Month: May 2022

The proposal announced by the Coalition today to bust open super for first home buyers housing deposits would add tens of thousands of dollars to housing prices and would undermine the retirement savings of all Australians.

Any additional money Australians can take out of super via the scheme announced today would almost immediately be gobbled up through housing price surges as analysis shows it could hike the nation’s five major capital city median property prices by between 8-16%,

The proposal is not what super was set up to do and would torpedo super fund investment returns for all Australians – forcing funds to carry more cash and be less able to invest for the long term – which has been the key in delivering members’ bigger nest eggs.

Lower super fund investment returns would also put more pressure on the aged pension – a cost worn by future taxpayers.

ISA modelling shows allowing couples to take just $40,000 from super would send property prices skyrocketing in all state capitals, but the impact would be most severe in Sydney, where the median property price could lift a staggering $134,000. (see table 1 below)

Many potential buyers would soon be locked out of the supercharged market, others would be lumped with far bigger mortgages.

But the scheme is a real winner for the banks who would reap the windfall of the inflated mortgages.

A chorus of economists, Prime Ministers – including John Howard just weeks ago – Coalition ministers both past and present, the RBA and housing experts have all cautioned against schemes like this due to its inflationary impacts and its potential to undermine investment returns for millions of Australians.   

Industry Super Australia Chief Executive Bernie Dean said

“Throwing super into the housing market would be like throwing petrol on a bonfire – it will jack up prices, inflate young people’s mortgages and add to the aged pension, which taxpayers will have to pay for.”

“Super is meant to be for people’s retirement, not supercharging house prices and pushing the home ownership dream further away.”

“Not only will it lock young people into hugely inflated mortgages without any requirement for their own deposit, it will torpedo investment returns for everyone leading to everyone having far less at retirement.” 

“We need sensible solutions to address house prices – like boosting the supply of affordable housing which will bring prices down and get young people into a home without lumbering workers with higher taxes in the future.”  

Table 1: Impact on capital city prices of allowing couples to withdraw up to $40,000 from super for a house deposit. 

City	Current median price1	Super price hike %	Median after super price hike	Difference $
Sydney	$826,000	16%	$960,000	$134,000
Melbourne	$640,000	9%	$695,000	$55,000
Brisbane	$475,000	8%	$510,000	$35,000
Adelaide	$448,400	8%	$485,000	$36,600
Perth	$435,000	14%	$495,000	$60,000
Hobart	$453,900	6%	$480,000	$26,100
Darwin	$444,500	10%	$490,000	$45,500
Canberra	$613,800	13%	$690,000	$76,200

¹The median residential property price is sourced from ABS Cat.6416.0 and our estimate covers both established houses and attached dwellings and accessed in February 2021.

Methodology notes: ISA’s modellers analysed current non‑homeowner rates by age, marital status and geographical regions and compared this to 10 years prior as a measure of pent-up demand. They then applied an assumed take-up rate based on a combination of national consumer sentiment survey results and observed take-up of the previous COVID early release scheme to estimate the potential increase in demand.  ISA estimated the impact this sudden influx of demand would have on prices by applying demand, supply and income elasticities sourced from a number of Australian academic papers.

Importantly, there is a distinction between an increase in demand and those who may ultimately be successfully at an auction. That is, even those who want to/attempt to access their super but remain priced out of the market would impact demand and play a role in driving up house prices because they are able to then bid more at auction even if ultimately unsuccessful.

The Australian Institute of Superannuation Trustees (AIST) has raised serious concerns about the impact on housing prices if the Morrison government’s proposal to allow access to superannuation for first home buyers becomes a reality, as well as undermining of the core purpose of the superannuation system.

“Accessing your super early won’t get you closer to your dream home or fix Australia’s housing crisis. Using super as a deposit will drive up property prices, leaving Australians with higher debt and depleted retirement savings,” CEO of AIST Eva Scheerlinck said.

“First home buyers are being asked to choose between a home and saving for their retirement, they should be able to have both. The Australian Government must address this modern-day inequity by addressing supply issues rather than raiding super. A first home should not come at the expense of dignity in retirement.”

“Today’s policy announcement by the Morrison government ignores all of the research on housing affordability triggers and will further inflate house prices. This is an ill-informed and ill-targeted measure, and all Australians should be aware of the dangers of this proposal,” Scheerlinck said.

