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

My question is to the Minister representing the Prime Minister, Senator Wong. CPA Australia has publicly stated that the Prime Minister's capital gains tax changes could force Australians to obtain defensible market valuations for personal use assets, including valuable items held in people's homes, their garages and their sheds. Can the minister confirm whether a vintage car, a classic car, a collectable vehicle or even a number plate worth more than $10,000 will need to be valued before 1 July 2027 under Labor's new capital gains tax regime?

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

As the senator would know, we have replaced the 50 per cent capital gains tax discount with a new discount based on inflation for gains accruing from 1 July in 2027. Obviously that arrangement was clear in the budget papers. I have to say that I don't mind that people are interested in vintage cars, but I have to say that I'm not somebody who does collect vintage cars, but—

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

Some Australians do, and they're about to pay more.

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

Indeed. And what I would say is the taxation arrangement that the government has put in place—which will hopefully pass the Senate tomorrow—is one that is fair and equitable, and it applies across asset classes and it is ensuring that income from assets is taxed in a way that is analogous to the way in which income on wages is taxed.

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

Senator Duniam, first supplementary?

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

If an Australian has restored a vintage car over many years, often without keeping every receipt for parts, for labour or improvements, what records will Mr Albanese require to prove the car's cost base and market value?

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

It isn't our practice to provide in Senate question time individual tax advice. The budget measures are clear.

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

You can't even say whether or not it's going to be—

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

No, the budget measures are clear. From 1 July 2027, we will have a different arrangement in relation to capital gains tax, which will reflect the real gain that an asset has had.

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

Wouldn't have a clue.

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

If I may, it will reflect the real gain—

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

Why bother?

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

Okay, if you don't want to hear an answer, that's fine. They're interrupting.

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

Senator Duniam, second supplementary?

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

Is this another example of Labor's toxic tax complexity—Australians who saved, restored and cared for a classic car in their own garage now being forced to pay for accountants and valuers just to work out what Mr Albanese might take from them when they sell it?

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

(—) ():  The Australians who are investing in vintage cars will also be the Australians who get new and permanent tax cuts as a consequence of both this package and tax cuts that will be in place from 1 July this year. If I may remind you, they are tax cuts that you voted against and propose to vote against as a consequence of Senator 'High Taxes' Hume and the policy she took to the election. We know that Australians, whether they are investing in vintage or non-vintage cars, will get the benefit of tax cuts that the Labor government is delivering. I would just remind those opposite that they were gearing up to vote against the working Australians tax offset. Yet again, the coalition, who are supposed to be the party of lower taxes, are demonstrating that they are the party of higher taxes. (Time expired)

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

Minister, please withdraw the additions to Senator Hume's name.

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

I withdraw.