Anne Urquhart (Tasmania, Australian Labor Party) Share this | Hansard source

I move:

That the Senate take note of answers given by the Minister for Finance (Senator Cormann) and the Minister representing the Prime Minister (Senator Brandis) to questions without notice asked today by Senator Urquhart and Senator Gallacher relating to taxation.

What a divided, visionless lot those opposite have shown themselves to be. They have proven they have no plans for the economic future of this country—no clue on tax reform and no idea that does not involve hitting the most vulnerable people in our communities.

Last week at the Treasurer's Press Club address, we found out that the government's highly-anticipated plan for tax reform consists of nothing but a big, blank page. We got 46 minutes of waffle and not one single policy proposal. This week we have seen Mr Turnbull channel his inner Tony Abbott with a hysterical and completely baseless scare campaign about Labor's proposal to save billions of dollars, to create jobs and to put home ownership back in reach for young Australians through moderate housing concession reforms. Honestly, I expected—as I know the Australian people did—better from the man who promised to lead a rational national debate that respected the intelligence of the Australian people.

The current system is not working. Negative gearing and capital gains concessions cost the federal budget more than $10 billion a year, and this is more than we spend on either higher education or child care. It is shameful. They are not increasing the supply of new housing, they are not creating jobs and they are not boosting construction. They are certainly not helping young people to buy their first homes. Not only that, but half of all negative gearing benefits go to those in the top 20 per cent of income earners and 70 per cent of the capital gains tax discount is used by the top 10 per cent of income earners. Despite the hysterical rantings of those opposite, these facts are indisputable. Clearly, something needs to change.

The Liberals do not want to see it become easier for young Australians to compete on a level playing field with investors to buy their first home. Instead, as we found out yesterday, the Liberals are planning on going after the nest eggs of Australian retirees by reducing capital gain concessions on superannuation. We did not find this out from the Treasurer, we did not find out from the Minister for Finance and we certainly did not find it out from the Prime Minister. In fact, the Prime Minister himself ruled out any changes to capital gains tax in question time yesterday. On this matter, the Prime Minister was very clear when he said:

I can say to the honourable member opposite that increasing capital gains tax is no part of our thinking whatsoever.

Despite this clear and unequivocal statement from Mr Turnbull, a few hours later we learnt that it was not true.

In fact, senior Liberals soon briefed media outlets that halving the capital gains tax discount on superannuation was very much part of the government's plan. It is no small issue to mislead the parliament and it is especially concerning for the person who holds the highest office in the land. It is either a matter of competence—did the Prime Minister truly not know what was going on as his own inner circle hatched plans to plunder the retirement incomes of older Australians?—or, alternatively, it is a matter of character and integrity—did the Prime Minister knowingly mislead the parliament? Either way, it points to a very serious issue of trust.