It would also significantly reduce asset diversification by further concentrating Australians’ savings in residential property while doing nothing to address the fundamental challenges of saving for a home, such as stagnant wages and rising inflation. 

Individuals should not be expected to sacrifice their quality of life in retirement because housing is unaffordable. 

More needs to be done to address the supply of housing and superannuation should not be the ‘go to’ to fix systemic problems that are the responsibility of government to address.  “Superannuation was established to provide support for Australians in retirement and it is not a piggy-bank the government can open at its convenience to avoid dealing with the real systemic issues facing first home buyers.”

Australians say concern over health workforce shortages will affect the way they vote, according to a new survey – but neither of the major parties have proposed a solution to this problem, with less than a week to go before polling day.

APHA CEO Michael Roff said the Association’s survey of just over 1000 Australians commissioned last week assessed the impact of health workforce shortages on voters, and the news for the major parties is not good.

“This survey shows ninety percent of Australians are concerned about the impact the shortage of nurses will have on the health and aged care systems, and 53 percent say this will affect the way they vote.

“While Australians understand a shortage of nurses will constrain efforts to clear the backlog of essential elective surgery or improve the quality of aged care, it is disappointing that neither major party seems to get it.

“With all the major ‘set-piece’ announcements of the campaign now done, neither of the parties seeking to form government has put forward a plan to address this critical health workforce shortage,” he said

Mr Roff said while there had been announcements about ‘more nurses’, no one can explain how Australia will attract a skilled workforce and rebuild the local workforce.

“We are calling on both parties to announce a plan to guarantee a pathway to permanent residency for skilled health care migrants coming to Australia, while we also build capacity at home.

“It is not just a matter of opening the borders and inviting people to come, we are competing for nurses, doctors and allied health professionals with the rest of the world. The United Kingdom, France and Canada have all made steps to make residency easier for migrant health professionals. Australia needs to step up or lose out,” he said.

Mr Roff said an internal survey of APHA hospital members showed almost 60 percent anticipated falling short of their workforce needs in the first half of 2022.

“Private hospitals tell us they have a current shortfall of 5,500 nurses and they urgently need 1000 skilled migrants to fill some of this gap. But overseas nurses are reluctant to come to Australia as other countries are making it more attractive. As pressure to deliver delayed elective surgeries is at its height, Australia is struggling to fill its workforce needs. That could mean further delays for people who have already waited years for help and result in an even more exhausted workforce.

“In the short term, there’s a solution. it’s reducing the red-tape around bringing people into the country for employers and making Australia the most attractive option for those looking for a new place to call home,” he said.

An Albanese Labor Government will strengthen Medicare and fix Scott Morrison’s GP crisis.

Under the Liberals, Medicare has faced rolling cuts and attacks, beginning with attempts to end universal fee-free health care with a GP co-payment every time you see a doctor, followed by a cut of billions with a six-year freeze on Medicare rebates. 

Since then, Scott Morrison has cut psychiatry telehealth items, removed regional bulk billing incentives, and made 900 other cuts and changes to Medicare rebates – like hip replacements and knee surgery. 

In 2019 Scott Morrison announced a 10-year Primary Healthcare Plan, but true to form with this Prime Minister, the Plan was all announcement and no delivery. The Government even cut its own $450 million commitment to deliver the Plan. 

The AMA said last month:
“The AMA had hoped the Commonwealth’s attitude to general practice would change, however, the long-awaited Primary Health Care 10 Year Plan released in last week’s Budget was simply more of the same. It delivered a welcome vision for general practice, but no funding to deliver that vision.”

The Royal College of GPs has warned that:
“Rising rates of chronic disease, an ageing population, the COVID-19 pandemic, delayed preventive care due to the pandemic and a looming mental health crisis are putting increasing pressure on the system, this is resulting in poorer outcomes and long hospital wait times. Unless there is significant investment and reform, the system will fail.”

Strengthening Medicare Fund

Labor will establish a Strengthening Medicare Fund to deliver better access and care for patients, with a commitment of $750 million over the forward estimates ($250 million a year from 2023-24) to deliver:

• Improved patient access to General Practice, including after-hours
• Improved patient access to GP led multidisciplinary team care, including nursing and allied health
• Greater patient affordability
• Better management of complex and chronic conditions, and
• Decreased pressure on Hospitals

The Fund will be delivered in line with recommendations from the Strengthening Medicare Taskforce which will immediately commence work deciding on and delivering the highest priorities to start fixing Scott Morrison’s GP crisis. 

