Angus Taylor

Answer from Tony Burke

The minister stated that excessive cuts to immigration would damage the Australian economy by depriving industries of necessary skills. He noted that sectors such as agriculture, construction, and education rely on overseas workers and international students. While acknowledging the need to temper migration to allow housing supply to catch up, he argued that responsible management requires maintaining sufficient workforce levels for key industries.

Answer from Tony Burke

The minister stated that the government was proud of its generous humanitarian program, noting that the Howard government had also valued such programs. He explained that some budget items are listed as terminating programs but are automatically renewed after four years, arguing that the opposition's suggestion that all terminating programs are intended to be cut was incorrect. He dismissed the premise of the question as a misunderstanding of how budgeting works.

Answer from Tony Burke

The minister addressed the part of the question regarding ruling out cuts, stating that the decision to maintain the intake at 20,000 places was the specific decision being referred to. He confirmed that the government had boosted the humanitarian program to 20,000 places upon taking office and that it remained at that level.

Answer from Anthony Albanese

The Prime Minister stated that negative equity affected less than one per cent of mortgage holders, a significant decrease from levels recorded under the previous government. He highlighted that 8,468 investors signed up to build new homes in the June quarter, representing a record high, with $6 billion in loan value borrowed for these builds. He noted that over 660,000 new homes had been constructed since the government took office, with 244,000 more under construction, the highest number since records began in 1984. Construction cost inflation had fallen from 17 per cent to 3.8 per cent. He cited specific examples of first-home buyers successfully purchasing properties in Victoria, Canberra, and his own electorate, often assisted by the government's five per cent deposit scheme.

Answer from Jim Chalmers

The Treasurer stated that negative equity remains very limited, affecting less than one per cent of borrowers according to the Reserve Bank of Australia. He cited Commonwealth Bank earnings data showing only half a per cent of their book was in negative equity, a figure lower than the same period last year. He contrasted this with April 2019, when the RBA reported that more than two per cent of borrowers had negative equity during the previous government's term. The Treasurer attributed current market conditions to multiple factors, including interest rate increases and global uncertainty, rather than government policy.

Answer from Jim Chalmers

The Treasurer dismissed the opposition's credibility on tax matters, citing their own proposals to increase income taxes. He explained that the budget changes regarding trusts were optional and designed to align tax treatment with ordinary workers while reducing restructuring costs. He noted that Treasury analysis indicated families with discretionary trusts paid lower average tax rates than similar non-trust families, with the majority of trust wealth held by the top 10 per cent of households. He stated that over 95 per cent of individual taxpayers would not be affected and confirmed that Treasury was consulting on the legislation in the usual way.

Answer from Mark Butler

The minister stated that the government would not join the coalition in a price-discounting war with organized crime, arguing that the opposition's policy assumed criminals would not lower prices and failed to consider public health impacts. He cited evidence from Canada where smoking rates among young people increased after tax cuts. He criticized the opposition for not funding enforcement during their time in government and stated that the government's focus was on shutting down illicit stores and taking legal action, rather than lowering taxes.

Answer from Anthony Albanese

The Prime Minister stated that the relevant figures were already published in the federal budget. He clarified that existing negative gearing arrangements for properties acquired before the budget were grandfathered, while new investment properties could still utilise negative gearing and the capital gains tax discount. He highlighted that investor borrowing for new dwellings had reached record levels, with 8,468 investors signing up in the June quarter, representing a loan value of $5.99 billion. He noted that developers acknowledged increased demand for new builds due to the tax settings favouring this sector.

Answer from Tony Burke

The Minister argued that reducing excise would not solve the price differential between legal and illicit cigarettes, as the raw cost of illicit tobacco remains significantly lower. He emphasised that the solution lay in law enforcement through the National Disruption Group, involving the AFP, AUSTRAC, and the Criminal Intelligence Commission. He cited recent operations that seized over 107,000 cigarettes and closed 11 stores, as well as Border Force seizures of over 2 billion illegal cigarettes and 268 tonnes of loose-leaf tobacco. He criticised the opposition for not modelling the impact of their policies on nicotine use.

