name.id>00AOP</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>My question is to the Minister representing the Prime Minister, Senator Cormann. I refer to the former Minister for Home Affairs, Mr Peter Dutton, who this afternoon said:</para>
<quote><para class="block">… I believe I had the best prospect of leading the Liberal Party to success at the next election.</para></quote>
<para>Is Mr Dutton correct?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:53</time.stamp>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>I disagree with my good friend Peter Dutton. I support Prime Minister Turnbull. I've supported him loyally since he was elected leader in September 2015 and I will support him loyally as his representative in this chamber till the next election and hopefully, subject to the judgement of the Australian people, beyond.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Marshall, a supplementary question.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:53</time.stamp>
    <name role="metadata">Senator MARSHALL</name>
    <name.id>00AOP</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>I again refer to the former Minister for Home Affairs, Peter Dutton, who went on to say:</para>
<quote><para class="block">My job from here … is to make sure I can prosecute the sort of messages that I have just spoken about and that is what I am focused on.</para></quote>
<para>Has the Prime Minister sought Peter Dutton's advice about the sorts of messages he should be prosecuting?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:54</time.stamp>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>Firstly, what I would say is that Peter Dutton is one of my closest personal friends in this parliament. The second thing I would say is that Peter Dutton has provided outstanding service to our nation, in particular in more recent times as the very effective Minister for Home Affairs. He has been an incredibly important contributor to the success of the Turnbull government, particularly in the space of national security and border protection. I can confirm that the Prime Minister and Mr Dutton, who has chosen to go to the backbench, have had conversations subsequent to the party room and that of course we look forward to the great contribution that Mr Dutton as the hardworking member for Dickson, representing the LNP in Queensland, will make to the future success of our government, including at the next election.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Marshall, a final supplementary question.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:55</time.stamp>
    <name role="metadata">Senator MARSHALL</name>
    <name.id>00AOP</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>I again refer to the former Minister for Home Affairs, Peter Dutton, who this afternoon promised:</para>
<quote><para class="block">… I will do whatever I can now to make sure that we are in a position to win the next election …</para></quote>
<para>Given Mr Dutton believes he is the best prospect of leading the Liberal Party to success at the next election, is the Prime Minister concerned he has not seen the last of Peter Dutton?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:55</time.stamp>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>Peter Dutton put his hand up this morning to become the leader of the Liberal Party. That is a matter of historical record. The Liberal Party party room made a decision and provided support to Prime Minister Turnbull. All of us in the Liberal-National party—all Liberal Party and National Party members and senators—will work extremely hard to ensure that the Turnbull government is re-elected at the next election so we can continue to provide good government for the Australian people and so we can continue to implement our plan for a stronger economy and more jobs to ensure that people around Australia have the best possible opportunity to get ahead and protect them from the disastrous consequences of the antibusiness, anti-jobs, anti-opportunity, higher taxes agenda of the socialist leader of the Labor Party.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Broadband</title>
          <page.no>35</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>14:56</time.stamp>
    <name role="metadata">Senator DEAN SMITH</name>
    <name.id>241710</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>My question is to the Minister for Regional Communications, Senator McKenzie. Can the minister update the Senate on what the coalition government is doing to deliver reliable internet to some of the most remote parts of Australia, including my home state of Western Australia?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:57</time.stamp>
    <name role="metadata">Senator McKENZIE</name>
    <name.id>207825</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>Thank you, Senator Smith, for your question and also for your deep and abiding interest in ensuring that your home state of WA is digitally connected. The coalition government are absolutely committed to connecting regional Australia, and no other party has delivered the telecommunications connectivity gains that we have since 2013. It is vital that regional Australians have the telecommunications infrastructure that they need to compete on the international stage when it comes to agriculture, trade, business and technology. That connectivity is so key to delivering the health services that rural and regional Australians deserve and need. Instantaneous telehealth support for our most isolated Australians, a key enabler, was part of our drought announcements last week, whether they are on farms or busy in small business, or they are families.</para>
<para>Telecommunications infrastructure is the next frontier of infrastructure investment that the National Party is focused on. It's as important as inland rail, highways and our ports. We've invested $1.9 billion to deliver the Sky Muster network, and this is an unprecedented investment in getting regional Australia connected. The carbon satellites are state of the art and deliver download speeds of at least 25 megabits per second. This government will not let regional Australia fall behind in this vital area. It's the next big ticket for our economic growth. This government is committed to providing homes and businesses with the same service in areas that traditional fibre technology can't reach. Over 43 premises in regional WA are now connected, and the rollout of the NBN is 81 per cent complete in WA. Since this government took office, there have been an additional 59,000 premises able to access Sky Muster. This means that no matter where you live in the great state of Western Australia—a state so large that it's in the top 10 countries in the world on size—you can get connected. Connection means opportunities, it means innovations, it means education, it means local jobs.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Senator Smith, a supplementary question.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>14:59</time.stamp>
    <name role="metadata">Senator DEAN SMITH</name>
    <name.id>241710</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>Can the minister update the Senate on how the NBN Sky Muster satellite has improved under the coalition, particularly benefiting people in my home state of Western Australia?</para>
</speech>
<speech>
  <talker>
    <time.stamp>14:59</time.stamp>
    <name role="metadata">Senator McKENZIE</name>
    <name.id>207825</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>The coalition is committed to providing homes and businesses served by the Sky Muster satellites with access to peak wholesale download speeds of up to 25 megabits per second. In October 2017, NBN doubled the maximum monthly wholesale data limits for its satellite services and increased average peak data downloads by 50 per cent. Retailers have passed on the additional data at a minimal extra cost to consumers. As a former teacher myself, I want to draw the Senate's attention to NBN's distance education satellite. This is a product that provides a separate 25-down, five-up megabytes per second service with a monthly download limit of 50 gigabytes per student. Unlike the Western Australia Labor government, we actually value all students equally, no matter where they live, and our distance satellite supports our children in the far-flung corners of WA. Sky Muster supports these students. This is just a small example of how we are investing in technology that makes a difference.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>A final supplementary question, Senator Smith.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>15:00</time.stamp>
    <name role="metadata">Senator DEAN SMITH</name>
    <name.id>241710</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>Is the minister aware of any alternatives to the NBN Sky Muster satellite?</para>
</speech>
<speech>
  <talker>
    <time.stamp>15:00</time.stamp>
    <name role="metadata">Senator McKENZIE</name>
    <name.id>207825</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>Thank you, Senator Smith. Put simply, there is no viable alternative. Satellites are the most effective technology to deliver fast broadband in difficult-to-serve premises, including remote areas, and Australia has led the world since the 1960s with satellite technology. This is not an area that we simply set and forget; we're continually improving it, making sure that regional Australians have access to cutting-edge technology.</para>
<para>Today, 88,000 satellite dishes have been installed around Australia, providing homes and businesses access to much needed fast broadband. We created—I'll say it—one of the first national satellite communication systems in the world, which paved the way for the regional communications revolution. We are backing regional Australia through continual investment in digital— <inline font-style="italic">(Time expired)</inline></para>
<continue>
  <talker>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
  </talker>
  <para>I ask that further questions be placed on the <inline font-style="italic">Notice Paper</inline>.</para>
</continue>
</speech>
</subdebate.1></debate>
    <debate><debateinfo>
        <title>QUESTIONS WITHOUT NOTICE: TAKE NOTE OF ANSWERS</title>
        <page.no>36</page.no>
        <type>QUESTIONS WITHOUT NOTICE: TAKE NOTE OF ANSWERS</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Liberal Party Leadership</title>
          <page.no>36</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>15:02</time.stamp>
    <name role="metadata">Senator McALLISTER</name>
    <name.id>121628</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>I move:</para>
<quote><para class="block">That the Senate take note of the answers given by the Minister for International Development and the Pacific (Senator Fierravanti-Wells) and the Minister for Regional Communications (Senator McKenzie) to questions without notice asked by Senators McAllister and Gallacher today relating to the Turnbull Government.</para></quote>
<para>We saw something quite extraordinary in the chamber earlier today. The government introduced amendments to amend its own legislation, which used to seek to extend the tax cuts to the banks but now excludes the banks. Who would have thought it? Who would have thought that we would see this government turning its back on the two things which can truly be said to define it—a love of the banks and a love of corporate tax cuts. Unbelievable! These seemed to be the two issues that this government was willing to take any amount of political heat on to pursue. They resisted the royal commission until the banks had the good sense to understand that, unless they asked for one, unless they wrote a letter to the Prime Minister, this wouldn't come to an end. But now tax cuts for banks seem set to join the pile of policies that the Prime Minister has sacrificed to try and save himself.</para>
<para>Think about the republic. Just reflect for a moment on this. After the referendum, Mr Turnbull said, of the then Prime Minister John Howard, that he had broken the nation's heart. Now that Malcolm Turnbull is in the Lodge, what has he done? In the last 12 months he floated briefly the possibility of a plebiscite after Queen Elizabeth ceases her role. He was forced within 24 hours—within 24 hours!—to burst his own thought bubble, because he is willing to put aside anything and everything he believes in if a backbencher raises his or her voice against it.</para>
<para>On climate change Mr Turnbull once said:</para>
<quote><para class="block">Climate change is real, it is affecting us now, and it is having a particularly severe impact on Australia. And yet, right now, we have every resource available to us to meet the challenge of climate change except for one: and that is leadership.</para></quote>
<para>The Prime Minister used to say that he offered leadership on climate change. In fact, he crossed the floor 10 years ago to vote for the emissions trading scheme. He said, 'I will not lead a party that is less committed to climate change than me.' Well, not yesterday, because yesterday he capitulated again—again to those who had a fundamental beef with science, who urged him to drop any reference to the Paris commitments, to the commitments to emissions reduction, in his redesign of the energy system, and he just gave in. He gave in to save his own skin. What does this man stand for? I will tell you: he stands for absolutely nothing except himself. The only project that the Prime Minister has thrown himself into, without equivocating, without holding back, is himself—the Turnbull project—and despite this project consuming all of his political energy, he hasn't even done it that well. Thirty-five members of the Liberal Party party room don't want him as leader. If you add in the National Party, it starts to become a much bigger number indeed. But even for the Liberal Party that's 41 per cent of the party room, which is almost as much as the 55 per cent of Australians who don't want him as Prime Minister, according to the latest Ipsos poll.</para>
<para>It is often said of Mr Turnbull that he does not lack confidence—that he's possessed of extraordinary self-belief. Well, it is good that he has confidence in himself, because nobody else seems to at all. Today in question time we saw minister after minister falling over themselves to avoid saying that they supported him. Senator Fierravanti-Wells wouldn't even repeat his name. She couldn't even bring herself to say his name out loud when I asked her if she supported him and what he stands for.</para>
<para>I don't know where we go from here. How does the Prime Minister stand in the parliament without flinching, knowing that the member for Warringah and the member for Dickson are sitting behind him. Worse, how does he stand in front of the mirror, looking at himself and knowing that selling out everything—everything that he once believed in—doesn't seem to have won him a single vote from the Right. In fact, the great lesson in all of this is that the more you capitulate to the bullies, the more you give in, the more they ask for. You can never win by capitulating. I say this to Mr Turnbull: have the courage of your convictions and call an election.</para>
</speech>
<speech>
  <talker>
    <time.stamp>15:07</time.stamp>
    <name role="metadata">Senator IAN MACDONALD</name>
    <name.id>YW4</name.id>
    <electorate>Queensland</electorate>
  </talker>
  <para>I'm not quite sure what the republic and climate change had to do with the questions asked. But what I do know is that every minister who was asked indicated that they supported and continued to support the Prime Minister. As Senator Smith just whispered to me, if that's the strength of the attack by the Labor Party on a day like today, well, we're looking pretty good for the next election.</para>
<para>Sorry, Senator McAllister, I meant to start by congratulating you on your appointment as yet another shadow assistant minister. It's interesting that in opposition you can just keep appointing shadow assistant ministers. Is there anyone over that side—apart from you, Senator Watt, and I can understand why you haven't!—who doesn't have a job? When Mr Shorten has problems, when he knows Mr Albanese is snapping at his heels, what does he do? He buys off a few more members of the caucus by saying, 'Look, I will appoint you to an important job'—yet another shadow assistant minister. And so it goes. You can tell why Mr Shorten chose to do this today—I'm not quite sure. But clearly he is worried about Mr Albanese, and quite frankly I'm worried about Mr Albanese. I just hope you keep Mr Shorten there, because Mr Shorten guarantees us success at the next election, whereas Anthony Albanese, nice fellow, would be a good campaigner. I'm pleased you keep him well under wraps, and long may Mr Shorten continue appointing shadow assistant ministers. You might even get a job, Senator Watt! He must eventually get down there.</para>
<para>But it's interesting that the question of climate change was raised, because the CFMEU, which is not a union that I usually quote—Senator Wong's union, of course—I'm pleased to see has joined forces with the coalition, just as Michael O'Connor did back in 2004 in the forestry debates. I remember, as forestry minister, I sat with Michael O'Connor in the cabinet room and we plotted together to win the election so that we would create jobs for workers. That's what he was interested in, that's what I was interested in and that's what Prime Minister Howard was interested in.</para>
<para>But I see the CFMEU are now back on my side, on our side and on Mr Turnbull's side, saying that the Labor Party's 50 per cent renewable energy target is 'not realistic' and that Labor should instead be backing clean coal options. These are exactly the sorts of comments and urgings that I and most on my side have been making for some time, which I'm pleased to say will be part of the new National Energy Guarantee project as it comes forward. The newspaper report I have here by Jared Owens—I think it's from <inline font-style="italic">The Australian</inline>—said, quoting the CFMEU:</para>
<quote><para class="block">"The 50 per cent renewable target is not realistic. Whilst you can build solar and wind generation to achieve the target on paper, what do we expect is going to happen at night?" read the advice to Treasury, released under state Right to Information laws. "During the summer months it is still very warm into the evening … you will have high demand, no solar and potentially little wind generation."</para></quote>
<para>So you'll have to go with base-load clean coal power stations. I'm delighted that the CFMEU have come to that conclusion. If I recall correctly, I think the AWU is also on that trajectory. I wonder how my Queensland colleagues on the other side—Senator Chisholm and Senator Watt—are getting on in their Queensland caucus meetings now that the unions in Queensland are starting to understand that coal generation is important for their members. As we've been saying for years, it's all about jobs for working Australians and for the families of those working Australians. That's why we support a wide mix of energy, but we include clean coal in that. I wonder if the Labor Party is going to continue their opposition to that in the face of a strong campaign by the CFMEU and the AWU, and I think the ETU were also in on the same campaign. It's good to see the unions are eventually joining us in looking after jobs for Australians.</para>
</speech>
<speech>
  <talker>
    <time.stamp>15:12</time.stamp>
    <name role="metadata">Senator WATT</name>
    <name.id>245759</name.id>
    <electorate>Queensland</electorate>
  </talker>
  <para>It's good to see that Senator Macdonald has still not gotten over being dumped as a minister all those years ago and is still obsessed with people on this side of the chamber getting promotions. I do feel for you, Senator Macdonald. You never know—you're going to be around for a few more months, or maybe weeks—you might get looked after. There's going to be a reshuffle now that Peter Dutton has stood down. We know other ministers are probably going to have to stand down. Finally, your talents might be recognised by your party and you might rise to the lofty heights of assistant minister for something quite irrelevant.</para>
<para>Again today, on display here in Canberra, we've seen what an utter shambles the Turnbull LNP government has become. The Longman by-election was only a small number of weeks ago, but ever since that night this government has been absolutely falling apart. I was very pleased to be at the Longman election night party with a number of my colleagues when we pulled home a great win—and, again, congratulations to Susan Lamb and all of her team for winning that by-election. You could actually feel the temperature change; you could feel the atmosphere change in Australian politics that night when, after months of pressure on our side of the politics, we actually came through. The people of Longman were good enough to return Susan Lamb as the member for that electorate, and all of a sudden the pressure was back on the government, having lost the by-elections. And have they not coped! Haven't they fallen apart ever since that by-election loss that night! They were immediately at each other's throats and immediately worrying about their primary vote falling below 30 per cent. Then it spilled into their policies about energy. Then it spilled into who should be their leader. Ever since that night they have not been able to hold a single policy together or stand together on any matter whatsoever.</para>
<para>We saw it reflected again here today in question time, when Senator Fierravanti-Wells was unable and unwilling to say who she had voted for in this morning's leadership ballot. She was given an opportunity to assure the Senate that she had stuck by her Prime Minister and voted for Mr Turnbull in that leadership ballot, but she refused to take that opportunity and refused to say who she voted for. We can only assume that she was one of the 35 people who voted for Mr Dutton, and I expect that before too long we should see her resignation as a minister if she so lacks confidence in Mr Turnbull. She was so unwilling to back Mr Turnbull as the leader of the Liberal Party that, when asked what the point of Mr Turnbull was, not only could she not give us one example of anything that Mr Turnbull has done as Prime Minister but she couldn't even begin to use his name, could not let the words 'Malcolm Turnbull' cross her lips. That's how far she wanted to be removed from this dying and mortally wounded Prime Minister.</para>
<para>We then moved to Senator McKenzie, the Deputy Leader of the National Party, who was asked about reports from her own side of politics that the health minister, Mr Hunt, had not only voted for Mr Dutton but was also planning to stand for Deputy Prime Minister as his running mate. This is the Mr Hunt who not that long ago was swearing at and scaring older women who hold elected positions in the Northern Territory. She wouldn't take the opportunity to say where Mr Hunt lined up. More importantly, as the Deputy Leader of the National Party, she would not reveal whether the National Party stands behind the Prime Minister, Mr Turnbull, at this point in time. We know that Mr Turnbull has only barely hung on as the Leader of the Liberal Party, and we're starting to find out from comments by Senator McKenzie and in the media today by the member for Capricornia, Michelle Landry, that they want to see a leadership change as well.</para>
<para>Unfortunately all of this shows that the Liberal and National Party members of parliament in this place have completely forgotten why they are here: to work hard for people back in their electorates and home states. They have become so desperate to hang on to their own jobs that 35 members of the parliamentary Liberal Party today voted for Mr Dutton—a man who has been voted the worst health minister in Australia's history, who cut hospital and dental funding and tried to introduce a GP tax—to become their new leader. This is the best person this party has to offer as an alternative to Malcolm Turnbull as their leader.</para>
<para>Fortunately, back in Queensland there is one candidate focused on the real issues facing Dickson. Her name is Ali France. She is already out there knocking on doors to win back the seat and provide people with the representation they deserve. <inline font-style="italic">(Time expired)</inline></para>
</speech>
<speech>
  <talker>
    <time.stamp>15:17</time.stamp>
    <name role="metadata">Senator COLBECK</name>
    <name.id>00AOL</name.id>
    <electorate>Tasmania</electorate>
  </talker>
  <para>We see from the opposition a complete failure of leadership. All they can do is throw slurs backwards and forwards across the chamber. That's what the Labor Party, particularly Senator Watt, has been reduced to: not really interested in doing anything other than casting aspersions on other members of the parliament, regardless of their considerable contributions to the Australian people. If you look at the achievements of the Australian government since we were elected in 2013 but particularly since the election in 2016, you'll find that this government has delivered and continues to deliver for the Australian people. Over one million Australians are in new jobs since we came to government in 2013. Strong economic management and leadership, despite all the other circumstances we've had to manage over the last five years, have put us in a strong position economically, where the Australian economy has created over one million jobs, 770,000 of which were created since September 2015 and 339,000 in the last 12 months. It's one of the best periods of jobs growth on record.</para>
<para>In my patch, where jobs are important, that sort of economic leadership makes a difference. During the Braddon by-election campaign, in which I participated quite closely, over a period of three weeks 800 new jobs were announced, which shows that there is business and economic confidence in the community. The biggest threat to that is the complete failure of leadership from the Labor Party. They no longer believe the things that they believed while in government.</para>
<para>I watched Bill Shorten on a polling booth. He stood there for 30 minutes and nobody wanted to talk to him. He spoke to three people in 30 minutes—</para>
<interjection>
  <talker>
    <name role="metadata">Senator Carol Brown</name>
    <name.id>F49</name.id>
  </talker>
  <para>That's not true—</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator COLBECK</name>
    <name.id>00AOL</name.id>
  </talker>
  <para>You weren't there, Senator; I was. Three people spoke to him in 30 minutes. In fact, one of them turned around and abused him as she walked away. She wasn't impressed with Mr Shorten. While Mr Turnbull was walking with us through the streets of Ulverstone, taking selfies and welcoming people outside their stores, Mr Shorten was sitting on his own outside Banjo's in the mall in Devonport. Nobody wanted to talk to him. The business community in Devonport spoke with their feet—in fact, with their wallets.</para>
<para>When the Devonport Chamber of Commerce invited businesses to come and speak to Mr Shorten—with three weeks notice of when Mr Shorten was coming to Devonport for a business lunch—15 people signed up. The Devonport Chamber of Commerce even warned the Labor Party a week and a half out that they had only 15 people who wanted to come and see him. They did nothing about it. The function was downgraded to the downstairs unit as a working lunch over sandwiches. The Labor Party, obviously, did a bit of a ring around the night before and they got it back to 30, which was the benchmark to move back upstairs into the restaurant.</para>
<para>A similar event for the Prime Minister was sold out in 24 hours. People came in to speak to the Prime Minister to understand our policies.</para>
<para class="italic">Senator Chisholm interjecting—</para>
</continue>
<continue>
  <talker>
    <name role="metadata">Senator COLBECK</name>
    <name.id>00AOL</name.id>
  </talker>
  <para>What happened at the by-election? Effectively a zero swing. It's a very different circumstance to Queensland. But I can tell you there is no interest in Mr Shorten, and that's because he no longer believes the things he said in government. He will not repeat the statements that he made in government.</para>
<para>He used to believe in tax cuts for business. He doesn't now. He used to believe in a whole range of things that would benefit the Australian economy, but now, for purely crass political purposes, he just walks away from that. He has sold out. He doesn't believe in workers, he doesn't believe in growth of the economy and he doesn't believe in the things that will make a difference. All he's interested in is cheap, nasty political pointscoring. That's all he's interested in. He's like Senator Watt. That's all he's interested in doing—nothing constructive, just cheap, nasty political pointscoring, like Senator Watt. Unfortunately, Senator Watt gets a bit tetchy about these things but that's the life of this place. We have a record of delivering for the Australian people, much unlike the ALP.</para>
</continue>
</speech>
<speech>
  <talker>
    <time.stamp>15:22</time.stamp>
    <name role="metadata">Senator CHISHOLM</name>
    <name.id>39801</name.id>
    <electorate>Queensland</electorate>
  </talker>
  <para>I would ask that Senator Colbeck check the scoreboard, because the scoreboard in Braddon told a completely different story. We know that Justine Keay is sitting as the member for Braddon. We know, as Senator Watt talked about, the great result in Longman. For what we've seen over the last few days, I have got three words that I want to use. Over Friday and the weekend, we had the capitulation. Then today we had the humiliation and what we're seeing is the consequence of this, a debilitating effect on the Australian government. There are so many policy issues that give cause to the effect of this, that are going to have an impact and that need to be highlighted. What also needs to be highlighted is the Prime Minister's role in how this has played out over the last 12 months and, indeed, the five years of a Turnbull-Abbott government.</para>
<para>When you look at energy policy, the fact is that they have been working on it for 12 months and the sole No. 1 aim of their energy policy was to get it through the backbench. That was their No. 1 aim. Everything else—families, Australians and workers—came a distant second, third and fourth. Their No. 1 aim was to come up with an energy policy and get it through their caucus room, and they failed at that. They have been working on it for 12 months and still we are no clearer today as to what their energy policy is. That's in this chamber, let alone what Australian people think of this—Australian families, Australian businesses and those workers who rely on and need energy for their workplace to create jobs and to support their families, which is so important. With this mob opposite, despite having been in government for five years and despite having been working on this policy for 12 months, here we are today none the wiser and seven votes off Peter Dutton becoming Prime Minister. This is the sad state of affairs. We saw the capitulation from the Prime Minister over the last four days. It is a really sad state of affairs for something that he has been saying was his signature policy. We sit here today none the wiser.</para>
<para>We also know the moves that he made at the end of last year and the beginning of this year to secure his leadership. He went down the path of getting rid of former Senator Brandis overseas so Senator Cormann could take over. He created the Home Affairs portfolio to keep Peter Dutton in check. Here we are, eight months on, and that has all blown apart. Peter Dutton is on the backbench. There's going to have to be a new home affairs minister. Every trick and manoeuvre that Malcolm Turnbull as Prime Minister made to keep his government and hold them together has been blown apart—and the actual losers in this have been the Australian people.</para>
<para>We know the government can't piece together an energy policy. The only thing that unites them is giving a tax cut to big banks and big business. That's the only thing that is keeping these guys together: the fact that they want to fork out money to big business and their corporate partners, because that is something that unites them. What we saw during the by-elections—what we saw in Braddon; what we saw in Longman—is that the Australian people rejected them. And the Australian people are increasingly losing faith in the government.</para>
<para>I think you've got to compare where they are when it comes to tax with where they are on energy. The backbench are so disunited when it comes to energy policy, but, when you compare that to where they are on tax policy, they are hand-over-fist eager to support big business and the big banks. Yet, when it comes to looking after Australian families and Australian businesses, ensuring that they can get ahead on energy policy, they just fight like cats. They are not putting the Australian people first when it comes to the important policy areas.</para>
<para>This comes to how debilitating this is for the government. It is absolute dysfunction and chaos when it comes to policy. We know that they're seven votes away from having Peter Dutton as Prime Minister. Imagine if an empty chair had run today. How many votes would an empty chair have got versus Malcolm Turnbull as Prime Minister?</para>
<para>The reality is that they are a government that are rudderless. The Australian people are seeing through them. They are a government now without an agenda. They don't have an agenda when it comes to the economy. They don't have an agenda when it comes to energy. On two of the most important issues that the government have been saying that they have been working to tackle now for months and years, they do not have an agenda. They have absolutely no direction from the Prime Minister, someone who has been humiliated through the course of today, and the government are suffering as a result.</para>
<para>The Australian people will come to the only conclusion that is necessary, and that's to send these guys to opposition, because that's the only way they are going to be able to sort out their problems. They have no faith in their ability to govern. They need to send them to opposition to sort out their problems. <inline font-style="italic">(Time expired)</inline></para>
<para>Question agreed to.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Climate Change</title>
          <page.no>40</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>15:27</time.stamp>
    <name role="metadata">Senator HANSON-YOUNG</name>
    <name.id>I0U</name.id>
    <electorate>South Australia</electorate>
  </talker>
  <para>I move:</para>
<quote><para class="block">That the Senate take note of the answer given by the Minister for Finance (Senator Cormann) to a question without notice asked by Senator Hanson-Young today relating to climate change policy.</para></quote>
<para>I rise to take note of the answer by Senator Cormann to my question today, which goes right to the heart of what is wrong with this government. Yesterday's decision by the current Prime Minister, Malcolm Turnbull, was to abandon any real moves to tackle climate change or to reduce carbon emissions—to reduce the target that ensured that there was a direction and certainty for not just Australians who want action on climate change but business that relies on that certainty as well. That decision by the current Prime Minister, Malcolm Turnbull, to absolutely abandon the environment and climate action has just broken the hearts of people right across this nation.</para>
<para>This Prime Minister has been on thin ice when it comes to climate action for quite some time, despite the fact that back in 2009, of course, he said that he wouldn't lead a government or a party that didn't take climate change seriously. Well, I wonder what he's still doing there. What on earth is he still doing there? What on earth is the point of being the Prime Minister of the country if everything that you have ever stood for now doesn't matter—if you capitulate, if you sell out, if you sell your soul in order to keep the job?</para>
<para>Where is the legacy of Malcolm Turnbull and the Liberal Party right now when it comes to climate action? It is nowhere—missing—and our entire planet continues to burn. There are 117 bushfires across the nation today, and we're not even close to summer. We're still in winter. It's freezing here in Canberra, yet there are 117 bushfires raging across the country. New South Wales is now declared 100 per cent in drought, the Murray-Darling Basin is running to a trickle and the Great Barrier Reef is in collapse.</para>
<para class="italic">Senator Williams interjecting—</para>
<continue>
  <talker>
    <name role="metadata">Senator HANSON-YOUNG</name>
    <name.id>I0U</name.id>
  </talker>
  <para>I hear members of the National Party interjecting as I speak on this, because they are so in denial about the truth of climate change. Senator Williams and the National Party would prefer to bury their head in the sand, sell out farming communities right across this nation, because they don't want to admit that the pollution in the atmosphere, the impact that we are having on the planet, is making climate change across the globe and across this country worse. If they had any real integrity they would stand up and say to regional communities, 'Yes, we know you're hurting, and we know that there is a drought on and we know that it is being made worse because of the warming climate.' That's what the science says. But of course the National Party and the right-wing rump of the Liberal Party are obsessed with climate change denial. And it is this rump—these anti-science, anti-planet, anti-people coal junkies—who are now calling the shots inside Malcolm Turnbull's party.</para>
<para>We don't know how long Malcolm Turnbull will be the Prime Minister. It's anyone's guess. It could be 12 hours, it could be 24 hours, it could be a week or it could be three months. But we do know that if it's left to the Liberal-National parties then this country is never going to get serious about tackling climate change and doing what it needs to do to protect the environment. They live in denial. They deny the science, they sell out rural and regional communities and they're letting our planet burn. This Prime Minister said he cared about climate action. He's weak. He's capitulated. He's a sellout. <inline font-style="italic">(Time expired)</inline></para>
<para>Question agreed to.</para>
</continue>
</speech>
</subdebate.1></debate>
    <debate><debateinfo>
        <title>NOTICES</title>
        <page.no>41</page.no>
        <type>NOTICES</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Withdrawal</title>
          <page.no>41</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>15:33</time.stamp>
    <name role="metadata">Senator PATRICK</name>
    <name.id>144292</name.id>
    <electorate>South Australia</electorate>
  </talker>
  <para>I withdraw general business notice of motion No. 976 standing in my name for today.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Presentation</title>
          <page.no>41</page.no>
        </subdebateinfo></subdebate.1></debate>
    <debate><debateinfo>
        <title>COMMITTEES</title>
        <page.no>43</page.no>
        <type>COMMITTEES</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Reporting Date</title>
          <page.no>43</page.no>
        </subdebateinfo></subdebate.1><subdebate.1><subdebateinfo>
          <title>Community Affairs References Committee</title>
          <page.no>44</page.no>
        </subdebateinfo><subdebate.2><subdebateinfo>
            <title>Reference</title>
            <page.no>44</page.no>
          </subdebateinfo><speech>
  <talker>
    <time.stamp>15:33</time.stamp>
    <name role="metadata">Senator URQUHART</name>
    <name.id>231199</name.id>
    <electorate>Tasmania</electorate>
  </talker>
  <para>At the request of Senator Watt, I move:</para>
<quote><para class="block">That the following matter be referred to the Community Affairs References Committee for inquiry and report by 28 November 2018:</para></quote>
<quote><para class="block">Support for Australia's thalidomide survivors, with particular reference to:</para></quote>
<quote><para class="block">(a) adequacy of compensation and support;</para></quote>
<quote><para class="block">(b) responsibility for providing support;</para></quote>
<quote><para class="block">(c) provision of financial compensation;</para></quote>
<quote><para class="block">(d) the role of the Australian Government in compensation and support; and</para></quote>
<quote><para class="block">(e) any related matters.</para></quote>
<para>Question agreed to.</para>
</speech>
</subdebate.2></subdebate.1><subdebate.1><subdebateinfo>
          <title>Legal and Constitutional Affairs Legislation Committee</title>
          <page.no>44</page.no>
        </subdebateinfo><subdebate.2><subdebateinfo>
            <title>Reference</title>
            <page.no>44</page.no>
          </subdebateinfo><speech>
  <talker>
    <time.stamp>15:34</time.stamp>
    <name role="metadata">Senator URQUHART</name>
    <name.id>231199</name.id>
    <electorate>Tasmania</electorate>
  </talker>
  <para>I ask that Senator McKim's name also be added to business of the Senate notice of motion No. 2 standing in the name of Senator Collins.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>It is so recorded.</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator URQUHART</name>
    <name.id>231199</name.id>
  </talker>
  <para>At the request of Senator Collins and Senator McKim, I move:</para>
<quote><para class="block">That the Migration (Validation of Port Appointment) Bill 2018 be referred to the Legal and Constitutional Affairs Legislation Committee for inquiry and report by 10 September 2018.</para></quote>
<para>Question agreed to.</para>
</continue>
</speech>
</subdebate.2></subdebate.1></debate>
    <debate><debateinfo>
        <title>BUSINESS</title>
        <page.no>44</page.no>
        <type>BUSINESS</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Rearrangement</title>
          <page.no>44</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>15:34</time.stamp>
    <name role="metadata">Senator McGRATH</name>
    <name.id>217241</name.id>
    <electorate>Queensland</electorate>
  </talker>
  <para>On behalf of Senator Birmingham, I move:</para>
<quote><para class="block">That consideration of the business before the Senate on Tuesday, 21 August 2018 be interrupted at approximately 5 pm, but not so as to interrupt a senator speaking, to enable Senator Faruqi to make her first speech without any question before the chair.</para></quote>
<para>Question agreed to.</para>
</speech>
</subdebate.1></debate>
    <debate><debateinfo>
        <title>DOCUMENTS</title>
        <page.no>44</page.no>
        <type>DOCUMENTS</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Great Barrier Reef Foundation</title>
          <page.no>44</page.no>
        </subdebateinfo><subdebate.2><subdebateinfo>
            <title>Order for the Production of Documents</title>
            <page.no>44</page.no>
          </subdebateinfo><speech>
  <talker>
    <time.stamp>15:35</time.stamp>
    <name role="metadata">Senator URQUHART</name>
    <name.id>231199</name.id>
    <electorate>Tasmania</electorate>
  </talker>
  <para>At the request of Senator Keneally, I move:</para>
<quote><para class="block">That there be laid on the table by the Minister representing the Minister for the Environment and Energy (Senator Birmingham), by no later than 10 am on 10 September 2018, documents held by the Department of the Environment and Energy that demonstrate that, before the grant of $444 million to the Great Barrier Reef Foundation (the Foundation) was approved:</para></quote>
<quote><para class="block">(a) due diligence was carried out on the Foundation; and</para></quote>
<quote><para class="block">(b) evidence was provided of the capacity of the Foundation to manage a grant of this size and to reduce its administration costs by approximately 50%.</para></quote>
<para>Question agreed to.</para>
</speech>
</subdebate.2></subdebate.1></debate>
    <debate><debateinfo>
        <title>MOTIONS</title>
        <page.no>44</page.no>
        <type>MOTIONS</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Love Your Body Week</title>
          <page.no>44</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>15:36</time.stamp>
    <name role="metadata">Senator URQUHART</name>
    <name.id>231199</name.id>
    <electorate>Tasmania</electorate>
  </talker>
  <para>At the request of Senator O'Neill, I move:</para>
<quote><para class="block">That the Senate:</para></quote>
<quote><para class="block">(a) notes that:</para></quote>
<quote><para class="block">   (i) Love Your Body Week is from 3 to 9 September 2018 and is Butterfly's annual awareness campaign, supported by Sportsgirl, to help boost young people's body confidence,</para></quote>
<quote><para class="block">   (ii) Love Your Body Week encourages everyone to change appearance‑based conversations at school, home, work and online, and</para></quote>
<quote><para class="block">   (iii) during this time, schools and youth organisations across Australia will work to help promote body acceptance and to celebrate diversity;</para></quote>
<quote><para class="block">(b) calls on all levels of government and the community to work together to address social and cultural norms that contribute to body image concerns, especially among young people; and</para></quote>
<quote><para class="block">(c) encourages anyone needing support with eating disorders or body image issues to contact Butterfly's National Helpline on 1800 ED HOPE (33 4673).</para></quote>
<para>Question agreed to.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>World Humanitarian Day</title>
          <page.no>45</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>15:36</time.stamp>
    <name role="metadata">Senator URQUHART</name>
    <name.id>231199</name.id>
    <electorate>Tasmania</electorate>
  </talker>
  <para>At the request of Senators Singh and Moore, I move:</para>
<quote><para class="block">That the Senate:</para></quote>
<quote><para class="block">(a) notes that 19 August 2018 was World Humanitarian Day, and this year's theme is #NotATarget, recognising that humanitarian workers should not be targeted in conflict;</para></quote>
<quote><para class="block">(b) acknowledges the millions of civilians around the world whose lives have been caught up in conflict;</para></quote>
<quote><para class="block">(c) honours the brave health and aid workers who are targeted or obstructed from delivering appropriate aid to people in need; and</para></quote>
<quote><para class="block">(d) pays tribute to the government employees, members of civil society and representatives of international organisations and agencies who risk their lives to provide humanitarian aid and protection.</para></quote>
<para>Question agreed to.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Australian Bravery Decorations</title>
          <page.no>45</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>15:36</time.stamp>
    <name role="metadata">Senator WILLIAMS</name>
    <name.id>I0V</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>I move:</para>
<quote><para class="block">That the Senate:</para></quote>
<quote><para class="block">(a) notes the announcement of the Australian Bravery Decorations by the Governor-General, among which:</para></quote>
<quote><para class="block">   (i) 1 person has received the Star of Courage for acts of conspicuous courage in circumstances of great peril,</para></quote>
<quote><para class="block">   (ii) 18 people have received the Bravery Medal for acts of bravery in hazardous circumstances,</para></quote>
<quote><para class="block">   (iii) 40 people have received the Commendation for Brave Conduct for acts of bravery considered worthy of recognition, and</para></quote>
<quote><para class="block">   (iv) 8 members of the Queensland Police Force, and 4 members of the New South Wales Police Force have received Group Bravery Citations for a collective act of bravery, by a group of persons in extraordinary circumstances, that is considered worthy of recognition; and</para></quote>
<quote><para class="block">(b) congratulates all recipients and every unnamed Australian who has assisted others in times of emergency.</para></quote>
<para>Question agreed to.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Lyons, Dame Enid Muriel, AD, GBE, Tangney, Dame Dorothy Margaret, DBE</title>
          <page.no>45</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>15:37</time.stamp>
    <name role="metadata">Senator HUME</name>
    <name.id>266499</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>I ask that Senator Urquhart's name be added to government business notice of motion No. 988 standing in my name.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>It is so added.</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator HUME</name>
    <name.id>266499</name.id>
  </talker>
  <para>I, and also on behalf of Senators Pratt and Urquhart, move:</para>
<quote><para class="block">That the Senate:</para></quote>
<quote><para class="block">(a) notes that 21 August 2018 marks the 75th anniversary of the election of the first woman to the House of Representatives, Dame Enid Lyons, in the Tasmanian electorate of Darwin, and Dame Dorothy Tangney, also elected that same year as a senator for Western Australia and the first Australian woman to the Australian Senate;</para></quote>
