Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Last year when asked whether or not the Albanese government would reduce the fuel tax credit for off-road use, Senator Watt responded:

I can confirm that this government has no intention whatsoever of getting rid of it. I recognise that the Grattan Institute has made that suggestion, but we have categorically ruled it out, both I and the Prime Minister.

He also said:

… touching the diesel fuel rebate is not on this government's agenda. We are not considering it. We are not working on it.

Minister, can you confirm that this remains the position of the Albanese government on the diesel fuel rebate, and can you emphatically rule out any changes to negative gearing under this government in the same way that your colleague Senator Watt was able to on the diesel fuel rebate?

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

We are in that time of the festival of parliament, the festival of democracy, where we head towards budget and it is the 'rule in, rule out' game on every front. This is where you start generating, whirring up, going to that scare-campaign slot-machine, putting your coins in and rehashing all the campaigns that you love to scare the community with. You can be absolutely guaranteed that all the decisions that we take in the budget will be in the best interests of Australia. We have made it clear the areas where we have been focusing on tax reform—very significant changes that were made to the former tax plan on stage 3, where we have ensured that 100 per cent of taxpayers get a tax cut. That will be in the budget. We have made it clear that we are clamping down on multinationals through tax reform. Those changes are before the Senate. The petroleum resource rent tax: those changes are before the Senate. High-balance super accounts: those changes are before the Senate. That has been the area of focus for us in tax reform. That's a considerable amount of tax reform, I would say, that is before this parliament and that we are dealing with.

The other area of focus for the budget is doing what we can to continue to ease cost-of-living pressures for Australians and their households. Of course the tax cuts will go part of the way to supporting that. That will be a significant part of the budget. We have announced that we are doing super on PPL; again, that's a significant change and a significant investment but one that we think is important. There'll be significant investments in Defence. And I think I have outlined those areas where we have focused our energy on tax reform. So I would say to Senator Smith, I know what this is all about: the 'rule in, rule out' game. I have been clear about the areas of focus for us on tax reform. They are either before the parliament or have passed the parliament.

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

Senator Dean Smith, first supplementary.

Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

Minister, can you provide a clear assurance that your government will not seek to make changes to the capital gains tax in the upcoming budget?

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

I think the Treasurer has already done that. He has made it clear that that area you raise is not in the areas of focus for the government. Our focus has been on getting wages moving, making sure that people earn more and then, through our tax changes, that they are able to keep more of what they earn. We are continuing to support the energy transition and how that occurs across the economy. Then there is the work we're doing in aged care, the work we're doing in health care and the work we're doing in early childhood education. They are all key areas of focus. Rebuilding and reinvesting in Medicare is another key area of focus for this government. All of our effort is going into managing the economic circumstances of the time, making sure we're not adding to the inflation challenge, so that we continue to see inflation moderate and so that where we can find room in the budget we are paying down debt. Our interest bill is enormous; we are managing that and making sensible investments where we can to make a difference to the lives of Australian people.

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

Senator Dean Smith, a second supplementary?

Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

Minister, after ruling out changes to superannuation, you doubled the tax on super for Australian retirees. After ruling out changes to franking credits, your first budget included increased taxes on franking credits. After ruling out changes to stage 3 tax cuts, you broke your promise. How can you seriously believe Australians would trust a word that you'd say about taxes or any other policy matter?

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

The Australian people trust governments that front up and explain the decisions they're taking. Where we did change our position on stage 3—which I should say is actually your policy now, Senator Smith, as you voted to support it—you front up and explain what has led to this change and why the circumstances have meant that you have decided on this change, and you be upfront about it. Certainly, in all of the discussions we have, whether with stakeholders or with constituents across our communities, that is the approach the government has taken.

I can tell you: when we are looking at our budget and putting together our budget, we're repairing the damage that we inherited. We're paying down debt. We've delivered the first surplus in 15 years. We're making room for important investments—investments that were overlooked for a decade, including on the energy transition and the concept that it even needs to happen that you opposite are still struggling with. We're doing all of those things.