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

I am surprised that those opposite have decided to oppose this modest increase or reduction in tax concessions—a modest $2 billion. I know you'd like to flag it as something other than what it is, but the 0.5 per cent of Australians who are fortunate enough to have balances over $3 million will pay a still concessional rate of tax, at 30 per cent, on their earnings in a year, and it will raise $2 billion when fully operational in three years time, after we've had another election.

On the question—thank you, Senator Scarr, for shouting across the chamber—the simplest and least-cost approach is to apply the tax on the growth of an individual's balance over the year. This approach, recommended by Treasury, includes assessing unrealised capital gains. It applies prospectively. Alternative approaches would be very costly for super funds, which would come at the expense of all members, not just those with high balances. Trustees already calculate the value of their fund each year and submit it to the tax office, which will enable the ATO to determine liability. We believe this approach strikes the right balance between simplicity and ensuring that the tax can be applied across the system to improve the sustainability of this system.

This is what's different between when you were in government and now, when we are in government as the responsible economic and fiscal managers of this budget. You went after robodebt. You went after people with nothing. You went after people who didn't even owe you money. That's what you did. That was the approach. You knew it was illegal. You went after them, and they didn't even owe you money. This is a modest change to the 0.5 per cent of Australians who have a high $3 million— (Time expired)