<quote><para class="block">(b) acknowledges the statements made by Dame Enid Lyons in her first speech, that her election was 'an occasion which, for every woman in the Commonwealth, marks in some degree a turning point in history'; and the statement of Dame Dorothy Tangney who stated 'I ... realise my great honour in being the first woman to be elected to the Senate. But it is not as a woman that I have been elected to this chamber. It is as a citizen of the Commonwealth; and I take my place here with the full privileges and rights of all honourable senators, and, what is still more important, with the full responsibilities which such a high office entails';</para></quote>
<quote><para class="block">(c) notes that Dame Enid Lyons went on to become the first woman to serve in the cabinet and, since that time, women have served in leadership roles, including committee chairs, Chief Government Whips, Speaker of the House of Representatives, President of the Senate, ministers and Prime Minister of Australia;</para></quote>
<quote><para class="block">(d) notes Dame Dorothy Tangney's advocacy for the welfare of women and children, education, health and the living standards of working people; and</para></quote>
<quote><para class="block">(e) recognises that by their determination, Dame Enid Lyons and Dame Dorothy Tangney paved the way for women to seek election, to hold leadership positions in the Parliament, and to become the head of an Australian Government.</para></quote>
<para>Question agreed to.</para>
</continue>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Energy</title>
          <page.no>46</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>15:38</time.stamp>
    <name role="metadata">Senator URQUHART</name>
    <name.id>231199</name.id>
    <electorate>Tasmania</electorate>
  </talker>
  <para>At the request of Senator Chisholm, I move:</para>
<quote><para class="block">That the Senate calls on the Federal Government to implement an energy policy that both:</para></quote>
<quote><para class="block">(a) lowers energy prices for both households and businesses; and</para></quote>
<quote><para class="block">(b) incorporates Australia's emission reduction targets to meet Australia's Paris commitments.</para></quote>
<para>Question agreed to.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>India: Floods</title>
          <page.no>46</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>15:38</time.stamp>
    <name role="metadata">Senator URQUHART</name>
    <name.id>231199</name.id>
    <electorate>Tasmania</electorate>
  </talker>
  <para>At the request of Senators Wong and Singh, I move:</para>
<quote><para class="block">That the Senate:</para></quote>
<quote><para class="block">(a) expresses its deepest sympathy to the people affected by the devastating floods in southern India's Kerala state;</para></quote>
<quote><para class="block">(b) notes that more than 350 people have died, and 800,000 have been displaced by one of the worst floods in the history of Kerala, and that aid agencies are reporting massive destruction and fears that the death toll could climb, as hundreds of thousands are denied access to clean water, sanitation and food and shelter;</para></quote>
<quote><para class="block">(c) acknowledges the generous efforts by the Indian community in Australia, and the wider diaspora, to assist with the relief effort, and offers support and sympathy to the Australian Indian community as they respond to this unprecedented natural disaster;</para></quote>
<quote><para class="block">(d) acknowledges the significant response effort underway by the Indian authorities; and</para></quote>
<quote><para class="block">(e) calls on the Australian Government to provide any assistance the Indian Government may require to help the people of Kerala in their immediate hour of need, and in the longer term, to recover from this disaster and rebuild their homes and their lives.</para></quote>
</speech>
<speech>
  <talker>
    <time.stamp>15:38</time.stamp>
    <name role="metadata">Senator McGRATH</name>
    <name.id>217241</name.id>
    <electorate>Queensland</electorate>
  </talker>
  <para>I seek leave to make a short statement.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Leave is granted for one minute.</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator McGRATH</name>
    <name.id>217241</name.id>
  </talker>
  <para>The Australian government extends its deepest sympathy to those affected by flooding in southern India. The government expresses our condolences at the loss of life and damage caused by the flooding. We stand ready to provide humanitarian assistance, should it be requested.</para>
<para>Question agreed to.</para>
</continue>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Global Citizen</title>
          <page.no>46</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>15:39</time.stamp>
    <name role="metadata">Senator URQUHART</name>
    <name.id>231199</name.id>
    <electorate>Tasmania</electorate>
  </talker>
  <para>I ask that Senator Rice's name be added to government business notice of motion No. 986 standing in the name of Senator Moore.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>It is so added.</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator URQUHART</name>
    <name.id>231199</name.id>
  </talker>
  <para>At the request of Senators Moore and Rice, I move:</para>
<quote><para class="block">That the Senate:</para></quote>
<quote><para class="block">(a) notes:</para></quote>
<quote><para class="block">   (i) the work of the organisation Global Citizen, which is a movement of engaged citizens who work towards ending extreme poverty and empowering girls and women,</para></quote>
<quote><para class="block">   (ii) that on 16 August 2018, Global Citizen launched the #SheisEqual campaign in Brisbane, which calls on citizens around the world to stand up for female empowerment and gender equality and ensure opportunities for girls and women everywhere, and</para></quote>
<quote><para class="block">   (iii) Australia's commitment to the Sustainable Development Goals, in particular SDG5, which concerns the pursuit of gender equality, and the focus of gender equality in Australia's International Development Program;</para></quote>
<quote><para class="block">(b) acknowledges:</para></quote>
<quote><para class="block">   (i) that in order for Australia to prosper, women need to be empowered to take up opportunities,</para></quote>
<quote><para class="block">   (ii) the importance of empowering women and girls across the world to ensure that they are able to receive health, education and not be discriminated against, and</para></quote>
<quote><para class="block">   (iii) the significant work of Global Citizen in creating a network of passionate individuals who work to end extreme poverty throughout the world; and</para></quote>
<quote><para class="block">(c) calls on the Federal Government to:</para></quote>
<quote><para class="block">   (i) acknowledge the importance of supporting health, education and opportunities for women, both in Australia and around the world, and</para></quote>
<quote><para class="block">   (ii) support the goals of the Global Citizen #SheisEqual movement, including:</para></quote>
<quote><para class="block">(A) women's economic empowerment,</para></quote>
<quote><para class="block">(B) ending gender discrimination in the law,</para></quote>
<quote><para class="block">(C) girls' education, including in emergencies, and</para></quote>
<quote><para class="block">(D) ending hunger and malnutrition for women and girls.</para></quote>
<para>Question agreed to.</para>
</continue>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Annan, Mr Kofi, Myanmar</title>
          <page.no>47</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>15:39</time.stamp>
    <name role="metadata">Senator GRIFF</name>
    <name.id>76760</name.id>
    <electorate>South Australia</electorate>
  </talker>
  <para>I move:</para>
<quote><para class="block">That the Senate:</para></quote>
<quote><para class="block">(a) acknowledges the passing of Kofi Annan on 18 August 2018, and expresses its condolences to his family;</para></quote>
<quote><para class="block">(b) notes that 19 August 2018 marked World Humanitarian Day, which is a day that honours all humanitarian and United Nations, and associated personnel, who have worked in the promotion of the humanitarian cause and those who have lost their lives in the cause of duty;</para></quote>
<quote><para class="block">(c) recognises the significant contribution made by Kofi Annan in recognising and defending the human rights of people across the world during his tenure as Secretary-General of the United Nations;</para></quote>
<quote><para class="block">(d) further notes that:</para></quote>
<quote><para class="block">   (i) Kofi Annan served as Chair of the Advisory Commission on Rakhine State—the Commission was a neutral and impartial body which sought to improve the welfare of all people in Rakhine State,</para></quote>
<quote><para class="block">   (ii) in his role as Chair, Kofi Annan strongly condemned the attacks in Rakhine State and urged security forces to exercise restraint, and</para></quote>
<quote><para class="block">   (iii) the final report of the Advisory Commission called on the Myanmar Government to:</para></quote>
<quote><para class="block">(A) ensure that the return/relocation of displaced people be carried out in accordance with international standards, is voluntary, safe, and takes place in a dignified manner, and</para></quote>
<quote><para class="block">(B) ensure dignified living conditions in camps, including improved shelter, water and sanitation, education, and access to livelihood opportunities;</para></quote>
<quote><para class="block">(e) notes that nearly 700,000 Rohingya have fled violence and persecution in the northern Rakhine province of Myanmar since August 2017; and</para></quote>
<quote><para class="block">(f) calls on the Federal Government to assist the Myanmar Government to implement the recommendations of the final report of the Advisory Commission.</para></quote>
<para>Question agreed to.</para>
</speech>
</subdebate.1></debate>
    <debate><debateinfo>
        <title>DOCUMENTS</title>
        <page.no>47</page.no>
        <type>DOCUMENTS</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Commonwealth Environmental Water Holder</title>
          <page.no>47</page.no>
        </subdebateinfo><subdebate.2><subdebateinfo>
            <title>Order for the Production of Documents</title>
            <page.no>47</page.no>
          </subdebateinfo><speech>
  <talker>
    <time.stamp>15:40</time.stamp>
    <name role="metadata">Senator HANSON-YOUNG</name>
    <name.id>I0U</name.id>
    <electorate>South Australia</electorate>
  </talker>
  <para>I move:</para>
<quote><para class="block">That the Senate:</para></quote>
<quote><para class="block">(a) notes that:</para></quote>
<quote><para class="block">   (i) on 27 June 2018, the Senate agreed to an order for the production of documents (number 908), ordering that there be laid on the table by the Minister representing the Minister for Agriculture and Water Resources (Senator Canavan), by no later than 8 pm on 28 June 2018, documents provided as an incoming brief to the Commonwealth Environmental Water Holder, Ms Jody Swirepik, and</para></quote>
<quote><para class="block">   (ii) on 10 July 2018, Senator Canavan advised the President of the Senate that the Department of Agriculture and Water Resources did not provide an incoming brief to the Commonwealth Environmental Water Holder, Ms Jody Swirepik;</para></quote>
<quote><para class="block">(b) further notes that, in response to questions from Senator Patrick on 25 May 2018 during additional estimates hearings of the Rural and Regional Affairs and Transport Legislation Committee on cross-portfolio Murray-Darling Basin Plan matters, Ms Swirepik confirmed she had received an induction briefing prepared by the Commonwealth Environmental Water Office; and</para></quote>
<quote><para class="block">(c) orders that there be laid on the table by the Minister representing the Minister for Agriculture and Water Resources, by not later than 11am on 23 August 2018, all documents provided to the Commonwealth Environmental Water Holder, Ms Jody Swirepik, as an induction briefing, including its cover brief and all attachments</para></quote>
<para>Question agreed to.</para>
</speech>
</subdebate.2></subdebate.1><subdebate.1><subdebateinfo>
          <title>Department of Human Services</title>
          <page.no>48</page.no>
        </subdebateinfo><subdebate.2><subdebateinfo>
            <title>Order for the Production of Documents</title>
            <page.no>48</page.no>
          </subdebateinfo><speech>
  <talker>
    <time.stamp>15:40</time.stamp>
    <name role="metadata">Senator PATRICK</name>
    <name.id>144292</name.id>
    <electorate>South Australia</electorate>
  </talker>
  <para>I move:</para>
<quote><para class="block">That:</para></quote>
<quote><para class="block">(a) the Senate notes that:</para></quote>
<quote><para class="block">   (i) since 2013, the Department of Human Services (the Department) has had a program underway to upgrade its child support system ('Cuba')—the approved budget was $102 million,</para></quote>
<quote><para class="block">   (ii) during the 2015-16 financial year, the total budget was exhausted without the project being completed,</para></quote>
<quote><para class="block">   (iii) since the 2015-16 financial year, funding to complete the system has come from the Department's internal investment fund and ICT BAU budget,</para></quote>
<quote><para class="block">   (iv) in response to questions taken on notice during the inquiry of the Finance and Public Administration References Committee into digital delivery of government services, the Department advised that it was unable to determine how much had been spent on the project,</para></quote>
<quote><para class="block">   (v) in response to questions asked at Budget estimates, the Department could provide no indication of the total spend on the project or provide a target completion date, and</para></quote>
<quote><para class="block">   (vi) in response to a freedom of information request—Department Reference LEX 37339—the Department indicated there are 49 documents in existence that fit within the description of 'final versions of all formal executive briefings submitted to the Secretary, Department of Human Services between 1 July 2017 and 30 June 2018, where the topic of one or all of the executive briefings cover the cost, resource allocation and/or progress of the Child Support System redesign Programme'; and</para></quote>
<quote><para class="block">(b) there be laid on the table by the Minister representing the Minister for Human Services, by no later than 10 am on 10 September 2018, the 49 documents identified by the Department in FOI Department Reference LEX 37339.</para></quote>
</speech>
<speech>
  <talker>
    <time.stamp>15:40</time.stamp>
    <name role="metadata">Senator McGRATH</name>
    <name.id>217241</name.id>
    <electorate>Queensland</electorate>
  </talker>
  <para>I seek leave to make a short statement.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Leave is granted for one minute.</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator McGRATH</name>
    <name.id>217241</name.id>
  </talker>
  <para>The Department of Human Services is continuing to modernise child support business practices and ICT platforms. The government is committed to investing in technology solutions that improve the way that government interacts with Australians. We will continue to develop, enhance and modernise the child support ICT system to ensure we have services fit for future need. Pursuant to the Freedom of Information Act, Senator Patrick is able to enact his right to a review of the decision through a number of avenues that were listed in the decision letter he references in his motion. The parliament is not the appropriate forum to address freedom of information matters.</para>
</continue>
</speech>
<speech>
  <talker>
    <time.stamp>15:41</time.stamp>
    <name role="metadata">Senator PATRICK</name>
    <name.id>144292</name.id>
    <electorate>South Australia</electorate>
  </talker>
  <para>I seek leave to make a short statement.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Leave is granted for one minute.</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator PATRICK</name>
    <name.id>144292</name.id>
  </talker>
  <para>The Centre Alliance has no objection to improvements being made to the child support system. This motion stems, actually, from questions asked in Senate estimates asking for the cost. In fact, it goes back even further, to a Senate inquiry into digital services, where the department were simply unable to answer a question on how much they've spent on the system. I don't mind an upgrade, but it's irresponsible to not understand what resources have been assigned, how much money has been spent and when the system will be completed. In asking questions, and indeed in writing to the minister and getting no response, I've had to ask for an order for production of documents so that I can then inspect the project material myself. So I urge the Senate to support this motion.</para>
</continue>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>The question is that notice of motion No. 982 be agreed to.</para>
</interjection>
</speech>
<division>
            <division.header>
              <body>
                <p class="HPS-DivisionPreamble">The Senate divided. [15:46]<br />(The President—Senator Ryan) </p>
              </body>
            </division.header>
            <division.data>
              <ayes>
                <num.votes>39</num.votes>
                <title>AYES</title>
                <names>
                  <name>Anning, F</name>
                  <name>Bartlett, AJJ</name>
                  <name>Bernardi, C</name>
                  <name>Bilyk, CL</name>
                  <name>Brown, CL</name>
                  <name>Cameron, DN</name>
                  <name>Carr, KJ</name>
                  <name>Chisholm, A</name>
                  <name>Collins, JMA</name>
                  <name>Di Natale, R</name>
                  <name>Dodson, P</name>
                  <name>Farrell, D</name>
                  <name>Faruqi, M</name>
                  <name>Gallacher, AM</name>
                  <name>Griff, S</name>
                  <name>Hanson-Young, SC</name>
                  <name>Hinch, D</name>
                  <name>Keneally, KK</name>
                  <name>Ketter, CR</name>
                  <name>Leyonhjelm, DE</name>
                  <name>Marshall, GM</name>
                  <name>McAllister, J</name>
                  <name>McCarthy, M</name>
                  <name>McKim, NJ</name>
                  <name>Moore, CM</name>
                  <name>O'Neill, DM</name>
                  <name>Patrick, RL</name>
                  <name>Polley, H</name>
                  <name>Pratt, LC</name>
                  <name>Rice, J</name>
                  <name>Siewert, R</name>
                  <name>Singh, LM</name>
                  <name>Smith, DPB</name>
                  <name>Sterle, G</name>
                  <name>Storer, TR</name>
                  <name>Urquhart, AE (teller)</name>
                  <name>Watt, M</name>
                  <name>Whish-Wilson, PS</name>
                  <name>Wong, P</name>
                </names>
              </ayes>
              <noes>
                <num.votes>28</num.votes>
                <title>NOES</title>
                <names>
                  <name>Abetz, E</name>
                  <name>Birmingham, SJ</name>
                  <name>Bushby, DC (teller)</name>
                  <name>Canavan, MJ</name>
                  <name>Cash, MC</name>
                  <name>Colbeck, R</name>
                  <name>Duniam, J</name>
                  <name>Fawcett, DJ</name>
                  <name>Fierravanti-Wells, C</name>
                  <name>Fifield, MP</name>
                  <name>Gichuhi, LM</name>
                  <name>Hume, J</name>
                  <name>Macdonald, ID</name>
                  <name>Martin, S.L</name>
                  <name>McGrath, J</name>
                  <name>McKenzie, B</name>
                  <name>Molan, AJ</name>
                  <name>O'Sullivan, B</name>
                  <name>Paterson, J</name>
                  <name>Payne, MA</name>
                  <name>Reynolds, L</name>
                  <name>Ruston, A</name>
                  <name>Ryan, SM</name>
                  <name>Scullion, NG</name>
                  <name>Seselja, Z</name>
                  <name>Smith, DA</name>
                  <name>Stoker, AJ</name>
                  <name>Williams, JR</name>
                </names>
              </noes>
              <pairs>
                <num.votes>3</num.votes>
                <title>PAIRS</title>
                <names>
                  <name>Kitching, K</name>
                  <name>Sinodinos, A</name>
                  <name>Lines, S</name>
                  <name>Cormann, M</name>
                  <name>Steele-John, J</name>
                  <name>Brockman, </name>
                </names>
              </pairs>
            </division.data>
            <division.result>
              <body>
                <p class="HPS-DivisionFooter">Question agreed to.</p>
              </body>
            </division.result>
          </division></subdebate.2></subdebate.1></debate>
    <debate><debateinfo>
        <title>MOTIONS</title>
        <page.no>49</page.no>
        <type>MOTIONS</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Indigenous Affairs</title>
          <page.no>49</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>15:49</time.stamp>
    <name role="metadata">Senator SIEWERT</name>
    <name.id>e5z</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>I move:</para>
<quote><para class="block">That the Senate:</para></quote>
<quote><para class="block">(a) acknowledges the release of the report by Australian Institute of Health and Welfare and the Healing Foundation, <inline font-style="italic">Aboriginal and Torres Strait Islander Stolen Generations and descendants: Numbers, demographic characteristics and selected outcomes</inline>;</para></quote>
<quote><para class="block">(b) recognises:</para></quote>
<quote><para class="block">   (i) that the report found that Australia's Stolen Generations face long-term disadvantage for a range of measures, including poorer health and social outcomes, and</para></quote>
<quote><para class="block">   (ii) survivors of the Stolen Generations are three times more likely to have been imprisoned in the past five years;</para></quote>
<quote><para class="block">(c) acknowledges that the negative effects of forced removal are not limited to those directly removed; descendants also consistently experience poorer health and social outcomes; and</para></quote>
<quote><para class="block">(d) urges the Federal Government to urgently address the effects of unresolved intergenerational trauma, and implement a national reparations scheme for survivors of the Stolen Generations and their families.</para></quote>
<para>Question agreed to.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Regulation of Energy Retailers</title>
          <page.no>50</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>15:49</time.stamp>
    <name role="metadata">Senator DI NATALE</name>
    <name.id>53369</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>I move:</para>
<quote><para class="block">That the Senate:</para></quote>
<quote><para class="block">(a) acknowledges that deregulating energy retailing has enriched the big energy companies and has completely failed to benefit consumers;</para></quote>
<quote><para class="block">(b) notes that energy retailing is an inelastic market and that consumers do not actively exercise choice – the super profits reported last week by Origin, AGL and Energy Australia reflect this poorly functioning market;</para></quote>
<quote><para class="block">(c) supports fully re-regulating electricity prices as first proposed by The Greens in August 2017; and</para></quote>
<quote><para class="block">(d) calls on the Federal Government to ensure that the legislation introduced into Parliament regulating energy retailers is designed to benefit households that exercise no choice, in recognition that making no choice about electricity tariffs is an acceptable option for households to make.</para></quote>
<para>Question negatived.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Sustainable Hunting Practices</title>
          <page.no>50</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>15:50</time.stamp>
    <name role="metadata">Senator HINCH</name>
    <name.id>2O4</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>I seek leave to amend general business notice of motion No. 922 standing in my name for today relating to sustainable hunting practices.</para>
<para>Leave granted.</para>
<continue>
  <talker>
    <name role="metadata">Senator HINCH</name>
    <name.id>2O4</name.id>
  </talker>
  <para>I move the motion as amended:</para>
<quote><para class="block">That the Senate:</para></quote>
<quote><para class="block">(a) notes that:</para></quote>
<quote><para class="block">   (i) dugongs and sea turtles play an extremely important role in the ecological balance of Australia's marine life, particularly throughout the Great Barrier Reef,</para></quote>
<quote><para class="block">   (ii) the populations of both dugongs and sea turtles have declined significantly over the past 15 years,</para></quote>
<quote><para class="block">   (iii) population decline is due to cumulative pressures, such as ocean acidification, pollution, commercial fishing and other human impacts that include Indigenous hunting, and</para></quote>
<quote><para class="block">   (iv) dugongs and sea turtles are both long-lived, slow-breeding and migratory species, meaning recovery from population decline can take many years;</para></quote>
<quote><para class="block">(b) recognises:</para></quote>
<quote><para class="block">   (i) the right of Indigenous Australians to hunt these species under section 211 of the <inline font-style="italic">Native Title Act 1993</inline>,</para></quote>
<quote><para class="block">   (ii) the cultural significance traditional hunting practices have for Indigenous communities,</para></quote>
<quote><para class="block">   (iii) that, while hunting rights are not restricted to non-commercial purposes (<inline font-style="italic">Akiba v Commonwealth</inline> [2013]), native title was envisaged for satisfying personal and communal needs, not to allow for the black‑market trade of meat from these critically threatened species, and</para></quote>
<quote><para class="block">   (iv) that 'regulation of the Native Title right is not inconsistent with the continued existence of that right' (<inline font-style="italic">Akiba v Commonwealth</inline> [2013]);</para></quote>
<quote><para class="block">(c) acknowledges:</para></quote>
<quote><para class="block">   (i) Indigenous clans, such as the Wulgurukaba people from the Townsville region, who have adopted sustainable take practices that include self-imposed quotas and cultural measures against poaching, and</para></quote>
<quote><para class="block">   (ii) collaborative efforts between Indigenous clans, such as the Ipima Ikaya Aboriginal Corporation, who recently implemented a moratorium on the hunting of dugongs on the Cape York Peninsula while they a develop a sustainable management plan;</para></quote>
<quote><para class="block">(d) encourages other Indigenous clans to cease hunting of dugongs and sea turtles until sustainable management plans can be implemented; and</para></quote>
<quote><para class="block">(e) calls on the Federal Government to:</para></quote>
<quote><para class="block">   (i) increase funding for Indigenous ranger programs on the Great Barrier Reef,</para></quote>
<quote><para class="block">   (ii) assist in facilitating an Indigenous, Elder-led approach to making traditional hunting practices more sustainable, and</para></quote>
<quote><para class="block">   (iii) ensure that the Great Barrier Reef Marine Park Authority prioritises the development of Traditional Use of Marine Resources Agreements (TUMRAs) to more effectively manage the traditional use of dugong resources in cooperation with traditional owners and the Queensland Government.</para></quote>
</continue>
</speech>
<speech>
  <talker>
    <time.stamp>15:50</time.stamp>
    <name role="metadata">Senator McGRATH</name>
    <name.id>217241</name.id>
    <electorate>Queensland</electorate>
  </talker>
  <para>I seek leave to make a short statement.</para>
<interjection>
  <talker>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
  </talker>
  <para>Leave is granted for one minute.</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator McGRATH</name>
    <name.id>217241</name.id>
  </talker>
  <para>The government is already delivering increased funding for Indigenous ranger groups as part of our record $820 million investment in rangers to 2023. This includes an additional $2.6 million for rangers in the Great Barrier Reef region. Indigenous communities and ranger groups along the reef will also benefit from the additional funding stemming from a $444 million grant to the Great Barrier Reef Foundation through the recent budget. The government is also providing additional funding to the Great Barrier Reef Marine Park Authority, which regulates hunting by either Indigenous or non-Indigenous people. In 2015 the coalition trebled the penalties for illegal hunting in the marine park.</para>
<para>Question agreed to.</para>
</continue>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Australian Greens </title>
          <page.no>51</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>15:51</time.stamp>
    <name role="metadata">Senator LEYONHJELM</name>
    <name.id>111206</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>I seek leave to amend general business notice of motion No. 994 standing in my name and the names of senators Bernardi and Anning for today relating to the Australian Greens handling of allegations of sexual misconduct.</para>
<para>Leave granted.</para>
<continue>
  <talker>
    <name role="metadata">Senator LEYONHJELM</name>
    <name.id>111206</name.id>
  </talker>
  <para>I move the motion as amended:</para>
<quote><para class="block">That the Senate:</para></quote>
<quote><para class="block">(a) notes that:</para></quote>
<quote><para class="block">   (i) the Australian Broadcasting Corporation has aired a damning investigation into the apparent failure of the Australian Greens (The Greens) to properly handle allegations of sexual misconduct within its ranks,</para></quote>
<quote><para class="block">   (ii) multiple women interviewed by <inline font-style="italic">7</inline>claimed that The Greens did not adequately address reports of assault and harassment committed by party staff and volunteers,</para></quote>
<quote><para class="block">   (iii) Mr Rory Markham, a lawyer who is advising a number of women who stated that The Greens mishandled their complaints about sexual misconduct, stated that the party had shown an attitude of 'absolute dismissiveness' and that the priority seemed to be to 'maintain party brand at all costs', and</para></quote>
<quote><para class="block">(b) calls on all parties to ensure they have proper protections in place to prevent and respond to incidents of sexual harassment.</para></quote>
<para>Question agreed to.</para>
</continue>
</speech>
</subdebate.1></debate>
    <debate><debateinfo>
        <title>MATTERS OF PUBLIC IMPORTANCE</title>
        <page.no>51</page.no>
        <type>MATTERS OF PUBLIC IMPORTANCE</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Turnbull Government</title>
          <page.no>51</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>15:53</time.stamp>
    <name role="metadata">The ACTING DEPUTY PRESIDENT</name>
    <name.id>00AOP</name.id>
    <electorate></electorate>
  </talker>
  <para>I inform the Senate that at 8.30 am today three proposals were received in accordance with standing order 75. The question of which proposal would be submitted to the Senate was determined by lot. As a result, I inform the Senate that the following matter of public importance has been received from Senator Collins:</para>
<quote><para class="block">The inability of the Turnbull government to progress any coherent policy or legislative agenda.</para></quote>
<para>Is the proposal supported?</para>
<para class="italic"> <inline font-style="italic">More than the number of senators required by the standing orders having risen in their places—</inline></para>
<continue>
  <talker>
    <name role="metadata">The ACTING DEPUTY PRESIDENT</name>
    <name.id>00AOP</name.id>
  </talker>
  <para>I understand that informal arrangements have been made to allocate specific times to each of the speakers in today's debate. With the concurrence of the Senate, I shall ask the clerks to set the clocks accordingly.</para>
</continue>
</speech>
<speech>
  <talker>
    <time.stamp>15:54</time.stamp>
    <name role="metadata">Senator CAROL BROWN</name>
    <name.id>F49</name.id>
    <electorate>Tasmania</electorate>
  </talker>
  <para>I rise to address this matter of public importance regarding the Turnbull government. Unfortunately, this is a matter of public importance that could have been presented to the chamber on virtually any of the 780 days since the previous federal election, yet the disunity and chaos of the Turnbull government was on display more prominently today than usual. Ramping up its war on coherent policy and legislative progress yesterday, Prime Minister Turnbull ditched his third iteration of the National Energy Guarantee in an attempt to shore up support from the hard right wing of his out-of-touch government, but, true to form, he abandoned policy at the first sign of difficulty. That was followed by a resounding declaration of dissent from more than 40 per cent of his party. That's right: 41 per cent of Prime Minister Turnbull's own party voted against him as leader, only a day after he, in order to win support, junked what was supposed to be his defining policy priority. So, he was in trouble, and, to win support, he decided that the only way to try to shore up the Right of his party was to junk what he had already claimed was a defining policy priority. We know what happened then. People moved quickly to support Mr Dutton.</para>
<para>Nothing could more completely embody an absence of coherent policy than this Prime Minister, the Prime Minister, who stated, 'I will not lead a party that is not as committed to climate change as I am'—then going on to decide that he no longer supported an emissions trading scheme. What an embarrassment. The 'climate change Prime Minister' first decided he no longer believed in an emissions trading scheme and then that he no longer supported a clean energy target. Now, this Prime Minister doesn't even support his own National Energy Guarantee.</para>
<para>Writing for Fairfax newspaper this week, Sean Kelly summed it up best:</para>
<quote><para class="block">That the Coalition might be about to tear itself apart over climate again is an indication of insanity.</para></quote>
<para>Insanity is exactly what it is, because this is the self-defined issue for this Prime Minister, and to walk away from this issue, simply for political expediency, shows just how little this Prime Minister is willing to fight for.</para>
<para>So, what exactly does this government stand for? We know that it does stand for division. Not only has this Prime Minister come to lead the government by throwing his predecessor under a bus; but he's thrown himself under a bus. There is so much division inside this party that the Prime Minister decided to call a spill motion, just to pre-empt his own colleagues. The nation is going through an incredible period of drought during winter, but, instead of taking serious action on climate change, this out-of-touch government is self-obsessed and focused on infighting.</para>
<para>Nothing will change the problems of this government. This government's problems are of its own making. It comes from a lack of a policy agenda and a complete bankruptcy of vision. We've stood by and watched as the Prime Minister has sold out principle after principle, ideal after ideal, and now we're left with no action on climate change, because the Liberal Party is being governed by its hard right wing. What a case of the tail wagging the dog. Perhaps that's why the government continues to dive in the polls and, by the Prime Minister's own yardstick, it's time for a change of leader. It's no wonder that the member for Dickson decided today that it was time to challenge the Prime Minister. And what a choice we had. We have a Prime Minister who believes in nothing and we have an opponent in Mr Dutton who believes in all the wrong things.</para>
<para>By his own measure, this Prime Minister has failed. He's failed to change the course of his party after 38 successive Newspoll losses. That's eight more than the number that he decided was enough to challenge the previous Prime Minister. It's no wonder that Mr Dutton decided it was time for a challenge. I can see why Minister Dutton, as a member of a government that has continued to show no coherence in its policy development, a government that's shown no sensible legislative agenda, had, in a very short period of time, more than 40 per cent of his colleagues decide that this Prime Minister isn't right for the job.</para>
<para>Considering this challenge has been put to bed for today, we can only wonder—and Australians can only wonder—what we can look forward to tomorrow. We can look forward to a government united in its commitment to give away money to big banks and big business. But where is the legislative agenda to deal with runaway climate change? Where is the legislation that's now been junked despite the Prime Minister's supposed commitment to climate action? It seems that all we have from this government is a commitment to infighting and rewarding its mates in the banks and big business. Perhaps that's why, aside from ditching its own energy policy and fighting amongst itself, what this government is best known for is it's $440 million gift to the Great Barrier Reef Foundation and its gift to big business and the banks—gifts so unanticipated that the very recipient of the $440 million grant, the Great Barrier Reef Foundation, described it as 'like winning lotto'. One really has to wonder where the priorities for this government have gone.</para>
<para>It's not just the Prime Minister's federal colleagues who are asking this question. His own Liberal Party colleagues in my home state of Tasmania have been left wondering. As little as 11 days ago, when the Hodgman Liberal government signed up to what was the energy policy of the federal government at the time, energy minister, Mr Guy Barnett, proudly stated:</para>
<quote><para class="block">The NEG is good for Tasmanian jobs and puts more downward pressure on power prices—</para></quote>
<para>and—</para>
<quote><para class="block">This important step continues to build the case for increased interconnection and Tasmania's position as the Battery of the Nation delivering clean, reliable and affordable electricity to Tasmanians and the nation.</para></quote>
<para>What a slap in the face. When Minister Barnett signed up to the NEG publicly, little did he know that, less than two weeks later, the Prime Minister would ditch the very policy he'd signed up to. Unfortunately, he should have known. This government has stood for nothing other than political expedience. It throws out policies at the first sign of a challenge and focuses on nothing other than itself. This is a government that cut funding to schools and hospitals. It's a government focused on cutting funding to the ABC. But when it comes to an actual agenda, an actual set of principles that it's likely to achieve, we're left wondering. Why is it that this government insists on cutting funds to these essential services when it doesn't even have a coherent agenda that it wishes to fund as an alternative? What does this government stand for other than tax cuts to banks and billionaires and handing out money to foundations without a public tender process or any explanation? That's why Minister Dutton managed to garner over 40 per cent support in his own party, and it's why I'm sure we haven't seen the last of him.</para>
<para>When there's no vision to rally behind, what else are Prime Minister Turnbull's colleagues to do but look for an alternative leadership candidate? This matter of public importance couldn't have come at a more appropriate time. This is a matter that needs addressing immediately. As another former colleague of this Prime Minister put it recently:</para>
<quote><para class="block">If Peter Dutton is the answer, you have to ask yourself what the hell is the question.</para></quote>
</speech>
<speech>
  <talker>
    <time.stamp>16:04</time.stamp>
    <name role="metadata">Senator COLBECK</name>
    <name.id>00AOL</name.id>
    <electorate>Tasmania</electorate>
  </talker>
  <para>The presentation from Labor just then demonstrates exactly where they are in the broader policy debate. They've got one focus—politics, climate change—and that's about as far as it goes. That's all they're worried about. They're not interested in the economy. They're not interested in delivering jobs for Australians. They're all just interested in politics and climate change.</para>
<para>The government, over our two and a bit terms of parliament, have been focused on delivering economic returns for the Australian people, and we've been successful. The prediction, particularly after the 2016 election, was that we weren't going to be able to get anything done: this chamber was too complicated; the diversity of the crossbench would not allow us to get anything done. In fact, the opposite has been the truth. We've managed to get media reform through this parliament after a 20-year hiatus. We were told it couldn't be done. We have done it. It has been achieved. All credit to Minister Fifield for negotiating that process with industry, and then, of course, we negotiated it through the parliament.</para>
<para>We have delivered tax cuts for Australians. We were told it couldn't be done. The Labor Party opposed those tax cuts for Australians. They proposed instead to tax our nans and pops up to 30 per cent of their total income, raising billions of dollars over a decade to pay for their proposals for tax reform. It was: take money off your nan and pop to get a tax cut. It's a pretty average way of raising money when Nan and Pop have to have a reduction in their total income of up to 30 per cent to pay for somebody else's tax cut. That's not looking after the community like the Australian government has.</para>
<para>We've achieved tax cuts for small business. We were told we wouldn't get them through the parliament, and we have. While the Labor Party try to decide what a small business is—they still can't work out what that might be—we have achieved, passed through the parliament, tax cuts for small business. We've also passed through the parliament tax cuts for businesses with a turnover of up to $50 million. Because we persisted, because we were prepared to negotiate with the crossbench, we got those tax cuts past the parliament. In the by-election campaigns recently, the Labor Party tried to pretend that they were going to match those tax cuts and wouldn't be reversing them or passing any legislation to wind them back. They lied to the Australian people. They lied to Australian businesses when they said that there wouldn't be any legislated rollbacks. They knew that their tax cut regime was going to be 27½ per cent, when the government had already legislated to reduce the taxation regime for small business, or businesses with a turnover of up to $50 million, to 25 per cent. The then candidate for Braddon, now the member for Braddon, Ms Justine Keay, said to a chamber of commerce lunch that I was at that there would be no legislated rollback. She knew that wasn't true. In a prepared speech she said it to the assembled members of the Burnie Chamber of Commerce and Industry, the Devonport Chamber of Commerce and Industry and the Central Coast Chamber of Commerce and Industry. She tried to con them into believing that they would pay the same tax rate under a Labor regime as they would under the coalition government's already legislated process. It was a lie. If Labor get elected, they will raise taxes for business from the legislated rate that currently exists, 25 per cent, up to 27½ per cent.</para>
<para>But we were told we wouldn't get those things through the parliament.</para>
<para>We've passed reforms to the Corporations Act. We've increased penalties for businesses who are misbehaving. We've passed legislation to ensure that international businesses operating in Australia pay their fair share of tax. We've put in place a range of economic measures that are paying dividends to the Australian people.</para>
<para>We've just heard again the lie that we're cutting funds to the health system. Even the ABC fact checker agrees that we are increasing health funding to record levels—an increase of 42 per cent in my home state of Tasmania—and yet the Labor Party continue to peddle the rubbish that we're cutting it. The fascinating thing is that the electorate is now starting to tell us that they know the Labor Party is lying to them. They know Bill Shorten's not being straight with them, and that's why they're not interested in engaging with Mr Shorten.</para>
<para>One of my favourites is in defence. When we came to government, we looked to see what the Labor Party had done in the Defence portfolio. The cupboard was completely bare. They'd done absolutely nothing—not a thing. They hadn't even commissioned a study on a canoe, to quote a famous phrase in this place. So what have we done? There have been 54 ships, including 12 submarines, commissioned since we came to government. The Land 400 project has been commissioned since we came to government. The training academy for shipbuilding is being developed in South Australia in conjunction with the Australian Maritime College in UTAS, I'm very proud to say—as would be Senator Bushby, as a graduate of the Australian Maritime College. It is one of the key partners in the development of that project.</para>
<para>These are all things that the Labor Party just kicked down the road for six years. They did absolutely nothing in the context of defence of the nation. Something that I'm very pleased to talk about—and I know Senator Bushby is also interested in it—is the feasibility work that's going on right now into a defence innovation hub based at the Australian Maritime College in Tasmania. This is a concept brought to the parliament by the coalition. The other side is completely devoid. They are not looking at the future. They are not looking to see what positives the R&D that could be developed out of defence might have for the economy in Australia, let alone in the northern part of Tasmania. If we can get that defence innovation hub up and running, doing the R&D for the build of those 54 vessels, including 12 submarines, at the Australian Maritime College in Launceston, that R&D could then be commercialised and spun off into new businesses operating in the Tasmanian community. It would be a huge opportunity, and there would be potential for growth in employment.</para>
<para>These are all serious, solid economic proposals that this government has put into place. The other side of politics has given them nary a thought. I've been into the businesses that are already benefitting from the defence spend in Tasmania. Taylor Bros is a great business doing work in the accommodation space for Defence. Direct Edge in Burnie is looking for another 35 people—with 15 of those to be apprenticeships—as a direct result of the Australian government's decision to have a domestic defence-building capacity. This opens up opportunities for global export markets. These are real achievements. We are not trying to scare the Australian people with stories and misinformation around funding. We are working on and delivering an economic plan that has put a million jobs into the Australian economy since we came to government, and we're continuing to build proposals that will continue to grow the economy and will provide opportunities for businesses like Penguin Composites, whom Ms Justine Keay said she stood beside. In fact, she's standing in the way of them getting a tax cut. She's just standing in the way.</para>
<para>These are the things that this government is doing. They are practical measures. We were told we couldn't get legislation through the parliament. Yet under the leadership of Senator Cormann we have been continuously successful. In fact, we are still discussing tax cuts for larger businesses, because we know it's good for the economy. The Labor Party used to believe that. We still do, and we will continue to act in the interest of the Australian people.</para>
</speech>
<speech>
  <talker>
    <time.stamp>16:14</time.stamp>
    <name role="metadata">Senator BARTLETT</name>
    <name.id>DT6</name.id>
    <electorate>Queensland</electorate>
  </talker>
  <para>The item before us in the Senate at the moment, described as a matter of public importance, 'The inability of the Turnbull Government to progress any coherent policy or legislative agenda,' which has been put forward by the Labor Party as a chance for the Senate to spend an hour talking about the travails of the Turnbull Liberal-National Party coalition government, is very similar to what we had yesterday. As I said yesterday, I don't think that's particularly important; what is important is the horrendous and growing inequality in our community, the massive danger we are facing from extreme climate change, the lack of action in regard to dealing with that, the lack of action in regard to homelessness in our community, the refusal to increase the rate of Newstart, and the continuing punishment of the poor. Unfortunately, punishing the poor and favouring the wealthiest is a coherent policy of this government. The problem is not the internal enmity in the Liberal and National parties, who both have their own significant difficulties; the problem is that their ideological and legislative agenda, such as it is, specifically makes life much harder for the majority of Australians and, inasmuch as they can manage to implement it, assists the big end of town.</para>