The Strengthening Medicare Taskforce will be chaired by the Minister for Health, bringing together Australia’s health policy leaders, including the Australian Medical Association, the Royal Australian College of General Practitioners, the Australian College of Rural and Remote Medicine, the Consumer Health Forum, and the National Aboriginal Controlled Community Health Organisation.

Labor will finalise the full membership of the Taskforce in government, including representatives from nursing and allied health.

Strengthening Medicare GP Grants

An Albanese Labor Government will also deliver the Strengthening Medicare GP Grants program to invest $220 million in our local GP practices after a decade of Liberal cuts and neglect.

Labor’s Strengthening Medicare GP Grants program will provide funding for GPs to:

• Upgrade IT systems including to support telehealth consultations
• Upskill staff
• Purchase new equipment
• Upgrade ventilation and infection control, and 
• Make other improvements to ensure GPs can see more patients and provide better care

Grants will be provided depending on GP practice size, with smaller practices being able to access grants of $25,000 and larger GPs being able to access grants of $50,000.

This added investment will provide a badly needed boost to practices so GPs can provide better care and see more patients.

Only Labor can be trusted to strengthen Medicare and end the GP crisis.

Today’s commitment is in addition to Labor’s existing health announcements, including:

• More doctors and health professionals for regional Australia boosting workforce incentives for rural and regional GPs to support the engagement of nurses, allied health and other health professionals and provide multidisciplinary team-based care.
• 50 New Medicare Urgent Care Clinics to take pressure off our emergency departments and make it easier for Australian families to see a doctor or nurse when they have an urgent, but not life threatening, need for care. 
• Cutting the cost of medication by reducing the Pharmaceutical Benefits Scheme general co-payment from the current maximum of $42.50 per script, to a maximum of $30 per script. 
• Restoring regional mental telehealth services for regional and remote telehealth psychiatry consultations. 
• Newborn screening to increase the number of screened conditions from around 25 to 80, helping kids get the care they need from the start. 
• First Nations health programs to build and improve health services, expand access to lifesaving dialysis treatment and double federal funding to help eradicate rheumatic heart disease. 
• Supporting our nurses by establishing a National Nurse and Midwife Health Support Service. 
• National Melanoma Nurse Network to deliver 35 extra melanoma nurses across every State and Territory. 

Anthony Albanese said:

“Every day, everywhere I go, people talk to me about how it’s getting more and more difficult to see a doctor.

“General practice is the cornerstone of the Australian health system.

“Australians trust their GPs. It’s a vital relationship in ensuring all Australians get the quality healthcare they deserve. 

“Only Labor has a plan to make it easier for Australians to see their GPs and to strengthen Medicare.”

Mark Butler said:
“Average out of pocket costs to see a GP have increased by 33 percent under this government, and Australian primary care is in crisis.

“Australians deserve better. Not only will Labor ensure Medicare is safe, we will strengthen it.

“Our local GPs were at the coalface of the COVID pandemic, providing COVID and vaccination advice, administering vaccines, and trying to keep up with their usual case load with little or no support from the Morrison Government.

“Our doctors deserve more than thanks. They deserve a Government that gives them the resources to deliver the best healthcare outcomes for Australians.

“Australian GPs have endured a 6-year Medicare Rebate Freeze at the hands of Scott Morrison, which ripped $2.6 billion out of Medicare funding.

“These cuts have left GPs struggling to invest in upgrading equipment and IT systems, struggling to upskill staff, and falling behind on their ability to see more patients.

“Labor understands the crucial importance of primary health care provided by GPs and will make it easier for Australians to see a doctor.”

Up to 700,000 students across Australia will be able to play more sport in school, with a re-elected Morrison Government expanding the popular Sporting Schools program.

The expanded program will now be offered to high school students in year 9 and year 10, providing access to 35 national sporting organisations, including Netball Australia, AFL, Cricket Australia, Hockey Australia and Surfing Australia.

Prime Minister Scott Morrison said more than $20 million will be provided to expand the Sporting Schools program, to expand its reach to 2.9 million young people.

