QUESTIONS WITHOUT NOTICE: TAKE NOTE OF ANSWERS

Senator DAVID POCOCK (Australian Capital Territory—Independent ACT Whip) (15:31): I move: That the Senate take note of the answer given by the Minister for Finance (Senator Gallagher) to a question without notice I asked today relating to the budget. The government has decided to grandfather existing CGT and negative gearing arrangements. I think there's a solid argument for that.

People have made those investments under the current rules. Whether people like that or not, they were the rules, so there's been a determination to honour them. Yes, we need to acknowledge that this is, in a sense, pulling up the ladder.

Future investors won't have the opportunity to buy in the existing market. This is something I really support. I think we've got to start treating housing more as something that we truly want to be accessible and affordable rather than as an investment vehicle.

But they will be able to buy new homes and get the CGT discount and negatively gear. We hear a lot about supply in this place, and rightly so, and that will incentivise that. But, if we are going to grandfather, let's do it properly.

Let's actually ensure that, should someone's spouse die or should they get divorced, it is not treated as the sale of an investment property and that the spouse continues to get that benefit until they do what most reasonable Australians would consider and sell an investment property. So I agree with the intent of this policy. I am just disappointed at how quickly this is being rammed through without due process and actually getting it right.

If the intent is this, then let's actually make sure we deliver on that intent when it comes to ending the overly generous CGT and negative gearing concessions on investment property and when it comes to trusts. If it's about closing the loopholes, let's close the loopholes. Let's absolutely close the loopholes for people who are using trusts to not pay their fair share of tax, who have the opportunity to do that when most Australians simply do not have that opportunity.

But let's not penalise people who aren't rorting the system, such as small businesses who have set up in trusts in good faith because of the advice they got from their accountant. This does go to process, and I'd urge the government to back my amendment tomorrow, which is in line with their intent and will ensure that mostly women aren't missing out due to this oversight.

(Time expired) Question agreed to.