Glenn Sterle (WA, Australian Labor Party) | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. After extensive consultation, the first stage of the Albanese Labor government's tax reform package has now passed the Senate. The most significant tax reform in a quarter of a century, it delivers a tax cut for over 13 million working Australians, helps more first home buyers get into the market and backs small businesses. What does this landmark package deliver for Australian workers, small businesses and people trying to own their own home?

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

I thank Senator Sterle for the question. I acknowledge Senator Sterle's dedicated his entire career to working on behalf of working people, and it's with the support of all of those on this side of the chamber and in the other place that we have put forward this legislative agenda, this important tax reform package, which passed the Senate just before question time today. This is a victory for workers, first home buyers and future generations. The bill that passed today will help ensure that aspiration and opportunity are the birthright of every Australian, not just some. Today we've locked in two more rounds of income tax cuts for millions of Australians, a fair go for first home buyers and a fairer tax system that better aligns the treatment of labour and asset income.

This bill delivers on three objectives: it cuts taxes for every Australian worker again and again, it makes it easier for people to buy their first home, and it better aligns the tax treatment of income earned from wages with income earned from assets. The bill has four key elements that are central to the tax reform package, including a $250 working Australian tax offset for over 13 million Australian workers and a $1,000 instant tax deduction for workers. It reforms negative gearing, to apply to new builds only from 1 July 2027, and returns the capital gains tax concession to its original intent by reintroducing cost-base indexation so that only real gains are taxed. So we're reforming the tax system for workers, businesses and future generations. This is more assistance for working people from a government which cuts income taxes whenever we responsibly can. And we're now cutting income tax five times in three different ways. (Time expired)

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

Senator Sterle, first supplementary?

Glenn Sterle (WA, Australian Labor Party) | Link to this | Hansard source

These reforms, as you said, are aimed at helping working people, first home buyers and small businesses. Who stands to benefit and how has the Albanese Labor government's consultation shaped a fairer package delivered collaboratively and in the interests of all Australians?

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

I thank Senator Sterle for that question too. In relation to consultation and working with others, we were upfront in the budget that we were consulting on certain details of the reforms, including for small businesses and startup businesses with a low cost base. The government's additional amendments are all about providing more clarity, confidence and support for small business and more incentives for innovation.

Senator Sterle asked, 'Who benefits?' Well, all working Australians benefit, Senator Sterle. Income tax cuts for over 13 million workers, first home buyers—these reforms will help 75,000 homeowners get into the market. In relation to young people, Treasury's analysis found that over 90 per cent of Australians would have been better off by the age of 30 had these tax reforms been in place from the year 2000, before factoring in housing affordability. For small businesses, there are a range of concessions, including raising the threshold from $2 million to $10 million to ensure that all active small businesses can get— (Time expired)

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

Senator Sterle, second supplementary?

Glenn Sterle (WA, Australian Labor Party) | Link to this | Hansard source

Minister, as you have said, this package delivers a tax cut for over 13 million working Australians. Minister, did anything stand in the way of delivering this tax relief, and why will the Albanese Labor government always back lower taxes for working people?

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

I thank Senator Sterle for that question. Through the passage of this legislation today, we're another step closer to delivering our tax reforms for workers, homebuyers and businesses. We know that those over on that side of the chamber all voted against tax cuts in the last term, and they're continuing that approach in this term. They're voting against tax cuts for working people, and they're voting against sensible changes, sensible reforms, to make the housing system work better for everybody.

What they have done today, in the way that they have voted, is to protect the status quo and to say that the housing system's working perfectly and that anyone who wants to buy a home can buy a home. We, on this side of the chamber, know that that's not the case. That's why we've been prepared to take this decision to reform the system and to make sure that younger Australians, in particular, can buy their own home without having to compete with investors who are getting concessional tax treatment to do so.