Andrew Leigh (Fraser, Australian Labor Party, Shadow Assistant Treasurer) Share this | Hansard source

Thank you for your wise guidance, Deputy Speaker. Labor's policy ensures that, for investments other than in new housing stock, the capital gains tax discount is reduced. Deductions will still apply for investment streams so that investment deductions can be made against investment income.

We are still failing to get from this government the sorts of assurances that they are providing to the people of Norfolk Island. They are saying to the people of Norfolk Island that capital gains tax will not be applied retrospectively, but they are failing to say to the Australian people that their mooted changes on negative gearing will not be applied retrospectively. Having dealt properly with the issue of capital gains tax for Norfolk Island residents, it is important that other Australians be given that assurance from this government—that any changes to negative gearing will not be retrospective. We waited in question time, yesterday, for such an assurance from the Prime Minister and it never came. The Prime Minister has been unwilling to rule out retrospective changes to negative gearing.

Bringing Norfolk Islanders into the mainland tax system is an important reform and a progressive reform at that. I acknowledge the work of the bipartisan committee which recommended this change. But it is important that, as Norfolk Islanders are brought into Medicare, the Medicare system remains strong. It is important that, as public servants work on the island in order to expand access to Medicare, we have a government that respects the hard work of public servants.

Norfolk Islanders will have access to the age pension as a result of the package that passed this parliament last year and it is vital that that the pension is protected against cuts from this ideological government. It is absolutely vital that Norfolk Islanders are protected against the cuts to the social safety net that are still on the table—that $80 billion ripped from health and education now looks to be increased by further cuts. My colleague the member for Jagajaga has been a fierce defender of Australia's social safety net, not just for mainlanders but now for Norfolk Islanders as well. Norfolk Island is, for the purpose of service provision, a part of New South Wales so that means that cuts to schools funding in New South Wales will affect Norfolk Island as well. Needs based school funding is vital for Australians and vital for Norfolk Islanders.

The changes in this bill are welcome changes. They are absolutely sensible ones. But we on this side of the House cannot help noting the irony of proposing capital gains tax changes that ensure that Norfolk Islanders are not given retrospective treatment while failing to give other Australians the assurance that they will not suffer retrospective changes under this government.

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