Matthew Canavan (Queensland, Liberal National Party) | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. Last year, the Prime Minister, on the election trail, promised not to raise taxes on superannuation. When he was asked about whether he would increase taxes on superannuation, the Prime Minister said:

… there are no policy changes, our policy stands. There is nothing unusual.

But yesterday the PM and the Labor Party did a deal with the Greens to raise taxes on self-managed super funds. How can the Australian people have any trust in their government or the tax system if the government constantly breaks its promises not to increase taxes on small business, on investments, on property and now on superannuation too?

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

With respect, Senator Canavan, the changes are in relation to borrowing arrangements, and the logic—

Matthew Canavan (Queensland, Liberal National Party) | Link to this | Hansard source

It removes the tax discount.

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

Well, the borrowing arrangements are not—

Well, I'm just making the point that in fact I think the reason that there was concern raised by the Council of Financial Regulators and the Murray financial system inquiry was the effect or the potential risk of these arrangements to retirement savings. But I'm very happy to talk about tax, Senator, because I would make the point that at the last election you went to the election advocating $75 billion more in higher personal taxes, $14 billion in higher taxes on the resources and manufacturing sectors through the abolition of the production tax credits, higher taxes on motorists, higher taxes on housing construction, higher student debts, higher power bills and more expensive training courses—because you wanted to abolish free TAFE. So we're very happy to have a tax argument with you, Senator.

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

Senator Hume, you will withdraw that.

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

I withdraw.

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

Thank you.

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

I'm always happy to have an argument with Senator Hume about taxes, because she is Senator Hume of higher taxes—Senator Hume of the higher tax.

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

Minister Wong, please—

Senator Hume, I just asked you to withdraw and I'm going to ask you again, and I'm warning you: don't do it again.

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

I withdraw.

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

I'm just making the point that I know that Senator Hume thinks that pointing at me and yelling at me is going to make us all forget that she went to the last election advocating for higher taxes for working people, higher taxes for all Australians, higher personal income tax, more taxes on resources and manufacturing, higher taxes on motorists and higher taxes on housing construction. This was the economic policy platform that they took to the last election, and they rewarded her by making her the Deputy Leader of the Liberal Party. Goodness me! And now, under the leadership of Senator Hume and Mr Taylor—if you can call it that—they're going to vote against tax cuts again.

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

Thank you, Minister Wong. Senator Canavan, first supplementary?

Matthew Canavan (Queensland, Liberal National Party) | Link to this | Hansard source

To the extent the government has an economic plan, its plan seems to amount to increasing taxes on small businesses via the changes to trusts, on investments via higher capital gains taxes, on property via changes to negative gearing arrangements, and now on people's savings too by taxing superannuation. Why is the government attacking people's superannuation and therefore people's retirement plans that they've worked hard for?

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

Well, simply, we're not. We are dealing with a specific issue, which is the ability to borrow. It is a very small number of Australians who engage in borrowing against their super fund, and existing arrangements will be protected. I make the point that this policy was the subject of consideration by Mr Murray and the Council of Financial Regulators.

More broadly, Senator, the package that will be passed in the Senate tomorrow is pro aspiration, it is pro worker and it is pro investment. It applies the same rule across all asset classes, which keeps the system simpler and fairer, and it will include tax cuts for every Australian taxpayer both this year and next through the working Australians tax offset and the instant tax deduction. Now you have the opportunity tomorrow to vote for tax cuts. You have the opportunity to vote for tax cuts as part of this package. (Time expired)

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

Senator Canavan, second supplementary?

Matthew Canavan (Queensland, Liberal National Party) | Link to this | Hansard source

Minister, will the government rule out doing a deal with the Greens to introduce a death tax?

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

Senator, you know that there is no intention, no way, in which that would occur. I would say this to you: it says something, doesn't it, that the best they can do with a tax package in front of the Senate is not to argue about the tax package but to make up some other tax arrangements to run a scare campaign on. I mean, that is all you have left, Senator Canavan. That is all you lot have left, baseless scare campaigns, because you don't know what you stand for and you don't know who you represent.

When the coalition has voted five times against tax cuts through the life of the Albanese Labor government and is now gearing up to vote against tax cuts again, I think Australians know that you do not know who you represent, and all you have left is baseless scare campaigns, and the pundits can see through it. (Time expired)

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

I advise the chamber that Senator Payman has passed her question to Senator David Pocock.