Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | Hansard source

Another wonderful contribution from Senator Bragg—cynical, treats it like it's a bit of a joke, a bit funny, a bit schoolboy, a bit university. This is significant and serious tax reform. You might find it funny and entertaining. We flagged on budget night that there would be further consultations in a number of areas. We are doing that. We flagged on budget night that there would be several pieces of legislation. That has not changed. The arrangements and the budget we tabled is the tax reform we are proceeding with, with some amendments that we have responded to now. Either you don't respond to ideas that come forward and then we're criticised for not responding or, where we can reach agreement and make sensible adjustments to the overall package, you criticise us for that. One might think that maybe you don't support this overall tax reform, Senator Bragg, and that you're going to criticise whatever happens, and you'll see it in the cynical lens through which the opposition has chosen to view this important reform.

As someone who's so fixed on housing—and you are. You've been focused on this in the last term and this term. It's a shame that you weren't as focused on this in the government that you were a member of, when they built about 370 social and affordable housing properties over a decade. They could've done with your level of interest on this that you have now, when you were actually in a position to make decisions and deliver on them. Anyway, let's put that aside. I think, if you weren't a member of the Liberal Party, you would support these changes to negative gearing and capital gains tax because you know that what we say is true.

The distortion that exists in the housing market and its intersection with the tax system at the moment is not working in the interests of every Australian. It may be working in the interests of some, and that's fine. Those laws and the arrangements are there as they are today. But, when these laws change, we think it will be a better and fairer system for a lot more people. Senator Bragg, I've watched you talk about housing and I've listened to what you have said on it, but I can't reconcile your focus on housing in this country as a key economic and social priority with your opposition to these changes. I can't reconcile them. Therefore, I have to think that you don't think that; it's just because you're over there that you have to take this political position.

It's really clear that first home buyers and younger generations have been competing with investors for established housing in this country and have often lost out because they are not able to avail themselves of the concessional treatment that the laws currently allow in order to compete on a level playing field. We think that's wrong. We think the system as it stands now, the status quo, that you seek to protect is broken, and these reforms tackle that. This is the budget we tabled on budget night. These are the laws that we're debating that relate to those decisions. We've made adjustments where it's sensible, reasonable and affordable to do so. We think a government that listens and responds is a good thing, and we will bring forward further legislation to implement the full package over this calendar year.