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) (14:05): On the issue of averaging—which was the question that Senator Chandler asked me in the last question— the previous averaging system was removed for integrity reasons on the recommendation of the Howard government's own business tax review in 1999.

Treasury's own analysis, which we know from the advice that was provided at estimates, shows that capital gains are predominantly made by the highest lifetime income earners: 'One-third of all capital gains realised by the top one per cent of lifetime income earners, and more than half of all gains are realised by the highest 10 per cent.' For those on low incomes, I think those who are earning less than $45,000 know that this government over here has sought to reduce the tax being paid—and, indeed, on 1 July, there will be further tax cuts for all Australians.