“Getting more young people involved in sport helps keep our kids active, builds confidence and it provides a way for families to connect back to community sporting clubs as we bounce back from the pandemic,” the Prime Minister said.

“It also creates opportunities and connections to support those students who want to make their sporting dreams a reality and look to become the next Sam Kerr, Ellyse Perry or Lance Franklin.”

The Coalition is also investing $79.6 million to extend the Sporting Schools program for an additional two calendar years to the end of 2024.

Established by the Coalition Government in 2015, Sporting Schools partners with 35 National Sporting Organisations to provide free sport-based activities to students of all abilities to help schools increase children’s participation in sport and connect them with community sport opportunities outside school.

The current program is delivered for primary schools and a targeted program for year 7 and year 8 students in secondary schools. The additional $20 million will expand the program to year 9 and year 10 students.

Expanding the program to include years 9 and 10 will address the significant decline in sport participation, physical activity and social connectivity in secondary students aged 12-16, particularly amongst girls.

More than 8,000 schools have received funding through the program that now reaches more than 2.2 million students annually.

A re-elected Morrison Government will also provide $4.8 million to support surf lifesaving clubs across Australia to purchase vital life-saving equipment.

All 314 surf lifesaving clubs will be able to access an additional $5,000 each year to make these important purchases, including IRBs, defibrillators, rescue boards and other safety equipment.

Minister for Sport Richard Colbeck said expanding Sporting Schools to students in Years 9 and 10 increases the reach of the program to 1,800 secondary schools and an additional 700,000 students, expanding the reach of Sporting Schools to 2.9 million students every year.

“It marks a huge step forward as we continue to support the individual health and wellbeing of students at all levels,” Minister Colbeck said.

“Importantly, the expansion will support talent identification among a cohort of children who could be our athletes of the 2032 Olympics and Paralympics.

“After the successful performances of our athletes in Tokyo, there has never been a better time for our young sports stars to chart a path to their own success.”

These commitments build on the Coalition’s strong record and support for sport in the 2022-23 Budget, including:

• $10.3 million to continue the Participation Grant program, which has supported over 500,000 people in community sport
• $10.3 million to promote leadership and professional development for women in sport, particularly community sport
• Extending high performance sport funding to the 2024 Paris Olympic and Paralympic Games, the first time funding has been allocated for full Games cycle, enabling sports to plan ahead with greater certainty
• $10.6 million on top of existing high performance funding for Paralympics Australia to support and prepare Australia’s Paralympics Team
• Securing and supporting an unprecedented green and gold decade of major sporting events, culminating in the Brisbane 2032 Olympic and Paralympic Games
• $10.5 million to leverage upcoming major sporting events to inspire participation and drive community engagement
• $27.3 million to promote and maintain the integrity of sport

An Albanese Labor Government will expand Australia’s critical technology capability, in areas like Artificial Intelligence, robotics and quantum computing. 

With waves of emerging technology in recent years, Australian know-how has been recognised for its huge potential – only for the nation to lose its lead because the Morrison Government has dragged its feet in backing local talent and local industry. 

From artificial intelligence to blockchain development, we suffered a brain drain as Australians moved overseas to countries that valued their skill. As a result we have lost commercial opportunities and jobs. 

Australian investment in high-tech manufacturing has been stagnant at less than 0.5 per cent of GDP under the Morrison Government. 

The application of technology such as AI is sharpening the way businesses operate and supercharging their economies. It’s why countries have developed their own national AI investment programs while Australia lagged woefully behind. 

We can’t afford to be left behind as other economies power ahead. 

With Australian talent leading the charge on the development of quantum computing and technology, Labor is determined to ensure we don’t lose our national competitive edge through a lack of Morrison Government support and backing. 

As interest rates begin to rise and as capital becomes harder to obtain than previous years, we want to make sure that there is a national co-investment fund – working with superannuation and venture capital funds – to back our leading thinkers and their firms. 

That’s why we will set up this Critical Technologies Fund to deliver $1 billion in investment support through loans, equity and guarantees for businesses in critical technologies.  

The Critical Technologies Fund will be set up within our $15 billion National Reconstruction Fund, designed to rebuild and strengthen Australian industry as we emerge from the pandemic. 

The investment will target key areas including quantum computing, artificial intelligence, robotics and software development.  

Labor believes we are missing too many opportunities to grow industry and jobs through a failure to back local know-how by the Morrison Government. 

