Senate debates
Tuesday, 6 February 2024
Questions without Notice
Taxation
2:00 pm
Simon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source
My question is to the minister representing the Prime Minister, Senator Wong. Minister, rather than using the weasel words we've become so accustomed to from Labor ministers of, 'We have no plans,' which the Australian public now know will precipitate yet another Labor broken promise, can you, and will the Prime Minister, categorically rule out any change or changes that limit the use of negative gearing or franking credits by Australians?
Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source
It says something that the opposition is so interested in talking about what the government is not doing, because, of course, they can't talk about what the government is doing because that particular negative campaign has fallen flat, hasn't it, President? The reality is: those opposite are desperate to find another front because, after a lot of huffing and puffing, they're now backing Prime Minister Anthony Albanese's tax plan. That is what they are doing, so they're desperate now to talk about what we are not doing instead of what we are doing. We have made our position on those which—
Simon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source
Australians are scared about what you might do!
Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source
Which promise might you break?
Opposition senators interjecting—
Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source
We are reforming the income tax system and providing income tax relief to Australians who are doing it tough. That's what we are doing; that is our focus. We are not looking at other changes in the tax system; we are looking at the changes in the income tax system. The reason we are doing that is Labor MPs, Labor senators and ministers, have understood how important it is for us to respond to cost-of-living pressures.
Opposition senators interjecting—
I know you don't want to talk about cost-of-living pressures—
Sue Lines (President) Share this | Link to this | Hansard source
Order! I have Senator Birmingham on his feet.
Simon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source
A matter of direct relevance: the question did not mention income tax. The question invited the minister, very clearly, to address community concerns on negative gearing and franking credits. The minister has not come near either of those two specific topics raised in the question. I ask you to draw her to the question.
Sue Lines (President) Share this | Link to this | Hansard source
Minister Wong, I will withdraw you—I'll draw you to Senator Birmingham's question.
Simon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source
Can you do that too? Withdrawing the call is an option!
Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source
Well, I hope not! That'd be interesting; I would have to accept it. We are not proposing any other changes in the areas that the senator has outlined. I again say to anybody listening: understand what is happening here. Those opposite have backed Anthony Albanese's tax plan. That's what they've done, and now they're trying to distract from it with another scare campaign. (Time expired)
Sue Lines (President) Share this | Link to this | Hansard source
Senator Birmingham, first supplementary?
2:03 pm
Simon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source
I note the continuation of the words Australians now know mean a backflip like 'not proposing any other changes at this stage' continue. Ministers, including the Prime Minister, have previously refused to explicitly rule out changing the taxation treatment of the family home. Will the minister and the Prime Minister categorically rule out applying capital gains tax or any other tax to the family home, or do the weasel words apply there too?
2:04 pm
Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source
Here we go again: another day, another of Dutton's attempted scare campaigns. No, we are not proposing those tax changes either. The reality is everybody knows that the—
Do you know what is embarrassing? You're backing Albo. That's what's embarrassing for you. That's what you can't bear, Senator McKenzie, isn't it? After all that huffing and puffing, you've realised, 'Actually, Anthony Albanese got it right.' That's what you've realised. Now you've come in here and you've gone, 'Oh my goodness. We'd better come up with another scare campaign so that hopefully people won't notice that we're backing the Prime Minister.' You're backing a Labor prime minister's plan because you know he did it right. You know he got it right. So now you've got to try and find something else to fight about.
Sue Lines (President) Share this | Link to this | Hansard source
When you've finished, Senator Cash, Senator Birmingham's on his feet.
Simon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source
Again, on direct relevance, could Minister Wong at least utter the words 'family home' in her answer?
Honourable senators interjecting—
Sue Lines (President) Share this | Link to this | Hansard source
Order! The minister was being relevant. Minister, did you wish to finish?
Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source
We are not proposing any changes of the type you were describing. But I want to say again, everybody, I am so pleased that the opposition has finally understood that Prime Minister Anthony Albanese has got it right.
Sue Lines (President) Share this | Link to this | Hansard source
Order! I've had to call the chamber to order a number of times, particularly on my left. I've named senators, I've called you to order and you've ignored me. I expect you to respect my calls. Senator Birmingham, second supplementary?
2:06 pm
Simon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source
After the Prime Minister broke his promise made on more than a hundred occasions to not change stage 3 tax cuts and broke his promise to not change superannuation tax arrangements, how can Australians believe a word of this minister or the Prime Minister when all they come out with are the weasel words 'we have no plans' or 'we are not proposing any changes at this time', when every time they've said that they go and break the promise afterwards?
Carol Brown (Tasmania, Australian Labor Party, Assistant Minister for Infrastructure and Transport) Share this | Link to this | Hansard source
No cuts to the ABC, no cuts to the SBS!
Sue Lines (President) Share this | Link to this | Hansard source
I'm waiting to call Senator Wong. Senator Brown!
Carol Brown (Tasmania, Australian Labor Party, Assistant Minister for Infrastructure and Transport) Share this | Link to this | Hansard source
All coming back to you.
