QUESTIONS WITHOUT NOTICE
Dr CHALMERS (Rankin—Treasurer) (14:08): Thanks to the Leader of the Opposition for the question. The changes that we are making are about fairer tax arrangements for capital gains so that the taxes only apply to real gains. Mr Hogan interjecting— The SPEAKER: The Treasurer will pause.
We're not going to have that sort of sledging, Member for Page. It's just not something I want to have in this House, so I'm just going to ask you to withdraw that and we're just going to try and refrain—both sides, everyone's language. We just don't need that.
Mr Hogan: I withdraw. The SPEAKER: I thank the member for Page for being gracious. Dr Chalmers interjecting— The SPEAKER: Treasurer, it's not helpful, when the member for Page is withdrawing something, for you to make that remark either.
Mr Tehan interjecting— The SPEAKER: Well, I didn't hear what he said, but I think, to assist the House, I agree with the manager. The member for Page did the right thing. I'm just going ask the Treasurer to withdraw and then just get back to the question and do the business of the House.
Dr CHALMERS: Thank you, Speaker; I withdraw. Comparing tax rates on real and nominal gains is deliberately disingenuous from those opposite. What they don't understand or don't concede is that there will still be a discount for capital gains, but it will be a fair reflection of inflation rather than the Howard approach, which has distorted investment in our economy for a quarter of a century now.
The exact discount will vary, but history suggests that in many cases it would be in the range of 30 to 50 per cent or even more. The Treasury estimates that under our changes the average tax rate on gross capital gains will increase from 19.3 per cent to 21.4 per cent at the end of the medium term, when the policy will be close to maturity. If you use those reasonable assumptions— The SPEAKER: The Treasurer will pause, and I'll hear from the Leader of the Opposition to make his first point of order.
Mr Taylor: On relevance: to answer the question, he needs to name just one country—only one country— The SPEAKER: Resume your seat. The Treasurer was asked a specific question. It was narrower than the first.
I'm just going to make sure he's being directly relevant. But he is not straying off that. He's not talking about opposition policies.
He's talking about the government's policy. So I'm just going to listen carefully to make sure he's being directly relevant. Dr CHALMERS: So, as I was saying, on reasonable assumptions, at a 5.1 per cent rate of return, S&P/ASX 200, the tax rate is 21.4 per cent, for example.
That is lower than the UK's, at 24 per cent. It's lower than Germany's, 26 to 28 per cent. It's lower than in France, 34 to 35 per cent.
It's lower than Ireland's, 33 per cent. It's lower than in the Netherlands, 36 per cent. It's lower than Denmark's, 42 per cent, and also lower than—not a country—California, which is the tech capital of the world.
We know what's really going on here. Those opposite had the opportunity to vote to make it easier for first home buyers and to cut taxes for workers and they voted against both of those things. Whether it's this right-wing party or that right-wing party or that right wing party, they are all the same.
Whenever they're given the opportunity to vote in the interests of working people, young people or first home buyers, they vote directly against the interests of those Australians, while we are proud to support them.