James Paterson (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

My question is to the minister representing the Treasurer, Senator Gallagher. In a leaked recording of comments to the Park Orchards Ratepayers Association in the lead-up to the last election, the now member for Deakin, Matt Gregg, said in relation to Labor's proposal on unrealised gains on superannuation that 'the briefing I've received is that that is not Labor policy', and, 'I was advised it is not Labor policy'. Mr Gregg went on to say, 'I'm not going to commit to that policy position that has been put to me because my understanding is it's not my party's policy.'

Did the member for Deakin mislead his new constituents, or will the government now abandon this unfair super tax grab?

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

I thank Senator Paterson for the question and congratulate him on his new responsibilities. I also congratulate the new member for Deakin. I have the opportunity to visit the electorate of Deakin during the election campaign, and it's clear that the new member for Deakin received the support of his new local community, and we are very pleased with the result from the federal campaign.

We have been very clear about what our tax policies are. We went to the election wanting to lower taxes for 14 million Australians. If you remember, the opposition—those that are seemingly so concerned around our tax policy now—went to the election wanting to raise taxes for 14 million Australians. It's hard to believe, but that was their position during the election campaign.

Sue Lines (President) Share this | Link to this | Hansard source

Minister Gallagher, please resume your seat. Senator Paterson is on his feet.

Honourable senators interjecting—

Order! On my right!

Minister Watt! I just called order. Senator Paterson?

James Paterson (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

I did want to give the minister a reasonable opportunity to come close to the question, but she has not yet addressed the comments that the member for Deakin made to his constituents, saying the tax on unrealised gains was not Labor policy. Did he lie or are you abandoning it?

Sue Lines (President) Share this | Link to this | Hansard source

Senator Paterson, you need to withdraw that comment.

James Paterson (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

I withdraw.

Sue Lines (President) Share this | Link to this | Hansard source

I also remind senators that when you are calling a point of order, please get straight to the point of order—there's no need to make comments around your question. It's often not necessary to repeat the question. Just be clear about the point of order. I think the minister is being relevant, Senator Paterson, and I will continue to listen very carefully. For me to listen carefully, I need to have silence. Minister Gallagher?

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

I did refer to Labor's tax policies that we took to the last election and that we will implement in government, and that is directly relevant to the question Senator Paterson has asked. I can understand they are still a bit sore about losing the electorate of Deakin. Can I list all the other electrics they lost as well? There were a number of them. Critical to the loss that they are clearly still mourning over on the other side of the chamber is the policy on tax that they took to the election, which was to increase tax for 14 million Australians. People understood the choice and they made that choice, and they elected Labor members—particularly, in relation to this question, into the electorate of Deakin.

Our tax policy was clear. Our policy on high-balance super accounts has been clear. We took it to the election, we said we would, we've had the election and that remains our policy.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Paterson, first supplementary?

James Paterson (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

Hostplus chairman Damien Frawley has said the proposed tax on unrealised gains was 'a punitive outcome' and 'a disincentive for members to invest in productive, high-quality and even nation-building opportunities'. Does the minister share the concerns of experts such as Mr Frawley, as well as your own member for Deakin?

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

We've been clear on what our tax policy is. I've been watching some of the contributions that have been made since the election around high-balance super accounts. There's obviously been a fair bit of commentary written about it, in particular, in the Australian and the Financial Review, so I am aware of contributions that have been made by a range of stakeholders. We consulted heavily on the high-balance super accounts, if you recall, over the last parliament. There were opportunities for people to provide their contributions at that point in time. We didn't manage to get it through the Senate in the previous term, but it remains Labor policy, and we would be looking to get it through the parliament this term and as soon as we can.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Paterson, second supplementary?

James Paterson (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

The Australian reports this morning concerns from Labor MPs who hate this tax. They join former prime minister Paul Keating, former Treasury secretary Ken Henry, former RBA governor Philip Lowe, former ACTU secretary Bill Kelty and even the current ACTU secretary, Sally McManus, in slamming the government's unfair super tax grab. Why is the government stubbornly persisting with a friendless tax on unrealised capital gains?

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

(—) (): I did read the article in the Australian this morning and, indeed, have been following their campaign against the high-balance super tax concessions. I would remind those in this chamber that the proposal by the government, the high-balance super tax policy that we have, affects about half a per cent of people with super balances over $3 million. They're still concessional rates of tax, just not as concessional. So I think we need to get a bit of perspective here. I understand the Australian is running a campaign against it. It's pretty obvious. We've seen contributions being made by a range of stakeholders about elements of the design of the tax policy. It remains Labor's policy. We think it's a modest and sensible change to the super concessions arrangement to ensure that super remains fair for all. (Time expired)