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, the Prime Minister has said:

What we are simply doing is returning the CGT system to what was there before 1999.

Minister, was there a 30 per cent minimum tax before 1999, and is there one now under your legislated higher taxes?

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

I thank Senator Chandler for the question. We did spend quite a bit of time on this question at estimates, and I made it clear at the time—and I think the PM made it clear at the time in his comments—that the changes we have made on CGT were to go back to concession arrangements that were indexed for inflation and for tax on real gains, as opposed to the 50 per cent blunt concession that was in place since that time.

We are, on this side of the chamber, proud of the tax reforms that passed this parliament last week to make sure that we are able to better balance the tax paid on wages with some of the tax paid on assets and also to make sure that first home buyers in particular get a chance to buy a house in a housing market where the intersection of housing and tax has encouraged investment into established properties at the expense of younger generations who have not been able to get into the housing market.

So, yes, we have made a number of changes in relation to tax reform that passed this chamber on Thursday to better set up our arrangements for the future but also to make those tax arrangements fairer for all Australians and working in the interests of all Australians, and that's what this government will continue to do—to focus on real change that makes sure that all Australians have a stake in the economy now and into the future. Those reforms passed this chamber because they were the right thing to do, and those opposite are there to protect the status quo and want to pretend that you never need to change anything. That's why you're on the opposition benches, and that's why you will stay on the opposition benches.

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, was there income averaging before 1999, and is there no income averaging now under your legislated higher taxes?

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

Again, we did answer all of these questions at estimates, so I'm not quite sure why they're being asked again. We have been clear about what the tax changes will be—so clear that they were in the legislation that those opposite voted against last week. I note that Senator Chandler doesn't comment on the tax cuts that were included in that legislation—the egregious tax cuts, as they've been described by those opposite. The tax reductions that were in that bill that you also voted against, the $1,000 instant deduction—

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

Senator Chandler?

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

Point of order on relevance: I'm not sure that the minister is being relevant to the question, and it was quite tightly worded.

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

The minister is being relevant to your question. I'll continue to listen carefully, and I'll draw the minister to the question if necessary.

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

I did answer that question, and I've answered it in estimates. We were very clear what the reforms were. They were in legislation that you voted against last week. That outlines the core elements of our tax reform package, and we have been clear that, where there are further amendments to bring forward, we will do so in future legislation.

Opposition senators interjecting—

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

Minister Wong?

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

On a point of order, disorderly conduct.

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

What!

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

That is a point of order. The opposition appear to realise they have very little of substance to say so have just simply decided that they're going to interject. All of them are interjecting, and the Leader of the Opposition is doing it on my feet.

And I don't need you to tell me how to behave, Senator Paterson, thank you.

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

The minister has finished her response. Senator Chandler, second supplementary?

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

Minister, how many taxpayers on lower incomes under $45,000 will be hit by your higher taxes with the imposition of the 30 per cent minimum tax?

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

():  On the issue of averaging—which was the question that Senator Chandler asked me in the last question— the previous averaging system was removed for integrity reasons on the recommendation of the Howard government's own business tax review in 1999. Treasury's own analysis, which we know from the advice that was provided at estimates, shows that capital gains are predominantly made by the highest lifetime income earners: 'One-third of all capital gains realised by the top one per cent of lifetime income earners, and more than half of all gains are realised by the highest 10 per cent.' For those on low incomes, I think those who are earning less than $45,000 know that this government over here has sought to reduce the tax being paid—and, indeed, on 1 July, there will be further tax cuts for all Australians.