Jonathon Duniam (Tasmania, Liberal Party, Manager of Opposition Business in the Senate) | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. Can the minister explain why the Prime Minister voted for the widows' tax but has failed to introduce legislation to abolish it?

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

I'm sorry, I meant to jump in earlier. Could I have an extra five seconds to just acknowledge the presence in the gallery of the Malaysian defence minister, Minister Khaled; Datin Sharrina, the high commissioner; and Tan Sri Johari, the Speaker of the House of Representatives of Malaysia. Welcome to Australia, and I'm sure I speak for the opposition as well in welcoming you here.

Honourable senators: Hear, hear!

I appreciate that. I thank the Senate. Senator, in relation to your question, I think I've been through this a number of times. It is the case that the government indicated on budget night that there would be a number of issues that we would work through in consultation with industry and the community. We have flagged very clearly that the first legislation which was passed contains the core architecture of the tax changes and that further tranches of legislation would follow, dealing with a range of issues of which one is the issue you have mentioned. It's an issue about the extent to which grandfathering is applicable and in which circumstances the provisions in relation to the grandfathering of people's existing tax arrangements continue. We will certainly look at that. The Prime Minister has made that clear, and the Treasurer made that clear on Sunday.

I think that is the answer, broadly, that I've given every time you have asked me the same question, Senator, but what I would say to you is that it does say something, I think, to all of us that you're not engaging with the content of the tax policy or the legislation which has passed, because you have, actually, no answer. You have no answer on the simple fact that Australians know the status quo is not working when it comes to the housing market and that something needed to happen, and what has happened is that this government has put first home buyers on the level playing field and removed the advantages that investors had which meant people were priced out of the market—advantages which you clearly are intent upon retaining.

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

Senator Duniam, first supplementary?

Jonathon Duniam (Tasmania, Liberal Party, Manager of Opposition Business in the Senate) | Link to this | Hansard source

Has the Prime Minister now struck another deal with the Greens to keep the widows' tax, which is why he's failed to introduce legislation to repeal it?

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

The Treasurer could not have been clearer on Sunday about our intentions—

Opposition Senators:

Opposition senators interjecting—

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

Order! I'd like to hear the minister's response, and, for that to happen, I need order in the chamber.

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

The Treasurer has made the government's position clear. As I said, this goes to grandfathering arrangements. What I again say to the opposition is no-one in this, perhaps other than you—I think very few Australians believe that the status quo is working for so many Australians, and we on this side want more people to be able to own their own home. That's fundamentally the logic and the motivation behind the legislation which has now passed this parliament.

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

Senator Duniam, second supplementary?

Jonathon Duniam (Tasmania, Liberal Party, Manager of Opposition Business in the Senate) | Link to this | Hansard source

Given the Treasurer had made himself so clear, when were drafting instructions issued to prepare legislation to repeal this widows' tax?

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

Senator, really! You would know we've only just passed the core legislation. We've given the undertaking—

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

You know there's a flaw.

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

These are changes which, from my recollection, are coming 1 July 2027, so a year from today. I can indicate to you that drafting instructions, I'm sure, will be prepared in relation to the tranches of legislation that have been flagged, both by the Treasurer and the Prime Minister, to deal with some of the detail of these tax policies well ahead of 1 July 2027, which is when the relevant changes are to come in.

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

Then why did you rush them through?

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

I'll take that interjection from the Leader of the Opposition. I say to her: I know that you don't enjoy the fact that the majority of the parliament was against you when it came to these tax policies, but it is a good thing for certainty to be delivered to the market, and that certainty is— (Time expired)