Jacinta Nampijinpa Price (NT, Country Liberal Party, Shadow Minister for Skills and Training) | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. On Saturday, the Treasurer admitted that, under Labor's tax changes, some small businesses will be better off and some will be worse off. 'It depends,' in his words. Which Australian small businesses does Labor think deserve to pay more tax?

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

First, I did see belatedly the Treasurer's interview, and I think it was an extremely good interview outlining the principles behind the tax changes where also changes will need to be made, and—

You don't like it? We don't mind saying nice things about colleagues, you see.

Murray Watt (Queensland, Australian Labor Party, Minister for the Environment and Water) | Link to this | Hansard source

You should try it sometime.

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

I know—that's unusual on that side! Senator, I would make the point that, in terms of small business, in fact a number of aspects of the package that the government both has passed and is putting in place will benefit small business. The most important of those are making the $20,000 instant asset write-off permanent and introducing a permanent two-year loss carryback—also, introducing loss refundability to help startups in their first years and increasing the turnover threshold for the existing 50 per cent active asset reduction capital gains tax concession from $2 million to $10 million. You might recall that I last week talked about the fact that that meant that all existing 2.7 million active small businesses and 98 per cent of active businesses would be eligible for concessional treatment. Those are the parameters that the government has put in place—tax relief for many in small business. The question you asked was asking for tax advice for specifics; obviously, people make their own decisions about how they organise their tax affairs.

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

Senator Nampijinpa Price, first supplementary?

Jacinta Nampijinpa Price (NT, Country Liberal Party, Shadow Minister for Skills and Training) | Link to this | Hansard source

How many small businesses will be worse off under Labor's capital gains tax changes?

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

Well, I think I just spoke about the capital gains tax changes that have been made for small business, and the Treasurer did speak about the fact that there are a number of tax concessions for small business. The active asset reduction is the most accessed concession for small businesses and is broadly applicable. That is the policy improvement that I was referencing when I referenced the number of small businesses who would benefit from that change.

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

Senator Nampijinpa Price, second supplementary?

Jacinta Nampijinpa Price (NT, Country Liberal Party, Shadow Minister for Skills and Training) | Link to this | Hansard source

That didn't tell me who'll be worse off. After legislating a widow tax and now admitting some small businesses will pay more tax under Labor's legislation, what other hidden tax increases are buried in Labor's package?

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

First, I would make the point that, when we announced the budget, we said we would consult with small business and startups and the government have done that. Since then, we've announced support for more small businesses, more incentives for innovation and further implementation details.

But I'm asked about taxes and I would again make the point that you're on the side that voted for higher taxes, and your deputy leader has described the tax cuts for 13 million Australians as egregious. So I think, whenever the coalition come in here and talk to us and to the Australian people about tax, people should always remember that they did not want 13 million Australians to get a tax cut—not only that but, after the fact, they complained about it and said it was egregious. So, Senator, I would say to you that it would have been better, if you really were pro tax reduction, if you didn't vote with your colleagues when they voted against it. (Time expired)