Question Time AU

Matter of Public Importance

Taxation

Senate · Tuesday 26 August 2025

Official Hansard for this day (APH) · Read this debate on OpenAustralia

At a glance

The debate centred on a motion raised by the Coalition regarding a proposal to tax spare bedrooms in family homes, which emerged from discussions at the Economic Reform Roundtable. Coalition members argued that the government had failed to rule out this tax, citing concerns about increased living costs and attacks on homeownership. Government senators denied that the proposal was under consideration, dismissing the motion as a scare campaign and highlighting their own housing investments and policy reforms. Other speakers criticised both major parties for failing to address the root causes of the housing crisis, such as negative gearing and public housing demolition.

Outcome

The motion was not passed, with 23 senators voting against and 31 voting for.

Summary in reported speech - not a transcript. AI-generated, so check the official record before quoting.

How the debate unfolded

Opened the debate

McGrath moved the motion, arguing that the government's refusal to rule out a spare bedroom tax during question time indicated an intent to implement it. McGrath characterised the proposal as an attack on Australian families and the sanctity of the family home, particularly for those with empty bedrooms after children have left. McGrath asserted that the Economic Reform Roundtable had produced numerous tax proposals without delivering productivity gains, and he challenged other senators to explicitly deny the possibility of such a tax.

Opposition response

Bragg argued that the urgency of the matter stemmed from the government's excessive spending, which had increased GDP share from 24 per cent to 27 per cent. Bragg claimed that new taxes, including the potential bedroom tax, were necessary to fund this expenditure due to the Treasurer's rejection of fiscal rules. Bragg also criticised the expansion of the Home Guarantee Scheme, noting a $62 billion contingent liability, and highlighted other tax increases such as the reinstatement of the 37 cent tax bracket and proposed taxes on unrealised superannuation gains.

Votes during this debate

Division 4: Taxation Not passed 23–31