QUESTIONS WITHOUT NOTICE: TAKE NOTE OF ANSWERS
Senator SCARR (Queensland) (15:19): I agree with Senator O'Neill that there is an issue of cynicism, and, as Oscar Wilde said, the cynic knows the price of everything and the value of nothing. I accept that. But I also think, when you bring about such fundamental changes to the taxation system as we saw through the Labor budget, the responsible thing to do—for those who are closest to the impact of those changes and those who are seeing the impact on the property market and consumer confidence on the ground—is to listen.
That's not cynicism. That's actually listening to the people who know most about what's happening. I want to quote from the Property Council of Australia chief executive Mike Zorbas as quoted in the Australian Financial Review.
He's urged the Labor Prime Minister and state and territory leaders to 'take urgent steps to revive confidence and ensure the continued delivery of housing'. He refers to it as a 'falling knife' market where 'buyers are wary of investment risks', and he goes on to say that 'buyer confidence is at all-time lows and new housing supply is dropping off a cliff'. We want new housing supply, but the consequence flowing from the Labor Party's budget has been that new housing supply is falling off a cliff.
The Labor government should listen very carefully to those who are most connected with what is happening on the ground in terms of the property market. Some veterans attended parliament today, and I compliment Senator Cash on her question in relation to the action the veterans took. In doing so, I want to remind everyone of a few fundamental facts.
There are 25,000 veterans each year who exceed the $5,000 allied health care cap—25,000. The biggest question I'd raise is: how are you going to process 25,000 applications by veterans who go over that $5,000 cap? The discussion paper that's been released—and I've printed out a copy of it—has a proposed model for additional services.
It's got six steps here, and it asks the veterans how the process should work for veterans with complex or ongoing health needs. The department's asking the veterans: 'Tell us how the system that you don't want should be implemented.' All I see in this discussion paper is bureaucracy and the potential for delays and the potential for veterans to lose out on the health care they need.
The Labor government should reconsider this $5,000 cap. I don't think it's going to work in practice. I think you've made a rod for your own backs, and I think you should strategically withdraw and say that this was a mistake.
I don't think it's going to work in practice. In relation to excise, I compliment the sentiments of Senator Sterle. When I drive home from my office, I see—and we're all seeing—this extremely large increase in the number of tobacconist shops that are opening everywhere.
It's in fact impossible for law enforcement to keep on top of it. That's the reality. Organised crime is earning between $4 billion and $7 billion a year from this illegal trade because excise has gone up too high and everyday Australians can't afford to buy cigarettes unless they go to the illegal providers.
The system needs to change. The system's broken and the excise system needs to change— (Time expired) Question agreed to.