Tim Wilson (Goldstein, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Prime Minister. Jack earns $25,000 in income and realises a capital gain of $10,000. The tax on Jack's capital gain is $1,400, equal to his marginal tax rate of 14 per cent. As Jack's marginal tax rate is lower than Labor's new 30 per cent investment tax, Jack needs to pay an additional $1,600 in tax. Prime Minister, why is this government stealing $1,600 of Jack's future home deposit, taxing lower income earners and undermining the tax-free threshold?

Milton Dick (Speaker) Share this | Link to this | Hansard source

Order! We're going to withdraw that part of the question accusing someone with that term.

Tim Wilson (Goldstein, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

I'll withdraw that.

Milton Dick (Speaker) Share this | Link to this | Hansard source

Just remember that's all parliamentary language.

Honourable members interjecting—

Order! Members on my left. Members on my right. The member for Moncrieff. We're not going to do anything until the House comes to order. The Treasurer has the call.

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I appreciate the question being flicked to me from the Prime Minister, from the shadow Treasurer. The question is about the examples provided in the budget to help people understand the very important and very ambitious tax reforms which are in the budget that we released last night. An important part of that is about dealing with a big distortion that exists in our tax system which makes it harder and harder for young people to buy their first home, particularly young people. What we're doing with this tax package is better aligning the tax levied on people who work versus people who earn their income in other legitimate ways, and we're levelling the playing field in the housing market. I think any objective observer of our housing market and how it interacts with our tax system would conclude that the combination of those two things is making it too hard for Australians, particularly younger Australians, to get a toehold in the housing market.

That's why we are making these changes. We understand that those opposite are heading towards making the same mistake that they made at the last election in repealing, saying that they will repeal our tax package. Our tax package gives tax cuts to 13.3 million workers. For anyone who's looking for evidence that they haven't learned a thing and they haven't changed a bit, they're coming back and saying that they will repeal our tax package.

The question from the shadow Treasurer is about capital gains. I want to tell the House what the shadow Treasurer wrote in his own book about capital gains. This is what he said, and I'm quoting—

Hon. Members:

Honourable members interjecting—

Milton Dick (Speaker) Share this | Link to this | Hansard source

Order! The member for Lingiari. The Minister for Social Services. I'll hear from the Manager of Opposition Business.

Dan Tehan (Wannon, Liberal Party, Shadow Minister for Energy and Emissions Reduction) Share this | Link to this | Hansard source

It goes to relevance. The question wasn't about the shadow Treasurer's book. It was about Jack and the impact on Jack from your budget. You're cutting $1,600—

Milton Dick (Speaker) Share this | Link to this | Hansard source

If the Treasurer has a quote and he's going to use a quote to talk about Jack or the—

Honourable members interjecting—

Order! But if he's going to talk about the person that he was asking, he'll need to make sure the quote is directly relevant to what he was asked about. I don't know what the quote is going to be. I haven't read the book, but I'll hear what the—

Honourable members interjecting

Order! I haven't read the book yet.

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

The member for Wannon might not think the shadow Treasurer's views are relevant, but I do, and they're very relevant to Jack and the example that we provided in the budget papers, because this is what the shadow Treasurer said:

… capital gains from appreciation of holding assets is taxed at half the applied rate, effectively entrenching the benefit of having the holding assets which can only exist if you're established … There's no intergenerational justice in such preferential arrangements …

That was the shadow Treasurer. Also relevant to Jack is what the shadow Treasurer said in the parliament. This is what he said:

Today it's time to be honest: the tax system is screwing over young Australians. Instead, it favours well-off, established interests against those trying to get ahead … people who can predominantly live off of income from their assets can pay very little tax and get discounts on capital gains from increases in asset values.

This is what he said. I'm quoting:

Young Australians need to demand a fairer tax system, where they aren't the only ones carrying the burden to cover the cost of Australia.

Well said!