<para>Some important things, though, are becoming even more clear as a result of the shambles that this government currently is in—that is, the very understandable and massive disillusionment of the majority of the Australian community with the entire political system. This government currently has huge difficulties, but that's just a manifestation of its internal philosophical incoherence and lack of solid value base that has been there for many years. That's why so many people, young and old, think our political system is broken. The public can see it every day. On days like today they can see it very starkly, but they know it's there every day. It's not because of the personal disputes, the leadership squabbles, the travails of the previous Prime Minister, or the accusations back and forth about section 44 of the Constitution; our political system is broken because the majority of people in this building—not just the elected representatives but so much of the press gallery as well—are so caught up in the irrelevant soap opera within this little bubble that they're don't care about what happens in the real world outside.</para>
<para>We see today the consequences of that: the suffering of so many people because of homelessness, poverty, inadequate wages, insecure jobs, massive financial pressures and inadequate health services; the people facing horrendous, unimaginable suffering on Nauru or Manus Island; and the massive environmental damage that is happening because of the lack of action—or, in some cases, deliberate action—that causes further harm to the environment. But it is not just a feeling; it is a recognition. People don't just sense things are broken; they know it and can see it. That is what is important, and it is important not just today; it is important every day. The fact that it's normally covered up by a veneer of nice words around the place hasn't stopped people from seeing that. Days like today are just when it breaks through the surface and people can see the political process in this country for the joke and shambles that it is.</para>
<para>A report today in <inline font-style="italic">The Guardian</inline> is headlined, 'Overwhelming majority of Australians believe federal politicians are corrupt'. That's a matter of public importance, not the squabbles amongst the Liberal Party at the moment. They believe that about federal politicians in general, all of us here. That's what we should be concerned about. That research showed:</para>
<quote><para class="block">About 85% of respondents said they believed some, most or all of the federal members of parliament were corrupt …</para></quote>
<para>Perhaps that poll was a little bit rubbery. Perhaps it's a little bit larger than might reflect general public views—maybe 85 per cent is a bit high—but, frankly, if you're getting above 10 or 20 per cent of people feeling that, we're in big trouble. A clear majority of people feel the political process is broken, is corrupted. That doesn't mean they think everybody has money coming in in brown paper bags; they recognise that the process is corrupt and broken.</para>
<para>The soap opera stuff we're seeing today occupies the minds—I would guarantee—of 90 per cent of people in this building. That's all they're talking about right now: the latest piece of gossip about the internal machinations of the Liberal Party. We all know that a month or so ago, before those by-elections, it was all gossip about whether the Leader of the Opposition was in some difficulties, and everybody could talk about that. That this process works to focus on those sorts of things, so we can all just ignore the fact that this parliament is delivering outcomes that are not working for the Australian community, is the matter of public importance, not the failures of the Turnbull government.</para>
<para>Another extremely telling quote—anonymous but genuine nonetheless, I assume—came out today from a worried Liberal backbencher in a <inline font-style="italic">Sydney Morning Herald</inline> article by Peter Hartcher about the whole situation and why the minds of the members of the Liberal Party are so occupied at the moment:</para>
<quote><para class="block">A lot of our people are facing that fact that they are in the last six months of their political careers. They've got houses, school bills, cars that they've set up for themselves on the basis that they're earning $200,000 plus—</para></quote>
<para>Of course, as we all know, federal parliamentarians get cars as part of the salary package on top of earning $200,000 plus—</para>
<quote><para class="block">What do they do if they're suddenly out of work?</para></quote>
<para>Welcome to the real world! You're getting over $200,000 a year and a car and phones and everything else, and you're worried you might be out of work? That's what's exercising the minds of members of the government. How about exercising your minds about all of those Australians who are already out of work and all those Australians who are in full-time work and getting $40,000 or $30,000 a year and don't get everything with it? Exercise your minds about that for a bit! No wonder people think the system is broken. Of course people want to hang onto their jobs. I understand that—speaking as somebody who is about to give up their job at the end of this week in an attempt to try to change things by focusing on winning a lower house seat—</para>
<interjection>
  <talker>
    <name role="metadata">Senator Paterson</name>
    <name.id>144138</name.id>
  </talker>
  <para>Because you got rolled.</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator BARTLETT</name>
    <name.id>DT6</name.id>
  </talker>
  <para>I will note the interjection there. As an informed intellectual, you would know I am under no obligation to leave at all. I was not rolled; I chose not to run, because I recognise the need to get rid of you lot, and the only way to get rid of you lot properly and get transformational change is to start winning seats in the lower house. I've chosen to step out of my job early to focus all my energies on winning lower house seats so we can totally transform this political system. I could have stayed here on that $200,000 a year salary with cars and all the things your people are reportedly so keen to keep; I'm not. I'm not seeking a medal for that; all I'm saying is we need to be focusing on what will create change for the Australian public, not on our own interests. That is why so many Australians have had enough of the political system overall. That's why they think the whole place is not working in their interests. They can see that, inside this bubble, people are focused on what works for them, their mates and their donors. That's the matter of public importance, and the thing we need to change.</para>
</continue>
</speech>
<speech>
  <talker>
    <time.stamp>16:24</time.stamp>
    <name role="metadata">Senator POLLEY</name>
    <name.id>e5x</name.id>
    <electorate>Tasmania</electorate>
  </talker>
  <para>I rise to make a contribution on this MPI:</para>
<quote><para class="block">The inability of the Turnbull Government to progress any coherent policy or legislative agenda.</para></quote>
<para>This morning the Liberal government's caucus demonstrated to the Australian people once again that they're a disunited rabble. In fact, it goes further than that now. The Prime Minister himself called for a spill of positions; he no longer has the support of the government.</para>
<para>When Mr Turnbull was elected he promised he would deliver stable government. But what we've seen for the entire period for which he has been elected, from the last election, is disunity within the government. The old saying, 'If you can't govern yourselves you can't govern the country' is absolutely correct. There is no better evidence of that than when you have a caucus of your colleagues voting 35 to 48. That's just over 40 per cent of the Liberal caucus no longer having faith in the Prime Minister. I'd have to suggest that the clock is in fact ticking down. We're now waiting to see when the next caucus meeting will be called and when there'll be a further challenge.</para>
<para>Why do I suggest that? It's because, unfortunately, during our term in government we used the same playbook. But we have learnt from it. Those on the other side have been trying to suggest in the last 48 hours that the Labor Party, under Bill Shorten, is divided. Well, there's nothing further from the truth. We are more united than I have ever experienced, having been in this place for some 12 years. I'm very confident that under Bill Shorten's leadership we will have better policies. We've been able to listen to the community and we have taken on board their concerns. This government, election after election, in making their policy statements, have broken promises, one after the other. They've cut funding to our hospitals. That's had a dramatic effect in my home state of Tasmania. They have cut funding to schools, and there's been murmuring that the Prime Minister wanted to try to clean up this mess whereby the education minister put offside Catholic Education in this country. Why? Because they're hell-bent on doing what they do best, and that is trying to punish those people who can least afford to be punished.</para>
<para>We've seen the Prime Minister and this government attacking workers. They stood by when, on a number of occasions, legislation was put before them to stop any cuts to penalty rates. But what did they decide to do? They put their hands up in the air and said, 'You're on your own.' That has had a devastating effect on the workers in my home state. Those in the hospitality industry already have very low wages, and they rely on their penalty rates. People who work in shops, in retail, are some of the lowest paid workers in this country and they have been impacted. We know that the hairdressers around this country are next on the list. My real concern is for those people who work in the aged-care sector, because they're not covered. We already have a crisis brought about by this government. They've had three ministers for aged care. There has not been a minister for ageing in cabinet who has any real authority when it comes to the budget, and they've failed. What is it now? The home care package waiting list—although we had to wait three extra months to get the data, which was finally released on Friday. There are 108,000 older Australians who are vulnerable and who need to have support to be able to stay in their home but who have been failed by this government, because the government hasn't invested.</para>
<para>This government will be judged very harshly when we do come to the next election, whether that's under Mr Dutton or whether, by some miracle, the Prime Minister manages to survive. But my money is on having another caucus meeting where he will be challenged, and I believe that Mr Dutton will end up with the amount of support he needs. Then the country could expect to go to an early election before people start to realise how little Mr Dutton really has to offer and whether or not he is going to change the direction of this government and, once and for all, put Australians before the big end of town. We know they want to give $17 billion to the big banks and we know they want $80 billion to go to multinational— <inline font-style="italic">(Time expired)</inline></para>
</speech>
<speech>
  <talker>
    <time.stamp>16:29</time.stamp>
    <name role="metadata">Senator PATERSON</name>
    <name.id>144138</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>I'm very pleased to have the opportunity to rise to contribute to this matter of public importance debate this afternoon regarding the Turnbull government. Before I turn to the substantive issues in the debate, I just have one technical correction that I feel compelled to make, and that is that the Liberal Party does not have a caucus. It's not a mistake that only you make, Senator Polley; it's a mistake that many people in the media made. I have a rule of thumb that if you ever read an article from a journalist talking about what's happening in the Liberal Party caucus then they probably don't know what they're talking about, since we don't have a caucus. Senator Polley, for your future reference the Liberal Party has a party room. I think it is an important distinction. I know that you have a caucus.</para>
<para>Turning to the more substantive issue before the chamber this afternoon, I'm very proud to talk about the impressive legislative agenda and achievements of the Turnbull government. I particularly want to focus on the achievements of the government in the economic sphere, because, I think, they've been particularly significant, and because I know that they are of the most interest and the most importance to my constituents in Victoria. It is our economic performance and the results of the economic agenda that we've had here in the parliament that they care most about in terms of employment in particular.</para>
<para>One of the recent and most significant achievements of the Turnbull government is legislating quite significant personal income tax reform. This year, in fact, the Turnbull government has passed personal income tax reforms, which ensure that all working Australians are better off. Taxes in this country, as a result of this legislative change successfully passing the parliament, will now be lower, fairer and simpler. It is the biggest and most significant tax reform package since the Howard government. It provides tax relief to more than 10 million taxpayers, with 4.4 million Australians receiving the full $530 of benefit of the new low- and middle-income tax offset.</para>
<para>It also, really importantly, protects Australians from bracket creep. Bracket creep is a problem which has been a subject of much commentary in the media and even occasionally by those opposite. And, yet, they quibbled when our tax package effectively abolished the concept of bracket creep for low- and middle-income earners. What the package did is it took the $87,000 tax threshold to $90,000 in 2018-19—that is this financial year—and then to $120,000 in 2022-23. That tax relief provided, under the offset in step one, will also be locked in permanently from 2022-23 by taking the $37,000 tax threshold to $41,000 and lifting the low-income tax offset to $645. Effectively, what has happened here is an entire tax bracket has been abolished and removed. It ensures that 94 per cent of Australian workers will not face a higher marginal tax rate of more than 32½c in the dollar. This is a really important reform, because, as we know, bracket creep is one of the things that discourages people from taking on more work, it discourages people from taking risks and it makes our tax system needlessly complex and inefficient. For most workers, for most of their working lives, they will just face one simple, new, lower rate of tax than they did before. That is this government acting on a complaint often raised, including by those opposite, and addressing it.</para>
<para>We know that the Labor Party fought tooth and nail to stop the Australian people getting this important income tax relief. It's clear that if they are successful at the next election they will reverse much, if not all, of this tax relief for working Australians—meaning higher taxes for Australian workers and meaning a smaller pay packet every fortnight. Combined with the Labor Party's other $200 billion in higher taxes they've already announced, they're now seeking to impose around $300 billion in higher taxes on the Australian economy over the next decade. It doesn't require a PhD in economics to forecast what impact that will have on people's lives and the economy.</para>
<para>The government's also been successful in legislating the first stage of its enterprise tax plan, and that's something that I welcome very much. I know the small and medium-sized businesses who are the beneficiaries of it in my home state of Victoria also really welcome it. Australian businesses with a turnover of up to $50 million will now pay a lower rate of tax thanks to the Turnbull government, dropping to a rate of 25 per cent by 2026-27. That's around three million Australian businesses, and those businesses employ around seven million Australian workers. That is millions of people who will benefit from companies that are more competitive, more efficient and more able to attract investment from abroad. All of these companies, as we know, will face a higher rate of tax if the Labor Party is elected. It plans to increase the rate of tax remarkably on small businesses in this country. The government is committed to extending these tax cuts to all Australian businesses, and I hope that the Senate looks very favourably on that when we consider that question later today.</para>
<para>The government's also had a very comprehensive free trade agreement agenda, which works in tandem with the corporate and personal income tax cuts that we've delivered. We know that, since the coalition government was elected in 2013, we've completed and signed free trade agreements with virtually all of Australia's major trading partners that we didn't already have trade agreements with, and, for any trading partners that we don't already have agreements with, they are under negotiation, including the United Kingdom, the European Union and Indonesia. Those already enforced, negotiated and signed under this coalition government are, of course, the Korea-Australia Free Trade Agreement, the Japan-Australia Economic Partnership Agreement, the China-Australia Free Trade Agreement, the Trans-Pacific Partnership—something that the Labor Party told us not to bother with and to give up on; luckily, the trade minister, Steve Ciobo, did not take their advice and persisted with that—the Peru-Australia Free Trade Agreement, and the Pacific Agreement on Closer Economic Relations. That means more export opportunities for Australian businesses and farmers, it means a cheaper cost of goods for Australian businesses that need to import inputs, and it means consumers have more choice and lower prices for the things that they need to buy.</para>
<para>Those are the inputs. 'What are the outputs?' would be a fair question to ask. Very clearly, the major output of this is the record jobs growth numbers under the Turnbull government, something that this government is very proud of because it's something that changes people's lives for the better. Going from not having a job to having a job is one of the most profound improvements someone can go through in their life, and there are a million people that can say they did that under the coalition. That's a pretty amazing statistic—1,086,806, to be precise, in less than five years since the coalition came to office. Since September 2015, 770,000 new jobs have been created, and more than half of those, 410,900, were full time. In the past 12 months, 339,018 new jobs have been created. The jobs growth over the past 12 months, of 2.7 per cent, massively outstrips the growth under the former Labor government, of 0.8 per cent.</para>
<para>So the Turnbull government has a very comprehensive economic agenda. It has successfully negotiated it through the parliament, despite the difficulties that this chamber occasionally poses to governments seeking to legislate, and that successful agenda is leading to real change for real Australians in their lives. Their lives are better because of the successful economic agenda prosecuted by this government.</para>
</speech>
<speech>
  <talker>
    <time.stamp>16:37</time.stamp>
    <name role="metadata">Senator McCARTHY</name>
    <name.id>122087</name.id>
    <electorate>Northern Territory</electorate>
  </talker>
  <para>Today we have seen a line-up of Liberal politicians facing the media one by one, telling the story about themselves, defending themselves, explaining themselves, and wondering if they have a job or don't have a job and who will be the leader—an extraordinary display that says more about the character and the content of the cabinet of the Turnbull government. We saw a government bleeding today—not bleeding for the country but bleeding for themselves and their own jobs. We see a divided cabinet. We see a government so hopelessly in disarray that the best alternative for a leader they could think of did not even support the national apology to First Nations people in this country. For shame! What have they become? They fight over energy, they fight over climate change, they fight over tax, they fight over industrial relations, they fight over education and they fight over principles that they have long since abandoned. They fight for their own jobs, but they will not fight for the Australian people.</para>
<para>While this internal bickering continues and the member for Dickson rallies his troops, the people of Australia suffer, and the people of the Northern Territory suffer because of the lack of housing. We hear the minister stand up in this house, talking about thousands and thousands of jobs that are being created across the country for First Nations people. Well, where are those jobs? Where I sit and where I travel across the regions of remote and regional Australia, they are not there. Industries are closing, businesses are closing and there are not enough houses—certainly for those who are homeless and certainly for those people who have been demanding their fair share and rights to homes in this country.</para>
<para>Last week in this place, we saw a vote against a bill to restore the rights of the territories. That is because the government only care about themselves. They certainly did not care about the people of the Northern Territory when we sat here last week in this parliament. Last week, we saw Senator Jane Hume say that, due to the Territory's small population, the people of the Northern Territory were incapable of making decisions on complex social policy issues. Why do I raise that? It is not because it was part of the debate in the political arena but because it was a statement that was made on Sky News after the debate and its devastating outcome for the people of the Northern Territory. It wasn't enough that the people of the Northern Territory felt enormously aggrieved, deeply hurt and completely betrayed by this house; they were then insulted. Talk about rubbing salt into the wound. It wasn't enough that you won the vote by two, mind you—and we're going to have another go at some point. It wasn't enough; you had to go out there and insult the people of the Northern Territory. I've written to the Prime Minister, demanding an apology, although I doubt he will have time to even think about the people of the Northern Territory now that he's busy trying to save himself.</para>
<para>On that point, the Prime Minister—Malcolm Turnbull, that is—stands in front of the press conference today and talks about how 'we must give back to the people of Australia', how 'we must govern for the people of Australia'. Yes, that's right, you must, Prime Minister. However, you very much contributed to eroding the rights of citizens in the Northern Territory and in the ACT, not because you believed that they shouldn't have equal citizenship but because you did not want to have that as a problem in the House. That's not governing for all Australians, and that's not doing it in fairness, for what this country stands for and for the values of democracy in this country. You were so busy trying to prevent a debate going to your House that you were going to do anything to make sure that, in this place, senators voted the way you wanted them to vote, even though it was a conscience vote. That is a clear example of your inability, and the inability of the Turnbull government, to progress any coherent policy or legislative agenda in either this place or the other one.</para>
<para>It is shameful that this parliament decided that the people of the Northern Territory are second-class citizens. We do deserve the same rights as all Australians. And, while we wait for the government to decide whom it should have as its leader, the Northern Territory suffers, just like every other jurisdiction in this country. And, while we wait and continue to wait, we wonder about the pieces of legislation and policy that this mob over there should be progressing to improve the lives of Australians.</para>
<para>The city deal for Darwin, for example, sits on the Prime Minister's desk, gathering dust. The funding for Central Arnhem Road and Buntine Highway remains unclear and unaccounted for, and yet you stand up here saying that it's in the budget. But the amount of money that's in the budget is only going to cover a couple of hundred kilometres. The Central Arnhem highway goes for 600 or 700 kilometres. So don't do us any favours in the Northern Territory. Be genuine and real about what you're trying to do. But you can't, because you're distracted. You're too busy looking at your own selves. The funding for our schools remains unaccounted for. The funding for our hospitals remains unclear. Every day that the government talk about themselves is another day that Australians pay the price of nothing getting done. Our costs for accessing health care are higher than ever. Energy bills and the cost of living—which you on that side cannot seem to get sorted—are skyrocketing under the Liberals, and wage growth is lower than ever.</para>
<para>These are not conditions in which the people of the Northern Territory, or the people of Australia, can thrive. These conditions only make our situation worse. This is a government that claims to stand up for regional and rural Australians. Really? Really? A pic fac out in Forbes says you care? Come on, guys, get your act together. You cut funding to ABC short-wave radio, allowing China to fill the void in the South Pacific. You cut funding to Charles Darwin University, damaging our future in the north. And don't let me go to the north Australia policy. What about the Northern Australia Infrastructure Facility—$5 billion over nearly four years, and what have you got to show for it? You keep hanging it out in front of people who desperately need the infrastructure to build, the businesses to grow. You tease the people of northern Australia—you tease them—and then you come back here and you jostle for your jobs, you jostle for the leadership: who's gonna be in the cabinet? You're too busy wondering whether you're gonna get that extra dollar. And yet people out there are hungry. They're starving, they're homeless, and all you can do is think about yourselves.</para>
<para>You've stuffed up the NBN. You've cut funding to our primary schools and high schools. You've neglected even the First Nations media organisations, with no policy direction or new funding commitments and no support for creating real jobs and career pathways. And what about the royal commission into youth detention, which was caused by an incompetent Country Liberal Party government bearing your brand?</para>
<para>You continue to impose the disastrous and discriminatory CDP program in remote communities, despite empty promises of change and illusory improvements. What you're doing is entrenching poverty among the most disadvantaged Australians in this country. But you wouldn't be thinking about that right now, would you? The entrenched poverty out there can keep going so long as your wealth in here gets sorted.</para>
<para>This government is a shambles. Not only has this government lost the confidence of its own team, its own party, its own cabinet; this government has lost the confidence of all Australians.</para>
</speech>
<speech>
  <talker>
    <time.stamp>16:47</time.stamp>
    <name role="metadata">Senator BROCKMAN</name>
    <name.id>30484</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>Before I start my contribution, I'll address a few of the comments from Senator McCarthy. She talked about the importance of improving the life of Australians. Well, getting the fundamental settings in the economy right to see a million new jobs created in five years is improving the life of Australians. Getting our welfare numbers down to the lowest level in 20 years is improving the life of Australians. That is solely what this government has been and continues to be focused upon.</para>
<para>This government has delivered lower, simpler and fairer personal income taxes for all Australians. The Personal Income Tax Plan, which was passed by this place earlier this year, means low- and middle-income earners receive additional tax relief of up to $530. That is significant. We've got changing of the tax brackets to address the issue of bracket creep, which has recently forced so many more hardworking Australians into higher and higher tax brackets. What's the final phase of the legislated plan, the plan that has passed through this parliament? It's to abolish an entire tax bracket so that 94 per cent of Australians will be paying no more than 32½c in each dollar of their personal income. That is a significant achievement of this government and shows that the priority of this government is to improve the lives of all Australians. It was a big win for hardworking Australians when we saw those personal income tax cuts passed by this chamber and the parliament. It allows people to keep more of their own money in their own pockets to make their own decisions. We've already seen the small and medium-sized business tax cuts, designed to keep Australian businesses competitive in a very highly competitive global marketplace, legislated through this parliament. We want the hardworking Australians, the small and medium-sized businesses of Australia, to be the absolute best they can be, and we do this through taking the burden of taxation off them.</para>
<para>We've still got before this chamber—perhaps somewhat surprisingly—a very important set of business tax cuts to extend the company tax cuts to all businesses. That is about extending the opportunity to more people across the entire economy. Our philosophy is based entirely around getting people off welfare and into jobs and around getting business to grow to get more people into work—to improve their wages, to improve their standard of living and to improve their opportunities into the future. That is what this government has been delivering.</para>
<para>We've delivered it in a number of other ways, such as through the signing of a record number of free trade agreements. We've seen the free trade agreements with China, Peru, Korea and Japan. We've seen the work on the Trans-Pacific Partnership. There are also negotiations underway with the European Union and a post-Brexit United Kingdom, and obviously there's a lot more water to go under the bridge until those things are finalised. And those free trade agreements are not just pieces of paper. They deliver real results to people on the ground, particularly in the areas I'm interested in, the agricultural exports area. We've seen some phenomenal growth in some of those markets, particularly, for example, the Korean market, where we've seen individual commodities increase by up to 50 per cent per annum—quite extraordinary growth rates and wonderful opportunities.</para>
<para>I'll loop back around to where I started, which is record jobs growth. Jobs are what it's all about: 412,300 jobs created last year, 75 per cent of them full-time jobs. More Australians are in work today than ever before. That is great news for Australian families. That is what improves the lives of Australian families. Over a million jobs have been created in fewer than five years, since the coalition came into office. That improves the lives of all those Australians and all those who are supported by the people in jobs. There have been 770,000 new jobs created since September 2015—again, more than half of them full-time. There have been 339,000 new jobs created over the last 12 months. Jobs growth has been at 2.7 per cent over the last 12 months. Compare that with the 0.08 per cent growth over the last 12 months of the last Labor government. Female participation in the economy is at a record high, at 60.6 per cent. The number of Australians who are unemployed has fallen by 59,000 since September 2015, and the unemployment rate has fallen from 6.1 per cent to 5.4 per cent. In Labor's last year in office, unemployment rose by 33,000, and underemployment increased by 39 per cent.</para>
<para>So, you can see that there is a very strong track record of achievement, a strong track record of achieving very, very good results for the hardworking Australians who want to keep as much of their own money as they possibly can, through our Personal Income Tax Plan, and for growing small and medium-sized businesses, who want to keep as much of the money as they can from our company tax plan, to ensure the growth, the jobs of the future and the wage growth of the future and through all those things ensure that we have a successful and prosperous economy into the future.</para>
<para>Debate adjourned.</para>
</speech>
</subdebate.1></debate>
    <debate><debateinfo>
        <title>DELEGATION REPORTS</title>
        <page.no>60</page.no>
        <type>DELEGATION REPORTS</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Inter-Parliamentary Union: 138th Assembly</title>
          <page.no>60</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>16:54</time.stamp>
    <name role="metadata">Senator IAN MACDONALD</name>
    <name.id>YW4</name.id>
    <electorate>Queensland</electorate>
  </talker>
  <para>by leave—I table and present the report of the Australian parliamentary delegation to the 138th Assembly of the Inter-Parliamentary Union, which was held in Geneva, Switzerland, from 24 to 28 March this year. I seek leave to move a motion in relation to the report.</para>
<para>Leave granted.</para>
<continue>
  <talker>
    <name role="metadata">Senator IAN MACDONALD</name>
    <name.id>YW4</name.id>
  </talker>
  <para>I move:</para>
<quote><para class="block">That the Senate take note of the document.</para></quote>
<para>The delegation to this session of the IPU Assembly included Senator Catryna Bilyk, who has asked to be associated with the brief words I will make on this report, and also the member for Fremantle, Mr Josh Wilson. The assembly is sort of a parliament of parliamentarians from around the world and it's always very informative. Australia is a regular participant who is well regarded. We are seen as one of the more serious and reliable nations around the world and one of the serious contributors to debate in the assembly.</para>
<para>There was a general debate on issues, which both Senator Bilyk and I spoke to. Mr Wilson spoke on the Standing Committee on Sustainable Development, Finance and Trade, representing Mrs Nola Marino, who is the official leader of the delegation but who couldn't make it to that conference. Mr Wilson also proposed a topic on fair trade to be debated at the next session of the conference, to be held in October this year.</para>
<para>It's a fairly full program. It's almost a week of continual meetings with the various sections of the Inter-Parliamentary Union, including the Twelve Plus group, which is a group that Australia is part of, as well as the Asia-Pacific Group. In addition to that, there's always opportunity to speak to other parliamentary delegations from various countries. In this particular assembly, we took the opportunity of speaking with the delegates from Ukraine.</para>
<para>As always we attended a meeting of delegates from the Pacific Islands nations. Australia and New Zealand have a certain obligation to try and help the Pacific Islands nations, and we do that. We meet at every conference of the IPU to try and build solidarity amongst the Asia-Pacific nations in the broader sense, and also with our Pacific Islander neighbours, and that was convened by New Zealand.</para>
<para>We had discussions with nations involved in the Trans-Pacific Partnership, the free trade agreement, and that was convened by Mexico. We were able to meet with most of the nations involved in the TPP and had some very useful discussions.</para>
<para>I will again thank the work of the Department of Foreign Affairs and Trade, who assisted us with information. I emphasise that this is a meeting of parliamentarians, not of governments, but we do seek the assistance of the Department of Foreign Affairs and Trade in getting information for some of the matters that are debated at this conference. The Parliamentary Library also helped in that work, and I particularly want to acknowledge the work of Ms Cat Barker on that and Raymond Knight from the IPRO, who always assists with sometimes somewhat complicated travel arrangements—getting to and from the various locations of the IPU conferences.</para>
<para>We don't mention her in our written report, but I specifically want to mention Toni Matulick, our secretary, who does a wonderful job in mothering us and helping us in everything that we do. It's only not mentioned in the report because Ms Matulick refuses to allow us to put it in writing. But I do, on behalf of this delegation and other delegations that I have been involved in to the IPU, particularly want to acknowledge her very considerable help and assistance in all aspects of Australia's contributions to the Inter-Parliamentary Union Assembly, as they're held. I commend the report to the Senate.</para>
<para>Question agreed to.</para>
</continue>
</speech>
</subdebate.1></debate>
    <debate><debateinfo>
        <title>PETITIONS</title>
        <page.no>61</page.no>
        <type>PETITIONS</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Live Animal Exports</title>
          <page.no>61</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>17:00</time.stamp>
    <name role="metadata">Senator BARTLETT</name>
    <name.id>DT6</name.id>
    <electorate>Queensland</electorate>
  </talker>
  <para>by leave—I table a non-conforming petition relating to live export in Townsville.</para>
</speech>
</subdebate.1></debate>
    <debate><debateinfo>
        <title>FIRST SPEECH</title>
        <page.no>61</page.no>
        <type>FIRST SPEECH</type>
      </debateinfo><speech>
  <talker>
    <time.stamp>17:00</time.stamp>
    <name role="metadata">The PRESIDENT</name>
    <name.id>I0Q</name.id>
    <electorate></electorate>
  </talker>
  <para>Pursuant to order, I call Senator Faruqi to make her first speech, and I ask that honourable senators extend the usual courtesies to her.</para>
</speech>
<speech>
  <talker>
    <time.stamp>17:00</time.stamp>
    <name role="metadata">Senator FARUQI</name>
    <name.id>250362</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>Good evening. Assalamoalikum. We are gathered here today on stolen land. I acknowledge the traditional custodians of this land, the Ngunnawal and Ngambri people, and pay my respects to their elders, past, present and emerging. We must recognise that sovereignty was never ceded. All Australians, whether they were born here or have come from somewhere else, have an obligation to remember: this land always was and always will be Aboriginal land.</para>
<para>First Nations people still face the worst of racism and discrimination. We must commit and recommit to ending this, not on behalf of Aboriginal and Torres Strait Islander communities but alongside them. There is still a reluctance among many to acknowledge that we are a settler colonial society. It is a simple fact. Australia is a nation built on the invasion and colonisation of sovereign nations. It surprises me and saddens me that this reality is still denied, often vehemently. It is my belief that there must be a First Nations voice enshrined in the Constitution and a truth telling about history. A makarrata commission must oversee treaties with First Nations peoples that recognise the continuing occupation, acknowledge their sovereignty and respect their right to self-determination. The African-American writer James Baldwin once said:</para>
<quote><para class="block">… the great force of history comes from the fact that we carry it within us, are unconsciously controlled by it in many ways, and history is literally present in all that we do.</para></quote>
<para>Our past directly informs our future. Without truth, reconciliation and sovereignty for First Nations people, our past remains a gaping wound.</para>
<para>Thank you to everyone who is here with me this evening, particularly those of you who have travelled from Sydney and New South Wales and my Greens colleagues from the New South Wales parliament. I know that so many others are watching from all corners of Australia and Pakistan as I make my first speech in the Senate. Your friendship and your love is the reason I am here. I am overwhelmed and humbled by the support I've received from the community here and across our borders. Thank you. I will try my hardest to meet your expectations. I can only do my work because of an incredible team of dedicated people in my office. Matt, Maliha, Belinda, Max and Emma, your trust in me and your commitment to our work are really appreciated.</para>
<para>A very special thank you to my sister-in-law, Naila, and her children, Nida and Ahmed, who have come all the way from Pakistan. My brother-in-law, Obaid, flew in from the US especially for this occasion. Thank you for being here with me and for your love ever since we became part of each other's families.</para>
<para>Omar, Osman and Aisha, my dearest husband and children, are here with me as they have been at every step of this journey. I don't think there is a way to really thank you for what you have given me: unconditional love, much-needed constructive criticism—most of the time!—and bucketloads of encouragement always.</para>
<para>I'm so grateful for the trust Greens members have placed in me. I'm so immensely proud of the Australian Greens—our dream team here in parliament and the New South Wales Greens, in particular. I am motivated every single day by the thousands of members and supporters. In 2003, millions watched as Senators Bob Brown and Kerry Nettle confronted George Bush in this very building as he spun his lies about the war in Iraq. That courage is the reason I joined the Greens.</para>
<para>I come into the Senate with big shoes to fill. Senator Rhiannon has been a leading light for our party. Her work to defend public services, to combat the corrosive effect of corporate donations, to protect animals and to end live exports will be numbered among her many lasting legacies. It is now my job to continue the work of our movement in this place and in the community. This is not a job I ever expected to have when I arrived as a migrant in Sydney over 26 years ago.</para>
<para>It was early 1992. Paul Keating was the Prime Minister. The economy was in the 'recession we had to have', and Australia and New Zealand were about to host their first ever Cricket World Cup—which Pakistan won, by the way! Staring out over the tarmac of Kingsford Smith Airport, I could not help but feel a combination of excitement and anticipation for what the future held for my husband, my one-year-old son and me. My father came to Australia in 1957 to study on a scholarship, and I grew up seeing his photos and movies of Sydney, with its glimmering harbour, the Opera House and the beautiful surrounding natural environment. It was a place of wonder and opportunity for me. I still marvel at the Harbour Bridge as a feat of engineering, but that's just the nerdy civil engineer in me.</para>
<para>While I did and still do feel great affection for my country of birth, I did not leave Pakistan for superficial or insignificant reasons. I wasn't able to reconcile an entrenched class divide between the rich and the poor, the women and the men, and the elite and the workers. The country I came to, in many ways, felt like an egalitarian society where ordinary people tended to be treated with dignity and respect. But, the more I learned about Australia, the more I was troubled by our treatment of Aboriginal people.</para>
<para>When we arrived here, public services were well funded to help migrants find their feet. We could not have survived those early days without it. Things were definitely not perfect. My husband, Omar, drove cabs because no-one would hire a fully qualified and experienced engineer from Pakistan. The Mehreen of 1992 started studying for a masters in engineering with big hoops and big hair and could never have imagined that one day she would be a senator for New South Wales.</para>
<para>So we began our lives in Australia, and let me tell you: it's been quite the ride since I first looked over the tarmac at Sydney Airport all those years ago. I worked in regional New South Wales and in Sydney in the public and private sectors as an engineer, consultant, teacher and academic. From Mosman Council and the classrooms of the University of New South Wales to Port Macquarie on the New South Wales North Coast, I rolled up my sleeves and did the practical work of enhancing and conserving our natural resources.</para>
<para>In 2013 I took that work to the upper house of the New South Wales parliament, which is sometimes said to be the most powerful legislative chamber in the country. That is a gentle warning! I bring to this chamber my track record on shaking things up and shifting the agenda on issues as diverse as decriminalising abortion, drug law reform, LGBTQI rights, the right to die with dignity and protecting our environment. We held the conservative government and the weak-willed opposition in New South Wales to account. I intend to do the same here.</para>
<para>While I did feel welcomed when we arrived here, migrants coming to our shores today would not be able to say the same. The last 26 years have seen governments erode support for newcomers as bigotry and xenophobia have been allowed to flourish. A culture of online harassment, bullying and toxicity now targets everyone who is not a straight white man. Along with many others, I have been at the receiving end of thousands of racist and sexist messages on social media, on the phone and as handwritten letters. Scratch the surface of those vile messages and you see a common theme: attacks on people of colour and women.</para>
<para>The existence of racism, sexism and other discrimination is not new, but what has changed is its legitimisation, normalisation and encouragement in the media and in politics. Political leaders, in addition to their old habit of racist dog-whistling, are now comfortable outright fanning the flames of racial conflict. This month alone, Sky News handed its megaphone to a neo-Nazi with the most abhorrent of views. The coalition set upon young Africans in Melbourne for political gain, and this house heard calls for a ban on Muslim migration and a return to the White Australia policy.</para>
<para>It's all well and good for politicians to condemn the most blatant racism, but we cannot allow them to use these public displays of solidarity as cover for their own role in creating and fanning racial divisions. You can't condemn racism and then, in a warm glow of self-congratulation, allow deep-rooted structures of discrimination to remain in access to health care and public services, in our prisons and justice system and in our immigration system. You cannot ignore the prevalence of 'resume racism' and the casual racism our children face as they grow up. You cannot condemn racism and then use dog-whistling and race-baiting as an electoral tactic.</para>
<para>The so-called debate on population shows this hypocrisy all too clearly, where blame for failures to plan for the future and to invest in infrastructure is laid squarely at the feet of migrants, instead of governments, which have been preoccupied with privatising the hell out of everything. We might shake our heads when migrants are said to have the amazing ability to simultaneously sit on welfare our whole lives and also take up all the jobs that 'true Aussies' are entitled to, but far too little attention is paid to the implications this political racism has for our lives, our mental health, and our families. We cannot be expected to ignore sustained abuse or be told to hide the fear and gut-wrenching pain that it causes. If we receive death threats and speak out about it, as my son did earlier this month, we are told we have a victim mentality and this is all part and parcel of public life. Well, we will not be silenced. We will speak out.</para>
<quote><para class="block">Bol, ke labh aazaad hain tere</para></quote>
<quote><para class="block">Bol, zubaan ab tak teri hai</para></quote>
<quote><para class="block">Tera sutwaan jism hai tera</para></quote>
<quote><para class="block">Bol, ke jaan ab tak teri hai</para></quote>
<para>The essence of this verse in Urdu is the duty to resist, to speak up and to speak the truth, no matter our circumstances. This was written by Pakistani poet Faiz Ahmed Faiz while he was in prison. He was a member of the Communist Party and wrote on the plight of workers and on human rights abuses across the world, from apartheid in South Africa to human rights violations in Palestine.</para>
<para>This verse is a good reminder of our true purpose for being here. Being a senator gives us the immense privilege of having a platform, and I intend to use it, just like my colleagues in the Greens, to speak out against injustice and amplify voices that seek justice, whoever or wherever they are.</para>
<para>The reality is that my presence in the Senate is an affront to some. They are offended that people of colour, and Muslims, have the audacity to not only exist but to open our mouths and join the public debate. Some politicians call us cockroaches. Some say we are a disease against which Australia needs vaccination. Some, if they had their way, would ban us from making Australia our home. So it is with great pride that I stand here before you, unapologetically—a brown, Muslim, migrant, feminist woman, and a Greens senator. I say 'unapologetically', because if there is one thing people with stories like mine are asked to do constantly, it is to apologise for our presence, because we are not quiet enough, not respectful enough, not thankful enough, not Australian enough.</para>
