James Paterson (Victoria, Liberal Party, Shadow Minister for Defence) | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. When did the Prime Minister first become aware that Labor's tax legislation would impose what has become known as the widows tax?

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

First, I think that is a title in your party room that you keep utilising. I think we have been clear that it is the case that grandfathering arrangements do need to ensure that that scenario is addressed. The Treasurer, I think, made very clear on Insiders on Sunday that the government would address it, and we will do so. But I again remind those opposite and Senator Paterson—it's interesting that the opposition are not arguing against really most of the policy.

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

Senator Paterson, on a point of order?

James Paterson (Victoria, Liberal Party, Shadow Minister for Defence) | Link to this | Hansard source

The minister's reflections on the opposition are interesting but not directly relevant to a 22-word question.

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

The minister has been relevant to your question, and I will continue to listen carefully.

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

I again say the Treasurer has made clear it will be resolved. It is an issue of the extent of grandfathering arrangements. Obviously, in an ambitious set of tax policies, it's not unusual for there to be various tranches of legislation, and that is what we intend to do to resolve it. But, Senator, it is reasonable for me to point out you're not even arguing against the policy anymore, because you know that the status quo of the housing market is not sustainable and was not sustainable. And you know that continuing to give investors an unfair advantage over first home buyers is not sustainable.

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

Senator Cash, on a point of order?

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

President, it is relevance. With all due respect, Senator Wong has admitted legislating the tax. The question was quite specific. When did the Prime Minister first become aware that the tax would be legislated?

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

I will draw the minister back to your question.

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

I think the government was very clear on budget night that there would be a number of tranches of legislation, and we have been clear with the Australian people that there would be more than one tranche of legislation, including to deal with this issue but also to deal with the startup exemptions and to deal with testamentary trusts. There are a range of issues that we know will require further consideration after consultation, and the government has been doing that and will continue to do that.

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

Senator Paterson, before I come to you, I'll remind the Senate that it's absolutely fine to rise on points of order, but if you rise on a point of order I expect you to listen in silence to the response. Senator Paterson, first supplementary?

James Paterson (Victoria, Liberal Party, Shadow Minister for Defence) | Link to this | Hansard source

Once the Prime Minister became aware that his legislation contained a widows tax, what action did he take to prevent the parliament from legislating it?

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

This is ambitious legislation that has passed the parliament in order to ensure that we give first home buyers a fair crack at the housing market, because we believe that is fair. And I note that those opposite have not been able to argue that point. This legislation also provided tax cuts for working people—also voted against by those opposite. I note that they are not asking questions about 13 million Australians getting a tax cut. No, you don't want to talk about tax cuts.

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

Senator Paterson, on a point of order?

James Paterson (Victoria, Liberal Party, Shadow Minister for Defence) | Link to this | Hansard source

On direct relevance, I asked, 'What action did the Prime Minister take?' and I haven't heard any yet.

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

You're talking about legislation that passed the parliament last week, and the minister is being relevant.

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

What I would say is that we were clear from announcement on budget night that there would be more than one tranche of legislation. The core of the reforms, the big moving parts of the reforms, were legislated in this parliament, against the opposition of those opposite. And we've made clear that there are a range of other matters where there are more tranches of legislation coming, including in relation to these grandfathering issues. (Time expired)

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

Senator Paterson, second supplementary?

James Paterson (Victoria, Liberal Party, Shadow Minister for Defence) | Link to this | Hansard source

Why did the Prime Minister force every member of caucus, including all the senators here, to vote for a widows tax, and what other defects are there in Labor's tax package that the government has identified but still not disclosed to the parliament?

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

Every member of the Labor caucus was proud to vote for tax cuts for working people. Every member of the Labor caucus was proud to vote for tax changes which ensure first home buyers have a fair crack at the market. Every member of the Labor caucus was proud to vote for fairer tax arrangements. You see, we on this side, unlike you opposite, actually have a collective decision-making process, and we know who we stand for and what we believe in. That makes us really unique when compared to those opposite. You do not know who you are, what you stand for or what you represent. You don't know whether you're chasing Senator Hanson or the teals. You don't know who you are or what you stand for. We do.

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

Order across the chamber! That was a disgraceful display. This is not a football match. It is not your role, particularly those on my left, to yell louder than the minister. You ask a question. The answer is given, and you listen in silence.