QUESTIONS WITHOUT NOTICE

Senator WONG (South Australia—Minister for Foreign Affairs and Leader of the Government in the Senate) (14:15): I thank the senator for the question, and I would say to her that we disagree with the suggestion that the tax changes are about not helping the little guy, because, in fact, this is about better aligning the tax treatment of income from assets and income from work and helps fund tax cuts for working people.

I would make the point—I know those opposite may may not wish for these facts to be on the table—that the number of discretionary trusts in this country has doubled over the past 20 years to over 800,000, exceeding the growth in companies. The majority of trust income flows to the top-earning 10 per cent of families. About 90 per cent of total private trust wealth is held by the wealthiest 10 per cent of households.

So let us get the facts here about who is actually utilising trusts. Honourable senators interjecting— Senator WONG: No; people are entitled to arrange their financial affairs as they see fit. But we are also, as a government, entitled to say that, actually, it is fairer to ensure a reasonable taxation of income from assets in order to fund a tax cut for working Australians.

And that is what we are doing. That is what we are doing. I'd also make the point—as Senator Gallagher, I think, has pointed out—that there have been numerous reviews of the tax system which have pointed out the challenges arising out of trust arrangements.

Going back to 1975, there have been multiple reviews recommending reform in the area of trusts, and that is what we are doing.