<para>For some, we will never be Australian enough. But how can I be Australian enough? Do I need to point to my love of cricket, my career in the public service, or my husband's role as a major in the Army Reserve? Instead of being accepted, because this is our home, we are asked to apologise for every action of someone who looks like us. We are subject to rules that white people never are. We don't have the luxury of mistakes or of slipping up, because as soon as we do we become a case study to validate existing stereotypes. We don't have the luxury of individuality, because we are considered a monolithic mass which operates as one. Even our responses to racism are policed. To even talk about racism lands you a full-page attack piece in <inline font-style="italic">The Daily Telegraph</inline>. These are uncomfortable truths for many people, and there is sometimes an inexplicable disbelief that racism exists in Australia, but not talking about it because it might make people uncomfortable creates the very silence that allows institutional racism to persist. Calling out racism is really not about making ourselves feel better or making others feel worse or even looking for sympathy. It is a statement of reality, of what is happening every day, and that all is not okay.</para>
<para>Our country cannot be the place most of us want it to be while the threat of abuse continues to discourage people from participating in politics. We cannot be a country for all Australians while communities like the Sudanese are used as political footballs. We all need to do much better at including historically silenced voices. My presence here and that of a handful of other people of colour is just the beginning of the process, not the end. I reaffirm my commitment to stamping out racism and sexism in every way I can. Let us have the courage though to acknowledge it wherever it happens.</para>
<para>To those who want me to eff off back to where I came from, I say: Mazarrat chahiti hoon, magar afsoas nahin. Yeh maira ghar hai aur mein kaheen naheen jaon gee. Sorry, not sorry! This is my home, and I'm not going anywhere. I want us to be the best we can be, to build a society where all of us matter. To do this, we must set aside narrow electorally focused agendas. People have warned me about the Canberra bubble, where politicians are disconnected from the reality of what communities want and need, and become singularly focused on individual power or winning the next election. We've seen today the government indulging in the most narcissistic of political power plays, all while bushfires are burning across New South Wales in winter and 100 per cent of the state is in drought.</para>
<para>We face wicked problems that demand radical solutions. We must reject simplistic solutions and tackle the root causes. We cannot talk about millions of displaced people and those seeking asylum in Australia without acknowledging the role we've played in the global imperial war machine. We cannot tackle climate change or the waste crisis without addressing rampant overconsumption and abuse of natural resources. We cannot resolve income inequality without addressing the excesses of capitalism and neoliberalism. We cannot lift people out of poverty without asking why corporations have free rein to rake in ever-growing profits at the expense of people and the planet.</para>
<para>Children are dying in offshore camps. Young people are juggling multiple jobs just to survive, and our environment remains on the brink of irreversible damage. We are a rich country, but so many are being left behind. People are right to say that we need big, bold, fearless ideas. We can make sure wealth isn't concentrated in the deep pockets of the rich. We can give each child and young person the promise of free education. We can make sure that the sick and elderly get the care they deserve. Nature has intrinsic value. It is not just a commodity to be used and abused. Let's enshrine the rights of nature in law to protect Australia's natural wonders, like the Great Barrier Reef, the Great Artesian Basin and the Murray-Darling system, from greedy exploitation. Let's remove money from politics, end the revolving door of politicians and lobbyists, and place people at the very heart of decisions. I know that creating change is risky business, but the risk of challenging entrenched norms and values is well worth the reward—a more caring, kind and compassionate world. My role as a senator is as much about what I will do outside this place as it is about the business conducted in this chamber. We should be under no illusions that we can achieve all the change Australia requires from in here. It is people, not parliaments, who will lead the way in sparking our political imagination and creating radical change. It is activists who work tirelessly for their causes. It is community members, neighbours, teachers, workers and students who inspire me every day.</para>
<para>Above all, it is through talking and listening to each other that change will come—conversations that start community movements to win equal marriage, where strangers call out racism on public transport, where neighbours encourage each other to take action to protect their local environment and where we reach across the divides of politics and political differences to build an understanding that we are all in this together. These conversations—the slow, messy, sometimes difficult but indelibly human process—may offend the sensibilities of some modern political apparatchiks. But the clinical purity of data analysis, ad targeting and corporate fundraising can be no replacement for genuine deliberation, discussion and debate with each other, both in here and out there. That will create the appetite and the momentum for the change our country needs.</para>
<para>In these conversations we find a vision of Australia's future, a vision for all of us. I see an Australia that looks beyond its borders, not as a nation hungry for resources and cheap goods, not as a nation suspicious or fearful of others and not as an ally of a war machine but as a friend of people who are fighting oppression, marginalisation and injustices wherever they may be. We look beyond our borders as a proponent of democracy and human rights everywhere, not just where it is politically expedient. We look to international peace, to justice in Palestine, to welcoming refugees.</para>
<para>I see an unashamedly feminist country where the patriarchy is dismantled, where access to abortion is unambiguously legal, where the safety of women is of the utmost importance and violence against women is confronted as the crisis that it is. But gender equality is not just going to happen. Equality must be the law, and corporations that refuse to pay women the same as they would a man should be penalised.</para>
<para>I have the privilege of being the 100th woman to sit in the Senate. I'm thankful to the 99 others who forged this path. But I would not be standing here in front of you were it not for the exceptional women in my life—my mother, who is generous, kind and trusting, who still shows me how to break the mould; my aunt, the fiercely independent writer, poet and feminist who taught me to speak out for women's rights; my mother-in-law, who did what had to be done, always without seeking any recognition or reward; and my grandmother, who gave me the freedom to play cricket and fly kites to my heart's content.</para>
<para>Women like activist Angela Davis and biologist Rachel Carson inspire me. Sadly, many other women who have been at the forefront of social movements rarely receive the historical recognition given to their male peers.</para>
<para>I want to see an Australia where the voices of Indigenous women, trans women and women of colour are heard, not silenced, an Australia where the fruit of our labour is enjoyed, not exploited, where workers have power, unions are strong and no-one has to work four jobs just to make ends meet.</para>
<para>I see a place where climate change is more than a political football, where the economy is working for the people and the environment, where the environment is seen not as diametrically opposed to the economy but as inextricably linked with it. A thriving environment is essential for our wellbeing.</para>
<para>I see a society that cares for animals, where greyhounds like my beautiful Cosmo are safe and happy in homes instead of being pushed to their limits and killed on racetracks for gambling, a society where we would never tolerate the inhumanity of live exports or factory farming and where our native species are safe from the threat of extinction.</para>
<para>The Greens see an Australia embracing new ideas, knowing full well that old approaches have failed us.</para>
<para>Those who know me know—and perhaps those who don't know me so well will soon find out—that I'm not backwards in coming forward. I learned very early in life to fight hard to change what I knew to be unfair, from tussles with my mother to be allowed to do the same things as my brothers did to studying civil engineering in a man's world. Using this same determination, I made a new life in Australia and pushed boundaries in the New South Wales parliament. I bring this determination and a troublemaking streak with me to the Senate. We cannot fiddle around the edges and somehow hope that the tide will turn. We can build a future for each and every one of us, no matter where we come from and no matter the colour of our skin, our religion, our gender or sexuality, our bank balance or our postcode. I hope I can make you proud.</para>
</speech>
</debate>
    <debate><debateinfo>
        <title>DOCUMENTS</title>
        <page.no>64</page.no>
        <type>DOCUMENTS</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Consideration</title>
          <page.no>64</page.no>
        </subdebateinfo></subdebate.1></debate>
    <debate><debateinfo>
        <title>COMMITTEES</title>
        <page.no>65</page.no>
        <type>COMMITTEES</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Public Works Committee</title>
          <page.no>65</page.no>
        </subdebateinfo><subdebate.2><subdebateinfo>
            <title>Report</title>
            <page.no>65</page.no>
          </subdebateinfo><speech>
  <talker>
    <time.stamp>17:31</time.stamp>
    <name role="metadata">Senator WILLIAMS</name>
    <name.id>I0V</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>On behalf of the Parliamentary Standing Committee on Public Works, I present <inline font-style="italic">Report 3/2018: referrals made May 2018</inline>.</para>
</speech>
</subdebate.2></subdebate.1><subdebate.1><subdebateinfo>
          <title>Economics References Committee</title>
          <page.no>65</page.no>
        </subdebateinfo><subdebate.2><subdebateinfo>
            <title>Government Response to Report</title>
            <page.no>65</page.no>
          </subdebateinfo><speech>
  <talker>
    <time.stamp>17:31</time.stamp>
    <name role="metadata">Senator SCULLION</name>
    <name.id>00AOM</name.id>
    <electorate>Northern Territory</electorate>
  </talker>
  <para>I present the government's response to the interim report of the Economics References Committee on its inquiry into non-conforming building products, <inline font-style="italic">Interim report: </inline><inline font-style="italic">protecting Australians from the threat of asbestos</inline>, and seek leave to have the document incorporated in <inline font-style="italic">Hansard</inline>.</para>
<para>Leave granted.</para>
<para class="italic"> <inline font-style="italic">The document read as follows—</inline></para>
<quote><para class="block">Senate Economics References Committee Inquiry into non-conforming building products</para></quote>
<quote><para class="block">Australian Government response to the interim report: Protecting Australians from the threat of asbestos</para></quote>
<quote><para class="block">AUGUST 2018</para></quote>
<quote><para class="block">Background</para></quote>
<quote><para class="block">On 23 June 2015, the Senate referred an inquiry into non-conforming building products to the Senate Economics References Committee, to examine:</para></quote>
<quote><para class="block"> <inline font-style="italic">a. </inline> <inline font-style="italic">the economic impact of non-conforming building products on the Australian building and construction industry;</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">b. </inline> <inline font-style="italic">the impact of non-conforming building products on:</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">i. </inline> <inline font-style="italic">industry supply chains, including importers, manufacturers and fabricators,</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">ii. </inline> <inline font-style="italic">workplace safety and any associated risks,</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">iii. </inline> <inline font-style="italic">costs passed on to customers, including any insurance and compliance costs, and</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">iv. </inline> <inline font-style="italic">the overall quality of Australian buildings;</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">c. </inline> <inline font-style="italic">possible improvements to the current regulatory frameworks for ensuring that building products conform to Australian standards, with particular reference to the effectiveness of:</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">i. </inline> <inline font-style="italic">policing and enforcement of existing regulations,</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">ii. </inline> <inline font-style="italic">independent verification and assessment systems,</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">iii. </inline> <inline font-style="italic">surveillance and screening of imported building products, and</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">iv. </inline> <inline font-style="italic">restrictions and penalties imposed on non-conforming building products; and</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">d. </inline> <inline font-style="italic">any other related matters.</inline></para></quote>
<quote><para class="block">The Inquiry lapsed following the dissolution of the Senate (44th Parliament) on 9 May 2016, for the general election on 2 July 2016.</para></quote>
<quote><para class="block">On 11 October 2016, the Senate agreed to the Committee's recommendation that the Inquiry be re-adopted in the 45th Parliament.</para></quote>
<quote><para class="block">On 13 October 2016, as part of its broader Inquiry into non-conforming building products, the Committee adopted additional terms of reference seeking submissions regarding the unlawful importation of products containing asbestos, and their impact on the health and safety of the Australian community.</para></quote>
<quote><para class="block">Submissions to the Inquiry closed on 18 January 2017.</para></quote>
<quote><para class="block">Following the Grenfell Tower fire in London, on 21 June 2017, the then Assistant Minister for Industry, Innovation and Science, the Hon Craig Laundy MP, wrote to the Chair of the Committee, Senator Chris Ketter, to request the Inquiry be used to conduct a public hearing to specifically examine the non-compliant use of cladding products in Australia.</para></quote>
<quote><para class="block">The Committee agreed to prepare an additional interim report on the implications of the use of non-compliant external cladding materials in Australia as a priority. That report was released on 6 September 2017 and the Government's response was tabled on 14 February 2018.</para></quote>
<quote><para class="block">The reporting date for the interim report on asbestos was 22 November 2017 and the reporting date for the final Inquiry report is 16 August 2018.</para></quote>
<quote><para class="block">The Australian Government has given consideration to the findings and recommendations presented in the Committee's interim report on asbestos, and tables the following response for the Committee's consideration ahead of the final Inquiry report.</para></quote>
<quote><para class="block">Government Response</para></quote>
<quote><para class="block">The Australian Government acknowledges the significant impact on the health and safety of the Australian community that may arise from exposure to asbestos. The Government supports the decision of the Committee to examine the issue of unlawfully imported goods containing asbestos as part of its broader Inquiry into non-conforming building products.</para></quote>
<quote><para class="block">The Committee's interim report on asbestos includes 26 recommendations, with many directed at matters the Government has addressed or is considering. This includes:</para></quote>
<list>the coordinated, strategic approach to enforce Australia's strict asbestos prohibition at the border</list>
<list>the whole of government coordination of activities to address unlawful asbestos imports</list>
<list>strengthened asbestos-related regulations, including increased penalty levels</list>
<list>the provision of increased funding for the Asbestos Safety and Eradication Agency (ASEA).</list>
<quote><para class="block">Commonwealth, state, territory and local governments are responsible for managing asbestos within their jurisdictions. This includes work health and safety (WHS), public health, consumer safety and environmental regulation. Australian governments work closely together to develop consistent regulatory and policy frameworks.</para></quote>
<quote><para class="block">The Australian Government, through ASEA, works with governments at all levels to ensure there is a coordinated national approach to dealing with asbestos. The Government more than doubled ASEA's ongoing level of funding from 2018–19.</para></quote>
<quote><para class="block">The Government shares the community's concerns over incidents of goods containing asbestos unlawfully imported into Australia and is committed to maintaining effective border control.</para></quote>
<quote><para class="block">In September 2016, the Department of Jobs and Small Business (formerly the Department of Employment) and the Department of Home Affairs (formerly the Department of Immigration and Border Protection) established the Asbestos Inter-Departmental Committee (Asbestos IDC) to provide strategic direction to enable effective policy and regulatory coordination across Commonwealth agencies in managing asbestos issues across the supply chain.</para></quote>
<quote><para class="block">The Government has progressed a range of initiatives to improve supply chain management and assurance pre, at and post border. The Australian Border Force (ABF) is managing goods that pose a risk of containing asbestos through a substantial increase in the targeting and testing of goods at the border.</para></quote>
<quote><para class="block">Government agencies are also actively working with importers and industry to ensure they understand the requirements and their responsibilities under import laws. This includes the need to put in place assurance measures across the supply chain to ensure that asbestos does not reach Australia in the first place.</para></quote>
<quote><para class="block">Australian Government agencies are also working together with state and territory WHS regulators to address incidents of unlawfully imported asbestos being installed in a workplace. Consideration is being given to the powers of inspectors to require the removal of the asbestos in this circumstance.</para></quote>
<quote><para class="block">Commonwealth, state and territory governments have also established mechanisms to respond rapidly to the identification of unlawful asbestos importations, to prevent these goods from posing a risk to the community. A Rapid Response Protocol ensures that relevant government agencies share information and facilitate communication to the community about the safe handling and disposal of imported goods containing asbestos.</para></quote>
<quote><para class="block">The Government recognises the importance of maintaining a strict prohibition on the import and use of asbestos and will continue to work collaboratively with all levels of government, industry and the community to address this issue.</para></quote>
<quote><para class="block">Response to the Recommendations</para></quote>
<quote><para class="block">Recommendation 1</para></quote>
<quote><para class="block"> <inline font-style="italic">Through the Council of Australian Governments, the Australian Government pursue a coordinated and consistent whole of government approach to strengthen federal and state legislation and regulations to address the illegal importation of asbestos.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Noted</inline></para></quote>
<quote><para class="block">The Government notes this recommendation.</para></quote>
<quote><para class="block">The existing coordinated and consistent approach to addressing the unlawful importation of asbestos and appropriate mechanisms has strong support from all levels of government in Australia.</para></quote>
<quote><para class="block">The responsibilities of Commonwealth, state and territory agencies are clear in relation to the prevention, detection and management of imports, which unlawfully contain asbestos. There is an effective regulatory framework in place, underpinned by a range of laws across the import supply chain at the Commonwealth, state and territory levels in the areas of public health, environment, WHS, importation, building regulation and consumer law.</para></quote>
<quote><para class="block">The Government has established a range of policy and regulatory coordination mechanisms at ministerial and senior executive levels to ensure a coordinated and systematic approach across this framework. Commonwealth, state and territory ministers and senior officials responsible for WHS regularly meet to progress WHS issues, including asbestos-related issues.</para></quote>
<quote><para class="block">The Asbestos IDC, which the Department of Jobs and Small Business and the Department of Home Affairs established in September 2016, provides strategic direction to enable effective policy and regulatory coordination across Commonwealth agencies in managing asbestos issues across the supply chain. The Asbestos IDC brings together Commonwealth agencies responsible for WHS, border protection, trade, environmental protection, public health and consumer safety. ASEA is also on the Asbestos IDC. The work of the Asbestos IDC has involved clarifying roles and responsibilities and identifying opportunities to strengthen the legislative framework. The Asbestos IDC undertakes consultation with employers and unions.</para></quote>
<quote><para class="block">The Heads of Workplace Safety Authorities' (HWSA) Imported Materials with Asbestos Working Group also meets to discuss asbestos management issues. The working group includes representatives from the ABF, the Departments of Home Affairs and Jobs and Small Business, Safe Work Australia (SWA), ASEA, the Australian Competition and Consumer Commission (ACCC), all WHS regulators from the commonwealth, states, territories and New Zealand responsible for asbestos matters. The Working Group has established a Rapid Response Protocol to address instances of unlawfully imported asbestos, with communication channels to enable a swift response to contain and appropriately deal with those instances within Australia.</para></quote>
<quote><para class="block">SWA, the national agency on work health and safety policy, also supports a coordinated and consistent approach to the regulation of asbestos in the workplace. SWA comprises membership from the Commonwealth, all states and territories, employers and unions. The model WHS laws, for which SWA is responsible, deal comprehensively with asbestos in the workplace, including through the implementation of a domestic ban on its use.</para></quote>
<quote><para class="block">Australia has had a ban on the unauthorised manufacture, use, reuse, import, transport, storage or sale of all forms of asbestos and asbestos-containing materials since 31 December 2003. The ban was introduced under Commonwealth, state and territory work health and safety legislation and is complemented by import and export prohibitions under the <inline font-style="italic">Customs (Prohibited Imports) Regulations 1956</inline> (Cth) and the <inline font-style="italic">Customs (Prohibited Exports) Regulations 1958 </inline>(Cth).</para></quote>
<quote><para class="block">Regulation 4C of the <inline font-style="italic">Customs (Prohibited Imports) Regulations 1956</inline> (Cth) prohibits the importation of asbestos, or goods containing asbestos, except in very limited circumstances, such as where the Minister administering the <inline font-style="italic">Work Health and Safety Act 2011 </inline>(Cth)has provided permission to import asbestos for the purpose of research, analysis or display. Regulation 4 of the <inline font-style="italic">Customs (Prohibited Exports) Regulations 1958</inline> (Cth) prohibits the exportation of asbestos, or certain goods containing asbestos, from Australia unless a permission or exemption has been granted or a lawful exception applies.</para></quote>
<quote><para class="block">As noted in the response to Recommendation 15, the Department of Home Affairs is developing advice to government on changes to the offences and penalties for the unlawful import/export of asbestos detailed in customs legislation.</para></quote>
<quote><para class="block">The Departments of Jobs and Small Business and Home Affairs are also considering amendments to the <inline font-style="italic">Customs (Prohibited Imports) Regulations 1956</inline> (Cth) and <inline font-style="italic">Customs (Prohibited Exports) Regulations 1956</inline> (Cth) at the recommendation of the Asbestos IDC<inline font-style="italic">. </inline>The proposed changes would improve consistency of the regulations with the model WHS laws and make other necessary updates.</para></quote>
<quote><para class="block">As noted in the response to Recommendation 20, SWA is currently reviewing the power of regulators to deal with the removal and disposal of asbestos that has been unlawfully imported and then used in workplaces.</para></quote>
<quote><para class="block">The comprehensive and coordinated approach the Government is taking to the enforcement and management of Australia's strict import/export prohibition and workplace ban on asbestos means that additional work through the Council of Australian Governments (COAG) is unnecessary.</para></quote>
<quote><para class="block">Recommendation 2</para></quote>
<quote><para class="block"> <inline font-style="italic">The Australian Government adequately fund the Asbestos Safety and Eradication Agency so it is able to deliver the next National Strategic Plan for Asbestos Management and Awareness and to carry out its other functions, both current functions and new functions set out in recommendations in the report.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Supported</inline></para></quote>
<quote><para class="block">The Government supports this recommendation.</para></quote>
<quote><para class="block">The Government provided ASEA with additional ongoing funding of $1.7 million per annum, commencing in 2018–19, in the 2017 Mid-Year Economic and Fiscal Outlook (MYEFO). This more than doubles ASEA's base level of funding, from $1.6 million, to $3.3 million per annum.</para></quote>
<quote><para class="block">The additional funding ensures ASEA can work effectively with state, territory and Commonwealth WHS regulators to implement the National Strategic Plan for Asbestos Management and Awareness to protect workers and the community from Australia's deadly asbestos legacy, as well as achieving an end to asbestos-related disease.</para></quote>
<quote><para class="block">The funding will ensure that ASEA is well placed to coordinate the implementation of phase two of the National Strategic Plan with Comcare, the states and territories. The funding ensures the Agency can maintain an appropriate level of staffing and conduct research in priority areas to support effective policy and programs that reduce exposure to asbestos.</para></quote>
<quote><para class="block">Recommendation 3</para></quote>
<quote><para class="block"> <inline font-style="italic">The Department of Immigration and Border Protection and Australian Border Force undertake an external review of their industry consultation arrangements with a view to strengthen and formalise the contribution from stakeholders. Ideally, these should be through formal meetings on a regular basis with those who are on the front line who are adversely impacted by illegal asbestos importation.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Noted</inline></para></quote>
<quote><para class="block">The Government notes this recommendation.</para></quote>
<quote><para class="block">An independent review of border processes for asbestos concluded in 2016. This review examined industry engagement undertaken at the time, and it identified opportunities for organisational and technical improvements. Following the review, there has been an increased focus on formalised consultation and engagement.</para></quote>
<quote><para class="block">The Department of Home Affairs continues to enhance and update the information it publishes with respect to asbestos, and it engages directly with key stakeholders via a number of internal and external consultation fora, including through:</para></quote>
<list>the Trade and Goods Compliance Advisory Group</list>
<list>the Building Ministers' Forum</list>
<list>peak border industry bodies, such as the Customs Brokers and Forwarders Council of Australia (CBFCA), the Freight and Trade Alliance, the Australian Peak Shippers Association, and other industry representative bodies</list>
<list>trade union groups through the Asbestos IDC.</list>
<quote><para class="block">The Department of Home Affairs' efforts complement those of other agencies, including through ASEA's work in driving a national focus on health and safety issues on asbestos. ASEA has broad stakeholder reach, including with state and territory regulators, unions, industry associations and asbestos support groups.</para></quote>
<quote><para class="block">The Asbestos IDC coordinates a whole-of-government approach to the consultation and engagement that occurs with relevant stakeholders. The recommended external review of industry consultation arrangements would likely result in a duplication of effort given the current work of the Asbestos IDC and ASEA, and the 2016 independent review already undertaken.</para></quote>
<quote><para class="block">Recommendation 4</para></quote>
<quote><para class="block"> <inline font-style="italic">The Australian Government continue to strongly advocate for the listing of chrysotile asbestos in Annex III of the Rotterdam Convention and support a change in the voting rules if required for this to be achieved.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Supported</inline></para></quote>
<quote><para class="block">The Government supports this recommendation.</para></quote>
<quote><para class="block">The Government will continue to advocate strongly for the listing of chrysotile asbestos in Annex III of the Rotterdam Convention. The Government is supportive of examining all mechanisms and implications of improving the effectiveness of the Convention, including changes to voting rules if required. The whole-of-government position for the Conference of the Parties planned for 2019 will be developed in advance of the Conference.</para></quote>
<quote><para class="block">Recommendation 5</para></quote>
<quote><para class="block"> <inline font-style="italic">In the event that the Australian Government is unsuccessful in listing of chrysotile asbestos in Annex III at the 2019 Rotterdam Convention, the Australian Government should consider pursuing bilateral or multilateral asbestos treaties with importation disclosure requirements equivalent to an Annex III listing.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Noted</inline></para></quote>
<quote><para class="block">The Government notes this recommendation.</para></quote>
<quote><para class="block">Should the listing of chrysotile asbestos in Annex III of the Rotterdam Convention be unsuccessful at the ninth meeting of the Conference of the Parties to the Rotterdam Convention planned for 2019, the Government will consider alternative approaches.</para></quote>
<quote><para class="block">Recommendation 6</para></quote>
<quote><para class="block"> <inline font-style="italic">The Australian Government in its course of the regular review of free trade agreements with other countries, include in the review provisions regarding asbestos containing materials.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Noted</inline></para></quote>
<quote><para class="block">The Government notes this recommendation.</para></quote>
<quote><para class="block">The recommendation does not reflect Australia's ongoing commitment to the regulation of dangerous goods or the provisions of existing free trade agreements. Australia's Free Trade Agreements (FTAs) and World Trade Organization (WTO) commitments already preserve Australia's ability to regulate dangerous goods. Nothing in these agreements requires Australia to lower safety standards and regulations.</para></quote>
<quote><para class="block">Specifically, Australia's FTAs all contain a Technical Barriers to Trade (TBT) Chapter, reaffirming Australia's right to impose product standards and technical regulations to protect human health or safety. TBT chapter provisions ensure that trading partners apply technical regulations and standards equally to products originating domestically or from overseas.</para></quote>
<quote><para class="block">TBT chapters also encourage regulatory convergence among trading partners, for example through the adoption of international standards—but such convergence is generally pursued outside of FTA review mechanisms as they relate to regional and international, rather than bilateral efforts (as per Recommendations 4 and 5).</para></quote>
<quote><para class="block">In addition to the TBT chapter, FTAs also include general exceptions, which enable Australia to implement measures to protect human health or safety, and animal or plant life.</para></quote>
<quote><para class="block">Recommendation 7</para></quote>
<quote><para class="block"> <inline font-style="italic">The Australian Government continue its support for asbestos bans internationally and promotes awareness of the risks of asbestos in the Asia-Pacific region.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Supported</inline></para></quote>
<quote><para class="block">The Government supports this recommendation.</para></quote>
<quote><para class="block">The Government already advocates and supports asbestos bans internationally, as well as promoting awareness of asbestos risks.</para></quote>
<quote><para class="block">The Australian Department of Foreign Affairs and Trade (DFAT) bans the use of asbestos containing materials in the Australian aid program. DFAT's policy on <inline font-style="italic">Managing asbestos risk in the aid</inline><inline font-style="italic">program</inline> outlines its approach to managing asbestos-related hazards, including implementation of the banon the use of asbestos-containing materials in all aid program activities and investments.</para></quote>
<quote><para class="block">DFAT actively works with partner governments, aid donors and delivery partners to promote the sharing of knowledge and information on best practice for awareness, management and eradication of asbestos across the Asia-Pacific region.</para></quote>
<quote><para class="block">DFAT also has mandatory safeguards in place to ensure the Australian aid program assesses and manages potential adverse environmental and social impacts. DFAT's <inline font-style="italic">Environmental and social safeguard policy</inline> seeks to protect the rights, health, safety of the environment, communities and people.</para></quote>
<quote><para class="block">Recommendation 8</para></quote>
<quote><para class="block"> <inline font-style="italic">The Australian Government require mandatory Asbestos Awareness Training for a wide range of occupations in the construction industry and provide adequate funding for nationally accredited training for this purpose.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Supported in part</inline></para></quote>
<quote><para class="block">The Government supports this recommendation in part.</para></quote>
<quote><para class="block">All Australian WHS laws impose a mandatory obligation on primary duty holders to provide information, training, instruction and supervision to ensure work is performed safely as part of their duty of care.</para></quote>
<quote><para class="block">This broad duty is supported by specific regulations requiring the training of workers about asbestos. For example, the model WHS laws, developed by SWA and enacted by the Commonwealth and a majority of states and territories, require workers who may carry out work involving asbestos to be trained in the identification and safe handling of asbestos and asbestos containing materials. This includes workers in the construction industry. Victoria and Western Australia have not enacted the model laws but have similar arrangements in place (<inline font-style="italic">Occupational Health and Safety Regulations 2017 (Vic)</inline> and <inline font-style="italic">Occupational Safety and Health regulations 1996 (WA)</inline>).</para></quote>
<quote><para class="block">Current requirements under model WHS laws allow for training to be tailored to the work being carried out. A number of nationally accredited training courses in asbestos awareness are already available and being delivered. Course participants or their employers fund participation in these courses and the Government considers this appropriate.</para></quote>
<quote><para class="block">Recommendation 9</para></quote>
<quote><para class="block"> <inline font-style="italic">The Department of Immigration and Border Protection and Australian Border Force consider the merits of developing and implementing a comprehensive education campaign for all importers of the risk and responsibilities regarding asbestos containing materials and the definition of asbestos containing materials used in other countries.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Noted</inline></para></quote>
<quote><para class="block">The Government notes this recommendation.</para></quote>
<quote><para class="block">The Department of Home Affairs and the ABF already undertake significant consultation and engagement to ensure awareness by importers of the assurances required to demonstrate that goods at the border do not contain asbestos. In addition to the resources on the Department of Home Affairs' website and in its publications, the Department has also made significant progress engaging and reaffirming industry and importer understanding of the necessity for compliance with Australia's strict prohibition on the importation of asbestos.</para></quote>
<quote><para class="block">Furthermore, as referenced in the response to Recommendation 3, the Department of Home Affairs will continue to work through existing fora (such as Trade and Goods Compliance Advisory Group and the Asbestos IDC) to ensure information, education and engagement across industry and individual importers continues to be consistent, timely and relevant.</para></quote>
<quote><para class="block">Recommendation 10</para></quote>
<quote><para class="block"> <inline font-style="italic">The Asbestos Safety and Eradication Agency develop a one-stop-shop website to provide single point for participants across the supply chain to access information regarding the illegal importation of asbestos.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Supported</inline></para></quote>
<quote><para class="block">The Government supports this recommendation.</para></quote>
<quote><para class="block">The Government supports measures to improve public access to information about asbestos.</para></quote>
<quote><para class="block">ASEA updated its website on 2 February 2018 and provides access to a wide range of information about asbestos, including links to relevant agencies such as the Department of Home Affairs for more detailed advice. ASEA's website provides:</para></quote>
<list>comprehensive information about Australia's ban on importing asbestos, including a list of goods that are at risk of containing asbestos</list>
<list>information on who to contact for asbestos issues, including links to state and territory WHS and environmental regulators</list>
<list>consumer protection information including safety alerts and recall notices</list>
<list>identification and disposal information including links to relevant government agencies in each state/territory</list>
<list>information for homeowners</list>
<list>general asbestos information including asbestos related research.</list>
<quote><para class="block">ASEA will continue to refine its website to ensure it provides up-to-date links to comprehensive information that meets the needs of the public.</para></quote>
<quote><para class="block">Recommendation 11</para></quote>
<quote><para class="block"> <inline font-style="italic">The Australian Government review the Australian Border Force staff resourcing required to effectively monitor and prevent the illegal importation of asbestos.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Noted</inline></para></quote>
<quote><para class="block">The Government notes this recommendation.</para></quote>
<quote><para class="block">The ABF continually reviews its allocation of resources across a range of border threats to ensure an appropriate response. To this end, the ABF has significantly increased its operational efforts towards addressing the risk of asbestos since the organisation commenced on 1 July 2015, including the targeting and testing of at-risk goods.</para></quote>
<quote><para class="block">The ABF is confident that its response to unlawfully imported asbestos is proportionate to the risk, and the ABF will continue to review the commitment of resources to preventing and detecting asbestos importations as appropriate.</para></quote>
<quote><para class="block">Recommendation 12</para></quote>
<quote><para class="block"> <inline font-style="italic">The Australian Government consider the merits of having a specialist unit within Australian Border Force to manage illegal asbestos importation.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Not supported</inline></para></quote>
<quote><para class="block">The Government does not support this recommendation.</para></quote>
<quote><para class="block">The ABF is responsible for managing numerous risks to the Australian community and has an effective structure that is both flexible and adaptable to dealing with those risks, including managing prohibited goods such as asbestos, weapons and drugs. The stand-up of specialist units for individual prohibited items is not an efficient or effective way of enforcing border controls, given the significant volume and type of goods coming across the border each day.</para></quote>
<quote><para class="block">The ABF already has in place assessment processes to identify goods that are at risk of containing asbestos. If the ABF determines that the goods require sampling for the purposes of laboratory testing, the importer is responsible for contracting a qualified professional to do so. This sampling and testing is under the supervision of, and not by, the ABF, and occurs in a manner that complies with jurisdictional WHS laws.</para></quote>
<quote><para class="block">The ABF will continue to maintain its focus on asbestos and it will monitor and assess the level of resourcing required to ensure an appropriate operational response that is proportionate to the risk.</para></quote>
<quote><para class="block">Recommendation 13</para></quote>
<quote><para class="block"> <inline font-style="italic">The Australian Government review the </inline>Customs Act 1901<inline font-style="italic"> (and other relevant legislation) to address the challenges of enforcing the existing importation of asbestos offence, with the aim to close loopholes and improve the capacity of prosecutors to obtain convictions against entities and individuals importing asbestos. This review should include consideration of increasing the threshold required to use </inline><inline font-style="italic">'</inline><inline font-style="italic">mistake of fact</inline><inline font-style="italic">'</inline><inline font-style="italic"> as a legal defence.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Noted</inline></para></quote>
<quote><para class="block">The Government notes this recommendation.</para></quote>
<quote><para class="block">The Department of Home Affairs is preparing advice to support the review on changes to the offences and penalties for the unlawful import/export of asbestos, detailed in customs legislation, including in relation to the 'mistake of fact' defence.</para></quote>
<quote><para class="block">Recommendation 14</para></quote>
<quote><para class="block"> <inline font-style="italic">The Australian Government prioritise prosecution of illegal asbestos importation cases.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Not supported</inline></para></quote>
<quote><para class="block">The Government does not support this recommendation.</para></quote>
<quote><para class="block">The decisions to commence proceedings for offences against the Commonwealth occur on a case-by-case basis.</para></quote>
<quote><para class="block">In determining whether to pursue prosecution, the Department of Home Affairs and the ABF take into account both the <inline font-style="italic">Prosecution Policy of the Commonwealth</inline> and the <inline font-style="italic">Legal Services Directions 2017</inline> (Cth).</para></quote>
<quote><para class="block">Under the Prosecution Policy of the Commonwealth, a prosecution should commence only when there is a <inline font-style="italic">prima facie</inline> case, reasonable prospects of securing a conviction and the prosecution is in the public interest. The <inline font-style="italic">Legal Services Directions 2017</inline> place an obligation on the Commonwealth and Commonwealth agencies to act as a model litigant. In line with this obligation, consideration as to whether litigation is the most suitable method of dispute resolution is also relevant.</para></quote>
<quote><para class="block">Recommendation 15</para></quote>
<quote><para class="block"> <inline font-style="italic">The Australian Government review the quantum of penalties for breaches of Australia</inline> <inline font-style="italic">'</inline> <inline font-style="italic">s importation ban with a view to increasing them.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Noted</inline></para></quote>
<quote><para class="block">The Government notes this recommendation.</para></quote>
<quote><para class="block">Existing financial penalties for the unlawful importation of asbestos are:</para></quote>
<quote><para class="block">for an individual, a pecuniary fine of up to $210,000 or three times the value of the goods, whichever is greater</para></quote>
<quote><para class="block">for a company, a pecuniary fine of up to $1,050,000 or 15 times the value of the goods, whichever is greater.</para></quote>
<quote><para class="block">The decision to impose a penalty following conviction, and the size of that penalty, is at the discretion of the Court.</para></quote>
<quote><para class="block">In lieu of prosecution, the ABF may impose administrative sanctions, including financial penalties through issuance of an infringement notice under the <inline font-style="italic">Customs Act 1901</inline> (Cth).</para></quote>
<quote><para class="block">Recommendation 16</para></quote>
<quote><para class="block"> <inline font-style="italic">Where an importer intends to import goods that have been deemed high risk of containing asbestos, the Australian Government require the importer, prior to the importation of the goods, to conduct sampling and testing by a NATA accredited authority (or a NATA equivalent testing authority in another country that is a signatory to a Mutual Recognition Arrangement).</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Not supported</inline></para></quote>
<quote><para class="block">The Government does not support this recommendation.</para></quote>
<quote><para class="block">Mandatory testing is not always an efficient and effective way of providing assurance that the goods are asbestos free. Mandatory testing is costly to industry, particularly for importers who are demonstrably compliant.</para></quote>
<quote><para class="block">The ABF requires importers to have adequate assurance measures in place to demonstrate that the goods they are importing do not contain asbestos. The types of measures an importer may put in place may include, but are not exclusive to, testing. Assurance can include a combination of processes, such as the identification and removal of at-risk components before import (for example, brake pads in vehicles), which would remove the necessity to test; collation of evidence through demonstrated knowledge of the supply chain (including the manufacturing process) and building assurances into contractual arrangements with suppliers.</para></quote>
<quote><para class="block">When goods arrive at the Australian border, if the ABF is not satisfied with the importer's level of assurance, the ABF will direct the importer to have the goods tested by a National Association of Testing Authorities (NATA) accredited laboratory.</para></quote>
