Kate Chaney (Curtin, Independent) Share this | Hansard source

Yesterday the Treasurer handed down this government's annual budget, and I want to talk today about what it means for the people of Curtin and for Australia. Let me start with what I welcome. After four years of pushing for genuine tax reform, four years of being told it was political suicide to even raise the subject, we finally have action on capital gains tax and negative gearing. And I want to acknowledge every single constituent who wrote to me, who attended one of the three community events where we discussed this and who refused to let this issue be buried.

The capital gains tax discount will move to an inflation adjusted indexation model so that only real gains are taxed. Negative gearing will be limited to new homes from July 2027, with grandfather provisions for existing investors. These are meaningful reforms that will help level the playing field for first home buyers, who've been competing with tax advantaged investors for too long. There are still some unintended consequences of this change that need to be addressed. We're facing a huge productivity challenge, and we need to ensure that changing the CGT discount doesn't reduce investment in new businesses and startups that are so vital to our productivity.

I also welcome the reform to trust distributions, which will now attract a minimum tax rate of 30 per cent. The number of discretionary trusts in this country has doubled in 20 years. This change won't affect primary production income, but it will reduce the incentive to create complicated structures to avoid tax. There's currently huge variability in how much tax our top earners pay, depending on how they structure their affairs. It isn't fair that trusts can pay significantly lower tax than working Australians.

On housing more broadly, the $2 billion investment in enabling infrastructure to support 75,000 new homes is a step forward. The $59 million for community housing providers to address youth homelessness is something I specifically raised in this chamber, and I'm glad to see action here.

On aged care, following my representations to the minister, the government will now fund a wider range of personal care services, including showering free of charge under the Support at Home program. That matters enormously to older Australians and their families in my electorate and across the country.

I welcome the increased funding to be distributed from the Medical Research Future Fund. The research institutes in Curtin are world class, and I look forward to them receiving some of this additional funding we fought for to continue their great work.

I cannot stand here and pretend that this budget is not without some failings. The most glaring missed opportunity is gas taxation. So many constituents have written to me about this. We export vast quantities of liquefied natural gas, and the Australian people receive a fraction of what they deserve for these publicly owned resources. Less than half a day of proper taxes on gas exports could have funded $10 million for food pantries desperate to keep Australians fed. That's the choice that this government has made, and it's the wrong one. There's also no meaningful action on diesel fuel tax credits. Some of the most profitable mining companies in Australia continue to receive billions in rebates that incentivise burning fossil fuels.

On climate and energy, I'm deeply concerned. Transitioning to renewables is not just good for the environment; it's our best long-term strategy for energy security. The sun and the wind do not travel through the Strait of Hormuz, yet this budget takes its foot off the accelerator at precisely the moment we need to speed up.

I also have concerns about the level of government spending, which is at its highest level in 40 years outside the pandemic, while our deficit remains high and growth slows. The budget's return to surplus relies on NDIS savings that I'll be scrutinising carefully. The NDIS changes are causing real anxiety for people who depend on the scheme, and I'll be pushing hard for certainty, transparency and genuine alternative supports.

The $250 annual tax offset will be welcome news for working Australians, but the government could have indexed tax brackets instead. That would have delivered structural relief for working Australians and ensured the government can't just keep relying on bracket creep to fund spending.

In summary, this is the most ambitious budget this government has delivered. That might be a low bar, and we shouldn't pretend otherwise, but there are genuine steps forward, particularly for younger generations, and many of these have been driven by the crossbench. But the missed opportunities are significant, and I will keep fighting for the longer-term reforms that we need, to have a tax system and an economy that are fit for the decades to come.

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