Wendy Askew (Tasmania, Liberal Party) | Hansard source

I rise today to speak on the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 and the associated Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026. I want to start with a very simple point, one that Tasmanians understand instinctively: no-one voted for these taxes. Before the last election, the Prime Minister promised more than 50 times that he would not introduce new taxes of this kind, but what we have seen since budget night is a complete breach of trust; a government that said one thing to the Australian people and then did the exact opposite when it mattered most.

Tasmanians are practical people. We know budgets require choices, but we also know that when a promise is made it should be kept, and when it's broken there should be accountability. Instead, what we have is a set of policies designed not to grow the economy but to manage its decline. Labor can't manage money, so they've come after yours. Across this package we see a pattern: a tax on savings, a tax on investment, a tax on renters, a tax on small business and, yes, even a tax on what families hope to pass on to their children. It is a broad based assault on aspiration. For young Australians, whether they're in Hobart, Launceston, Devonport or Burnie, this budget sends a very clear message that the ladder of opportunity is being pulled up before they even have a chance to climb it. This government calls it intergenerational fairness, but let's be honest: there is nothing fair about making it harder for young people to buy a home, harder to save and harder to build something of their own. That is not fairness. That is intergenerational failure.

When we look at this bill specifically, we see four schedules. Schedule 1 changes the capital gains tax regime. Schedule 2 alters negative gearing. Schedules 3 and 4 introduce a working Australians tax offset and a standard deduction, which we support. But the coalition opposes schedules 1 and 2 because they strike at the heart of investment, confidence and housing supply. This doesn't exist in isolation. This is part of a broader arrangement, a deal between Labor and the Greens, a deal that is injecting even more uncertainty into an already fragile economic environment. Tasmanians watching this unfold would be forgiven for asking who is actually driving economic policy in this country, because what we see is a government that said before the election it would not bow to Greens' demands, particularly around superannuation and property, yet here we are with a government that Australians can no longer trust to stand by its word.

Let me turn to housing, because this is where the consequences become very real. In Tasmania, we already know what housing pressure looks like. We've seen tight rental markets, rising costs and families struggling to find a place to live. Now the government's own budget papers state that 35,000 fewer homes will be built because of these changes. That's not an opposition figure; that is their own number. The reason is simple. When you tax something, you get less of it. If you tax housing investment, you get less housing investment. Less investment means fewer homes. Fewer homes mean higher prices. At the same time, the government continues to increase demand, bringing in more people than we have homes for. It is basic supply and demand, and the government has both sides of the equation wrong.

For renters, the story is equally concerning. Before anyone buys their first home, they rent. That's the reality for young Tasmanians trying to get ahead. Yet the government's own analysis admits these changes will increase rents. Independent economists have warned of substantial increases in major cities, and, while the Tasmanian market is different, we are not immune. When supply tightens, pressure flows across the entire system. Renters are hit first, with higher rents, and then again later when they try to save for their first home. It is a double hit on the very people this government claims to support.

For first home buyers, the picture doesn't improve. Many young Australians today are doing everything right. They're working hard; they're saving; they're investing carefully, whether it's shares, ETFs or other assets, to build a deposit. The government has looked at that effort, that discipline and that ambition and said, 'We're going to tax it more.' That is not encouragement. That is not fairness. That is a disincentive to get ahead. At the same time, the government talks about helping first home buyers by increasing borrowing capacity. But more debt is not the same as more affordability. Higher borrowing simply pushes prices up and leaves young Australians with larger mortgages and repayments they carry for decades. That is not a solution. It is a band-aid that makes the underlying problem worse.

Let me turn to small business. In Tasmania, small business isn't just part of the economy; it is the backbone of our communities. These are the people who open the shop early and close it late, who sponsor the local footy club and who give young people their first jobs. And what does this government say to them? It says, 'After you've taken the risk, built the business, created something of value, we're going to want half.' The effective doubling of tax on sales for many small businesses sends a very dangerous signal—that the reward for success will be heavily diminished. This comes at a time when small businesses are already under pressure, with rising costs, workforce challenges and regulatory burdens. They don't have the resources of big corporations, no armies of lawyers or accountants, yet they bear the same weight of compliance, and, instead of relief, this budget adds to that burden.

For startups and innovators, the outlook is equally troubling. Australia and Tasmania need people willing to take risks, to build new industries and to embrace emerging sectors, including in technology and advanced manufacturing. But these tax settings risk driving that ambition elsewhere. Employee share schemes, which allow startups to attract talent, are being undermined. The signal to founders is clear: take your ideas, your energy and your investment and consider doing it somewhere else. A country that punishes risk will eventually run short of people willing to take it.

Then there is what has been described as a death tax. Tasmanians believe deeply in the idea that, if you work hard, save carefully and build something over a lifetime, you should be able to pass that on to your children and grandchildren. That is not about wealth. It is about legacy. It is about family. It is about giving the next generation a better start. When the government inserts itself into that process and claims a share, it crosses a line for many Australians. When that measure appears buried in the detail rather than clearly explained and openly debated, it raises serious questions about transparency and trust. The coalition takes a very different approach. We believe in an economy that backs people who work hard, take risks and try to get ahead. We will oppose these measures in schedules 1 and 2. If they are passed, we have been clear that they will be repealed by a coalition government, because when you tax investment, you get less investment; when you tax housing, you get fewer homes; and when you tax effort and ambition, you discourage both.

Our plan is straightforward—lower taxes, lower inflation and policies that support not punish the self-starters of this country. We will introduce a tax-back guarantee so Australians are not pushed into higher tax brackets simply because inflation has increased their nominal income. That means fairness, transparency and relief, particularly for working Australians doing it tough. We will restore balance to housing and migration, ensuring that population growth aligns with our capacity to build homes. We will invest in the infrastructure needed to unlock new supply, because the only sustainable way to bring housing costs down is to build more homes. For small business, we will make the instant asset write-off permanent, because when small business invests it grows, and when it grows so does the Australian economy. We will ensure that the tax system rewards effort, encourages innovation and supports those willing to back themselves.

Finally, we will ensure that Australians retain the right to pass on what they have built, without the government taking a share at the end. This debate comes down to a very simple question: what kind of economy and what kind of country do we want to be? Is it one where aspiration is encouraged or one where it is taxed, one where young people are supported to get ahead or one where they face barrier after barrier, one where small business is celebrated or one where it is treated as a revenue source? For Tasmanians and for Australians more broadly, the answer is clear. We want an economy where effort is rewarded, where opportunity is real and where the next generation can look to the future with confidence. This legislation in its current form does not deliver that, and that is why the coalition opposes the harmful elements within it and will continue to stand up for Australians who simply want a fair chance to get ahead.