<quote><para class="block">Recommendation 17</para></quote>
<quote><para class="block"> <inline font-style="italic">The Government examine the European Union</inline> <inline font-style="italic">'</inline> <inline font-style="italic">s regulations and processes for testing of products for asbestos prior to import and determine if it is suitable to adapt them to benefit and enhance Australian requirements.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Supported</inline></para></quote>
<quote><para class="block">The Government supports this recommendation.</para></quote>
<quote><para class="block">The Government will advise the Senate Economics References Committee on the suitability of adapting the European Union's regulations and processes for testing for asbestos in Australia in its response to the Committee's final report.</para></quote>
<quote><para class="block">Recommendation 18</para></quote>
<quote><para class="block"> <inline font-style="italic">The Australian Government consider placing additional mandatory requirements on procurers of high-risk products to have a due diligence system in place for the prevention of the import and use of asbestos containing materials.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Noted</inline></para></quote>
<quote><para class="block">The Government notes this recommendation.</para></quote>
<quote><para class="block">The Government considers that existing guidance on due diligence for importers, and the mandatory requirements under WHS laws, are already sufficient.</para></quote>
<quote><para class="block">For example, the model WHS laws in place in a majority of jurisdictions require a person conducting a business or undertaking (PCBU) to ensure, so far as is reasonably practicable, the health and safety of workers it engages, directs or influences, relevant to dealing with the risks posed by unlawfully imported asbestos. These duties include:</para></quote>
<list>providing and maintaining a working environment that, so far as is reasonably practicable, is safe and without risks to health</list>
<list>providing and maintaining plant, structures and systems of work that, so far as is reasonably practicable, are safe and do not pose health risks.</list>
<quote><para class="block">PCBUs that design, manufacture, import or supply plant, structures or substances have specific 'upstream duties' under the model WHS laws. This reflects their ability to influence the safety of these products before they are used in the workplace. These PCBUs have a duty to ensure, so far as is reasonably practicable, that their products are without risk to health and safety when used at a workplace. This duty extends throughout the entire lifecycle of that product.</para></quote>
<quote><para class="block">An officer of a PCBU is required to exercise due diligence to ensure that the PCBU complies with duties and obligations. It is unlikely that further regulation will achieve a measurable improvement in the issue of illegal asbestos importation.</para></quote>
<quote><para class="block">Recommendation 19</para></quote>
<quote><para class="block"><inline font-style="italic">The committee recommends that other states and territories pass similar legislation to Queensland</inline> <inline font-style="italic">'</inline> <inline font-style="italic">s </inline>Building and Construction Legislation (Non-conforming Building Products—Chain of Responsibility and Other Matters) Amendment Act 2017.</para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Noted</inline></para></quote>
<quote><para class="block">The Government notes this recommendation</para></quote>
<quote><para class="block">While directed to state and territory governments due to their constitutional responsibility for the regulatory framework governing the built environment, the following information may be of interest to the Inquiry.</para></quote>
<quote><para class="block">The <inline font-style="italic">Building and Construction Legislation (Non-conforming Building Products</inline><inline font-style="italic">—</inline><inline font-style="italic">Chain of Responsibility and Other Matters) Amendment Act 2017</inline> (Qld) (Queensland Amendment Act) amended legislation, primarily the <inline font-style="italic">Building and Construction Commission Act 1991</inline> (Qld) (Queensland Building Act) in a number of ways. The Queensland Amendment Act amended the Queensland Building Act to include an additional object in section 3(e) to: regulate building products to ensure the safety of consumers and the public generally; and persons involved in the production, supply or installation of building products are held responsible for the safety of the products and their use.</para></quote>
<quote><para class="block">The Australian Government notes that the Queensland Amendment Act was not designed to address asbestos. The model WHS laws already comprehensively deal with the issue of asbestos. As noted in the Department of Jobs and Small Business' submission to the Inquiry and the response to Recommendation 18, PCBUs that design, manufacture, import or supply plant, structures or substances have specific 'upstream duties' under the model WHS laws. These PCBUs have a duty to ensure, so far as is reasonably practicable, that their products are without risk to health and safety when used at a workplace.</para></quote>
<quote><para class="block">Recommendation 20</para></quote>
<quote><para class="block"> <inline font-style="italic">Commonwealth, state and territory governments work together to develop nationally consistent legal obligations to require the removal and/or disposal of illegally imported asbestos (if it is safe to do so following consideration of the hazards likely to be faced by the workers undertaking the work) and to make importers responsible for the cost of such removal and/or disposal of asbestos.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Supported</inline></para></quote>
<quote><para class="block">The Government supports this recommendation in part.</para></quote>
<quote><para class="block">Under the model WHS laws, all jurisdictional regulators have powers to deal with the removal and disposal of asbestos that has been unlawfully imported and then used in a workplace. SWA is currently reviewing these powers to determine whether they need to be strengthened. The issue is also being considered as part of the independent review of the model WHS laws which is due to report by the end of the year.</para></quote>
<quote><para class="block">Should any issues with regulators' powers to deal with removal and disposal of asbestos be identified, amendments to the model WHS laws will be progressed through SWA's usual governance processes including consideration by Safe Work Australia Members and WHS ministers.</para></quote>
<quote><para class="block">Recommendation 21</para></quote>
<quote><para class="block"> <inline font-style="italic">The Australian Government review and clarify the role of the Federal Safety Commissioner with regards to asbestos containing materials in building products in line with the Commissioner</inline> <inline font-style="italic">'</inline> <inline font-style="italic">s responsibilities.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Noted</inline></para></quote>
<quote><para class="block">The Government notes this recommendation.</para></quote>
<quote><para class="block">The Government considers the role of the Federal Safety Commissioner (FSC) is already clear in the <inline font-style="italic">Building and Construction Industry (Improving Productivity) Act 2016</inline> (Cth).</para></quote>
<quote><para class="block">The FSC has a legislative function related to the compliance of building materials with the performance specifications of the National Construction Code (NCC), and is responsible for administering a WHS Accreditation Scheme for companies seeking to undertake Commonwealth funded building work.</para></quote>
<quote><para class="block">The FSC's WHS Accreditation Scheme criteria already represent the most stringent requirements in Australia for managing asbestos hazards on building sites. Conditions of being an FSC accredited company include that the performance requirements of the NCC must be complied with, and that appropriate policies, procedures and safe work practices must be in place, including in relation to the management of high risk hazards (such as asbestos which may be present in existing buildings, structures and land). The FSC has the power to suspend or revoke a company's accreditation where a condition of accreditation has been breached.</para></quote>
<quote><para class="block">Recommendation 22</para></quote>
<quote><para class="block"> <inline font-style="italic">The Australian Competition and Consumer Commission conducts compulsory recalls where asbestos is found in consumer products, unless there are significant issues and risks associated with a compulsory recall, noting that legislative change may be required.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Not supported</inline></para></quote>
<quote><para class="block">The Government does not support this recommendation.</para></quote>
<quote><para class="block">Division 3 of Part 3-3 of the Australian Consumer Law (ACL) presently allows the responsible minister (Commonwealth, state and territory consumer ministers) to issue a compulsory recall notice for consumer goods of a particular kind if certain threshold tests have been met.</para></quote>
<quote><para class="block">The ACCC is the national consumer product safety regulator responsible for jointly administering and enforcing the ACL with state and territory consumer affairs agencies under a 'one law, multiple regulator model'. The ACCC takes a hazard and risk-based approach to intervention in consumer product safety matters. In addition to compulsory recalls, the ACL provides for a range of graduated regulatory interventions to address consumer product safety-related issues, including voluntary recalls of consumer goods and safety warning notices.</para></quote>
<quote><para class="block">Compulsory recalls</para></quote>
<quote><para class="block">Under section 122(1) of the ACL it is at the discretion of the responsible minister to issue a compulsory recall notice for consumer goods of a certain kind if the minister is satisfied that legislative thresholds for regulatory intervention of this type have been met.</para></quote>
<quote><para class="block">If the Commonwealth Minister proposes issuing a compulsory recall notice, section 132A of the <inline font-style="italic">Competition and Consumer Act 2010</inline> (Cth) (CCA) requires the Minister to issue a proposed recall notice. The proposed recall notice must include an invitation for anyone who supplies, or proposes to supply the consumer goods to request the ACCC to hold a conference in relation to the proposed recall notice (section 132A(3)(e)). However, if it appears to the Commonwealth Minister that the consumer goods create an imminent risk of death, serious illness or serious injury, a recall notice can be issued without delay under section 132J of the CCA.</para></quote>
<quote><para class="block">In the cases of Great Wall and Chery Vehicles, and Polaris youth quad bikes, the threshold tests for recommending that the Commonwealth Minister issue compulsory recall notices were not met. The suppliers took satisfactory voluntary action to address the hazard by removing the goods from the market and providing affected consumers with a remedy. The ACCC monitored the effectiveness of these recalls.</para></quote>
<quote><para class="block">Voluntary recalls</para></quote>
<quote><para class="block">The interim report states that the ACCC did not administer recalls for Great Wall and Chery Vehicles, and Polaris youth quadbikes. In each of the cases, the suppliers of these consumer goods voluntarily took action to recall these goods according to section 128 of the ACL - Notification requirements for a voluntary recall of consumer goods.</para></quote>
<quote><para class="block">Safety warning notice</para></quote>
<quote><para class="block">The ACL also provides for the responsible minister to publish a safety warning notice to the public about possible product-related risks to consumers (section 129 (1)). Safety warning notices have been published in relation to a number of product safety-related issues, including 'fire wallets' due to identified asbestos content and more recently for Polaris youth quad bikes where certain parts of some models may contain asbestos.</para></quote>
<quote><para class="block">Once the investigation has been completed and a proposed ban notice or a proposed recall notice or a recall notice without delay has not been published or issued, the responsible minister must, as soon as practicable after the completion of the investigation, publish the results of the investigation (section 130(1) of the ACL). The responsible minister may also announce in this notice whether any action is proposed to be taken and if so, what action is proposed (section 130(2) of the ACL).</para></quote>
<quote><para class="block">The ACCC publishes compulsory and voluntary recall notices, and safety warning notices on the Product Safety Australia website (www.productsafety.gov.au) to alert consumers on behalf of the Commonwealth Minister.</para></quote>
<quote><para class="block">Recommendation 23</para></quote>
<quote><para class="block"> <inline font-style="italic">In circumstances where the Australian Competition and Consumer Commission becomes aware of a product containing asbestos and subsequently determines not to issue a compulsory recall of that product, the committee recommends that the Australian Competition and Consumer Commission shall within thirty days of that decision publish a statement of reasons.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Not supported</inline></para></quote>
<quote><para class="block">The Government does not support this recommendation.</para></quote>
<quote><para class="block">The ACCC does not consider that there is merit in publishing a statement of reasons if it determines not to recommend that the Commonwealth Minister issue a compulsory recall notice for consumer goods containing asbestos. This is because there would already be a voluntary recall or other risk communication and risk management strategy in place, meaning suppliers would be taking satisfactory action to meet their obligations to prevent those goods from causing injury to any person. A safety warning notice may also be in place. These interventions would seek to address the hazard and publicly inform consumers about any safety risks, therefore a statement of reasons would have no useful application.</para></quote>
<quote><para class="block">Recommendation 24</para></quote>
<quote><para class="block"> <inline font-style="italic">The Australian Government review the Australian Competition and Consumer Commission</inline> <inline font-style="italic">'</inline> <inline font-style="italic">s public reporting of asbestos containing materials in consumer products, both in relation to informing the public where there are risks to safety, and also monitoring and aggregating reporting of incidents over time.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response –Noted</inline></para></quote>
<quote><para class="block">The Government notes this recommendation.</para></quote>
<quote><para class="block">The ACCC prioritises the assessment of product safety issues, which have the potential to cause serious harm to consumers. The ACCC's product safety regime captures consumer goods, which are goods that are intended to be used, or are of a kind likely to be used, for 'personal, domestic or household use'. Where the ACCC has become aware of asbestos containing materials in consumer goods, it has publicly reported this to consumers.</para></quote>
<quote><para class="block">The ACCC has in place monitoring procedures to ensure that appropriate further action can be taken where this is warranted. It is standard practice, for example, for the ACCC to undertake a risk assessment and trend analysis when it becomes aware of a hazard associated with a consumer good and to communicate any safety risks to consumers via the Product Safety Australia website.</para></quote>
<quote><para class="block">Recommendation 25</para></quote>
<quote><para class="block"> <inline font-style="italic">The Australian Government establish a national public asbestos register.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response</inline> <inline font-style="italic">—</inline> <inline font-style="italic">Noted</inline></para></quote>
<quote><para class="block">The Government notes this recommendation.</para></quote>
<quote><para class="block">The language of the recommendation suggests a broad scope, potentially covering Australia's considerable asbestos legacy, although this Inquiry's focus on asbestos has been on unlawful imports.</para></quote>
<quote><para class="block">ASEA and the Department of Home Affairs both provide lists on their websites of goods that could contain asbestos. The asbestos-containing materials in both lists may already exist in the built environment as legacy asbestos, or they may exist in goods that could be unlawfully imported into Australia in the future.</para></quote>
<quote><para class="block">In addition, the ACCC publishes recall notices of unlawful imports that have been specifically identified. This information provides the public, importers, and others in the supply chain with the necessary information on products that may potentially contain asbestos.</para></quote>
<quote><para class="block">The Government focuses on preventing the unlawful importation of goods containing asbestos and the ABF has significantly increased its efforts to target unlawful importation. The ABF continues to refine profiles and alerts to target asbestos, based on factors such as the nature of the goods, country of origin, overseas suppliers and importers of concern. However, sharing the details of these profiles, which could include information provided for other purposes, would not only raise privacy concerns, but would be counter-productive as suppliers may seek to protect their sales market in Australia—such as by changing their commercial operations—to counteract targeting of their goods at the Australian border.</para></quote>
<quote><para class="block">Regarding legacy asbestos, ASEA has developed a National Asbestos Profile as recommended by the World Health Organisation and the International Labour Organization. The National Asbestos Profile includes comprehensive information about the use of asbestos in Australia, populations at risk from current and past exposures, and information on regulation, importation and risks.</para></quote>
<quote><para class="block">The model WHS Regulations developed by SWA and enacted by the Commonwealth and a majority of states and territories, require preparation of an asbestos register where asbestos is identified at the workplace, or is likely to be present from time to time. The register must record the location, type and condition of the asbestos, must be regularly maintained, and be readily accessible by workers, their WHS representatives and others who carry out work in that workplace. This means that there is already a record of, and relevant information about, asbestos at a workplace for persons who may be affected by its presence. This ensures that the relevant people are aware of asbestos in the workplace and there is no additional benefit in making this information publicly available.</para></quote>
<quote><para class="block">The Government considers the mechanisms in place to identify and manage both legacy asbestos and unlawful imports discussed above ensure that the relevant entities have the information they need to appropriately manage associated risks. Developing and maintaining a national register would be costly and time consuming, and make a questionable contribution to the management of asbestos given the range of measures already in place.</para></quote>
<quote><para class="block">The Government will however consider any benefits that arise from the work of the Victorian Government in developing a comprehensive register of asbestos in government buildings and in planning its removal. This test case would inform discussions by jurisdictions on the feasibility of collaborating to develop a national register.</para></quote>
<quote><para class="block">Recommendation 26</para></quote>
<quote><para class="block"> <inline font-style="italic">The Australian Government consider the merits of requiring importers and suppliers to hold mandatory recall insurance for potential asbestos containing materials.</inline></para></quote>
<quote><para class="block"> <inline font-style="italic">Response - Not Supported</inline></para></quote>
<quote><para class="block">The Government does not support this recommendation.</para></quote>
<quote><para class="block">The Government notes that this recommendation is an adjunct to Recommendation 22, which the Government also does not support.</para></quote>
<quote><para class="block">Appendix A</para></quote>
<quote><para class="block">List of contributing departments and agencies</para></quote>
<quote><para class="block">Department of Jobs and Small Business</para></quote>
<quote><para class="block">Department of Home Affairs, including the Australian Border Force</para></quote>
<quote><para class="block">Department of Industry, Innovation and Science</para></quote>
<quote><para class="block">Department of Foreign Affairs and Trade</para></quote>
<quote><para class="block">Department of the Environment and Energy</para></quote>
<quote><para class="block">The Treasury</para></quote>
<quote><para class="block">Asbestos Safety and Eradication Agency</para></quote>
<quote><para class="block">Australian Competition and Consumer Commission</para></quote>
<quote><para class="block">Safe Work Australia</para></quote>
</speech>
</subdebate.2></subdebate.1></debate>
    <debate><debateinfo>
        <title>DOCUMENTS</title>
        <page.no>74</page.no>
        <type>DOCUMENTS</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Great Barrier Reef Foundation</title>
          <page.no>74</page.no>
        </subdebateinfo><subdebate.2><subdebateinfo>
            <title>Order for the Production of Documents</title>
            <page.no>74</page.no>
          </subdebateinfo><speech>
  <talker>
    <time.stamp>17:32</time.stamp>
    <name role="metadata">Senator SCULLION</name>
    <name.id>00AOM</name.id>
    <electorate>Northern Territory</electorate>
  </talker>
  <para>I table a document relating to the order for the production of documents concerning the Great Barrier Reef Foundation.</para>
</speech>
</subdebate.2></subdebate.1></debate>
    <debate><debateinfo>
        <title>COMMITTEES</title>
        <page.no>75</page.no>
        <type>COMMITTEES</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Education and Employment Legislation Committee, Education and Employment References Committee</title>
          <page.no>75</page.no>
        </subdebateinfo><subdebate.2><subdebateinfo>
            <title>Membership</title>
            <page.no>75</page.no>
          </subdebateinfo><speech>
  <talker>
    <time.stamp>17:32</time.stamp>
    <name role="metadata">The ACTING DEPUTY PRESIDENT</name>
    <name.id>e68</name.id>
    <electorate></electorate>
  </talker>
  <para>The President has received letters requesting changes in the membership of committees.</para>
</speech>
<speech>
  <talker>
    <time.stamp>17:32</time.stamp>
    <name role="metadata">Senator SCULLION</name>
    <name.id>00AOM</name.id>
    <electorate>Northern Territory</electorate>
  </talker>
  <para>by leave—I move:</para>
<quote><para class="block">That senators be discharged from and appointed to committees as follows:</para></quote>
<quote><para class="block">Education and Employment Legislation Committee—</para></quote>
<quote><para class="block">Discharged—Senator Hanson-Young</para></quote>
<quote><para class="block">Appointed—Senator Faruqi</para></quote>
<quote><para class="block">Education and Employment References Committee—</para></quote>
<quote><para class="block">Discharged—Senator Hanson-Young</para></quote>
<quote><para class="block">Appointed—</para></quote>
<quote><para class="block">Senator Faruqi</para></quote>
<quote><para class="block">Substitute member: Senator Siewert to replace Senator Faruqi for the committee's inquiry into Jobactive</para></quote>
<quote><para class="block">Participating member: Senator Faruqi</para></quote>
<para>Question agreed to.</para>
</speech>
</subdebate.2></subdebate.1></debate>
    <debate><debateinfo>
        <title>BILLS</title>
        <page.no>75</page.no>
        <type>BILLS</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Space Activities Amendment (Launches and Returns) Bill 2018, Treasury Laws Amendment (Financial Sector Regulation) Bill 2018, Unexplained Wealth Legislation Amendment Bill 2018</title>
          <page.no>75</page.no>
        </subdebateinfo><subdebate.text>
          <body xmlns:pic="http://schemas.openxmlformats.org/drawingml/2006/picture" xmlns:wp="http://schemas.openxmlformats.org/drawingml/2006/wordprocessingDrawing" xmlns:aml="http://schemas.microsoft.com/aml/2001/core" xmlns:wx="http://schemas.microsoft.com/office/word/2003/auxHint" style="" xmlns:r="http://schemas.openxmlformats.org/officeDocument/2006/relationships" xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:a="http://schemas.openxmlformats.org/drawingml/2006/main" xmlns:w="http://schemas.openxmlformats.org/wordprocessingml/2006/main" xmlns:w10="urn:schemas-microsoft-com:office:word" background="">
            <p>
              <a href="r6129" type="Bill">
                <p class="HPS-SubDebate" style="direction:ltr;unicode-bidi:normal;">
                  <span class="HPS-SubDebate">Space Activities Amendment (Launches and Returns) Bill 2018</span>
                </p>
              </a>
              <a href="r6145" type="Bill">
                <p class="HPS-SubDebate" style="direction:ltr;unicode-bidi:normal;">
                  <span class="HPS-SubDebate">Treasury Laws Amendment (Financial Sector Regulation) Bill 2018</span>
                </p>
              </a>
            </p>
            <a href="r6133" type="Bill">
              <p class="HPS-SubDebate" style="direction:ltr;unicode-bidi:normal;">
                <span class="HPS-SubDebate">Unexplained Wealth Legislation Amendment Bill 2018</span>
              </p>
            </a>
          </body>
        </subdebate.text><subdebate.2><subdebateinfo>
            <title>First Reading</title>
            <page.no>75</page.no>
          </subdebateinfo><speech>
  <talker>
    <time.stamp>17:33</time.stamp>
    <name role="metadata">Senator SCULLION</name>
    <name.id>00AOM</name.id>
    <electorate>Northern Territory</electorate>
  </talker>
  <para>These bills are being introduced together. After debate on the motion for the second reading has been adjourned, I shall move a motion to have the bills listed separately on the <inline font-style="italic">Notice Paper</inline>. I move:</para>
<quote><para class="block">That these bills may proceed without formalities, may be taken together and be now read a first time.</para></quote>
<para>Question agreed to.</para>
<para>Bills read a first time.</para>
</speech>
</subdebate.2><subdebate.2><subdebateinfo>
            <title>Second Reading</title>
            <page.no>75</page.no>
          </subdebateinfo><speech>
  <talker>
    <time.stamp>17:34</time.stamp>
    <name role="metadata">Senator SCULLION</name>
    <name.id>00AOM</name.id>
    <electorate>Northern Territory</electorate>
  </talker>
  <para>I move:</para>
<quote><para class="block">That these bills be now read a second time.</para></quote>
<para>I seek leave to have the second reading speeches incorporated in <inline font-style="italic">Hansard</inline>.</para>
<para>Leave granted.</para>
<para class="italic"> <inline font-style="italic">The speeches read as follows—</inline></para>
<quote><para class="block">On 24 October 2015, the Turnbull Government announced that we would review the <inline font-style="italic">Space Activities Act 1998. </inline></para></quote>
<quote><para class="block">The aim of the review was to ensure that Australia's space regulation accommodates technological advancements and does not unnecessarily inhibit innovation in Australia's space capabilities.</para></quote>
<quote><para class="block">The review concluded in November 2016.</para></quote>
<quote><para class="block">It found that the Space Activities Act should have additional flexibility to accommodate the changing operating environment for space activities and support innovation and investment in the sector.</para></quote>
<quote><para class="block">The Space Activities Amendment (Launches and Returns) Bill does just that.</para></quote>
<quote><para class="block">It reduces red tape for businesses undertaking space-related activities in Australia.</para></quote>
<quote><para class="block">The Turnbull Government is committed to ensuring businesses are able to grow and create more jobs without the burden of unnecessary red tape.</para></quote>
<quote><para class="block">The Bill will support innovation and investment, and provide additional flexibility to adjust to the changing operational environment of the space industry—while balancing safety and risk of potential damage with the national interest.</para></quote>
<quote><para class="block">The global space sector is worth over USD 345 billion, and growing at 10 per cent annually.</para></quote>
<quote><para class="block">Australian businesses represent just 0.8 per cent of this industry internationally: a disproportionately small share considering our immense capability in space-related sectors, including our immense advanced manufacturing capability, and our world-leading work in fields such as automated mining and precision agriculture.</para></quote>
<quote><para class="block">Combined with our expertise, the extraordinary growth of this global industry makes it vital for Australian businesses to be able to participate with minimal regulatory burden, while maintaining Australia's international obligations.</para></quote>
<quote><para class="block">I would like to thank all stakeholders who have participated in the review's consultation processes, as well as the subsequent consultations on an appropriate legislative framework.</para></quote>
<quote><para class="block">Today's introduction of the <inline font-style="italic">Space Activities Amendment (Launches and Returns) Bill 2018 </inline>is the culmination of these processes.</para></quote>
<quote><para class="block">The Bill broadens the regulatory framework to unlock potential further opportunities for space sector growth in Australia and reduce barriers to participation in the space industry.</para></quote>
<quote><para class="block">It will bring us in line with agreed international practice and standards by streamlining the approvals process and insurance requirements for launches and returns.</para></quote>
<quote><para class="block">The Bill will encourage our businesses to innovate, invest and create jobs.</para></quote>
<quote><para class="block">The global space sector is a major source of technological advancement that provides broader applications and benefits across industry and society—not just in space exploration, but in sectors spanning communications, defence, mining, transportation and agriculture, to name but a few.</para></quote>
<quote><para class="block">This Bill will allow our emerging space industry to keep pace with international and technological developments, while updating and streamlining regulation to encourage private investment.</para></quote>
<quote><para class="block">It will create a more flexible regulatory environment to make it easier for these businesses to tap into global supply chains and access the benefits on offer for all Australians.</para></quote>
<quote><para class="block">To reflect the changing nature of launch facilities, the Bill includes licencing arrangements for launches from Australian aircraft in flight, in addition to more traditional ground launches.</para></quote>
<quote><para class="block">The Bill also provides appropriate safeguards to mitigate the risk of damage from the launch or return of a space object, or from the launch of a high power rocket.</para></quote>
<quote><para class="block">This Bill will enable Australian business to engage more fully with the global space industry, supporting extraordinary opportunities to create jobs right across the economy.</para></quote>
<quote><para class="block">I commend the bill to the Chamber.</para></quote>
<quote><para class="block">Over the life of this Government, we have consistently demonstrated our commitment to building a financial sector that is unquestionably strong, unquestionably accountable, and robustly competitive.</para></quote>
<quote><para class="block">This Bill takes the next step on this path and delivers on promises that we made in the 2017-18 Budget to ensure that our regulatory architecture keeps pace with changes to the financial environment. It includes two measures relating to financial sector ownership restrictions and bank licensing that will work in tandem to make this critically important sector of our economy more contestable, more innovative, and improve overall choices and outcomes for consumers.</para></quote>
<quote><para class="block">We are building on reforms including:</para></quote>
<list>the major bank levy, which is already ensuring that our largest banks pay their fair share;</list>
<list>relaxing restrictions on the use of the term 'bank';</list>
<list>the introduction of crowd sourced equity funding—along with other aspects of the Government's innovation strategy—that are already increasing entrepreneurs' access to finance; and</list>
<list>the announcement in the 2018-19 Budget of the introduction of Open Banking which will have the potential to transform the competitive landscape in financial services and the way in which Australians interact with the banking system.</list>
<quote><para class="block">Today's Bill significantly reduces barriers to entry that are preventing the innovation that our financial system needs, while still prioritising the safety of consumers and the broader financial system.</para></quote>
<quote><para class="block">In particular, and consistent with the draft recommendations of the Productivity Commission's review into competition in the financial sector:</para></quote>
<list>Schedule 1 to this Bill relaxes ownership restrictions in the <inline font-style="italic">Financial Sector (Shareholdings) Act 1998 </inline>for all financial sector companies—banks as well as life and general insurance providers—and creates a new simplified approval path for new and recent entrants with concentrated ownership; and</list>
<list>Schedule 2 amends the <inline font-style="italic">Banking Act 1959</inline> to support the operation of APRA's restricted Authorised Deposit Institution licensing framework.</list>
<quote><para class="block">I will now provide additional detail on these reforms.</para></quote>
<quote><para class="block">Under the <inline font-style="italic">Financial Sector (Shareholdings) Act</inline>, no individual can hold greater than 15 per cent of a financial sector company without being subject to approval under a national interest test.</para></quote>
<quote><para class="block">This is an important mechanism to ensure, among other factors, that prudentially regulated institutions have access to sufficient financial resources during times of stress and that their owners have the capabilities necessary to fulfil their responsibilities.</para></quote>
<quote><para class="block">However, as identified by the House of Representatives Economics Committee in its first review of the Four Major Banks, the criteria against which a national interest determination is made are not transparent, and this can have unintended consequences, particularly for start-ups.</para></quote>
<quote><para class="block">The Government believes the broadness of a national interest test is warranted when assessing significant transactions under the <inline font-style="italic">Financial Sector (Shareholdings) Act</inline>. However, the Government agrees with the view that it is less justifiable when considering ownership of small institutions when they are just starting out, given that due to their size they pose limited risks to financial stability or a large numbers of consumers. This is particularly true given that:</para></quote>
<list>start-ups are more likely to have a concentrated ownership structure as a normal part of the business life cycle and thereby require <inline font-style="italic">Financial Sector (Shareholdings) Act</inline> approval; and</list>
<list>uncertainty about obtaining <inline font-style="italic">Financial Sector (Shareholdings) Act</inline> approval is limiting start-ups access to the finance they need to grow, given the perceived risk of an investment becoming 'stranded' should approval against 'national interest' not be granted.</list>
<quote><para class="block">This is an unacceptable outcome that this Bill will fix in two ways.</para></quote>
<quote><para class="block">Firstly, the ownership threshold beyond which <inline font-style="italic">Financial Sector (Shareholdings) Act</inline> approval will be required for all financial sector companies will be increased from 15 to 20 per cent, in line with the threshold that exists in the <inline font-style="italic">Foreign Acquisitions and Takeovers Act 1975</inline>. There is no policy rationale for this discrepancy. Making the two Acts consistent will simplify investment in the financial sector and remove a significant regulatory hurdle for institutions where owners are seeking to hold 15 to 20 per cent of available shares.</para></quote>
<quote><para class="block">Secondly, we will introduce a streamlined <inline font-style="italic">Financial Sector (Shareholdings) Act</inline> approval path for small domestically incorporated financial sector companies—that is, banks and life insurance companies with less than $200 million in assets and general insurance companies with less than $50 million in assets—that are seeking a prudential licence for the first time or have been licenced for fewer than five years.</para></quote>
<quote><para class="block">Under this model, qualifying institutions will not be assessed against the national interest framework. Instead, as long as the firms' owners are 'fit and proper' and the firm itself undergoes regular reviews of its ownership structure and provides relevant information to APRA each year, <inline font-style="italic">Financial Sector (Shareholdings) Act </inline>approval will be granted.</para></quote>
<quote><para class="block">To ensure, however, that new-entrants receiving approval under this framework do not receive a competitive advantage relative to existing firms, or grow so large that their ownership structure begins to pose risks to consumers, once such firms grow beyond the relevant asset threshold their owners will be required to either:</para></quote>
<list>divest their holdings such that no one holds more than</list>
<list>20 per cent of the institution within two years; or</list>
<list>apply for regular <inline font-style="italic">Financial Sector (Shareholdings) Act</inline> approval subject to the existing national interest test within three months.</list>
<quote><para class="block">Together, these two elements of the Bill will ensure:</para></quote>
<list>that the perceived risk of an investment getting stranded in a start-up is dramatically reduced, stimulating investment; and</list>
<list>that start-ups have a number of years to test their business in a lighter-touch regulatory environment, before having to comply with the same rules as everyone else, preserving competitive neutrality and system resilience.</list>
<quote><para class="block">While Schedule 1 to this Bill makes significant inroads to cut red tape in relation to new businesses' ownership structure, the Government recognises that the power of this change on its own is limited. Even with an <inline font-style="italic">Financial Sector (Shareholdings) Act</inline> approval in hand, start-ups need to obtain an APRA-licence and be ready to comply with a range of prudential requirements covering everything from financial resources to corporate governance and remuneration policies from the day that they start operations.</para></quote>
<quote><para class="block">Meeting these requirements is a central part of Australia's regulatory architecture and APRA's prudent approach to managing financial sector risks was key to Australia's relative success during the Global Financial Crisis. As such, this is not a structure that any Government would want to undermine. However, where there are opportunities to reduce barriers to entry without increasing risks, we support them being investigated.</para></quote>
<quote><para class="block">That is why the Government fully endorses APRA's new restricted Authorised Deposit Institution licensing framework. This will be similar to the United Kingdom's model, which, since 2014, has seen more than 10 new banks commence operations—compared to only one start-up bank in Australia in the last decade.</para></quote>
<quote><para class="block">Under APRA's approach, start-up banks will be able to obtain a restricted licence for up to two-years, or a time specified by APRA. During this time they will be subject to a limited suite of prudential requirements and strict caps on the size of their business, granting them the opportunity to prove their business model and attract the funding they need to successfully compete in the long term. After two years, successful licences will transition to meet the full framework.</para></quote>
<quote><para class="block">Building on our reforms of the <inline font-style="italic">Financial Sector (Shareholdings) Act</inline>, Schedule 2 to this Bill therefore makes a number of technical amendments to the Banking Act to support this new licensing approach. In particular, the Bill grants APRA the power to:</para></quote>
<list>impose a 'time limited' condition on banking licences where institutions are seeking a restricted Authorised Deposit Institution licence; and</list>
<list>remove such licences—without merits review—when the licence holder is found to be non-compliant with their regulatory requirements or not able to develop sufficient resources to acquire a full unrestricted banking licence.</list>
<quote><para class="block">While the revocation of a licence without the possibility of merits review is a significant step, it is a necessary protection when banks are being allowed to operate at lower regulatory requirements and a bank's continued operations during an appeal process would pose unacceptable risks to consumers. It is also necessary, more broadly, to protect the reputation of all 'restricted Authorised Deposit Institutions' at a time when they are trying to build their businesses and attract customers.</para></quote>
<quote><para class="block">Under this approach, natural justice would still be provided to time-limited licensees, with APRA required to provide notice of its intent to revoke a licence in writing and allow the licensee to make submissions in its defence. This adequately balances the need for licenced institutions to have their rights protected, against those protections required by the broader community. It will also have no impact on existing banks, or new banks that acquire a full banking licence.</para></quote>
<quote><para class="block">To conclude, this Bill is yet another example of the Government's commitment to creating more competition in the financial sector which ultimately leads to better outcomes for consumers. This two-pronged approach to simplifying the process of setting up a new financial institution—relaxing both ownership restrictions and licensing rules for new entrants—will support investment and drive the kind of robust competition necessary to create better, cheaper, products for all Australians.</para></quote>
<quote><para class="block">Full details of the measure are contained in the Explanatory Memorandum.</para></quote>
<quote><para class="block">Serious and organised crime syndicates are operating in an increasingly fluid manner across jurisdictional borders. The Australian Criminal Intelligence Commission estimates that the cost is at least $36 billion per annum.</para></quote>
<quote><para class="block">Depriving criminals of their wealth is a key measure in combatting these insidious individuals. Unexplained wealth laws provide a valuable tool for law enforcement to confiscate the assets of these criminals where they cannot demonstrate that this wealth has been lawfully obtained.</para></quote>
<quote><para class="block">However the scale and complexity of this criminal threat has necessitated an enhanced focus on cooperative, cross-jurisdictional responses by Australian governments.</para></quote>
<quote><para class="block">The Unexplained Wealth Legislation Amendment Bill 2018 will provide a national approach to target unexplained wealth. It will enable all participating jurisdictions to work together to effectively deprive these criminals of their wealth, irrespective of the jurisdictions in which they operate.</para></quote>
<quote><para class="block">Through a referral of powers from participating States, the scheme will allow Commonwealth unexplained orders to be used where a person or property can be linked to a broader range of State and Territory offences.</para></quote>
<quote><para class="block">This will allow the AFP to use a single unexplained wealth order to target criminal syndicates instead of the patchwork of orders that would otherwise be sought by Commonwealth, State and Territory law enforcement agencies.</para></quote>
<quote><para class="block">The scheme will also enhance the capability of State and Territory agencies to contribute to national efforts by providing access to enhanced information gathering powers and the ability to use lawfully intercepted telecommunications information in unexplained wealth matters.</para></quote>
<quote><para class="block">The Bill also incentivises greater cooperation between jurisdictions through the establishment of new equitable sharing arrangements. These arrangements will give participating jurisdictions preferential treatment in the distribution of seized assets.</para></quote>
<quote><para class="block">The scheme will not replace existing unexplained wealth schemes around the country, but rather create a more effective and cooperative network of law enforcement working towards a common goal.</para></quote>
<quote><para class="block">I thank the States and Territories that have worked with the Commonwealth to design the national cooperative scheme on unexplained wealth. In particular I acknowledge the efforts taken in New South Wales, with the introduction of the necessary referring legislation in their Parliament earlier this month. I will continue to negotiate with the remaining States to secure their support to ensure the benefits of the scheme are maximised.</para></quote>
<quote><para class="block">I urge my colleagues to support the passage of this critical legislation. Together we can demonstrate we are committed to working collaboratively to strengthen unexplained wealth laws and strike at the heart of organised crime.</para></quote>
<para>Debate adjourned.</para>
<para>Ordered that the bills be listed on the Notice Paper as separate orders of the day.</para>
</speech>
</subdebate.2></subdebate.1><subdebate.1><subdebateinfo>
          <title>Broadcasting Legislation Amendment (Foreign Media Ownership and Community Radio) Bill 2017</title>
          <page.no>79</page.no>
        </subdebateinfo><subdebate.text>
          <body xmlns:pic="http://schemas.openxmlformats.org/drawingml/2006/picture" xmlns:wp="http://schemas.openxmlformats.org/drawingml/2006/wordprocessingDrawing" xmlns:aml="http://schemas.microsoft.com/aml/2001/core" xmlns:wx="http://schemas.microsoft.com/office/word/2003/auxHint" style="" xmlns:r="http://schemas.openxmlformats.org/officeDocument/2006/relationships" xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:a="http://schemas.openxmlformats.org/drawingml/2006/main" xmlns:w="http://schemas.openxmlformats.org/wordprocessingml/2006/main" xmlns:w10="urn:schemas-microsoft-com:office:word" background="">
            <a href="s1105" type="Bill">
              <p class="HPS-SubDebate" style="direction:ltr;unicode-bidi:normal;">
                <span class="HPS-SubDebate">Broadcasting Legislation Amendment (Foreign Media Ownership and Community Radio) Bill 2017</span>
              </p>
            </a>
          </body>
        </subdebate.text><subdebate.2><subdebateinfo>
            <title>Consideration of House of Representatives Message</title>
            <page.no>79</page.no>
          </subdebateinfo><speech>
  <talker>
    <time.stamp>17:39</time.stamp>
    <name role="metadata">Senator FIFIELD</name>
    <name.id>D2I</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>I move:</para>
<quote><para class="block">That the committee agree to the amendments made by the House of Representatives.</para></quote>
<para>I want to take this opportunity to outline for colleagues the detail of the amendments to this bill that were moved and accepted in the House of Representatives. Colleagues will recall that last year the government successfully legislated the comprehensive media reform package to strengthen Australian media organisations and give them a better opportunity to compete in a challenging and changing environment.</para>
<para>One element of the package was the repeal of the 75 per cent audience reach rule. That rule prohibited the person, either in their own right or as a director of one or more companies, from being in a position to exercise control of commercial television broadcasting licences whose combined reach exceeded 75 per cent of the Australian population. The rule was redundant and did little to support media diversity.</para>