Sue Lines (President) Share this | Link to this | Hansard source
Senator Brown! I should not have had to call you twice. Minister Wong.
Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source
If the opposition really believed that the Prime Minister's decision was so wrong, then they would vote against these tax cuts. They would vote against them and they would go to the next election with their deputy leader's policy of rolling back these changes—because, as soon as they vote for this, what we know is that they are agreeing that Prime Minister Anthony Albanese did the right thing by Australian workers.
2:07 pm
Raff Ciccone (Victoria, Australian Labor Party) Share this | Link to this | Hansard source
Hello, everyone. Happy New Year. Thank you very much, President, and it's good to be back. My question is to the Minister representing the Prime Minister, Senator Wong. Minister, the Albanese government recently announced that it will deliver tax cuts for every single Australian taxpayer. That's nearly 14 million people. Can the minister please explain to the Senate how federal Labor will deliver a bigger tax cut for middle Australia, which will help the cost of living and build on our targeted relief while also not adding to inflation?
2:08 pm
Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source
I thank Senator Ciccone for the question and I also welcome him back and take the opportunity, again, to congratulate him and Sarah on the beautiful Amato, who we had the pleasure of meeting yesterday, although he was asleep.
The Albanese government is delivering a tax cut for every Australian taxpayer. Our No. 1 priority is addressing inflation and cost-of-living pressures, and that is exactly what we are doing. These are tax cuts which help with the cost of living while making Australia's tax system fairer. And, just like the other measures that the government have introduced to assist people with the cost of living, our tax cuts won't add to inflation. Treasury's advice is very clear on that. We on this side have listened to the community and we have listened to Treasury, and this plan is the result.
Labor is delivering fair and responsible tax cuts for all 13.6 million taxpayers. Senator Ruston may make funny noises over there about that, but having everybody get a tax cut, we reckon, isn't bad. Do you know what? Eleven-point-five million people will get a bigger tax cut—84 per cent of Australian taxpayers. This change means that taxpayers earning less than $45,000 will now receive a tax cut. An average worker on 73 grand will receive a tax cut of more than $1,500, and a person earning $100,000 will get a tax cut of nearly $2,200.
You see, we on this side are doing the right thing for the right reasons: more help for families, more help for communities under pressure from the cost of living, and a better deal for 5.8 million working women. Five point eight million working women will be better off as a result of the decisions of this government.
Sue Lines (President) Share this | Link to this | Hansard source
Senator Ciccone, a first supplementary?
2:10 pm
Raff Ciccone (Victoria, Australian Labor Party) Share this | Link to this | Hansard source
Minister, can you please also confirm that every Australian taxpayer, which does include our scientists, tradies, nurses, researchers, teachers, engineers, firefighters, hospitality workers, retail assistants and every other hardworking taxpayer in this country, will get a tax cut under the Albanese government's plan?
Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source
Under this plan every single taxpayer gets a tax cut, no matter what they earn.
I know that's hard for you, but that's what's going to happen. From pilots and police to tradies, couriers and counsellors, every hardworking taxpayer will get a tax cut. Ninety per cent of Australian working women will get a bigger tax cut. Ninety-seven per cent of childcare workers, disability carers and aged-care workers will get a bigger tax cut. Ninety-eight per cent of teachers will get a bigger tax cut. It's crystal clear that every taxpayer needs and deserves a meaningful tax cut. The fact is that wouldn't have happened under Scott Morrison's plan, but, under Prime Minister Anthony Albanese's plan, it will happen now. Labor wants people to earn more and to keep more of what they earn, and that is what this delivers.
Sue Lines (President) Share this | Link to this | Hansard source
Senator Ciccone, a second supplementary?
2:11 pm
Raff Ciccone (Victoria, Australian Labor Party) Share this | Link to this | Hansard source
I thank the minister for that response. Could the minister please also explain to the Senate what the response has been not just from the public at large but also from experts to the government's plan to deliver the tax cuts to every single taxpayer?
Sue Lines (President) Share this | Link to this | Hansard source
Before I call you, Senator Wong, I remind you to refer to people in the other place by their correct titles.
2:12 pm
Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source
Prime Minister?
Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source
Sorry. Mr Morrison.
With a plan that delivers a tax cut for every Australian taxpayer—that's nearly 14 million Australians—it's no surprise it has been widely welcomed by the public, by experts and by economists. Unfortunately, those opposite seem to be very begrudgingly voting for it, realising belatedly that it is the right plan.
I would remind people that, when we first announced this plan to give every Australian taxpayer a tax cut, Deputy Leader of the Opposition Sussan Ley said they will 'absolutely roll these changes back'. Absolutely! What's happened to that? What happened to absolutely rolling them back? If you absolutely believe this is absolutely the wrong thing to do, then you would absolutely vote against it and absolutely go to the election to absolutely roll them back. You know this is the right plan. You know this is the right thing to do.