Labor believes in a Future Made in Australia – that’s why we have proposed:

• Our $15 billion National Reconstruction Fund. 
• Our Buy Australia Plan to leverage government procurement to build strategic industry capability. 
• Creating a Startup Year program to create 2,000 new enterprises a year. 
• A commitment to work with industry to deliver 1.2 million tech jobs by 2030. 

Anthony Albanese said:

“Labor knows the value of high-tech jobs, and we are firmly focused on a bigger future for the industry. Thanks to Labor’s $1 billion Critical Technologies Fund, we will boost high-tech manufacturing, and create more Australian jobs.”  

Richard Marles said:

“Labor will bring jobs home and make more things here in Australia. Only Labor will revitalise Australia’s proud manufacturing industry, securing the well-paid jobs of the future for the next generation.” 

Ed Husic said:  

“Our $1 billion Critical Technologies Fund is an investment in building strategic industry capability in Australia, powering future economic growth, growing jobs – and avoiding a brain drain that is sapping our country of vital talent.” 

An Albanese Labor Government will offer its full support to the upcoming Rugby World Cups in 2027 and 2029, following confirmation that Australia will play host. 
 
This is exciting news on so many levels. 
 
It will be the first time Australia will host the Women’s Rugby World Cup. 
 
It also means Australia will be the first nation to host the men’s Rugby World Cup three times, returning to the place where the inaugural tournament was held 40 years ago. 
 
Labor recognises the huge benefits that hosting the Rugby World Cups can bring and is committed to maximising these opportunities. 
 
They are expected to generate $2.8 billion in direct and indirect investment, 14,000 jobs and to stimulate more than $500 million in new trade and investment. 
 
Grassroots rugby will also benefit, with some 30,000 new players expected to be drawn to the sport as a result of having these exciting events happen right here at home.  
 
The Rugby World Cups are an ideal lead-in to the 2032 Brisbane Olympics, giving us a chance to showcase the best of Australia to a global audience. 
 

Anthony Albanese said: 
  
“Australians love sports and the big international sports codes love Australia’s world-class facilities and organisational prowess. 
  
“An Albanese Labor Government will be right behind the organisers so Australians can watch the Wallabies and Wallaroos lift the World Cup on home soil.” 
 

Don Farrell said: 
  
“The economic benefits of attracting global events like these are clear. 
  
“But they also leave a valuable and long-lasting legacy by inspiring participation in sport among young people. 
  
“Rugby Australia and the other stakeholders involved in this bid should hold their heads high for the fantastic work they’ve done in bringing these events to Australia. 
  
“They can be assured of on-going support from an Albanese Labor Government.”

A re-elected Liberal and Nationals Government will pour another $4 million into helping our small and medium wine producers showcase their drops around the world.

Prime Minister Scott Morrison said grants of up to $25,000 would be provided to support wine producers to promote their product in international markets.

“Our plan for a strong economy and stronger future backs in our world-leading wine producers to uncork new markets and create jobs in our regions,” the Prime Minister said.

Agriculture Minister David Littleproud said the wine industry was a major contributor to the Australian economy, supporting over 160,000 jobs and over $45 billion concentrated in regional Australia.

“This funding helps smaller to medium sized wine producers access the lucrative world market by promoting the Aussie product internationally as some of the safest, most sustainable and highest quality wine in the world,” Minister Littleproud said.

“This investment adds to our $85.9 million Agri-Business Expansion Initiative, which is also supporting the wine industry, which has been hit by global uncertainty and anti-dumping and countervailing duties by China.”

The funding will extend the popular Wine Exports Grants program, administered by Wine Australia, over the next four years. Over 250 grants have been provided to more than 100 wineries provided under the first two rounds.

Recipients will be able to harvest new markets and ensure the industry remains the premium choice for overseas palates.

The trade benefits flow back to growers, to workers and to the regions.

Eligible claims include the reimbursement of:

• specific travel expenses for a single promotional visit (daily allowance, limits apply)
• the cost of providing free samples of wine, including freight or transport
• participation in trade fairs (including online and virtual promotions)
• in-store promotions, and
• marketing and advertising collateral specific to your international audience

The grants are open for applications covering expenses from July 2022.

Applications for the Wine Export Grants will be received and assessed on a demand driven basis until the grant program’s funds for that year have been fully committed, whichever comes first.