<para>Colleagues will also recall that the government's legislation included a range of measures to ensure the availability of local content in regional areas and to strengthen links between local content and the communities it's broadcast to. Prior to our reforms and currently, the Broadcasting Services Act has required regional commercial television licensees in certain markets to provide local content, termed 'material of local significance' in the act, within specified areas. Under those arrangements, regional commercial television licensees in aggregated markets in Tasmania are required to provide approximately 120 points of material of local significance per week to local areas within the licence areas. Material of local significance is material that is broadcast to a local area and relates directly to either the local area or the licence area. The aggregated markets include northern New South Wales, southern New South Wales, regional Victoria and regional Queensland.</para>
<para>The government's reforms extended and increased local content obligations for regional commercial television licensees where there is what's called a trigger event. The new obligations apply to regional commercial television broadcasting licences which, as a result of a change in control, become part of a group of commercial television broadcasting licences whose combined licence area populations exceed 75 per cent of the Australian population. The requirement for the licensee to be part of a commercial television group that reaches over 75 per cent of the population ensures that the additional local content obligations are only triggered after the licensee is in a position to benefit from the additional scale and efficiency that the media reforms will allow.</para>
<para>In other parts of the country, particularly South Australia and Western Australia, there are non-aggregated television licence areas for which there are no minimum local content requirements. The government's reforms included provision for licensees in those markets to be subject to minimum local content requirements for the first time, should they incur a trigger event. In these non-aggregated markets, following a trigger event, licensees are required to provide 100 points of material of local significance per week. The additional obligations are aimed at ensuring that there is a local content obligation in nearly all regional licence areas following a change in control, including those where there is none currently. Where there is no trigger event, the local content obligations previously in place for aggregated markets continue to apply.</para>
<para>Following passage of the legislation, FreeTV Australia approached the government regarding an anomaly arising from the application of the regional local programming requirements to a specific licensee in regional Western Australia. After consideration, the government agreed an anomaly existed, and we are seeking to rectify it through the amendment we have moved to this bill. For historical reasons, the licensing arrangements for the two commercial television broadcasting licensees in regional and remote Western Australia—that is, GWN7 and WIN—differ significantly from ordinary practice. Although they broadcast to a geographic area of an equivalent size, GWN7 presently holds four licences, three of which are subject to additional local programming obligations, while WIN holds only one. The unconventional licensing arrangement means that GWN7 would be subject to three times the local content obligations that WIN would face if WIN's sole commercial television broadcasting licence in regional Western Australia was affected by a trigger event.</para>
<para>Schedule 3 of this bill, which has been inserted following the government's amendments, will equalise the respective obligations of GWN7 and WIN by inserting provisions in division 5D of part 5 of the Broadcasting Services Act that alter the manner in which local content points may be accumulated by a commercial television broadcasting licensee for the three licence areas that cover the regional areas of Western Australia. This ensures that the local programming requirements apply equally and fairly in Western Australia, in line with the original policy intent.</para>
<para>The other measures in this bill are also non-controversial. The Broadcasting Legislation Amendment (Foreign Media Ownership and Community Radio) Bill 2017 implements two measures developed as part of the government's broadcasting and content reform package. The first is the establishment of a register of foreign ownership of media assets. The register is to be overseen and administered by the Australian Communications and Media Authority. The register will enhance the transparency of foreign investment in Australian media companies and the levels and sources of such investment. Foreign media ownership restrictions for media were abolished in 2006. This has enabled greater investment in Australian media organisations, with the acquisition of Network Ten by CBS being the most recent example. However, foreign holdings of media assets could benefit from greater transparency, which this new register will deliver.</para>
<para>The second measure relates to applications for community radio broadcasting licences. The bill will introduce a new local content criterion that the ACMA can consider in assessing such applications, giving applicants the opportunity and incentive to deliver more localised content. This comes on top of the additional support the government has delivered for community radio, including a total of $18 million of new funding through the May 2017 budget and MYEFO.</para>
<para>All the measures in this bill form part of the government's broader package which represents the biggest reform to Australian media laws in nearly three decades. The government strengthened Australia's media industry, enhancing media diversity and securing local journalism jobs, particularly in regional areas. The changes have brought Australia's outdated media laws into the 21st century. The government reforms included the abolition of broadcast licence fees and replacement with a more-modest spectrum charge, providing close to $90 million per annum in ongoing financial relief to metropolitan and regional television and radio broadcasters; a substantial reduction in gambling advertising in live sport broadcasts, representing a strong community dividend with the establishment of a clear safe zone for families to enjoy live sport; the abolition of redundant ownership rules that shackle local media companies and inhibit their ability to achieve the scale necessary to compete with foreign tech giants; and retention of diversity protections that ensure multiple controllers of television and radio licences as well as minimum numbers of media voices in all markets. These are the two-to-a-market rule for commercial radio, the one-to-a-market rule for commercial television, the requirement for a minimum of five independent immediate voices in metro markets and a minimum of four independent media voices in regional markets, and of course the competition assessments made by the ACCC. There is also higher minimum local content requirements for regional television following trigger events, including introducing minimum requirements in markets across South Australia, Victoria, New South Wales, Western Australia and the Northern Territory for the first time, and also reforms to anti-siphoning to strengthen local-subscription TV providers.</para>
<para>The government is delivering a $60 million Regional and Small Publishers Jobs and Innovation Package, including a $50 million Regional and Small Publishers Innovation Fund, the Regional and Small Publishers Cadetship Program, to support 200 cadetships, and 60 Regional Journalism Scholarships. Our reforms have the unanimous support of Australia's media industry, including WIN, Prime, Southern Cross Austereo, Nine, Seven, Ten, Fairfax, News Corp, Foxtel, Free TV, ASTRA and Commercial Radio Australia. A number of the organisations I have just mentioned will be here tonight for Free TV's annual occasion in the building.</para>
<para>It was also interesting to hear the contributions in the earlier debate from those who think that regulations crafted in the 1980s are still appropriate for today, but I do need to point out that those who put that proposition forward had no prescription for how to enhance the viability of Australian media organisations. So the reforms that we have put in place for media will endure, and that can only be to the benefit of Australian media organisations, their viability, the journalists and others that they employ, and the important contributions that they make to media diversity and civic journalism.</para>
<para>Question agreed to.</para>
<para>Resolution reported; report adopted.</para>
</speech>
</subdebate.2></subdebate.1></debate>
    <debate><debateinfo>
        <title>MINISTERIAL STATEMENTS</title>
        <page.no>82</page.no>
        <type>MINISTERIAL STATEMENTS</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Lyons, Dame Enid Muriel, AD, GBE</title>
          <page.no>82</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>17:51</time.stamp>
    <name role="metadata">Senator FIFIELD</name>
    <name.id>D2I</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>On behalf of the Minister for Women, Ms O'Dwyer, I table a ministerial statement on the commemoration of Enid Lyons's election to parliament.</para>
</speech>
<speech>
  <talker>
    <time.stamp>17:51</time.stamp>
    <name role="metadata">Senator BUSHBY</name>
    <name.id>HLL</name.id>
    <electorate>Tasmania</electorate>
  </talker>
  <para>I move:</para>
<quote><para class="block">That the Senate take note of the statement.</para></quote>
<para>I rise to take note of the ministerial statement commemorating the 75th anniversary of the election of Dame Enid Lyons to the federal parliament, representing the electorate of Darwin—which is essentially now Braddon—in my home state of Tasmania. Dame Enid served as the member for Darwin from 1943 until 1951 and was the first woman elected to the House of Representatives and the first woman to serve in federal cabinet. I should be careful to note here that Dame Enid was not the only woman elected to parliament at the time, as at that same election Dame Dorothy Margaret Tangney DBE was elected to the Senate for Western Australia. The 1943 election was certainly a good election for women and for the two women who were elected—a high benchmark for all those seeking to enter politics, men and women alike.</para>
<para>Dame Enid was born Enid Muriel Burnell in Smithton on Tasmania's north-west coast. She lived in various towns in Northern Tasmania and trained as a schoolteacher in Hobart. In April 1915, 17-year-old Enid married Joseph Lyons, who was 18 years her senior and to whom she remained married till his death in 1939. As his wife, Dame Enid remained active in the political life of Joseph, encouraging his split from the Australian Labor Party and movement to the erstwhile United Australia Party, motivated by the unease she felt at witnessing the Labor Party's handling of the Depression and the subsequent financial strife, which hit Australians particularly hard at the time.</para>
<para>After Joseph Lyons's death in office as Prime Minister of Australia in 1939, the grief-stricken mother of 12 felt compelled to battle the idleness and the shadow of anguish with action and made the decision to make a run at the type of career she had so astutely participated in with her husband in the preceding two decades. Dame Enid did just that, from 21 August 1943 until 19 March 1951 as the federal member for Darwin.</para>
<para>In her maiden speech, delivered on 29 September 1943, Dame Enid laid down a number of philosophies that would guide her as both a politician and a person. She, not without irony, noted that, yes, she was a woman and that, no, it would not be a limitation. As a firm believer in individual hard work and agency, she contended that her experiences as a woman, a mother and a wife of a former Prime Minister, no less, would, in her words, 'imply an ever-widening outlook on every problem that faces the world'. She was not wrong. Fusing her domestic duties and home life with her political persona, Dame Enid echoed the words of King George V in her maiden speech to parliament, stating:</para>
<quote><para class="block">The foundation of a nation's greatness is in the homes of its people.</para></quote>
<para>She saw the strength of this great nation starting in the homes and at the hearths of those who inhabited it. As a consequence, Dame Enid was an advocate for what she called 'conscious citizenship'.</para>
<para>A strong yet compassionate egalitarian, Dame Enid not only touted the importance of contributing to a society greater than oneself but also that the Australian society was one that provided women with the same opportunities as men, particularly following universal suffrage and the enabling of women to be voted to public office. On this, Dame Enid said</para>
<quote><para class="block">Any woman entering the public arena must be prepared to work as men work; she must justify herself not as a woman but as a citizen; she must attack the same problems, and be prepared to shoulder the same burdens.</para></quote>
<para>She being the first woman elected to the House of Representatives, I believe she spoke with some authority on the matter and that her parliamentary record is one that embodies this spirit.</para>
<para>Whilst a passionate speaker on topics that traditionally related closely with women, such as housing, clothing, baby foods, maternity services, discrimination against married women in the workforce, widows pensions and the like, she did not confine herself to such topics, proving that she could and would attack the same problems as any other MP would do at the time. To this end, she spoke also to issues that specifically affected Tasmania, including air and shipping services, agricultural development and the aluminium industry, which remain important Tasmanian industries to this day. In 1949, Enid was sworn in as Vice-President of the Executive Council, thereby being the first woman member of a federal cabinet, serving in the Menzies government.</para>
<para>Unfortunately, ill health caused her to resign from the cabinet in 1951, and she did not contest the following election in that same year. She refused to become idle, however, and remained active in her home community in a number of women's organisations, choosing to keep in close contact with those whom she served as the member for Darwin.</para>
<para>It is undoubtable that Enid Lyons was a compassionate woman and a skilled politician and possessed the fortitude to rise to the challenge of being Australia's first female lower house member. She defined herself not by her background or her status as a mother or a wife—although these things were extremely important to her—but by her ability to be a self-reliant, free-thinking person and compelling speaker, passionate about Tasmania and dedicated to serving Tasmanians.</para>
<para>Despite her death in 1981, Dame Enid Lyons's mark was well and truly left on the Australian parliament, not only blazing the trail for women in the public sphere but also serving Tasmania with great skill, dedication and compassion.</para>
</speech>
<speech>
  <talker>
    <time.stamp>17:57</time.stamp>
    <name role="metadata">Senator HUME</name>
    <name.id>266499</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>I, too, would like to take note of the ministerial statement. It is an extraordinary honour indeed to once again stand in this chamber and reflect on one of the most momentous events in the political history of our nation. It was indeed 75 years ago today that Dame Enid Lyons, the member for the Tasmanian electorate of Darwin, was elected to this parliament, along with Western Australian Dame Dorothy Tangney—though at that stage she was not Dame but Mrs Tangney—who was elected to the Senate.</para>
<para>It is Dame Enid Lyons I would like to reflect on. I think I can safely say that I am the southern-most female Liberal senator. It's a terrible shame, and I look to my colleagues in the rows ahead of me in this chamber to say that, yes, they have a responsibility to fix that so that perhaps before we get to the 76th anniversary of Dame Enid Lyons's entry to parliament we can have a female Tasmanian senator from our great party reflecting on this momentous occasion.</para>
<para>I would like to devote some attention specifically to Dame Enid and the triumphs and challenges that characterised her place in history. Of course, while she is best known as Australia's first female parliamentarian, she certainly wasn't new to the demands of political life. Dame Enid grew up in Tasmania to parents who were Methodist. Her father worked in timber mills—if memory serves correctly—and her mother, sadly, was a member of the Labor Party. She was a political activist and she brought—</para>
<interjection>
  <talker>
    <name role="metadata">Senator Cameron</name>
    <name.id>AI6</name.id>
  </talker>
  <para>That's where the good genes come in.</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator HUME</name>
    <name.id>266499</name.id>
  </talker>
  <para>It's alright; she eventually saw the light, Senator Cameron. She was brought up in a very politically active household where political discourse was encouraged around the table, and her mother also believed in the value of female education. You can imagine that this was quite an unusual feature at the turn of the last century. She went to a teachers' college in Tasmania to pursue her education. That was the only option. At a Labor Party her mother introduced her event to her future husband, Joe Lyons, who was at that stage—I can't remember what seat he was the member for; perhaps Senator Abetz might remind me—I think, the Treasurer of the Tasmanian parliament. She married Joe Lyons when she was only 17 and he was 35, so there was a significant difference between them, but it was a marriage of great affection and love that lasted until his death. I should remind the chamber that Joe Lyons was Treasurer of Tasmania—he was Premier of Tasmania, wasn't he?</para>
</continue>
<interjection>
  <talker>
    <name role="metadata">Senator Bushby</name>
    <name.id>HLL</name.id>
  </talker>
  <para>Labor Premier.</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator HUME</name>
    <name.id>266499</name.id>
  </talker>
  <para>Although he was a Labor Premier of Tasmania, he went on to become a UAP Prime Minister of Australia. He was our prewar Prime Minister. While Joe Lyons was Prime Minister, Dame Enid Lyons had a gruelling public speaking schedule in support of her husband. You can only imagine what that must have been like. During the period of time when Joe Lyons was either Treasurer, Premier or Prime Minister, Dame Enid gave birth to 12 children, which is quite extraordinary. There might have been a couple of miscarriages along the way; I think there were 15 pregnancies in all. One of her children died very young, of whooping cough, so she had 11 by the time Joseph Lyons died in office, which was a tragic, sudden and unexpected event. She did once reflect that her hardest role in life was that of the Prime Minister's wife. I wonder whether Lucy Turnbull would give the same answer today; I wouldn't be at all surprised.</para>
<para>It was terribly tragic when Dame Enid's husband died in 1939 and left her a widow at only 41 years of age. At that stage she truly retreated into grief, went back to Tasmania and watched a number of her older sons go off to the Second World War. You can only imagine combining grief with that stress. World War II saw Australia change quite profoundly. Over the war years the number of women in the workforce increased dramatically, by a third, and there was a newfound respect for the changing roles of women, their abilities and their contributions. Before the Second World War only a handful of women had been elected to Australian state parliaments, and at that stage the mere suggestion of female parliamentarians was considered something of an outrageous experiment whose outcome was very uncertain.</para>
<para>But in the midst of the social change of World War II a vacancy arose in the seat of Darwin. I like the fact that it was Dame Enid's daughter who talked her into running for that seat. She won that ballot by only 800 votes. On entering she was a very popular member. I think she was nominated as deputy leader the moment she entered parliament, which is quite an honour indeed. Being a woman who was extraordinarily modest, she declined that nomination. I wonder whether we would see people do that today. She had a political toughness and a folksy charm that characterised a very unique style and personal appeal. Her speeches were known for their humour but also their very sentimental nature. Indeed, Sir Robert Menzies said of her speeches—I love this phrase:</para>
<quote><para class="block">She could reduce me to tears about the state of a railtrack …</para></quote>
<para>I might have done the same in this chamber, but probably tears of boredom as opposed to tears of sentiment.</para>
</continue>
<interjection>
  <talker>
    <name role="metadata">Senator Cameron</name>
    <name.id>AI6</name.id>
  </talker>
  <para>This is the same speech you gave last night.</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator HUME</name>
    <name.id>266499</name.id>
  </talker>
  <para>Don't you love that quote? She was a trailblazer just for being here, but she also had some extraordinary achievements while in office. Hers was a reasonably short parliamentary career, only eight years. She left out of ill-health in the end. This is extraordinary: she had an undiagnosed broken pelvis, which was from one of her earliest pregnancies. You can imagine, after 12 children, to have an undiagnosed broken pelvis, to have run for parliament and to have sat in the House of Representatives all that time, was an extraordinary physical achievement, if nothing else, and the travel back and forth to Tasmania. We could only imagine what that would have been like.</para>
<para>While she was here, she made some very significant contributions to issues that were important not just to women but also to the nation and specifically with regard to women and children. She had a very unique perspective on women's issues. Things like maternal health care, the widows pension, elimination of employment discrimination and particularly the extension of child endowment to first children. She also fought to see legislation passed which secured citizenship rights for women after marriage to foreigners. It was unusual at that stage for women to maintain their cultural identity after marriage. Also, and I love this one in particular, she ensured that allowances to servicewomen who returned from the Second World War matched those of returned servicemen.</para>
<para>Her electoral successes were also enviable. The 800 votes that she won by in her first ballot she tripled in her primary vote at the next election and quadrupled it after that. If only those of us in this place, and in the other place, could experience such electoral success today I think we'd be very pleased with ourselves.</para>
<para>Prime Minister Robert Menzies promoted her to be vice-president of the Executive Council, which made her the first woman to hold a cabinet position—although it wasn't a portfolio that she held. It was widely regarded that she was certainly capable of being a cabinet minister and holding a portfolio, but her ill health caught up with her. Prior to the 1951 election, she was in quite a significant car accident, went to hospital and had a number of operations. That was what it was that eventually forced her retirement.</para>
<para>I think that her insights, her policy legacy, her wit and her wisdom have endured throughout time. It is, in fact, timeless. She once reflected, and I have used this quote before, that our nation:</para>
<quote><para class="block">… is still a land of promise. We cannot afford to neglect some recognition of our past, even though we gaze into the future.</para></quote>
<para>She certainly was a woman who blazed a trail. In a political climate where voters remain distrustful and removed from their representatives, it's women like Dame Enid Lyons and their legacy that remind us of why we're here, the importance of what we do and the importance of representing not just one section of Australia but all Australians.</para>
</continue>
</speech>
<speech>
  <talker>
    <time.stamp>18:07</time.stamp>
    <name role="metadata">Senator ABETZ</name>
    <name.id>N26</name.id>
    <electorate>Tasmania</electorate>
  </talker>
  <para>Today we celebrate a great Australian, a great Tasmanian and a great woman. Seventy-five years ago she won the first seat for a woman in the House of Representatives, a milestone in the history of the development of our democracy in Australia. I'm very pleased to say that she did so as a member of the party that I have the honour of representing, just as much as the party that I have the honour of representing can also boast the fact that we achieved the first Aboriginal in this parliament in Senator Neville Bonner and, of course, the first Indigenous minister in the honourable Ken Wyatt. The Liberal Party has a proud history in this regard.</para>
<para>Today we celebrate the 75th anniversary of the election of Enid Lyons to the seat of Darwin, and as has been recalled it was a very close call on the first occasion; the second occasion, a bigger margin; and the third time an even bigger margin, which is indicative of the way that she was able to interact with her fellow citizens. She was a much loved woman right around Australia, given that she had such a high profile—especially for those days—as the wife of Prime Minister Joe Lyons.</para>
<para>Indeed, he knew her electoral dynamism that much that on many occasions when they travelled he would physically encourage her to go onstage to talk to the people that he had also been addressing. He acknowledged how very successful she was in his political career. Theirs was a true partnership, a partnership of love to each other, dedication to each other and their family, and also service to the nation.</para>
<para>It was one of those things that, as the then Prime Minister Joe Lyons lay dying in a hospital bed, she was able to come up from Tasmania and see him before he passed—something that was very poignantly recorded for us in some of the wonderful writings of Anne Henderson, who has written on both Joe Lyons and Enid Lyons and has recorded their very important role in Australia's development, especially through the Great Depression. Mr Lyons was able to manage the Australian economy in ways that allowed us to recover from the Great Depression so much more quickly and better than, for example, the United States. I have no doubt that part of that economic management and the plan for that—that when times are tough you tighten your belt a bit—would have come from Enid Lyons herself, the strength that was so important to the success of Prime Minister Lyons's time in office and, of course, to the great benefit to the Australian people.</para>
<para>Enid Lyons was a person who served her God, who served her family and who served her nation, and somebody who was more than willing to put service above self. Indeed, many a time, she suffered from the long absences of her husband—because, when Mr Lyons first started, getting to parliament wasn't a simple aeroplane trip; you had to get a steamer across Bass Strait and then a train to Canberra. Just for the record, Mr Lyons was the first Prime Minister that entered into an election campaign travelling by commercial airline, and it was seen as something quite fantastic that a Prime Minister could appear in Melbourne and Sydney on the same day to give election speeches. Nowadays, I think they do about four or five capital cities in the one day, given the various time zones. In those days, it was trailblazing—but it was also very, very long absences from each other for a couple whose love for each other was there on display, for all to see.</para>
<para>It was a great privilege of mine to be able to actually meet Dame Enid Lyons when she came to a few Liberal Party state council meetings when I was a few years younger. She was a hit. Irrespective of who may have been the guest speaker or the parliamentary leader at the time, everybody wanted to make a beeline for Dame Enid Lyons and shake her hand. She really was a person of great stature, metaphorically speaking, because she was not physically of great stature but a wonderful individual, a person who lit up the room when she entered it and whom everybody fussed over. And that was very much deserved by her, given her wonderful contribution, her selfless contribution, first to her husband and her family, and then to her nation, rising to be not only the first woman elected to the House of Representatives but the first woman in a cabinet position.</para>
<para>It is appropriate that we as a nation do stop from time to time to consider these milestones in our electoral and democratic system, and Dame Enid Lyons's contribution has to be seen as one of those very, very significant milestones. I simply finish by saying that Dame Enid Lyons was a role model for everybody, irrespective of whether you were male or female. But, of course, she was a trailblazer for women in this country. She's someone we should all aspire to emulate, irrespective of our political branding. Tonight I'm delighted to be able to join in saluting the service of Dame Enid Lyons and celebrating the occasion of the 75th anniversary of her election to this parliament.</para>
</speech>
<speech>
  <talker>
    <time.stamp>18:14</time.stamp>
    <name role="metadata">Senator COLBECK</name>
    <name.id>00AOL</name.id>
    <electorate>Tasmania</electorate>
  </talker>
  <para>I too would like to associate myself with remarks celebrating the 75th anniversary of the election of Dame Enid Lyons to the House of Representatives. There has been a lot spoken about the way that Dame Enid conducted herself, the separation that she suffered from her husband, Joe, and the difficulties that she faced as a woman at that particular point in time. I think the first speech that we heard here this evening indicates how far we've come from the time when Dame Enid made such a spectacular entry into the Australian parliament.</para>
<para>As Senator Abetz has just said, she had quite a commanding presence. I didn't meet her at Liberal Party functions, as Senator Abetz did. I wasn't a member of the organisation by the time we'd lost—</para>
<interjection>
  <talker>
    <name role="metadata">Senator Cameron</name>
    <name.id>AI6</name.id>
  </talker>
  <para>Were you in the Labor Party?</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator COLBECK</name>
    <name.id>00AOL</name.id>
  </talker>
  <para>No, Senator Cameron. There was never any fear of that, I can promise you! But I did happen to be at the Devonport Town Hall when Dame Enid made a speech at what turned out to be her last public appearance, and the town hall on that night was so quiet. To quote an old, hackneyed line: you literally could have heard a pin drop. The entire audience hung on her every word.</para>
<para>While we talk about the 75th anniversary of her election, it's not as if she was an overnight success. The strength of the relationship between her and Joe was such that she was actually one of the best known prime ministerial wives, even in those days. She wrote articles for newspapers. She made radio broadcasts and open-air speeches. So she was clearly a practitioner, and Joe quite obviously was very comfortable to share the limelight and to work closely with her, as Senator Abetz has said.</para>
<para>She clearly had a strong presence in the community, and the important thing, I think, is that the community continues to recognise the value of the contribution that she made. The Rotary Club, of which I'm a member, as a bicentenary project constructed a tribute to both Joe and Dame Enid Lyons in Roundhouse Park in Devonport, where bronze portraits of Joe and Dame Enid were erected and continue to stand today. Both of them rest in the Mersey Vale cemetery just outside of Devonport, and their residence is one of the very few prime ministerial residences in Australia that remain open to the Australian public. In fact, it's very much as it was when Dame Enid passed away.</para>
<para>I've had occasion to visit there quite often. In fact, recently there was a lecture by Tim and Merridie Costello about the life and times of both Joe and Dame Enid. So it continues to be a centrepiece not just to celebrate Joe and Dame Enid, who played significant political roles in Australia and Tasmania, but as a reminder of the importance of the fact that both of them communicated to the rest of the country from that residence, which had one of the first telephone lines to a house in Tasmania when the phone was put on. So I think it's appropriate that tonight there's a dinner being held to celebrate the 75th anniversary, and I certainly believe that it's appropriate that this chamber recognises that significant event in the progress of our democracy and the fact that Dame Enid not only made such a significant contribution to the parliament but then continued to make a significant contribution to her community throughout the rest of her life. She was very active in the community and was held in very, very high regard by her community, and she continues to be held in that regard locally in my home town of Devonport, where she and Joe lived at their residence, Home Hill.</para>
<para>Question agreed to.</para>
</continue>
</speech>
</subdebate.1></debate>
    <debate><debateinfo>
        <title>COMMITTEES</title>
        <page.no>86</page.no>
        <type>COMMITTEES</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Foreign Affairs, Defence and Trade Joint Committee</title>
          <page.no>86</page.no>
        </subdebateinfo><subdebate.2><subdebateinfo>
            <title>Membership</title>
            <page.no>86</page.no>
          </subdebateinfo></subdebate.2></subdebate.1></debate>
    <debate><debateinfo>
        <title>BILLS</title>
        <page.no>86</page.no>
        <type>BILLS</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Treasury Laws Amendment (Enterprise Tax Plan No. 2) Bill 2017</title>
          <page.no>86</page.no>
        </subdebateinfo><subdebate.text>
          <body xmlns:pic="http://schemas.openxmlformats.org/drawingml/2006/picture" xmlns:wp="http://schemas.openxmlformats.org/drawingml/2006/wordprocessingDrawing" xmlns:aml="http://schemas.microsoft.com/aml/2001/core" xmlns:wx="http://schemas.microsoft.com/office/word/2003/auxHint" style="" xmlns:r="http://schemas.openxmlformats.org/officeDocument/2006/relationships" xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:a="http://schemas.openxmlformats.org/drawingml/2006/main" xmlns:w="http://schemas.openxmlformats.org/wordprocessingml/2006/main" xmlns:w10="urn:schemas-microsoft-com:office:word" background="">
            <a href="r5867" type="Bill">
              <p class="HPS-SubDebate" style="direction:ltr;unicode-bidi:normal;">
                <span class="HPS-SubDebate">Treasury Laws Amendment (Enterprise Tax Plan No. 2) Bill 2017</span>
              </p>
            </a>
          </body>
        </subdebate.text><subdebate.2><subdebateinfo>
            <title>In Committee</title>
            <page.no>86</page.no>
          </subdebateinfo><speech>
  <talker>
    <time.stamp>18:21</time.stamp>
    <name role="metadata">The CHAIR</name>
    <name.id>112096</name.id>
    <electorate></electorate>
  </talker>
  <para>The committee is considering the Treasury Laws Amendment (Enterprise Tax Plan No. 2) Bill of 2017 and amendments (1) to (36) on sheet JP186, moved by Senator Cormann.</para>
</speech>
<speech>
  <talker>
    <time.stamp>18:22</time.stamp>
    <name role="metadata">Senator BROCKMAN</name>
    <name.id>30484</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>Minister, I want to ask you a question about the impact of an uncompetitive corporate tax rate on businesses, particularly those businesses with turnovers above $50 million. But, before I get you to answer a question on that, I just want to preface it by talking a little bit about and reminding you of a visit we did earlier this year to a medium-sized Western Australian company called Legeneering in the Henderson area of Western Australia.</para>
<para>A few years earlier, Legeneering would have been what you would describe as a small business. It was a small engineering contracting firm that, through positive relationships with what could only be described as a very large Western Australian business, grew over time. It grew its number of employees significantly, up to around 200, I believe—I am stretching my memory a little. But, in turn, it was able to grow a network of contractors and support businesses that fed into its services. The large company that was involved in this particular network of relationships was Woodside Energy, and what you saw there was the direct action of what the other side sometimes mockingly calls 'trickle down'. You see a large business contracting to medium-sized businesses, who contract to smaller businesses. The jobs flow out from those large businesses to the medium-sized businesses and to a large number of small businesses. In that way, a significantly increased number of jobs is provided at that small-business level.</para>
<para>Minister, as we see the impact of international corporate tax cuts start to flow through and we see the need to have a globally competitive tax system, I think what I'm trying to get at is: what will the impact be if these amendments and this bill are not supported? Who is ultimately going to bear the burden in the economy of globally uncompetitive corporate tax rates, particularly for those larger businesses with turnovers above $50 million?</para>
</speech>
<speech>
  <talker>
    <time.stamp>18:24</time.stamp>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>I couldn't put it any better than the current shadow Treasurer, Mr Bowen, who very succinctly pointed out that the burden of company tax falls hardest on workers, rather than wealthy shareholders. And that stands to reason, because, if we make it harder for businesses here in Australia which employ millions and millions of Australians to compete with businesses in other parts of the world, then we will lose business to other parts of the world and the beneficiaries of that will be workers in other parts of the world.</para>
<para>The principal beneficiaries of a lower, globally more competitive business tax rate here in Australia, as none other than Dr Ken Henry, the then Secretary of the Treasury to Wayne Swan as Treasurer, clearly pointed out, would be workers here in Australia. That is because, if businesses here in Australia are in a better position to compete with businesses in other parts of the world, they have a better opportunity to grow and expand. As they grow and expand, they will hire more people than they otherwise would, and, as they hire more people than they otherwise would, of course, that means the unemployment rate is lower than it otherwise would be. Demand for workers is higher than it would be. With shrinking supply and increasing demand, wages would have to go up because there's increased competition for a diminishing resource. This is all stuff that the Labor Party used to understand.</para>
<para>Just to put this into context, across Australia, about nine out of 10 working Australians work in a private sector business. So, Australia-wide, there are just under 11 million Australians working in a private sector business out of 12½ million working Australians all up—about 3½ million in New South Wales, about 2.9 million in Victoria, about 2.1 million in Queensland, 725,000 in South Australia, 1.2 million in Western Australia, 210,000 in Tasmania and 107,000 in the Northern Territory who all work in private sector businesses.</para>
<para>Even in the Australian Capital Territory where, of course, we have a larger proportion of public sector workers, the overwhelming majority of working Australians actually work for private sector businesses. Some 63.8 per cent of working Australians in the ACT work for private sector businesses, and 36.2 per cent work for the public sector. In the ACT, self-evidently, the proportion of private sector workers is lower than in other parts of Australia, but, nationally, it's about nine out of 10. What we need to understand is that future job opportunities, future job security, future career prospects and future wage increases for these nine out of 10 Australians—these 10.9 million Australians—working for private sector businesses depend on the future success, profitability and competitiveness of businesses here in Australia and their capacity to compete with businesses in other parts of the world.</para>
<para>And there's a long list of businesses who will be affected by this bill as amended by our proposal to carve out the four big banks, including Aurizon and JBS Australia, a meat-processing company which is headquartered out of North Queensland. I see Senator Ian Macdonald here, a proud LNP representative, representing, in particular, the great people of North Queensland. The managing director of JBS Australia is on the record as saying that a lower, globally more competitive business tax rate will enable them to invest in the expansion of their business and will enable them to hire more Australians. In fact, I see that in the gallery we have Renee Viellaris from <inline font-style="italic">The </inline><inline font-style="italic">Courier-Mail</inline>, and I think <inline font-style="italic">The Courier-Mail</inline> might have reported the managing director of JBS Australia, earlier this year, making the point very strongly that the lower, globally more competitive business tax rate is critically important to securing future investment and future job opportunities and to ensuring that businesses here in Australia can compete with equivalent businesses in other parts of the word. Virgin Australia, Qantas, John Deere, Domino's Pizza, you name it—there's a whole bunch—these are not what you would describe as the nasty big end of town. These are big employers. These are businesses that provide job opportunities and job security to millions of Australians.</para>
<para>But if we make it harder for them to be successful, they'll hire fewer people. If we make it harder for them to be successful then more Australians will be unemployed. This is the core point, Senator Brockman, in answer to your question: if we keep the taxes on businesses with a turnover of $50 million a year higher by international standards, when countries around the world have substantially lowered theirs, then we help businesses in other parts of the world, who take business investment and jobs away from us. If we help workers in other parts of the world, they take jobs away from workers here in Australia. That is a fact. People talk about this proposition that somehow this is a benefit to some abstract people that nobody knows. Well, the abstract people that supposedly nobody knows are about 11 million Australians working for private sector businesses across Australia.</para>
<para>So, we've put forward the proposal to ensure that we have a corporate tax rate that is globally competitive for all businesses across Australia. But in order to give ourselves the opportunity to secure a consensus across the chamber we have put forward this amendment to carve out the four big banks. But we do believe that it's very important for all these other businesses to get the benefit of a globally more competitive business tax rate. And yes, people have made the point in this debate that this is just a headline tax and there are other taxes—individual states in the US will charge taxes as well as the federal government. Well, that is true in Australia, too. In Australia we've got federal taxes and we've got state taxes. But whatever the equivalent combination is, the headline US corporate tax went from 35 per cent plus other taxes to 21 per cent plus other taxes. That is a 14 per cent reduction in the United States, where most of our direct foreign investment into Australia to generate our future economic growth comes from.</para>
<para>Businesses in Australia will find it harder to secure investment out of the US into Australia if the after-tax profit in the United States is going to be higher than the after-tax profit for the same level of risk here in Australia. In the end, fund managers around the world will assess opportunities around the world. Capital is globally mobile. They will assess opportunities around the world across a whole range of indicators. But for the same level of risk they will look at where they can secure the highest after-tax return on their investment, and that is where the money will go. If we can't continue to attract it into Australia, because the after-tax level of return is materially lower here than it would be elsewhere, then the money will go elsewhere. And, as I've said, compared with the US and compared with Europe we have a much smaller domestic capital market. The United States and Europe—the European Union has a common market—have a much more substantial domestic capital market. But even in Europe—say, France: the President of France is hardly a right-wing ideologue. President Emmanuel Macron, when I first met him, was the minister for the economy in the socialist administration—the Parti Socialiste. Don't get yourselves upset by my using the word 'socialist'; they were literally the socialist administration of Francois Hollande. France, with Emmanuel Macron as their President, a left-leaning President—and he won't mind me saying it—is lowering their corporate tax rate from 33 per cent to 25 per cent by 2022 because they want to protect jobs in France, because they know that if they don't lower the corporate tax rate to 25 per cent in France they will help businesses in other parts of the world take business and investment and jobs away from France.</para>
<para>And France actually is in a safer position than Australia. Australia is more exposed. France is in the middle of Europe. France is in the middle of a 500-million-people market. Australia is a 25-million-people market with significant capital investment requirements in order to continue to develop our economy. France is an established economy in a large, 500-million-people domestic market. It is actually not as exposed to competitive pressures as we are. So you've got France going to 25 per cent. Scandinavia is meant to be the social democratic—</para>
<interjection>
  <talker>
    <name role="metadata">Senator Dean Smith</name>
    <name.id>241710</name.id>
  </talker>
  <para>Nirvana.</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
  </talker>
  <para>nirvana. Thank you very much, Senator Smith. Do you know who the Prime Minister of Sweden is? The Prime Minister of Sweden is a former Swedish union leader. He's a former leader of the equivalent of the ACTU in Sweden. Supposedly Scandinavia has this high-taxing, high-spending, high-welfare type of approach. Do you know what its business tax rate is? Twenty-two per cent! So you've got the United Kingdom, which has been going from 30 per cent, now to 19 per cent, on track to go to 17 per cent. You've got the United States under President Trump going from 35 per cent to 21 per cent. You've got France going from 33 per cent to 25 per cent.</para>
<para>Now, in Australia, we're not proposing to chase things down to the bottom. We're proposing to ensure that we don't lose touch with the average. We don't want to be left behind. We don't want businesses in Australia to be forced to carry burdens that their competitors in other parts of the world don't have to carry, because we know that, if we force businesses in Australia to carry burdens that their competitors in other parts of the world don't have to carry, the ultimate victims of that will be workers across Australia—11 million workers working in private sector businesses across Australia.</para>
<para>Some people would say, 'Oh, it won't really matter to the person working in the coffee shop or in the shopping centre or in the local grocery stores.' Well, it does because, if the big businesses end up hiring fewer people because they lose business, investment and jobs overseas, fewer people will go to cafes, shopping centres and grocery stores, and not only that; they'll buy fewer products and fewer services from small and medium-sized businesses here in Australia. And they'll end up hiring fewer people, and there'll be even fewer people going into coffee shops, restaurants, shopping malls and grocery stores.</para>
<para>The whole point is: we are one economy. If you deliberately weaken our global champions that are engaged in global competition, if you force our global champions to carry rocks in their backpacks that their competition in other parts of the world doesn't have to carry, you will slow them down. If you slow them down, they'll hire fewer people. If you slow them down, you help businesses overseas sell more of their products and services at our expense. And where are the jobs going in that circumstance? The jobs will be going to those businesses overseas and to the small and medium-sized businesses overseas that will supply products and services to them.</para>
</continue>
<interjection>
  <talker>
    <name role="metadata">Senator Cameron</name>
    <name.id>AI6</name.id>
  </talker>
  <para>Absolute rubbish! Tax is one issue!</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
  </talker>
  <para>Sure, tax is one issue.</para>
</continue>
<interjection>
  <talker>
    <name role="metadata">Senator Cameron</name>
    <name.id>AI6</name.id>
  </talker>
  <para>It's one issue!</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
  </talker>