2:13 pm
Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source
My question is to the Minister representing the Treasurer, Senator Gallagher. On 11 December last year, Treasury was instructed to undertake work that included changes to the stage 3 tax cuts. Following that instruction, the Prime Minister and the Treasurer stated at least a dozen times that they hadn't changed their position on the stage 3 tax cuts, including when the Prime Minister said, 'We're not reconsidering that position.' But we know now that the government was lying. After repeated—
Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source
Madam President, I am conscious—
Sue Lines (President) Share this | Link to this | Hansard source
Senator Hume, you're not in a debate with me. I've asked you to withdraw. That's what I want you to do.
Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source
Madam President, I would say I'm not impugning a particular member of the government, but the government was lying.
Sue Lines (President) Share this | Link to this | Hansard source
Senator Hume, I have just instructed you (1) to withdraw; and (2) not to argue with me. Please follow my directions.
Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source
I won't argue with you, Madam President, other than to say that perhaps we could look at the standing orders about this sort of phrase about a collective.
Government senators interjecting—
Sue Lines (President) Share this | Link to this | Hansard source
Order on my right! I am in charge of the chamber, and I will deal with this matter.
Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source
I will obviously withdraw, but I would like you to review the standing orders on referring to a collective as opposed to individuals.
Sue Lines (President) Share this | Link to this | Hansard source
Senator Hume, the implication is quite clear.
Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source
The implication was that the government was lying.
Sue Lines (President) Share this | Link to this | Hansard source
Senator Hume! Senator Wong, please resume your seat. Senator Hume, please resume your seat.
I've asked you to resume your seat. Senators, whilst I acknowledge there has been a lot of debate in the media and certain words used, the Senate chamber has standing orders and precedents, and one of those relates to the word that I asked you to withdraw. I don't intend to go through question time reminding every senator who stands to ask a question, or, indeed, any senator who responds, to withdraw. I've made a ruling on that. It's within the standing orders. It's within the precedents. When I ask you to withdraw, it's not an open invitation to debate with me. I note you have withdrawn. Please continue with your question.
Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source
After repeatedly and egregiously misleading the Australian people, how can the Australian people ever trust you or your government again?
2:15 pm
Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source
Thank you for the question. The answer to that question is the Australian people can always trust this government to focus on cost of living.
Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source
As much as that hurts them over there, they know—
Sue Lines (President) Share this | Link to this | Hansard source
Minister Gallagher, please resume your seat. Order on my left! Minister Gallagher, please continue.
Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source
The Australian people can always trust this government to make the right decisions for the right reason, to front up and own those decisions, to explain those decisions and to focus on their needs. Your leader was out over the summer stoking division and calling for Woolworths to be boycotted—remember that?—and threatening the jobs of 200,000 Australians. While he was wandering around doing that, we were focused on the things that matter to the Australian people: how do we provide them with cost-of-living relief, when they need it, as soon as we can? When we took that decision, we fronted up, we owned it, we explained it, and we will continue to do so.
We took that decision for the right reasons. It wasn't, as some might have said, that we went in with our eyes open that this was changing our position. It wasn't an easy decision. We looked at it carefully but it became increasingly clear that this was a real way we could make a difference, with 11½ million Australians getting a bigger tax cut and every Australian taxpayer getting a tax cut—and you are backing it. You accept that it is the right policy for the right time. It's distracted you from having to follow the scare campaigns and the politics of division because you're having to back in something that is right. This is the right policy for the right economic circumstances. It will make a difference in household budgets, and we back it absolutely.
2:18 pm
Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source
It's terrific to hear, Minister, that you owned it. When asked repeatedly on the Today program last week to rule out changes to negative gearing, you said, 'It's not my government; it's the Albanese government', and, 'We have no plans on negative gearing.' Minister, are you trying to say, as the Treasurer did on Monday, that this was in fact a captain's call by the Prime Minister and nothing to do with you?
Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source
There was a lot of preamble there. I am standing here and I am taking responsibility. I am the finance minister. I was involved in the decisions. I did work over the summer with the Treasurer and the Prime Minister, laser focused on providing cost-of-living relief to Australian households. That's what matters. That's the work we did over summer while you were preparing for Nemesis and all your little slots on that, and Peter Dutton was out working out a way to lose 200,000 jobs at Woolworths. We were working on making sure that middle- and low-income households got a fair share of the tax cuts. That is the proposal that, whilst you have slithered and awkwardly moved around it, you are now backing and you accept is the right policy.
Sue Lines (President) Share this | Link to this | Hansard source
Minister Gallagher, I do remind you to refer to those in the other place by their correct titles. Senator Hume, second supplementary?
2:19 pm
Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source
Minister, aren't you embarrassed that no Australian will ever trust anything that you or your colleagues say ever again?
Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source
The feedback I've had on the decision the government's taken has been overwhelmingly positive. They have appreciated the fact that the government is making decisions in the national interest based on the economic circumstances of the time. They're not interested in the silly games and the politics of division that you love, that you are addicted to, that you can't get off. They want a government to front up and to make decisions—sometimes hard decisions, and this is and was a hard decision. We knew it was changing our position. That's why the Prime Minister went to the Press Club and spoke about it. We've done interview after interview explaining our position. You said you opposed it, you were going to reverse it, you were absolutely going to roll it back. Now you've decided to back it. Anthony Albanese's tax plan is supported by the Liberal and National parties of Australia.