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

My question is to the Minister representing the Prime Minister, Senator Wong. Minister, the Prime Minister has claimed that his government's budget measures are about intergenerational equity, but 20-year-old Anthony Kolmac has said that the government tax hikes will:

significantly hinder my ability to create wealth as it will ultimately delay the process (to save for a deposit) significantly. I will have to save even more money to be able to afford what I would have once been able to -afford a lot earlier.

How can the government call these tax hikes 'intergenerational equity' when young Australians like Anthony are being punished the most?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

What I would say to Anthony is—

Hon. Senators:

Honourable senators interjecting—

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

Order!

Order! Senator Henderson, which part of order did you fail to understand? The minister had barely got to her feet when the interjections started. Minister, please continue.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

What I would say to Anthony is what I said yesterday, that—

Honourable senators interjecting—

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

Order! Senator Watt and Senator Cash. Minister Wong, please continue.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

What I would say to Anthony is this: the government is serious about dealing with the challenge of intergenerational equity, and if you read budget paper No. 1 it is very clear that we are risking that great Australian contract, that great Australian undertaking that we will, as a generation that is in government, make sure that those who come after us have a similar capacity to fulfil the aspiration for that great Australian dream. And what I would say to Anthony is that the tax changes that we have put in place will ensure, along with the other measures in the budget, not only additional housing supply but also more owner occupiers coming into the housing market.

I would also say to Anthony that negative gearing is still available for new builds. We have not abolished it. What we have done is focus on ensuring that we have additional supply. I would also note that, under this government, unlike if Mr Taylor was delivering the budget on Tuesday night, Anthony will see lower taxes, not higher taxes, as would have been the case under a Taylor government.

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

Senator Paterson, a first supplementary?

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

Nineteen-year-old Paula Demetrio said the changes would mean young people can't benefit as much from the shares that they have, leaving them with fewer options to build wealth to save for a deposit due to the Prime Minister's tax hikes. Why is the government closing the door on wealth-building opportunities available to young Australians that he himself was able to benefit from?

Hon. Senators:

Honourable senators interjecting—

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

Order!

Honourable senators interjecting—

Order! The interjections right now, given that I have called order three or four times, are disrespectful to me and to this Senate. If you want to have a chat with the senator on the other side, do it outside, not now during question time. It is not call and response.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

This budget will help about 75,000 Australians achieve the dream of homeownership, and what that means is that more young people—

Hon. Senators:

Honourable senators interjecting—

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

Minister Wong, I'm sorry. I'm not quite sure why I bothered to try and call order because the minute the minister stood, Senator Colbeck, you interjected, as did you, Senator McKenzie. Seriously, I don't think I should have to start naming people in major parties. You should know what is expected at question time—that is, that you don't interject, especially the minute after I've called order.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

This budget will help 75,000 Australians achieve the dream of homeownership and, of course, housing is so important to that ladder of aspiration and to ensure that people can build wealth. It is a commitment by this government to ensure that more Australians are able to fulfil the aspiration of the most Australian of dreams, which is a dream to own your own home. Again, I'll say negative gearing and capital gains tax would continue to be available for new homes. I would say to you—was it Pauline?—listen to Mr Wilson. He said:

… the tax system is screwing over young Australians. Instead, it favours well-off, established interests against those trying to get ahead.

(Time expired)

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

Senator Paterson, second supplementary?

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

Minister, how does an increased capital gains tax on shares make housing more affordable?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

The Treasurer and the government have been upfront about—first, in terms of housing, I've explained our policy. In terms of—

The Treasurer was upfront on budget night. We are changing the arrangements for taxation of assets. That is because we need to ensure, as a country, that we get a better alignment between the treatment of income from Labor and the treatment of income from assets. I think most Australians would understand that is pretty fair. We are providing additional tax benefits to working Australians on top of the previous tax cuts that Australians—

Michaelia Cash (WA, Liberal Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

When do they get it? Jack's paying.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I don't mind a bit of interjection, but Senator Cash—I know she is very upset with the way that things are going on that side, but she has actually not drawn breath in this answer. I just wonder if she could draw breath.

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

Yes. Senator Cash, please stop the running interjections. Minister Wong, did you wish to continue?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I do wish to continue, thank you. We are offering additional tax cuts on top of the income tax cuts that we went to the election with, and, if I may remind you, Senator Paterson, they're income tax cuts you opposed. (Time expired)