  <para>It is one issue. Senator Cameron says tax is one issue. Well, it's a pretty central issue; let me tell you. When fund managers around the world look at where to invest—let me tell you—the after-tax return is a key issue, and it happens to be an issue that we directly control.</para>
<para>I'll tell you: there's another issue. Sure, the profitability of a company like BHP or FMG and so on is also driven by how much they can get for their commodity exports. But, as it happens, we don't control what commodity prices are globally. We don't control what happens to global prices for our key commodity exports. So we are price takers there.</para>
<para>We control what happens with our policy settings. When you've got countries around the world lowering their business tax rates, it is completely untenable for us to have one of the highest tax rates in the world when we are an open trading economy that is globally focused in terms of opportunities but also globally exposed. <inline font-style="italic">(Time expired)</inline></para>
</continue>
</speech>
<speech>
  <talker>
    <time.stamp>18:39</time.stamp>
    <name role="metadata">Senator IAN MACDONALD</name>
    <name.id>YW4</name.id>
    <electorate>Queensland</electorate>
  </talker>
  <para>Minister, I do have some questions to ask you. The first question I'd like to ask—although it's probably not you who should answer this but perhaps Senator Cameron, if he could—is: why is it that Mr Shorten is clearly on record supporting these sorts of tax cuts? There's no doubt about it. When he was a minister, it was part of his proposal, his approach and his government's direction. I can't work out why it is he has now done a complete about-face. I'm wondering if the minister, or perhaps Senator Cameron, might be able to tell me what it is that changed Mr Shorten's mind. If Mr Shorten has explained that, then I've missed it. And, if I have missed it, perhaps Senator Cameron could—</para>
<interjection>
  <talker>
    <name role="metadata">Senator Cameron</name>
    <name.id>AI6</name.id>
  </talker>
  <para>You've been too busy carving each other up!</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator IAN MACDONALD</name>
    <name.id>YW4</name.id>
  </talker>
  <para>Senator Cameron, will you be able to tell me why Mr Shorten changed his mind? Just a few short years ago he was very much in favour of this policy, but now he isn't. Did he give some reason? Is there some explanation as to why he's done a complete about-face on this particular policy? He and his Treasurer at the time, I think it was—</para>
</continue>
<interjection>
  <talker>
    <name role="metadata">Senator Cameron</name>
    <name.id>AI6</name.id>
  </talker>
  <para>It's called priorities.</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator IAN MACDONALD</name>
    <name.id>YW4</name.id>
  </talker>
  <para>It's called what?</para>
</continue>
<interjection>
  <talker>
    <name role="metadata">Senator Cameron</name>
    <name.id>AI6</name.id>
  </talker>
  <para>It's called health; it's called education; it's called infrastructure.</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">The DEPUTY PRESIDENT</name>
    <name.id>112096</name.id>
  </talker>
  <para>Order, Senator Cameron!</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator IAN MACDONALD</name>
    <name.id>YW4</name.id>
  </talker>
  <para>So Mr Shorten wasn't educated before, Senator Cameron? I don't quite understand your interjected answers to my questions. Perhaps you could get up and explain how Mr Shorten could just a few short years ago positively advocate for this policy when he's now done a complete about-face. I stand to be corrected, but I don't think he's ever given any explanation as to why he changed his mind, so perhaps you could tell us why that is, or perhaps Senator Cormann has seen some credible explanation from Mr Shorten on why a few short years ago this was his government's policy. He was an economic minister in a government that was advocating this—a government that Senator Cameron was part of for a short period of time. And I'm flabbergasted. Not many people believe Mr Shorten on anything, but we did hear him strongly advocating for his government at the time to introduce these sorts of tax concessions. Why? Because Mr Shorten understood that, to remain competitive, we had to meet the market, so to speak, with the rate of tax. So that's one of my questions, Minister, if you could answer it. If not, perhaps Senator Cameron could answer.</para>
<para>Earlier in the day in this committee stage debate, I asked about some Queensland companies which are not big companies by relative standards. JBS was one that you mentioned, Minister. It's a meat processor based in Townsville and it employs a lot of Townsville people—a lot of meatworkers. Brent Eastwood has, as you rightly pointed out and as was reported in <inline font-style="italic">The Courier Mail</inline>, called upon the parliament to support these tax breaks for his company and for other companies similar to his, because he understands the tough world of business. He has to compete with imported meat products, and it's very difficult for him to do that when he is paying a rate of tax greater than that paid by his competitors in other countries.</para>
<para>I also mentioned the case of Teys Brothers, which have meat processing plants at Rockhampton and Biloela. I can't speak for them. I haven't heard them say anything about this particular tax reduction, but I can make a pretty fair assumption that they also would be very much in favour of it, because, in the times I visited their premises at Rockhampton and Biloela, I was told that this meat processing business is a pretty tough business. They're always competing with imports from the Americas—mainly South America, as I recall—and they rightly say that they pay their workers in Australia properly, as they're required to and as they're happy to do, but they have to compete with workers in other countries who are not on the same wage scale and conditions as Australian workers. But they understand that and they still compete.</para>
<para>When it comes to taxation, here is a way that we can allow JBS and Thiess Bros to actually compete. Senator Storer, in his contribution earlier on, said that he couldn't see the advantage of it, couldn't see how this would be passed on to help Australian workers and Australian jobs. Could I suggest to him that he might give the managing director of JBS a call and hear why he thinks—</para>
</continue>
<interjection>
  <talker>
    <name role="metadata">Senator Cameron</name>
    <name.id>AI6</name.id>
  </talker>
  <para>JBS hasn't paid tax.</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator IAN MACDONALD</name>
    <name.id>YW4</name.id>
  </talker>
  <para>Well, Senator Cameron, these Australian businesses employ Australian people. Why would they disadvantage themselves by having to pay a tax rate that is far more than that of their competitors? I can never understand it, Senator Cameron. You keep saying you support the workers. The only—</para>
<para>The CHAIR: Senator Macdonald, I remind you to go through the chair.</para>
</continue>
<continue>
  <talker>
    <name role="metadata">Senator IAN MACDONALD</name>
    <name.id>YW4</name.id>
  </talker>
  <para>Yes, I'll speak through you—thank you, Chair. I'm really just responding to Senator Cameron's disorderly interjections. But you're right. I'll resist responding to his interjections and speak to you. Of course, I hear from down in the corner—</para>
<para>The CHAIR: Senator Macdonald, if you would resume your seat please. Senator Whish-Wilson.</para>
</continue>
<interjection>
  <talker>
    <name role="metadata">Senator Whish-Wilson</name>
    <name.id>195565</name.id>
  </talker>
  <para>I'd like to call your attention to the state of debate in the chamber but I will call your attention to the state of the chamber.</para>
<para class="italic"><inline font-style="italic">(Quorum formed)</inline></para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator IAN MACDONALD</name>
    <name.id>YW4</name.id>
  </talker>
  <para>I want to thank Senator Cameron for going and giving instructions to Senator Whish-Wilson to call a quorum so that more people would come in and listen to the question I'm putting to the minister. So I thank the Labor Party and the Greens for filling up the chamber to listen to my words of wisdom—well, not really words of wisdom, but the serious questions that I'm asking the minister in relation to this.</para>
<para>I was indicating that Senator Storer couldn't understand how this would help Australian workers. But, as I say, I would ask him, really, to speak to some of the business leaders who do understand this—who have skin in the game, so to speak—and understand the importance of the Australian tax system being competitive with others.</para>
<para>I also raise the issue of some other Queensland companies. I'm sorry for being parochial, but I'm familiar with these Queensland companies. Senator Hanson, who's also from my own state, knows these companies. You know the Kilcoy processing company there. You know Teys Bros. You know JBS. You know the AA Company, another company involved in meat processing with substantial Queensland assets. Senator Hanson, like me, you understand and know these companies. These are not the huge multinationals. These are Australian companies struggling to compete in a very competitive world. As I mentioned before, they all pay their workers proper wages, as they're required to do in Australia.</para>
</continue>
<interjection>
  <talker>
    <name role="metadata">Senator Cameron</name>
    <name.id>AI6</name.id>
  </talker>
  <para>JBS?</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator IAN MACDONALD</name>
    <name.id>YW4</name.id>
  </talker>
  <para>Well, if they're not doing that, Senator Cameron, I don't know what you and your union mates are doing if they're allowing substandard wages to be paid. I know that's not true, of course, but you always scoff on one hand and, in doing that, you're clearly saying to your union mates they're not doing their job. I know they are doing their job, because all of these Australian companies I mention actually pay proper wages in accordance with the Fair Work Commission and the relevant awards. They're competing against countries with far lower wages. They're happy to do that, but we can help them by at least not requiring them to compete in the taxation area, where their competitors will be paying far less tax, as other countries understand what this is all about.</para>
<para>I also mentioned that in Townsville there's a bit of a difficulty in the labour market, if I can put it that way, with the closure of Queensland Nickel and the downturn of the mining industry generally. But there are two bright sparks in Townsville. One is the copper refinery owned by Glencore, which is one of the companies that are important here. That's why I'm concerned about Senator Hinch's amendment, in that these companies would pay a higher rate of tax than other competitors in Australia and certainly much more than competitors overseas. But I digress slightly. In Townsville we have Glencore, who run the copper refinery. We also have Sun Metals, a subsidiary of KoreaZinc, who a couple of decades ago, at the invitation and encouragement of, I think, the Fraser government, set up in Australia because we had cheap electricity in Australia in those days and they're big power users. They created the zinc refinery in Townsville, which employs a lot of people in the Townsville area, and they continue to try to expand their operations. But they have been struggling as well, mainly because of power prices, thanks to years of Labor governments, particularly state governments, who've been ripping off the energy market.</para>
<para class="italic">Senator Cameron interjecting—</para>
</continue>
<continue>
  <talker>
    <name role="metadata">Senator IAN MACDONALD</name>
    <name.id>YW4</name.id>
  </talker>
  <para>Senator Cameron laughs at that. I know why he laughs: because he's in cahoots with the Queensland Labor government, who run the only generating supplier in North Queensland. It's a state-government-owned business entity. They gouge the prices and rip-off the businesses in North Queensland. They do that and pay the proceeds of their ill-gotten gains into the Queensland Treasury to try to help Senator Cameron's mates in the Queensland government to balance their books, which they never do, of course.</para>
<para>But Korea Zinc is one of those companies that would not benefit if Senator Hinch's amendment were passed, yet they are struggling to compete with zinc refiners elsewhere in the world. And the list goes on. I urge senators to have a look at the home-grown Australian companies—and there are certainly a lot of multinational companies on the list, who invest in Australia and we want to keep them investing in Australia, because they create jobs—that are trying to continue operating and creating jobs for our fellow Australians. If we can't compete in the taxation area, they are going to struggle to continue to exist. I ask particularly the crossbenches—I know the Labor Party is ideologically opposed to this now, but they weren't a few years ago when Mr Shorten was advocating this!—to have a look at the list of Australian companies that are trying to compete in a very difficult world in many areas where we can't have any influence. But we can at least compete on the tax front. So, I again ask the minister to elaborate on those companies, those home-grown Australian companies—Queensland companies, in my case—that will struggle to compete if we don't have a competitive tax rate. I wanted to speak further, but I know my colleagues have questions that they want to raise with the minister, too, so I will leave my contribution there, but perhaps later on the minister might be able to respond to some of the questions I have raised.</para>
</continue>
</speech>
<speech>
  <talker>
    <time.stamp>18:57</time.stamp>
    <name role="metadata">Senator HANSON</name>
    <name.id>BK6</name.id>
    <electorate>Queensland</electorate>
  </talker>
  <para>Firstly, I would like to explain to the chamber that my absence for the second reading division was simply unfortunate and not designed to give any further time to this debate, given my very clear stance on not supporting any further corporate tax cuts. We find ourselves with an amendment that Treasurer Scott Morrison claims was given to me last week. Let me make it clear to this chamber that I had not seen this amendment until it was emailed to my office at 12.09 pm today.</para>
<para>This week has been a complete shambles—an embarrassment to every Australian. You've got the Liberals knifing each other and Senator Cameron was caught dancing down the corridors with his air tambourine, singing <inline font-style="italic">Oh Happy Day</inline>. The people are over it. They're tired of every single one of you urinating their money up against a brick wall. If they could bang your heads against the same wall they would—both of you: Labor and the coalition. You have left the people in this country with a filthy hangover today. When I go shopping, people ask, 'Why can't the government help the farmers instead of these big companies?' They're right. The bulk of multinationals don't pay their fair share of tax in this country. People ask me, 'Why do we send billions overseas in the form of foreign aid?' It's a good question, isn't it, especially when every single one of you drives past at least six homeless people sleeping near Outback Jacks on Northbourne Avenue here in Canberra. And let's not forget the other 105,000 homeless people we have in this country. I've got cane farmers across Queensland, who want a code of conduct. Nothing else—no money, just surety for their industry, which employs tens of thousands of Australian workers and pumps $2 billion in cash through this economy. Why aren't we looking after those people? Aren't these tax cuts about saving jobs?</para>
<para>I'm tired of the people of this country sitting at their dining-room tables saying: 'Did you hear what those clowns in Canberra did today? They don't care about us.' They are talking about us. Tonight I'm voting with the lion's share of people in Rockhampton. I'm voting with the bulk of mums and dads in Tamworth. I'm voting with the majority of people in Coal Point, Townsville, Ipswich, Toowoomba, Beerwah, Bowen, Kilcoy, thousands of towns across my home state of Queensland and thousands more across the country. The majority of people don't want these tax cuts for businesses with turnover greater than $50 million. You know why they don't want me to support these tax cuts? You refused to fix the PRRT. Let me explain the PRRT. It is a tax imposed on the gas offshore in North West Australia. This is 15 per cent plus. Over the period of time that we've had the PRRT, companies like Chevron, ExxonMobil and Shell have now cumulated $290 billion in tax credits, so that they say they will not be paying tax in this country for a long time to come.</para>
<para>Countries like Japan are making more money in excise tax out of ships with our gas on them, around $3 billion, than we do. We made about $800 million off our sales of approximately $55 billion this year. You refuse to collect billions in royalties from Commonwealth waters. Qatar made $26.6 billion in gas and oil sales, and we made $800 million—and you're worried about investment in this country, that the multinationals won't come here unless we reduce corporate taxes? I don't think you have it right. The whole fact is they will come here, because they are not paying the right taxes in the first place. Why wouldn't they come here?</para>
<para>You refuse to acknowledge that our tax system is different to that of every other country. You made a reference to America, who dropped their rate to 21 per cent. Yes, but their state taxes are between two and 12 per cent on top of that. You don't refer to their different tax systems. You can't compare apples with oranges. Every country has a different taxation system. Just because they drop their taxes doesn't mean that we do. You say they are dropping it every year, and that other countries are going to drop it to 17 per cent. Is this a race to the bottom? Who can give the lowest tax rates, so that we don't lose the investment? If they are not going to pay taxes in this country, what are we losing? They are only more competitive for the Australian businesses here who are struggling and trying to do the right thing. America has lower wages. That's another thing. I'm definitely not advocating that we have lower wages in Australia.</para>
<para>What have your free trade agreements done? You have signed away the workers. You talk about more jobs, but your free trade agreements have allowed these multinational companies to bring in their own workers. You are destroying our own workforce. America has half-price energy. There's your problem. Reduce the cost of energy in Australia, so industries and manufacturing can compete, instead of escalating prices. America has 325 million people in their domestic market and, more importantly, trading partners on their doorstep. There are a combined 450 million people in Canada and South America that they can sell their products to. They have also applied tariffs to imports—fancy that! I recall a younger version of myself calling for tariffs 20 years ago. These countries protect their homegrown industries—in Australia, we tie our companies up in red tape—and flood our market with cheap junk.</para>
<para>As for suggestions on how to spend the money if you don't do this, because you're going to end up with about $4 billion in the coffers, what about long-term-vision projects, infrastructure projects like roads and rail? What about dams and the Bradfield water scheme, which would drought-proof our nation and help the poor farmers out there that are on their knees? What about the watering Australia program to bring the water down from the Territory, the Ord scheme, so we actually water Australia? These are projects that would make our country prosper and help those that are in dire need. This country is not going to grow or move forward if we don't provide the water that it needs. We have countries like Israel that have put in a watering project that can water their country. But we can't do it?</para>
<para>There is no vision in this country whatsoever for future generations. What about railway projects like the Carmichael mine and duplication of the Sunshine Coast Railway through to Nambour? Why aren't we duplicating the Bruce Highway from Brisbane to Cairns for tourism and freight? Coal-fired power stations to produce the dispatchable energy that we need to reduce the power prices in this country; hydro power like the Tully-Millstream project—why aren't we doing these projects? Where's the debate on nuclear energy? Why don't we do that?</para>
<para>I have respectfully listened to the government's arguments, and I do thank Senator Cormann for his good-natured negotiations. But I cannot support a shift in the threshold to increase further corporate tax cuts, carving out the big four banks. My question is: what about the other banks? They have to answer for the wrong they've done to many people across this country, and the damage and the heartache that they've caused. It's more than just the four banks.</para>
<para>My obligation is to the everyday people of this country and to ensure we start paying down the mounting debt. One Nation supported tax cuts up to a $50 million turnover. That's a cost to the budget of $35 million. We supported the personal tax cuts; that's another $144 billion. You want to pass these further corporate tax cuts; that's a further $45 billion. And you're talking about in eight years time. How do we know the state of this economy in eight years time? How do we know if this country will be able to afford it? How do we know who's going to be holding the chequebook—because I don't trust any one of you. I've seen it. Under Labor, when it changed over to the coalition, the country was in debt by about $270 billion. Now we're reaching nearly $600 billion. There has to be a debt ceiling put on, because someone has to curtail your spending. No-one's talking about future generations and how we're paying down this debt.</para>
<para>You talk about how it's going to create jobs. I'll tell you the only way you will create jobs in this country and get a better, higher wage increase: please work with your state counterparts and investigate reducing payroll tax, which is a bigger impost on business across the nation. That will—it will—stimulate jobs in this country. That's why I say to you that you can't guarantee corporate tax cuts are going to create employment and bring higher wages. For a lot of these businesses, what I hear all the time is that the biggest problem in this whole country is payroll tax. I know it's not a federal issue; it is a state issue. You have to work with the states to compensate them for slowly reducing the payroll tax, which will increase employment. Why would these businesses put more money into their companies and businesses through a corporate tax cut when they know that, if you create more employment and higher wages, that's going to put them over the threshold and they're going to be paying more in payroll tax? It needs to stop. Address your free trade agreements and stop these companies bringing in their workers from overseas—and that is actually happening. Ensure that we as a nation can afford this. You haven't proven that to me.</para>
<para>I'm worried about the future generations and the debt we are going to leave them. You can sit there and promise me all these things, but with all the deals that you may have done in this chamber with the other senators, there is no guarantee of who's going to be the Prime Minister of this country next week—whether or not it's going to be Malcolm Turnbull. If we go to an early election, are these deals going to be secure? They possibly won't be. So, I want to know that the future of this nation is in good hands. I don't feel that it is.</para>
</speech>
<speech>
  <talker>
    <time.stamp>19:10</time.stamp>
    <name role="metadata">Senator CAMERON</name>
    <name.id>AI6</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>I don't often agree with Senator Hanson, but on this occasion, to indicate—</para>
<interjection>
  <talker>
    <name role="metadata">Senator Cormann</name>
    <name.id>HDA</name.id>
  </talker>
  <para>Chair, could I—</para>
</interjection>
<interjection>
  <talker>
    <name role="metadata">The TEMPORARY CHAIR</name>
    <name.id>122087</name.id>
  </talker>
  <para>Certainly, Senator Cormann.</para>
</interjection>
</speech>
<speech>
  <talker>
    <time.stamp>19:10</time.stamp>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>There are a few things that I need to address before we rise tonight. Firstly, in relation to the amendment we are discussing, to carve out the big four banks, I can confirm that the official minute was circulated today. But of course I did raise it in one of the many very good and constructive discussions Senator Hanson and I have had over the months. I did raise that with Senator Hanson last week. In relation to the oil and gas industry in Australia, it is a relatively less mature industry compared with Qatar's. Qatar has had massive investment, generating massive production of oil and gas, for decades and decades. We had the most significant investment. The oil and gas investment out of Gorgon, Wheatstone and Pluto is very recent. These are highly capital-intensive projects. Not only did the significant capital investment of well in excess of $100 billion lead to massive increases in construction jobs and massive increases in economic prosperity for Australia but they will do so into the future. As Senator Hanson knows—and we had consensus in relation to this earlier in the year—we were absolutely prepared to pursue sensible reforms to the petroleum resource rent tax arrangements, and we will still pursue those sensible reforms to the petroleum resource rent tax arrangements. But we of course explored in good faith with the Senate crossbench the opportunity to land a consensus around a lower, globally more competitive business tax rate that is manifestly in the national interest.</para>
<para>Senator Hanson asked us to convince her that we can afford those. Well, the figures are there in the budget for all to see. I mean, our performance against the budget for the last two years now has been better than what had been estimated when the budget was delivered. If you look at the trajectory over the medium term in terms of our budget forecasts and projections, we had forecast to return to balance in 2019-20 and to remain in surplus over the medium term to exceed a surplus of one per cent as a share of GDP by 2026-27, which is when the Ten Year Enterprise Tax Plan to reduce corporate tax to 25 per cent is designed to come into full effect. In fact, the reason we are not reducing corporate taxes for all businesses immediately is that we wanted to do it in a way that was fiscally affordable. We wanted to get the budget back into surplus as soon as possible while also making sure that businesses in Australia have the advantage and the benefit of a globally competitive business tax rate. Providing the signal to the bigger businesses with bigger turnovers that over the next few years the corporate tax rate for them would progressively come down to 25 per cent would provide them with the incentive to make investment decisions now in the knowledge that they will have an improved after-tax return on their investment.</para>
<para>It has always been thus. If you want to attract more investment, one of the key considerations is your tax policy settings. Countries around the world are not lowering their corporate tax rate out of fun; they're doing it because they're making a judgement that it is in the best interests of their economy, of families, of jobs created by businesses in their respective economies.</para>
<para>There is no question that the day will come when Australia will have to do this. Sadly, it looks as if we might not be able to get there on this occasion. If the Senate decides to vote this down today, it will become obvious in the years to come that it was a decision that exposed Australia to economic harm, that put us in a weaker position, that cost jobs and that put wage increases at risk. The day will come when, given what happens in the rest of the world in terms of business tax policy settings, this parliament will have to revisit this question—no question.</para>
<para>Senator Hanson talks about free trade agreements. That is something that used to have bipartisan consensus, I have to say. It was under the Hawke and Keating governments that Australia decided to open up the Australian economy to global competition, to position the Australian economy to be globally focused, because there was an appreciation and an understanding that there was so much opportunity for Australian businesses to sell Australian products and services around the world. You don't become rich by selling to yourself; you become rich and wealthy by selling your products and services to the massive global market.</para>
<para>Of course, on the flipside, for consumers, opening up our economy has delivered massive benefits to consumers, because it means that we can get the best products and services from other parts of the world at competitive prices. Prices in Australia would be higher, the quality of products and services would be lower, and there would be fewer jobs in Australia today if we had not opened up the Australian economy to the world, if we hadn't decided to become a genuinely globally focused open-trading economy. Becoming a genuinely globally focused open-trading economy has unquestionably lifted living standards across Australia. A commitment to open markets and free trade has lifted living standards around the world.</para>
<para>We have to accept that the world around us is as it is. We don't have a choice about the fact that businesses in other countries want to take business away from us. They want to sell more of their products and services to markets around the world at our expense. And, if they're more successful in selling more products and services that they have produced around the world, we will sell less. If the capital investment that could have come to Australia goes to Brazil, the US, Canada, New Zealand or France and doesn't come here then it will create jobs in those economies, in those countries. Over time, if we stay on that trajectory and don't adjust the trajectory to get ourselves into a more competitive position again, it will be working families across Australia who will pay the price. And the first people to pay the price will be low-income earners. People trying to get into the job market will be the first to pay the price, because they'll find it harder to get a job. People who are part of the casual workforce, who work part-time and want to have additional hours, will find it harder because those are the jobs that disappear first. As businesses have to shrink because the government's policy settings are making it harder for them to be successful, as bigger businesses have to cut costs because they are selling fewer of their products and services and attracting less investment, the first people who lose their jobs are those—</para>
<interjection>
  <talker>
    <name role="metadata">Senator Cameron</name>
    <name.id>AI6</name.id>
  </talker>
  <para>Malcolm Turnbull is going to lose his job.</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
  </talker>
  <para>I know that for Senator Cameron this is all just one big joke. You know what? I actually care about this. I don't think anyone in this chamber—we might have disagreements; we might have a different perspective—can say that I'm prosecuting an argument that I don't believe in. I passionately believe that this is something we need to do to protect jobs, to create opportunity, for people to get ahead.</para>
</continue>
<interjection>
  <talker>
    <name role="metadata">Senator Cameron</name>
    <name.id>AI6</name.id>
  </talker>
  <para>Oh, rubbish!</para>
</interjection>
<continue>
  <talker>
    <name role="metadata">Senator CORMANN</name>
    <name.id>HDA</name.id>
  </talker>
  <para>You can say that's rubbish, but let me tell you, I have seen what socialist agendas lead to. I've seen what equality-of-outcome type income distribution and wealth distribution policies lead to, and let me tell you: they lead to poverty. They make everyone poorer. That is not a path that any of us should want for the Australian people. We should want a path where the Australian people can have opportunities to be the best they can be, and part of that is making sure that the businesses that employ them have the best possible opportunities to be successful into the future. In the end, this is going to be voted on tomorrow, and I'd like each senator to think about this overnight and make a decision that is in our national interest.</para>
<para>Progress reported.</para>
</continue>
</speech>
</subdebate.2></subdebate.1></debate>
    <debate><debateinfo>
        <title>ADJOURNMENT</title>
        <page.no>94</page.no>
        <type>ADJOURNMENT</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Live Animal Exports, Glyphosate</title>
          <page.no>95</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>19:20</time.stamp>
    <name role="metadata">Senator BROCKMAN</name>
    <name.id>30484</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>I rise tonight to speak briefly on a couple of very important issues for my home state of Western Australia, in particular the live export trade and the recent events in the United States that may potentially impact on the use of the weedkiller glyphosate. Firstly, I will go very briefly to the live sheep trade.</para>
<para>The live sheep trade is a critical industry for Western Australia, and it is absolutely imperative that we reject the radical and uninformed activists in their push to jeopardise the livelihoods of thousands of hardworking Western Australians and Australians by ending that trade. The live export trade is worth more than $1.4 billion to the Western Australian economy every year. The events on the <inline font-style="italic">Awassi Express</inline> that we've all seen many times were truly dreadful, but they were also the exception, not the rule. There have been many myths and untruths peddled about the trade. As someone who has been involved in agriculture for a significant part of my life and whose family has sold many thousands of sheep for export, I think it is important that I take the opportunity to address some of these fictions.</para>
<para>The first myth I'd like to address is that we can simply replace the live trade with chilled meat. This simply will not take place. We saw previously, during an episode involving Bahrain, the disruption and damage done to our export trade relationships when live export was ended; the void simply was not filled by Australian chilled meat. We may help our competitors elsewhere, but we certainly will not help ourselves.</para>
<para>Myth No. 2 is that banning the sheep trade will improve animal welfare. I think this is a complete myth, because when we export the animals—be it our sheep or our cattle—we also export Australian standards of animal welfare. That has meant that, elsewhere in the world, for every one Australian animal that is slaughtered in an Australian registered and accredited facility, some three or four animals from elsewhere in the world are also killed to Australian standards in those facilities. That is the direct export of our animal welfare standards through the Exporter Supply Chain Assurance System. Banning the Australian trade will not result in a reduction in the number of live sheep being transported to the Middle East. They'll just come from elsewhere. They'll potentially come from a lot further away, from countries with significantly lower standards of animal welfare than Australia.</para>
<para>The final point I would like to address is the question of whether mass mortality events are very frequent. Heat stress events like those on the <inline font-style="italic">Awassi Express</inline> are not a frequent occurrence. Between 2010 and 2017, the annual mortality rate was between 0.62 and 0.89, with an average of 0.76. Over this time, in excess of 17 million sheep were exported from Australia, the vast majority of these, some 85 per cent, from Western Australia. There may be some opposite who point to this rate as relatively high, but the reality of farming is that you'll get a death rate in paddocks of a significant amount over the same period of time. These rates have been trending down over time and are actually a positive reflection of the interest the industry has taken in animal welfare standards.</para>
<para>Very briefly, I just want to talk about the situation with glyphosate. We've recently seen a court case in the US where a significant award was made on the basis of a link between glyphosate and a particular cancer. We must remember that the US court system is not making that determination based on scientific evidence. There is an overwhelming scientific consensus that glyphosate based weed control products are safe for use on crops. In fact, there are more than 800 scientific studies supporting this proposition. Those calling for a ban on glyphosate are doing so from a political position, not a position of science. And it's exceedingly important that in Australia we always have decisions on the use of chemicals and the regulation of chemicals made by independent scientific organisations based on independent scientific advice.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Australia Palestine Advocacy Network, Middle East</title>
          <page.no>95</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>19:25</time.stamp>
    <name role="metadata">Senator URQUHART</name>
    <name.id>231199</name.id>
    <electorate>Tasmania</electorate>
  </talker>
  <para>I rise tonight to congratulate a tremendous organisation, the Australia Palestine Advocacy Network, on another successful annual dinner. The APAN annual dinner was held in Parramatta last Friday night with a crowd of around 450 in attendance. We heard from APAN president Bishop George Browning about the crucial work the organisation is doing with all sides of politics, both here in Australia and in sending tour groups to Israel and Palestine.</para>
<para>Our keynote speakers were Gerard Horton and Salwa Duaibis, who founded the Military Court Watch, which conducts invaluable legal and advocacy work to support Palestinian children detained by Israeli military authorities, and we heard from Dr Olfat Mahmoud, from the Palestinian Women's Humanitarian Organisation, based at the Burj el Barajneh refugee camp, in Lebanon. Mr Horton and Ms Duaibis spoke about the injustices of the Israeli military courts. I visited a military court in Israel last year and was horrified by that injustice.</para>
<para>Mr Horton is an internationally acclaimed human rights lawyer, who spends his days trying to support these children to navigate the Israeli military court system. Ms Duaibis is a Palestinian entrepreneur and women's rights advocate, who works with parents and children before the Israeli military courts so their stories are documented and shared with the wider population and the outside world. Both spoke at parliament last week to an event well attended by all sides. We recognise that the arbitrary indefinite military detention of children is just wrong, and we must speak out against it at every opportunity.</para>
<para>Afterwards, we heard from Dr Olfat Mahmoud, an inspirational Palestinian refugee who has campaigned for decades about the plight of her people living just over the border from home, in Lebanon. Dr Mahmoud has written a book, <inline font-style="italic">Tears for Tarshiha</inline>, of her people's dreams to return to their home. Dr Mahmoud gave us a taste of her book—of the cruelty of the situation of being so close, yet so far from home.</para>
<para>Dr Mahmoud is here in parliament this week, and the parliamentary launch of her book is tomorrow evening at 6 pm. I would encourage everyone from all sides to come along and hear of what the Palestinian right of return means to Palestinian refugees living so close to home, because we all need to take a fresh look at the current situation. We need to rethink our current support for the status quo of the past 25 years. Why do we blindly continue to support a two-state solution that every day gets further and further from reality?</para>
<para>With Labor's national conference coming at the end of the year, I signal that I'm campaigning for our party to adopt the clear policy that upon forming government we must immediately recognise Palestine as a state. Simply, enough is enough. If the heavy-handed violence towards protesters in Gaza, the ongoing persecution of children in the military courts and the ongoing theft of time for ordinary Palestinians were not enough, the passage of the nation-state law is the final nail in the coffin for a peaceful two-state solution.</para>
<para>The nation-state law is unequivocal. It states that national self-determination in Israel is unique to Jewish people. It enshrines Jewish settlement as a national value and mandates that the state will labour to encourage and promote its establishment and development. It relegates Arabic, the language of 20 per cent of the population of Israel, to being a secondary language. It affirms that the capital of Israel is the unified and complete city of Jerusalem. Many respected commentators and public figures have labelled this law an apartheid law.</para>
<para>As I have said before in this place, Australia has been a friend of Israel since its creation, and as a friend we must respectfully tell our friends when their actions are wrong. We must not appease their actions. We must not stand idly by. When our friends are taking deliberate actions that they claim promote peace and unification but, in fact, undermine any chance for sustained peace, we must call them out and help them find a different path. Where Israel law is clearly in breach of international law we must be firm, because Israel is becoming increasingly isolated. As friends, we must not allow the last chances of a long-term peaceful resolution to be lost. Such a resolution requires the clear affirmation that Palestinians must have equal rights to Israelis.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Inequality in Australia Report</title>
          <page.no>96</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>19:30</time.stamp>
    <name role="metadata">Senator SIEWERT</name>
    <name.id>e5z</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>Tonight I rise to speak on the ACOSS, Australian Council of Social Service, and University of New South Wales report <inline font-style="italic">Inequality in Australia</inline><inline font-style="italic">2018</inline>, which was released last month. This report provides robust, independent and authoritative research that monitors the level, nature and trends in poverty and inequality in Australia. The findings are stark, and I think shocking, showing Australia has a greater degree of inequality than many people in Australia, and certainly this place, think in terms of both income and wealth inequality.</para>
<para>The top one per cent of Australian earners take home as much in a fortnight as the lowest five per cent of earners do in a year. The richest 20 per cent of Australian households own 62 per cent of all wealth while the lowest 50 per cent have just 18. The average household wealth in the highest 20 per cent group is $2.9 million, five times that of the middle 20 per cent and almost 100 times that of the lowest 20 per cent, at $30,000. A person with a household income in the highest 20 per cent of the population has five times the disposable income of the lowest 20 per cent.</para>
<para>At the very top of the wealth pyramid are 3,000 people in a category all of its own, described as the 'ultrarich wealth individuals', those with wealth exceeding $50 million, which is $65 million Australian dollars. Australia has the fifth highest number of people in the world with that amount of wealth, an extraordinary finding given our relatively small population.</para>
<para>ACOSS chief executive officer, Cassandra Goldie, said the report's findings deeply challenge:</para>
<quote><para class="block">… our sense of Australia as an egalitarian country…The Australian experience in recent decades shows that inequality has increased strongly in economic boom times and flattened with a slower economy and slow wage growth across the board.</para></quote>
<para>She goes on to say, 'We should not accept increased inequality as an inevitable by-product of growth.'</para>
<para>Despite income inequality reducing since the global financial crisis, the report warns about:</para>
<quote><para class="block">… freezing Newstart Allowance and family payments while indexing pensions to earnings growth, a long-term trend towards greater inequality in hourly wage rates, and growing inequality in the distribution of wealth, which generally increases inequality in investment income. These underlying trends are likely to reassert themselves and increase inequality once stronger economic growth is restored.</para></quote>
<para>While some income inequality has slowed, this report finds that household wealth has become even more concentrated, thanks in part to the 'generous tax treatment for superannuation and a property boom'. Excessive inequality is unacceptable and harmful to our society and to the economy. In addition to the fundamental injustice of such wealth disparity, when people with low incomes and wealth are left behind they struggle to reach a socially acceptable standard of living and struggle to participate in our society. This causes division in our society and these divisions are exacerbated by the current government's ideology of blame, combined with a punitive approach. As the OECD and the IMF have pointed out in recent years, too much inequality is also bad for the economy. When resources and powers are concentrated in too few hands, or people are too impoverished to participate effectively in the paid workforce or to acquire the skills to do so, economic growth is diminished.</para>
<para>This report once again illustrates the myth and lie of trickle-down economics. This inequality is not inevitable. Changes in tax and transfers and labour market and education policies can and must play a part and a more-effective role in reducing divisions in our community. To put a face to these statistics: most, in other words 60 per cent, of the lowest 20 per cent are in households that rely mainly on social security for their income, of which the largest groups are age pensioners and those on Newstart, which is why it is so essential that Newstart be increased by at least $75 a week.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry</title>
          <page.no>97</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>19:35</time.stamp>
    <name role="metadata">Senator WILLIAMS</name>
    <name.id>I0V</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>I rise to speak about the banking royal commission. After having a total hip replacement six or seven weeks ago, I spent some time at home after a week in hospital and found it very interesting watching the royal commission. Commissioner Hayne QC, Mr Hodge QC and Ms Rowena Orr QC have become household names in superannuation. I'm glad we included superannuation in the terms of reference, because I doubt those opposite would have. It's amazing that we learnt of banks' commissions continuing. One bank delayed clients' transfers from default accounts to MySuper accounts until just weeks before the 2017 deadline, and encouraged advisers to contact clients in order to keep the fees flowing. Another has been charging members administration fees for services that have not been quantified, agreed or explained. Another failed to transfer 15,000 customers into a MySuper account by the 2014 deadline, as required by law. Another raked in more than $3 billion pushing a superannuation product through its branches under the pretext of general advice, before ASIC stepped in.</para>
<para>The reason I am talking about this is that we have certain bills coming before the Senate. They actually came to the Senate in September last year. One bill, the Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No. 1) Bill 2017, was, I believe, debated here at the time but hasn't been voted on. You all know how this place works. If we don't have the numbers, it gets put on the backburner. These bills require trustees to undertake an annual outcome assessment test on whether the outcome is being delivered or is promoting the financial interests of their MySuper members. It allows APRA to refuse or cancel authority to offer a MySuper product if APRA has reason to believe a trustee may fail to comply with its obligations. Importantly, it imposes civil and criminal penalties of up to $420,000 and five years' jail for directors of trustees who fail to execute their responsibility to act in the best interests of members or to further their own interests.</para>
<para>When superannuation came in 25 years ago, no criminal laws were attached to it. We've seen billions siphoned off—you could say stolen—for no criminal punishment. I am saying to the Senate tonight that if, when these bills come here, Labor and the Greens oppose that punishment they will have to have a good reason for it. Criminal activity is criminal activity, and I want to see these criminal charges attached to superannuation so that, in future, when individuals, trustees or directors, steal money from the retirement funds of hardworking Australians, they face the proper music. I was amazed that this failed in the past.</para>
