MATTERS OF PUBLIC IMPORTANCE

Senator DOLEGA (Tasmania) (16:04): Before I start on Senator Scarr's motion, I might address Senator Bell's claims when he was smugly talking about their funded campaign. I heard another good slogan just on the weekend and I reckon people should get behind it. I heard about 'sack the orange hack'.

I reckon that's what most average Australians are wanting to do right now. But back to Senator Scarr's matter of importance—it really is just an act of desperation from the coalition, a desperate stunt to distract from their many issues. To be frank, they are really just trying to hide from their leadership issues, with Mr Taylor failing to be able to explain whether the coalition supports multiculturalism.

And there's their failing shadow treasurer, who isn't up to the job and who many say isn't even close to being able to take on Jim Chalmers. They're lost in their desperate plight to fend off the orange mob over there as they continue to stop their rise. Our current taxation system is a significant driver of intergenerational inequality.

Instead of rewarding productive work, it rewards holding assets, something that many hardworking Australians simply cannot afford to do. They've never had an opportunity to even get into a house to call their own. You know something isn't right when our essential workers, our hardworking Australians, are struggling to pay rent, let alone buy a home.

That's why we're reforming the tax system—for workers, for businesses and for future generations. Our reforms will build a better and fairer tax system by reducing the tax burden for over 13 million workers, supporting 75,000 more homeowners into the housing market, delivering over $3.8 billion in new measures that lower taxes for businesses and startups, and reducing compliance costs by $540 million a year.

We've been clear that these are complex interactions and that details are still being worked through, as the Treasurer and the Minister for Finance have both indicated. This includes addressing some of the arrangements for jointly owned assets in circumstances like death and divorce. So what's the point of this MPI when it has clearly been put on the record in the past week that there'll be further tweaks to the taxation measures?

Today in question time in the other place, in another fantastic, great move—in another 'Well done, Angus' moment—the PM absolutely owned him. He hosed down the misinformation and assured the opposition that the answer is that they won't. We've made it very clear, said the Prime Minister in response to Mr Taylor's question.

Since the introduction of the 50 per cent CGT discount, housing prices have risen twice as fast as inflation and average full-time earnings. That's not sustainable, and that's what our government is working to fix. From 1 July next year, we'll be abolishing the discount on gains, returning it to the cost base indexation and the 30 per cent minimum tax rate.

That means only real gains will be subject to tax in the future. Additionally, anyone who bought a property after budget night will only be able to negatively gear new builds. On this side of the chamber, we're focused on outcomes.

We're focused on delivering for working people, for those who need support. Meanwhile, the Liberals, the Nationals and One Nation, the three right-wing parties on the other side, are out there spreading misinformation and trying to scare people about the budget. Misinformation that all small businesses will be taxed at 47 per cent is simply that: misinformation.

I cannot emphasise the point enough that most small businesses in Australia won't be negatively affected by these changes. Many may even be better off. Let me be very clear: the overwhelming majority of businesses are already eligible for generous CGT concessions.

What we've done, through our consultation process, is to make these concessions even more so. Labor is the party of small business. From this week, a small business will be able to carry back tax losses and offset them against tax paid up to two years earlier.

So, from 1 July 2028, startup companies and businesses with a turnover under $10 million and that generate a tax loss in the first two years will be able to convert that loss into a refundable tax offset. That's why I'm proud to be part of this great Albanese Labor government—because we're focused on doing the right thing. We don't have to do the easy thing; we are focused on doing the right thing, to deliver for those people who expect it of their Labor government and who need us to do that.