Maria Kovacic (NSW, Liberal Party, Shadow Assistant Minister for Women) | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. CPA Australia has warned that Labor's capital gains tax changes could capture inherited assets and important family heirlooms including what is described as 'Grandma's jewellery box'. Can the minister guarantee that Australians will not be forced to obtain valuations for important family keepsakes, such as inherited jewellery, wedding rings of departed loved ones, watches and artwork before 1 July 2027.

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

What I have said a number of times in this place and that the budget announced was changes to the capital gains tax arrangements apply the same rule across all assets to ensure that the system is simpler and fairer, and the system that is being applied is a system of real gains. Now, what I would say to the senator—

Senator Cash, everything is an outrage, isn't it? But what is not an outrage to you is the spinelessness of your leader when he is asked seven times about whether or not he supports Ms Hanson's monoculture and he is not able to answer. And I have to say, that stands in stark contrast to the courage that is shown, at least by Mr Hastie, who says he will not bend a knee to them, and, if I may, Senator Scarr, who gave a very decent contribution in this chamber in support of multiculturalism. I am wondering where the rest of the moderate wing of the Liberal Party are when it comes to this, and to their leader's silence on this.

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

Minister Wong, please resume your seat. Senator Duniam?

Jonathon Duniam (Tasmania, Liberal Party, Manager of Opposition Business in the Senate) | Link to this | Hansard source

A point of order on relevance. The question has nothing to do with anything that's being spoken about, so I wonder if the minister might return to the question.

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

Senator Kovacic, are you also standing on a point of order?

Maria Kovacic (NSW, Liberal Party, Shadow Assistant Minister for Women) | Link to this | Hansard source

I am. I'd like to point out the reflection that Senator Wong has made on individuals on this side of the chamber who have spoken strongly in favour of multiculturalism, and I ask that she withdraw it.

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

Senator Kovacic, I did not hear any offence. An offence is committed when—

Senator Kovacic, I haven't finished. An offence is committed not by commenting on what someone may have said in this place but when slurring by using their name. I didn't hear that. I will continue to listen carefully; I did not hear that.

In relation to Senator Duniam's point of order, I am happy to draw the minister back to the question, but I will also remind you not to interject, because if you interject the minister is entitled to take the interjection. I'm going to continue to listen carefully. If there's silence and the minister is not directly relevant to the question, I will draw her to the question—but that means no interjections.

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

On the point of order, I'm very happy to withdraw, Senator Kovacic. I will always recognise those on your side who do stand up for multiculturalism.

As I was saying, what the government is doing is replacing the 50 per cent capital gains tax discount with a new discount that is based on inflation, with gains accruing from 1 July 2027. That will apply across all asset classes. That is part of a package which also will involve working Australians getting a tax cut—

Jane Hume (Victoria, Liberal Party, Shadow Minister for Employment and Industrial Relations) | Link to this | Hansard source

Do they need to be valued?

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

Senator Hume, you just interrupt all the time because you don't want people to know that you were the one who was for higher taxes at the last election and you are leading them into another vote against tax cuts. They keep following you into the trenches, don't they? (Time expired)

Opposition senators interjecting—

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

Order! Senator Hume, I have called you many times this afternoon. I would appreciate silence in the remaining time we've got for question time. Senator Kovacic, first supplementary?

Maria Kovacic (NSW, Liberal Party, Shadow Assistant Minister for Women) | Link to this | Hansard source

Minister, I note your comments about these taxes being simpler and fairer. Given that, who will be required to pay for the valuations of these family valuables?

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

We are changing the discount available. That is what we are changing. We are also making sure it applies across all asset classes. I can't be any clearer than that. What I would say to you, Senator, is that this is part of a set of tax changes, both on capital gains and negative gearing and also on income tax, which represents one of the largest changes to Australia's tax arrangements in a generation. They will ensure that income from assets is taxed in a way that is analogous to income from work—

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

Senator Cash, on a point of order?

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

It's on direct relevance. It was a very simple question. The minister has admitted assets will need to be valued. It is a simple question: who needs to pay for the valuation?

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

The minister is being relevant to the question. I am listening carefully and I appreciate that the interjections have stopped, so I thank you all for that.

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

Again, the change that is being applied is in relation to the discount on capital gains tax. That change has been put forward for many reasons, one of which is that it ensures that asset gains are more equitably, fairly and consistently taxed. The package also ensures that income from— (Time expired)

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

Senator Kovacic, second supplementary?

Maria Kovacic (NSW, Liberal Party, Shadow Assistant Minister for Women) | Link to this | Hansard source

Minister, isn't this exactly what Australians fear from Labor and the Greens: a tax that reaches into family inheritances, a quasi-death tax, and people having to put a price tag on wedding rings and family heirlooms, leaving ordinary Australians paying accountants and valuers to deal with property that has been in their family for decades?

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

I have a fair degree of respect for Senator Kovacic, so I will try and respond in a respectful way because I think that was not a question she should have been given. It is a demonstration of the fact that those opposite have no capacity to engage on the basis of the tax policy, so they have to—

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

You demonstrated you have no capacity to answer one question—

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

May I finish?

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

Senator Cash, come to order.

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

Those on that side, those opposite, have no capacity to engage with the debate on tax, so they have to make up a scare campaign on taxes which do not exist. Most importantly, and I again say this to the coalition senators: you are about to vote for higher taxes. Be very, very clear that Senator Hume and Senator Cash, under Mr Taylor's leadership, are going to make you vote for higher taxes for working Australians. (Time expired)