QUESTIONS WITHOUT NOTICE

Senator WONG (South Australia—Minister for Foreign Affairs and Leader of the Government in the Senate) (14:45): As I indicated to your colleagues in earlier questions, first, farm income is exempted. That's the first point. I know that Senator McKenzie wants to sigh loudly, but that is the reality.

Secondly, the majority of small businesses—about 90 per cent—will not be affected in any given year. I would also make the point that I made in an earlier answer that the number of trusts has more than doubled in the last 20 years. The majority of trust income flows to the top earning 10 per cent of families.

Senator WONG: As I said, more than 90 per cent of small businesses are not affected in any given year. I appreciate your focus on the 10 per cent that are; you're entitled to focus on that, just as the government is entitled to ensure that we bring reforms that better align the treatment of income from assets with the treatment of income from labour and provide a wage a tax break— Senator WONG: In terms of those who are affected, about 95 per cent of tax filers do not receive discretionary trust distributions; five per cent do.

It is about 810,000 people, I think, in 2022-23. On average, families with discretionary trusts in that year face an average tax rate about four percentage points lower compared with similar families. What I would say to you, Senator, is that I'm sure you can, through estimates, unpack where the revenue is coming from.

I would make the point that this change does not start till 2028. Let's remember that they are arguing for the 10 per cent; we are arguing for the 90 per cent. That is the truth of this discussion.

They are arguing for the 10 per cent, and we are ensuring that, by doing this, we deliver a tax cut for Australians everywhere. (Time expired)