Claire Chandler (Tasmania, Liberal Party, Shadow Minister for the Public Service) | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Minister, can you name a single country with a higher tax rate of real capital gains than Australia?

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

I note the question, and I thank the shadow finance minister for that question. I also note the fact that those over there on that side of the chamber are opposed to our tax—

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

It's a very narrow question.

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

Senator Cash, I do have two minutes to answer your question, but I want to say that this question has the backdrop of those over there that are voting for the status quo, that want to see no change and that want to see the continued distortion in the housing market that works against young people continue. Let's be clear about that. Those over there are for the status quo. They want to see no change. They don't want to see 75,000 first home buyers getting to established properties. They don't want to see—

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

Senator Cash, a point of order?

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

Direct relevance. It is a very narrowly drafted question that requires an answer—a single country. Name one.

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

Before I direct the minister back to the question, I will also remind opposition members not to interject, because, as you are aware, the minister is quite entitled to take your interjections as well.

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

I think we discussed it at estimates. A like for like on taxation arrangements—a genuine like for like—in this area of tax law is difficult, because they are all quite different.

Opposition senators interjecting—

If you let me answer, I would remind those in the chamber that the changes we are making are to better align the tax paid on certain assets with the tax paid on income, just to be clear about that. It's on real gains because working people pay tax on their real income. Those are the changes that we are proposing. Again, I accept that you don't agree with that and that you think there should be significantly beneficial arrangements that don't apply to working people, but, if we talk about that, on reasonable assumptions, with a 5.1—

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

Senator Chandler, a point of order?

Claire Chandler (Tasmania, Liberal Party, Shadow Minister for the Public Service) | Link to this | Hansard source

I have given the minister plenty of time, and she has gone nowhere near the question, which was to name a single country with a higher tax rate on real capital gains.

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

You do not need to repeat the question. The minister is going to your question.

Order, Senator Hume! I think it would be very inappropriate for me to name a frontbencher, but you are coming very close today because you have constantly interjected despite me asking you to come to order personally. I remind you. I think it would be highly inappropriate to name you, but I will name you if you do not be quiet.

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

For example, on a reasonable assumption of a 5.1 per cent rate of return for an S&P/ASX 200, the tax rate is around 21.4 per cent. That is lower than the UK at 24. It's lower than Germany at 26 to 28. It's lower than France at 34 to 35. (Time expired)

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

Senator Chandler, first supplementary?

Claire Chandler (Tasmania, Liberal Party, Shadow Minister for the Public Service) | Link to this | Hansard source

Minister, can you confirm that Labor's new capital gains taxes can tax real gains at up to 47 per cent, making them the highest capital gains taxes in the world at more than double the international average?

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

If I can just finish, because I was rudely interrupted by the clock before, it's lower than France at 34 to 35. It's lower than Ireland at 33. It's lower than the Netherlands at 36, and it's lower than Denmark at 42. It's not a country, but it's also lower than California, which is the tech capital of the world.

The point we are making here is these reforms are about tax in Australia. It's what's in our national interest. It's about decisions that make it fairer for working people, better align the tax system, make it more productive and support innovation and our investments in small business, $3.8 billion in investments in small business, which I note none of you have raised—all of that is part of the package, Senator Cash. You've said you're going to oppose all of that. Then all of that investment that's going into small business and that's making the tax scheme fairer is at risk under your policies.

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

Senator Chandler, second supplementary?

Claire Chandler (Tasmania, Liberal Party, Shadow Minister for the Public Service) | Link to this | Hansard source

Minister, do you acknowledge that the Albanese Labor government is not only the highest taxing Australian government on average ever but one of the highest taxing in the world?

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

Frankly, for those opposite, who went to the last election raising income tax on millions of Australians and who would have had bigger deficits, more debt and higher taxes on working Australians, to come in here and ask that question when this chamber is on the cusp of passing reforms that will work in the interests of millions and millions and millions of Australians, whether it be those who benefit from our tax reductions or our income tax cuts, which come on 1 July—there's another one next year. There's the instant deduction for $1,000 off when you put your tax return in, and there's the working Australians tax offset. There are 13.3 million Australians who will benefit from all of this reform, and that is what Australians know. They know that the Albanese Labor government will look after them and make sure their income taxes are lower.