<para>The bill will provide APRA with a new direction power, harmonising its powers across the banking, insurance and superannuation industries, and enabling APRA to intervene to address prudential concerns in a manner that ensures action is taken. It will introduce a workable portfolio holdings disclosure regime to provide transparency on where super funds are investing member's contributions. It provides APRA with the ability to obtain information on expenses incurred by funds, to better understand how they are using members' contributions and whether they are in line with their obligation to act in their members' best interests. There are other things as well.</para>
<para>Another bill, the Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2018, bans exit fees on all accounts, regardless of balance. It caps administration and investment fees at three per cent annually for low-balance accounts. While opt-out for insurance is the situation now with group insurance, under-25s will have an opt-in situation, as will those with low-balance accounts where no contribution has been made for 13 months or more. So, the fund won't simply be taking away the savings through insurance premiums. It protects low-balance accounts by transferring them to the ATO, where no contributions have been made for 13 months or more.</para>
<para>The point I'm making is that, when these bills come back to the Senate—and I'm confident they're going to come pretty soon—I hope that Labor and the Greens do not oppose them this time and that they give us the numbers to see that people, when they commit criminal offences, actually face criminal law, serious fines and jail terms for stealing Australian workers' monies and retirement funds, as they should. When these bills come back, I will follow them with a lot of interest to see that those opposite do the right thing this time, instead of living in fear of their Industry SuperFunds trustees and friends.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Vietnam Veterans Day</title>
          <page.no>98</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>19:40</time.stamp>
    <name role="metadata">Senator KETTER</name>
    <name.id>244247</name.id>
    <electorate>Queensland</electorate>
  </talker>
  <para>I rise tonight to talk about Vietnam Veterans Day, which is commemorated on 18 August each year. Vietnam Veterans Day has a long history. It goes back originally to the Battle of Long Tan. Over a period of time, the anniversary of this battle became a day to commemorate those who served and died in Vietnam. And I'm indebted to the Australian War Memorial for information about the Battle of Long Tan.</para>
<para>The men of D Company, 6 RAR, fought this battle in 1966. On that day 108 Australian and New Zealand soldiers fought a pitched battle against over 2,000 North Vietnamese and Viet Cong troops in a rubber plantation not far from the small village of Long Tan. The Australians prevailed but only after fighting in torrential rain for four hours. They were nearly overrun but were saved by a timely ammunition resupply, accurate artillery fire from the nearby Australian base and the arrival of reinforcements by an armoured personnel carrier. Eighteen Australians lost their lives and 24 were wounded—the largest number of casualties in one operation since the Australian taskforce that arrived a few months earlier. After the battle, they found the bodies of 245 enemy soldiers, but there was evidence that many more bodies had been carried away.</para>
<para>As I indicated, the anniversary of Long Tan became a day that was adopted to commemorate those who served and died in Vietnam. It was formalised in 1987 following the very successful welcome home parade for Vietnam veterans in Sydney. Prime Minister Bob Hawke announced that Long Tan Day would be known as Vietnam Veterans Day, and since then it's been commemorated every year as the day on which the service of all the men and women who served in Vietnam are remembered. This year I was honoured to lay a wreath at two services. The first was with the Caboolture RSL sub-branch at the Burpengary memorial—that was in the morning—and in the evening I was honoured to lay a wreath with the Bray Park-Strathpine RSL sub-branch at the Pine Rivers Memorial Bowls Club.</para>
<para>I want to talk a little bit more about the Vietnam War. I think it is always timely to reflect on this. We know that—from the Parliamentary Library—approximately 61,000 personnel, including 500 women, served in Vietnam from 23 May 1962 to 29 April 1975. Australia went to Vietnam at the invitation of the government of the Republic of Vietnam in 1962, initially in the form of a group of military instructors to that country. But in 1965 Prime Minister Menzies announced that Australia would send an infantry battalion to Vietnam following a request from the government of South Vietnam. It's important to note that approximately 521 Australians died as a result of service in the Vietnam War and around 3,131 were wounded.</para>
<para>One of the controversial aspects of the Vietnam conflict was the issue of national service. It was brought back in for a fourth time in 1964. In May 1965 the Liberal government introduced new powers that enabled it to send national servicemen overseas. From 1965 to 1972, 15,381 national servicemen served in the Vietnam War, 200 were killed and 1,279 were wounded. The national service scheme was abolished on 5 December 1972 by the newly elected Labor government.</para>
<para>I also had the wonderful honour of representing Amanda Rishworth, shadow minister for veterans' affairs, in Canungra at the memorial service recognising the 56th anniversary of the initial deployment of the Australian Army Training Team Vietnam and the return to Australia in Operation Reunite of the bodies of team members originally buried overseas.</para>
<para>In closing, I think it's important that we commemorate this event and never forget the courage and sacrifice of those Australians who served overseas in our name.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Palmer, Mr Clive</title>
          <page.no>98</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>19:45</time.stamp>
    <name role="metadata">Senator LEYONHJELM</name>
    <name.id>111206</name.id>
    <electorate>New South Wales</electorate>
  </talker>
  <para>When I see a sign saying, 'Bill stickers will be prosecuted', I'm heartened when I then see graffiti tagged on the sign saying, 'Bill Stickers is innocent.' But one person whose innocence is in grave doubt is Clive Palmer, so I was heartened when I saw one of his bright yellow signs graffitied. Instead of Clive saying, 'Put Australians first,' Clive was saying, 'Put profits first.' Clive Palmer is not concerned about Australians; he's concerned about Clive Palmer. To any publicly minded Australians with creativity, wit and a daring spirit, I lay down this challenge: make graffiti great again. Bring out your spray paint and give those big yellow signs a red-hot go.</para>
<para>Perhaps instead of saying, 'Make Australia great,' the signs should read, 'Make the Cayman Islands great,' because that's probably where Clive has hidden all the entitlements of now redundant Queensland nickel workers. Perhaps the signs should read, 'Make Australia great for cronies,' because Clive Palmer is rich not because he worked hard or dreamed up a product that made the world a better place but because his mate, Joh Bjelke-Petersen, effectively gave favoured property developers a licence to print money. To fit in with the theme, perhaps our creative artists should spray-paint some brown paper bags on those big yellow signs.</para>
<para>Clive Palmer is attempting to woo young voters under the age of 24 for the key reason that none of them are responsible for voting for him in 2013 when he made Australia worse. In 2013, because of a personal vendetta against the Liberal-National Party, who had the audacity to not give him everything he wanted in Queensland, Clive Palmer decided to blow up the government and destroy the budget in the process. By voting to keep high Medicare rebates for doctors, he put the doctors union first. By voting for subsidies from everyday taxpayers to leafy public universities, he put millionaire vice-chancellors first. And by voting for billions of dollars of welfare for middle- and high-income households, he put big government first.</para>
<para>Clive Palmer also blew up our electricity prices. He stopped us from getting rid of the Renewable Energy Target, which is a wind turbine subsidy scheme that has ensured no-one has dared to build new gas- or coal-fired generators in Australia this century. This investment boycott is the reason our electricity prices have skyrocketed. Thanks, Mr Palmer: you've ensured that poor Australians will go without heating in the winter. Perhaps our creative spray painters could add some actual policy content to Clive's big yellow signs. If the signs read, 'Make tax and debt great,' then the voters would know what they were being asked to support. This is particularly the case for voters in capital cities, because Clive Palmer wants Australians in capital cities to pay 20 per cent more tax than other Australians. And we know he means it, because he and his senators from the Palmer United Party opposed every single reduction in expenditure in the Senate. Or perhaps the signs should read, 'Put the Renewable Energy Target first and struggling Australians a distant second.' The last time Clive Palmer had to worry about paying an electricity bill, Joh Bjelke-Petersen and Gough Whitlam were on speaking terms.</para>
<para>We should also remember that the last time Clive Palmer was elected, he hardly turned up for work. He's like a dole bludger, except that his dole was $200,000. Clive Palmer is the bludger who just won't quit. If Clive Palmer is re-elected, it won't prove that democracy is flawed; it will prove that compulsory voting is flawed. Why do we force people who do not follow politics and who are unaware of recent corporate scandals to vote? With compulsory voting, it's no surprise that a crook can win simply by twerking for Kyle and Jackie O, releasing cheesy memes on Facebook and painting the town yellow.</para>
<para>My message to Australians who might vote for Clive Palmer is this: don't be so bloody stupid. Clive Palmer is not an outsider, an antipolitician or a breath of fresh air. He's the ultimate insider, a political crony and as stale as a piece of bread that's sat in the back of the fridge since last year.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Frusher, Mr Douglas Boyd</title>
          <page.no>99</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>19:50</time.stamp>
    <name role="metadata">Senator GALLACHER</name>
    <name.id>204953</name.id>
    <electorate>South Australia</electorate>
  </talker>
  <para>I want to take a few moments of the Senate's time to commemorate the contribution to the Transport Workers Union of Douglas Frusher. Doug died on 27 June 2018. On 17 August 2018, last Friday, I was able to make a small contribution at the commemoration and celebration of his life, and I put some facts on the record there with respect to his contribution to the Transport Workers Union South Australian and Northern Territory branch.</para>
<para>Doug was born on 7 September 1941 in Rainbow, Victoria, to Clarence Frusher and Fanny Jean Frusher. Clarence was, I think, a captain in the Australian Army, and Fanny was a nursing matron. Doug didn't complete high school—of that we're absolutely certain. There is a suspicion he barely completed primary school. But what he did get in that rural environment is a really good appreciation of the needs of working-class people and especially working-class men and women.</para>
<para>He joined the Transport Workers Union in 1968, and he contributed as a member in good standing for almost 50 years. During that 50 years, he progressed from being an active member to being a delegate to being a member of the branch committee of management, running the affairs of the union. In 1998 he was elected, along with me, as the president of the South Australian and Northern Territory branch of the TWU. My relationship with him was from around 1983. We continued on as a team, so to speak, in the South Australian and Northern Territory branch until I resigned to come here and Doug resigned his position as president.</para>
<para>This is what I really want to get on the record here. If you did a Google word search of 'union' in the <inline font-style="italic">Hansard</inline> of this place in recent times, you would come up with all of the awful allegations that Senator the Hon. Michaelia Cash throws out there as ammunition and political cannon fodder every day, but nothing could be further from the truth. Here is a person with 50 years good standing with a union. In all of that time, he never earned a cent out of the union. His only need for the union was that he wanted to make workplaces fairer and safer and spread that ability to improve working conditions across his workplace, across the Adelaide Airport. He was an employee of TAA and went on to Qantas. For some 40-plus years, all he wanted was the ability to get fair workplaces, decent working conditions and reasonable take-home pay. He never saw gender, race, or colour—any of that. He was just an eminently fair person who, every day of his life, worked for the betterment of his fellow workers. He didn't draw on the resources of the union in any way personally. Nothing could be further from the truth than some of the allegations that these people—not all the people but some people—on the other side throw out there. All he was after was a working-class Australia and egalitarian, fair and safe workplaces. When you've finished with your workplace, you make the region safer. Then you make the industry safer. You make the whole sector safer.</para>
<para>It's no mistake that the airline industry enjoys great wages and conditions. It's built on the hard work of people like Douglas Frusher—selfless people. He never sought the limelight. He chaired the meetings with scrupulous honesty and fairness and was meticulous with respect to the financial records of the union. He had a smart brain, despite his lack of formal education. He was my friend and my mentor. We made some very good decisions, both financial decisions and campaign decisions. We fought long, hard campaigns, and we won. And he didn't feel the need to go and extol his own virtues; he just looked for the next challenge.</para>
<para>That's what working class union members do. Nothing could be further from the truth than what Senator Cash and others allege. People donate their time and their effort to make the whole environment they work in better, for the betterment of all Australians. They don't take from it; they add to it. They give back, day in, day out. All I'd like to say at the end of this is: a contribution well done. Vale, Doug Frusher.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Aged Care</title>
          <page.no>100</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>19:55</time.stamp>
    <name role="metadata">Senator POLLEY</name>
    <name.id>e5x</name.id>
    <electorate>Tasmania</electorate>
  </talker>
  <para>I rise this evening to speak about the aged-care home-care package waiting list, which is blowing out under this incompetent and inept government. It's important that the severity of the crisis isn't lost amidst the Liberals' chaos, dysfunction and bloodletting of today. The release of the latest data, the March quarter data, by the Turnbull government was revealed last week, some three months after the data was supposed to be released.</para>
<para>There are over 108,000 older Australians who are waiting for home care so that they can reside in their own homes and get the support that they need. This figure includes 88,000 older Australians waiting with high care needs, and people with dementia are amongst those. And there are almost 54,000 people who are receiving no package, no support, at all. That's almost a four per cent increase since last December.</para>
<para>We understand perfectly why the government have been sitting on this data, because it's blowing out further and further. The minister deliberately sat on the data for three months, and now we know very clearly why. The figures are blowing out. They have no solution. They have no policies for addressing this. We have heard from the minister. He publicly admitted that the government will need to consider other interventions to reduce the waiting list.</para>
<para>Well, now's the time for some action, whether that's under Minister Wyatt, under the current Prime Minister, Mr Turnbull, or under future Prime Minister Dutton. Something has to be done. Older Australians are actually dying while waiting to get the home-care package that they need. They're ending up either having to go into acute hospitals or going prematurely into residential care.</para>
<para>No matter which way you look at this, this government has failed older Australians. If it weren't so serious, you would say it was a hoax and joke about the budget when they said there was going to be more money given to aged care. But in fact the 14,000 additional places for those waiting on home-care packages have done nothing to relieve the anxiety that's being experienced by older Australians and their families and carers. The 3,500 new home-care packages a year that were committed to in this budget aren't even keeping up with the demand.</para>
<para>If you listened to what's been happening in this place today with the spill in the Liberal party room, you would know that Mr Turnbull's mind is not on older Australians. That's been evident for the entire time he's been the Prime Minister of this country, because he failed at the first hurdle by not appointing a minister for ageing that was a cabinet position. That's what is warranted. You need somebody who's going to speak up for older Australians. That needs to be a cabinet minister. What we have now is a minister with no authority and a Prime Minister who has obviously no interest other than protecting his own job.</para>
<para>The waiting list is of major concern. People are being directly affected by this. For instance, there's a 94-year-old gentleman who was told he would have to wait in excess of 12 months. I'm sorry, but, if you are in need of a level 3 or 4 home-care package and you're 94 years of age, there's probably some chance that you're not going to be still on this earth when that package comes through. And I spoke previously about a woman I met in Townsville when the Medicare taskforce committee met up there recently. Her mother had been receiving a level 4 package in New South Wales. When she moved up to Townsville in Queensland, she had to go through the whole process again. Although she was given a lower-level package for a little while, it was insufficient to keep her healthy and able to stay at home. Unfortunately, she passed away before the level 4 package was offered to her.</para>
<para>This is a call-out to the current Prime Minister: get your act together; think about those who are most vulnerable, older Australians; do something about this waiting list to ensure that older Australians are getting the care that they need in their own homes; and prevent them from filling up acute hospitals that are already under pressure because of government cuts to their budgets. Whether it's Mr Turnbull or Mr Dutton, I hope that the Prime Minister is going to do something to reset this waiting list. <inline font-style="italic">(Time expired)</inline></para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Goods and Services Tax: Sanitary Products</title>
          <page.no>101</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>20:00</time.stamp>
    <name role="metadata">Senator RICE</name>
    <name.id>155410</name.id>
    <electorate>Victoria</electorate>
  </talker>
  <para>For 18 years, menstruating Australians have been unfairly taxed on their periods. The tax on our sanitary products provides marginal economic value to the states. But, in doing so, it places a toll on women and trans people simply for having the anatomy that we do. And what's the most ludicrous part? Australians can enjoy tax-free condoms, lubricants, incontinence pads, sunscreen, nicotine patches and, incredibly, even Viagra, while women and some trans and non-binary people are forced to fork out 10 per cent more for a product that we use regularly out of necessity. We know that the tax disproportionately affects low-income women and transgender people, who are already at greater risk of living below the poverty line and experiencing homelessness. We know that menstruating Australians are faced with choice and decisions as to whether to spend $6 on a pack of tampons or pay for other necessities like food.</para>
<para>Why is it that half the country are systematically and financially punished for bleeding? It's the result of Liberal Prime Minister John Howard and a cabinet, mainly of men, deciding that tampons, pads and other sanitary items were non-essential. Menstruating Australians have been given excuse after excuse as to why the tax on our biology can't be lifted. We've been told the states will be left short-changed, as if the Australian economy hinges on the taxation of our monthly periods. It is $30 million out of the $67 billion GST take. We have been warned: 'Where will it end?' as if the removal of this sexist tax is the gateway to the collapse of the GST. We've been told that it's not a priority and that not enough people care about this. I call bull on this.</para>
<para>It's time to remind the government and the state treasurers about the huge groundswell of public support, advocacy and community campaigns that have kept the pressure on successive governments to remove the GST from sanitary products since the year 2000. The campaigners and advocates I mention make it blatantly clear that government ministers must have had their ears stuffed with cotton wool—or maybe tampons!—if they seriously think that Australians don't think that this is an important issue.</para>
<para>So let's go through the history books. It's 1999. The new goods and services tax act swings through the parliament. Women and other menstruating Australians are faced with the news that they can have GST-free sex but will have to endure GST-added bleeding. The year 2000 arrives. A group of young feminists, dressed as menstrual avengers—and I love this—confront Howard and his cabinet ministers on a trip to regional Australia, showering the tampon tax conspirators with red-stained tampons and pads. Shortly after, the voices of thousands of menstruating Australians are taken to the parliament, and their tabled petition calls on the Howard government to stop taxing their biology. It's 2006. People around the country are still waiting for the archaic policy to be removed. Another online petition to Howard and the then health minister, Dr Michael Wooldridge, gets underway. Wooldridge decides to not cut us a break, and it's probably not a surprise. He was, after all, the MP who originally justified the need for sanitary products to incur GST by arguing that he wasn't expecting shaving cream to be exempt, even though, as a bloke, he would like it to be.</para>
<para>It's 2007. Reports surface that the new Labor government will end the tampon tax. All Australian state and federal governments are Labor. What a perfect opportunity to get rid of the tax. But the year rolls on, and menstruating Australians are left waiting. What happened, Labor?</para>
<para>It's 2013. People who menstruate are still forced to cough up that extra $30 million a year for sanitary items. Sophie Liley, a student from the women's department of the University of Western Australia, keeps up the pressure, with her viral 'Axe the tampon tax' campaign. The #BloodyOutrage hashtag trends on Twitter, and Australian women tell our first female Prime Minister, Julia Gillard, and her Labor government: 'This tax is really cramping my style.' Over 70,000 Australians sign on—70,000 and counting, because, yes, that petition is still live, five years on.</para>
<para>Then 2015 arrives. Another student activist, Subeta Vimalarajah, from the University of Sydney, forces then Liberal Treasurer Joe Hockey's hand during a live post-budget <inline font-style="italic">Q&A</inline> episode. Subeta asks the Treasurer:</para>
<quote><para class="block">Mr Hockey, do you think that sanitary products are an essential health good for half the population?</para></quote>
<para>Faced with a question that's only got one sensible answer, Mr Hockey flounders and agrees that the tampon tax has got to go. Australian bleeders collectively rejoice. Five out of the eight state and territory treasurers publicly declare that they will agree to lift the GST. There's no question that the change will pass in federal parliament. My Greens colleagues, defenders of all Australians' right to menstruate fairly and more affordably, stand ready to support any move to axe the tax at any moment. In a move that speaks volumes, the then PM and Minister for Women, Mr Tony Abbott, betrays women again, back-pedalling on Joe Hockey's commitment. Outraged protesters dressed as tampons storm the lawns of Parliament House. The Greens and other tampon tax repealers are offered free hugs. It is an eye-catching stunt that seizes the media's attention. And 2015 continues. 'Stop taxing my period' dance rallies and university protests are held across the country as Australians stand up to the sexist tax.</para>
<para>Cut to 2017. My Greens colleague Larissa Waters spearheads another attempt to force the federal parliament into action, this time with an amendment to the GST bill in the Senate. But none of Labor, Liberal or the Nationals will come to the table, and once again the sexist tax is left intact.</para>
<para>In 2018, this year, the Greens joined with Share the Dignity, a charity that works to distribute sanitary items to women and girls who are on low incomes, homeless, at risk of or experiencing domestic violence. In June, together with Share the Dignity and their supporters, I presented 125,000 signatures to parliament. A giant tampon outside Parliament House helped us communicate a message: 'End the tampon tax, period'. That very same day, we debated the Greens bill to scrap the tampon tax once and for all, forcing Labor to come through on their promise. With the support of key crossbenchers and Labor, the bill passed the Senate. Passing this bill was powerful. It proved that long-running, hard-fought campaigns can achieve great things when activists, advocates and lobby groups join forces and run those sustained grassroots community campaigns.</para>
<para>Then, two weeks ago, the Liberals finally caved in, agreeing to take up the matter with the states. So I've written to every state Treasurer to make sure they commit to axing the tax unconditionally, and the signs are currently looking pretty good. But the pressure is on Mr Scott Morrison, the federal Treasurer, to take real action and to make sure that he secures the support of the states. The question is: will he and his state Liberal government mates stick to their word? Australians say time is up. Time's up on this sexist, unfair tax on our biology.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Cambodia: General Election, Uygur People</title>
          <page.no>102</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>20:09</time.stamp>
    <name role="metadata">Senator SINGH</name>
    <name.id>M0R</name.id>
    <electorate>Tasmania</electorate>
  </talker>
  <para>I rise tonight to raise the dire situation in Cambodia and condemn the sham election which recently took place. Cambodia is a beautiful country, culturally rich and vibrant. The Cambodian people are warm and happy and have shown enormous resilience and courage in moving forward from past devastations. The suppression of rights in Cambodia flies in the face of these achievements. Democracy is a tool for the enfranchisement of communities, but in Cambodia it has been used to bring a veneer of legitimacy to Hun Sen and his government. Australia should not fall for this veneer.</para>
<para>In the lead-up to Cambodia's election last month, the main opposition party, CNRP, was dissolved. The opposition leader, Kem Sokha, remains imprisoned. The free press has been systematically dismantled, sham justifications have meant Cambodians have progressively lost their independent sources of fact, any opposition to Hun Sen's authoritarian rule has been silenced, attacks on human rights organisations in Cambodia have continued, and the electoral committee has been sacked. Shortly before the election, Hun Sen threatened civil war against the Cambodian people if he was not elected. These actions are a serious attack on freedom and democracy in Cambodia. For Cambodians who survived the atrocities of the Khmer Rouge, who lost their families and friends, the recent events in Cambodia cut to the bone. Having lost so much, they found looking to the future brought healing. Seeing the turmoil now engulfing Cambodia has left them bewildered and angry. Their anger is justified.</para>
<para>Nations around the world have been clear in their message to the Hun Sen regime. The European Union has issued a statement outlining its concerns with the elections, stating:</para>
<quote><para class="block">The lack of genuine electoral competition and the absence of an inclusive political process mean that the 29 July election is not representative of the democratic will of the Cambodian electorate, and therefore its outcome lacks credibility.</para></quote>
<para>The United States House of Representatives has passed the Cambodia Democracy Act of 2018, which will impose sanctions on Hun Sen and several key members of his inner circle for undermining democracy and committing human rights violations, citing notable attacks against opposition MPs. Other nations, including Japan, the United States and countries of the European Union, joined Australia in refusing to send monitors to oversee the recent election, citing concerns with the polling process.</para>
<para>As Australians, we cannot walk away from these events. We must toughen our approach. We need to work with other nations and show leadership again by bringing together the signatories of the 1991 Paris peace accords that Labor's foreign minister, Gareth Evans, drove. We can do so through a number of methods, the first being a promise not to re-sign the disgraceful refugee deal. Others include an investigation into the allegations of illegal activity by members of the Cambodian People's Party in Australia, visa restrictions and asset freezes for regime members and families, an investigation into the money-laundering laws accusations that were aired on Al Jazeera, and a critical review of the focus of our aid towards supporting humanitarian and civil society but not the Hun Sen regime.</para>
<para>Last week, the daughter of opposition leader Kem Sokha, Monovithya Kem, was welcomed to this parliament, and I had the privilege of meeting her. She urged us to take a tougher stance in light of these issues facing Cambodia's democracy. Kem Sokha will have a bail hearing on 22 August—this week—and the world will be judging the outcome. Australia therefore is in a critical position to enact change.</para>
<para>On 6 September Hun Sen will officially form his government. Australia should firmly reject legitimising the circumstances of his election and the authoritarian nature of his role. I join other parliamentarians in the world to condemn the sham election in Cambodia last month and urge the government to ensure its outcome is not a death knell for democracy for this beautiful country of Cambodia.</para>
<para>I now would like to speak on the situation for the Uygur people in China. The Uygur are a minority Muslim ethnic group in the far western Chinese region of Xinjiang. They have a long and rich history going back thousands of years. It is estimated that there are 15 million Uygurs in China. The situation for the Uygurs has become increasingly dire, as under the guise of fighting terrorism the Chinese government has looked to suppress the Uygur people through deeply repressive policies. Despite their mainstream, peaceful cultural and religious practices, Human Rights Watch reports that in the last two years, for the Xinjiang Uygur Autonomous Region, there has been a disturbing increase in serious human rights violations. As part of operation 'strike hard', minority Uygurs have been subject to draconian restrictions on freedom of religion and movement, including the banning of traditional clothing and beards.</para>
<para>Additionally, the Chinese government has been collecting personal data, including DNA, blood type, fingerprints, iris scans and photographs. The United Nations Committee on the Elimination of Racial Discrimination has heard that up to two million Uygurs are in re-education camps across China with no access to legal advice and widespread reports of torture and ill-treatment.</para>
<para>Distinguished human rights lawyer and committee member Gay McDougall said on Friday:</para>
<quote><para class="block">We are deeply concerned at the many numerous and credible reports that we have received…That in the name of combating religious extremism and maintaining social stability (China) has changed the Uighur autonomous region into something that—</para></quote>
<para>takes us to a tougher stance in light of these issues facing the Uyghur community.</para>
<para>I think in these situations, both in Cambodia and for the Uygur people in China, human rights issues need to be addressed. It is right for Australia, as a democratic nation, to address these issues as part of our ongoing relationship with these countries in the region.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Rohingya People</title>
          <page.no>103</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>20:17</time.stamp>
    <name role="metadata">Senator MOORE</name>
    <name.id>00AOQ</name.id>
    <electorate>Queensland</electorate>
  </talker>
  <para>The Cox's Bazar region on the border of Bangladesh and Myanmar has become the temporary home for more than 900,000 Rohingya people who have been fleeing violence in Myanmar. The latest influx of refugees came after recent violent episodes. About 700,000 people crossed the border in a remarkably short period of time. An unprecedented refugee crisis was caused by people, without any kind of support or resources, running for their lives across the border to join more than 200,000 people who are already living in very poor conditions in that part of the world.</para>
<para>At the time of this crisis, the international response was swift. One of the key issues that was identified at the time was that this was going to be a gender focused crisis, because the majority of the population who were fleeing the violence were women and children. Fifty-two per cent were women and girls. Fifty-five per cent of the people who are now living in this part of the world as refugees are kids under 18.</para>
<para>This is also an issue because Cox's Bazar is a particularly disadvantaged part of the Bangladeshi community, so both the new arrivals and the people living there are faced with particularly harsh conditions. They are facing significant needs that have not yet been adequately addressed, such as the need for cooking fuel and shortages of firewood, which has created its own problem because it's created deforestation in the area, health risks, higher prices in markets, water shortages and protection needs.</para>
<para>When we had opportunity to visit the area we were very pleased to see that from the very start it was considered that there had to be an understanding of gender in the way that humanitarian resources would be spent and in the interaction with communities. This latest crisis has been happening since late 2017, but recently a group of NGOs collaborated to do a survey, talking with people who were caught up in the process, to do a gender analysis of what is happening in the region at this time. The intent was to understand the different risks and vulnerabilities, but also opportunities and skills, for women, men, boys and girls in the Rohingya and host communities. It was led by Oxfam in partnership with Action Against Hunger and Save the Children, and produced with analysis, comments and recommendations from CARE, the UNHCR, the Inter Sector Coordination Group and UN Women. All these groups are working to identify exactly what is happening in the camps and to talk with the people affected. This is particularly important because so very often these voices are not heard. They are in crisis, they are in need, there are actual social conditions which we cannot understand, but people are often spoken about rather than listened to. The focus of this evidence was to ensure that the voices of the people were heard in looking at exactly what was happening on the ground now.</para>
<para>There are mixed messages in what we have found. There is consideration that the injection of funds from around the world, because there has been amazing generosity from different organisations—our own government has given over $70 million for specific humanitarian aid, so resources have been poured into the region. Living conditions in the refugee camps and makeshift, spontaneous settlements in Cox's Bazar continue to be poor, but nonetheless there is a dedication to ensure that people understand what is going on and that conditions are as safe and as strong as possible to support their needs. We have to take into account the effect it has had on the host community. This has often been overlooked in the consideration and discussions of what is happening. We also have to be very clear that we cannot have a situation where there is growing resentment between the host communities already living in quite disadvantaged conditions and this almost unbelievably large number of people who have arrived in their neighbourhood and are sharing in very crowded conditions without effective resources.</para>
<para>We need to identify the key issues, work together and ensure we have a plan into the future—remembering that we are now facing very serious monsoon conditions, which all the work that has been done to build up the infrastructure to allow large numbers of people to be co-located in a small area has now been affected by. Luckily they haven't been as strong as we thought, but incredibly heavy rains are going through, making the conditions even worse.</para>
<para>We should look at a number of key issues which came out of this particular survey, so that we can focus our efforts, because they will need to be ongoing. We must focus this in the best possible way to ensure the needs are identified and supported. Security is a No. 1 key concern for women and girls in both the host communities and the refugee camps. One of the key issues was that people didn't really have the same understanding of the whole concept of safety. It is important to note the observation by the people involved in the survey that the concept of safety wasn't sufficiently understood. There must be research to understand the differences between the way the term 'safety' is used by humanitarian agencies and the way it is translated and used in communities. More research and more understanding has to be invested in this process because, remember, many of the people with whom we are dealing have had very disadvantaged lives. They come from conservative communities, extraordinarily conservative communities, where women and girls are not given the same support and the same understanding that we have in our societies. They are already working within conservative communities where women are not treated with respect, or often do not have the values that we expect to be able to discuss openly. So, when we talk about the safety of women and girls, it's not immediately understood by their own communities, let alone by the people who are the leaders in those groups. That was identified very early in the process and continues to be a major issue.</para>
<para>However, very practical aspects of security were identified by people who were living in these conditions. One of the more innovative processes has been the use of solar lighting, which has now been used, particularly by Oxfam, in a number of places where there are humanitarian crises. It has proven to be particularly effective because these areas are very dark. Women and girls are often not secure or do not feel it is safe to go out in the daytime, so they go out at night, which creates special dangers. This is where the solar lighting has been used, and it has been identified in the survey as an area where we can continue to work and apply more resources.</para>
<para>We understand, also, that issues of violence, such as early marriage, polygamy and domestic violence threaten female refugees and also women in the host communities. This is an area where we need to work with the women themselves to build up their understanding of their rights and the support networks that are available. In this way we can build knowledge and understanding of respect, and also the fact that there need not be violence. Again, this is giving us the opportunity to focus our aid programs in the future to where they can best be effective and to where we can work with the women themselves.</para>
<para>Oxfam has a fabulous program going within the camps where women who have been identified as leaders in their own right work to build up women's networks in the camps themselves so that, again, communication and the sharing of information can be strengthened and we can work into the future.</para>
<para>The issues concerning latrines and wash areas were identified all the way through the survey. This is where we can use the knowledge that different agencies have to best support more construction, and also separate facilities so women and men can feel safe as they have to work through the very serious issues of lack of water and lack of facilities.</para>
<para>We need to ensure that the aid organisations that have dedicated so much effort and expertise in this area have access to the results of this survey. I know that the Australian government is looking at future aid in this area. We can make sure that they work with the people on the ground and understand the particular issues so that we can develop projects that engage with both the host community in Bangladesh and the refugees, who are living in horrific conditions. We have the opportunity to work with them and to improve the support we provide.</para>
</speech>
</subdebate.1><subdebate.1><subdebateinfo>
          <title>Tangney, Dame Dorothy Margaret, DBE</title>
          <page.no>105</page.no>
        </subdebateinfo><speech>
  <talker>
    <time.stamp>20:28</time.stamp>
    <name role="metadata">Senator PRATT</name>
    <name.id>I0T</name.id>
    <electorate>Western Australia</electorate>
  </talker>
  <para>I rise tonight to remark on a very important occasion. On this day 75 years ago Dorothy Tangney made history by being the first woman elected to this place, the Australian Senate. During her 25 years in parliament, a remarkable and lengthy career, she had a significant influence on the lives of a great many Australians and left a legacy that is still felt today. For example, her strong belief in the federal government's responsibility to social security remained throughout her career, and, indeed, it was one of those forming cornerstones of why we have a strong social security agenda here in Australia today. We need to remember how new many of those ideas were and how women like Enid Lyons and Dorothy Tangney brought those issues to the parliament because they were in touch with the lives of women and children in particular in our nation.</para>
<para>Dame Tangney's election to the Senate, alongside Enid Lyons, who was elected to the House of Representatives, has paved the way for women to have their voices heard here in our nation's parliament. I keep that in mind while we note that there is still some way to go in this respect. Thirty-eight per cent of senators are women, despite the fact that we are 51 per cent of the population.</para>
<para>We should be in a place that represents the people of Australia. These kinds of statistics demonstrate that more progress is needed, because a person's gender and their other attributes, such as their racial and cultural backgrounds, are key influences on their political agenda. You can see that very clearly in Dorothy Tangney. She was born on 13 March 1907 in North Perth, not far from where I live, in Western Australia. Her early life was very much a precursor to her future political career. After leaving school she became a teacher at Claremont Central School, obtaining her diploma of education back in 1932. She was, of course, a member of the teachers union, and she became the vice-president of the state parents and citizens association. She was a founding member and later president of the Newman Society at UWA and in 1929 was the founding president of the Fremantle Young People's Ideal Club. In 1939 she became the branch president of the Claremont branch of the Australian Labor Party.</para>
<para>You can see from these early experiences a base that would define her future political career. She was elected in 1943 despite being placed fourth on the party ticket, and in the Senate she used her inaugural speech to outline the beliefs that she held at her very core. She said she saw social security as a sacred duty of this parliament. She used her 25 years in this place to advocate for the rights of women, children, working Australians, people with disability and mental illness, those returning from the horrors of war, and First Nations people. They are values of those of us in the Labor Party and communities that we continue to connect to today.</para>
<para>She was heavily concerned about those affected by war, especially women—war widows, unmarried women, women with unemployed husbands and women abandoned by their husbands, sometimes married to overseas servicemen. She denounced the working conditions and poor pay of nurses, and she spoke of the hardships of women living in Australia's remote communities. Her career in this place was dedicated to all these communities and causes. Between 1943 and 1946 Senator Tangney was a member of the Joint Parliamentary Committee on Social Security. In 1946 she chaired a government committee dealing with equal rights for women—incredible leading work of its time, at the very forefront of beginning to have these issues heard in our nation and in our nation's parliament.</para>
<para>During 1953 and 1954 she was co-opted as one of three by the ALP's federal executive to select policy points for the ALP platform from a conference report on Aboriginal welfare. She also raised the need for a national system for health, and these issues came to the fore for her after she visited a tuberculosis hospital. She said she saw 'the horror of people waiting for the end in institutions'. Dorothy Tangney believed that a nationalised health system would benefit Australians, benefit the vast middle classes and poorer classes who were ignored by health systems such as they were at the time. She also saw the need to address health concerns before they became chronic concerns. Preventive and primary health are the beginnings of those concerns which we tend to think are relatively new but were actually issues that she was raising some 75 years ago.</para>
<para>She was also a strong supporter of homeownership, what we now refer to as the 'great Australian dream'. She talked about a home with a garden, saying that it would enable families to live in decency. She believed it was the Commonwealth government's responsibility to provide funds for Aboriginal welfare, expressing her disappointment at not finding any reference to Aboriginal funding in Australia's 1943 national budget—none at all.</para>
<para>While social security and the rights of working Australians were a constant focus of Dorothy Tangney's political career, she was also very significantly concerned with education funding and policy. I know we're quite used to having national debates about federal funding for state education programs, but Dorothy Tangney was among the first to raise these issues in our nation's parliament. She sought to have state education departments 'free from their present financial worries and enabled to carry out a policy which will give to every Australian citizen the benefits which only education can confer'. She was also a strong supporter of the establishment of the Australian National University in 1946 as an institute for research. She was a member of the ANU council and an honorary life associate of the University of Western Australia and a member of the university's Standing Committee of Convocation.</para>
<para>She had a strong anti-war stance, referencing the despair felt by war widows and by mothers who had lost their sons to the Second World War. In 1966 she gave a moving speech opposing Australian participation in the Vietnam War, saying she did 'not want to see the youth of this generation and the next going through a period similar to the terrible period that we of our generation have seen'.</para>
<para>In 1967 Dorothy Tangney lost the election, despite a hard-fought battle. She said during her farewell speech to the Senate that, unlike 'most of the other senators who are retiring, I am not doing so voluntarily'.</para>
<para>So, today, on the 75th anniversary of Dorothy Tangney's election to this place, I pay my respects to her for the path she has forged for all those who have come after, especially the women in this place, and for all her life's work and legacy for the people of our nation.</para>
<para>Senate adjourned at 20:37</para>
</speech>
</subdebate.1></debate>
    <debate><debateinfo>
        <title>DOCUMENTS</title>
        <page.no>106</page.no>
        <type>DOCUMENTS</type>
      </debateinfo><subdebate.1><subdebateinfo>
          <title>Tabling</title>
          <page.no>106</page.no>
        </subdebateinfo></subdebate.1><subdebate.1><subdebateinfo>
          <title>Tabling</title>
          <page.no>107</page.no>
        </subdebateinfo></subdebate.1></debate>
  </chamber.xscript>
</hansard>