QUESTIONS WITHOUT NOTICE

Senator GALLAGHER (Australian Capital Territory—Minister for Finance, Minister for the Public Service, Minister for Women, Minister for Government Services and Manager of Government Business in the Senate) (14:37): I thank Senator Pocock for the question. As Senator Pocock knows, we are making these changes to make the system overall fairer and simpler and to better align the tax paid on assets with the tax paid on income, to make it fairer.

That is the overarching aim of that element of the— Senator Cash: Death and divorce— Senator GALLAGHER: Yes. I'll get to it, Senator Cash. Thank you, I don't need your help.

I have one minute. The grandfathering arrangements in relation to shared ownership are consistent with the existing arrangements in the tax system around the acquisition of assets. Wherever possible, we've aligned the arrangements in the core legislation with the existing system so that new laws operate effectively and consistently with established administration of the tax system.

The grandfathering rules we have put in place are reasonable arrangements that mean what you owned at budget night can continue to be negatively geared in the future, but anything bought, sold or acquired after that date is treated under the new rules. There are often, as we all know—when we get through the committee—complex interactions and details which, as we've said, we will work through in the usual way.

The PRESIDENT: Senator Pocock, first supplementary?