Answer from Anthony Albanese

The Prime Minister stated that the previous government had more than doubled the debt before the pandemic and left a $78 billion deficit with no surplus projected until 2060-61. He noted that the current government had delivered back-to-back surpluses and reduced debt by $173 billion compared to 2022 election forecasts, saving approximately $70 billion in interest costs. He cited positive assessments from S&P Global and Moody's regarding Australia's fiscal performance and low debt ratios. The Prime Minister also claimed the opposition had pledged over $500 billion without funding.

Answer from Anthony Albanese

The Prime Minister stated he had every confidence in the Minister for Veterans' Affairs. He emphasized the importance of respecting those who serve in the Defence Force and noted that the minister had inherited a system with issues from previous administrations. He did not address the specific allegations of incompetence directly.

Answer from Anthony Albanese

The Prime Minister stated that draft legislation had been out for consultation for weeks, with the process concluding on Friday. He noted that the government had always intended to introduce legislation to address the issue and that the opposition had previously complained about a lack of consultation. He explained that the decision to pass the legislation quickly was made in response to a request, facilitated by the opposition's support for NDIS sustainability reforms. He argued that the previous government had delayed necessary reforms, costing taxpayers money.

Answer from Anthony Albanese

The Prime Minister stated that the National Australia Bank had clarified that its previous statement was not a forecast of rental yields. He emphasized that the budget made no changes to negative gearing or capital gains tax discounts for existing investment properties, which remained grandfathered. He cited Australian Bureau of Statistics data showing investor lending for new builds rose by 27 per cent and construction loans grew by 20 per cent in the June quarter, arguing that the policy was successfully boosting housing supply.

Answer from Anthony Albanese

The Prime Minister cited comments from the Japanese ambassador, who described a recent dinner as relaxed and conducive to building trust. He highlighted the strong relationship with Japan and expressed a desire to continue collaborating on economic and security matters in the region.

Answer from The Prime Minister (Anthony Albanese)

The Prime Minister joined in praising the firefighters and wished them a safe return, noting they did the nation proud.

Answer from Anthony Albanese

The Prime Minister stated that his government had spent four years rebuilding regional relationships, prioritising the national interest. He described the Japanese Prime Minister as a friend and noted constructive dealings with three Japanese leaders. He highlighted that the strategic alignment between Australia and Japan was stronger than ever, citing his visits to Japan and the visit of Japanese leaders to Australia.

Answer from Anthony Albanese

The Prime Minister stated that budget measures aimed to assist young Australians entering the property market. He cited commentary from financial commentator Scott Pape, noting that house prices had risen significantly faster than wages due to previous tax settings. The Prime Minister explained that the reforms removed competition from investors using negative gearing, allowing first-home buyers to compete more fairly. He emphasized that the changes were designed to restore access to home ownership for those without family financial support, describing the previous system as broken and requiring repair.

Answer from Jim Chalmers

The Treasurer dismissed the question as a political stunt, noting contradictory opposition claims about consultation levels. He explained that draft legislation ensures properties owned on budget night or acquired through inheritance or relationship breakdown retain access to negative gearing. He stated that tax reforms are being legislated in stages, with changes taking effect from 1 July next year, allowing time for detailed implementation and consultation.

Answer from Anthony Albanese

The Prime Minister acknowledged cost-of-living pressures but highlighted government actions such as wage increases in aged care and child care, and income tax cuts. He challenged the opposition's stance on interest rates, citing past statements from opposition figures arguing for higher rates. He questioned why the Leader of the Opposition had appointed a shadow treasurer who had previously argued that interest rates were too low.

Answer from Anthony Albanese; Sam Rae

The Prime Minister stated that the premise of the question was incorrect as human oversight already exists, and criticized the opposition for hypocrisy given their past record. The Minister for Aged Care clarified that assessments are conducted by qualified humans and that the government shares the intent of the private senator's bill but fears it would lead to inconsistent decisions and longer wait times. The minister announced a new legislated escalation pathway allowing the department secretary to adjust assessments in extenuating circumstances, with consultations planned during the parliamentary break.

Answer from Anthony Albanese

The Prime Minister stated that the government was delivering real change, including wage increases, tax cuts, expanded paid parental leave to six months with superannuation contributions, and permanent urgent care clinics. He noted that 137 clinics were open and 10 new medicines were added to the PBS. He highlighted that the minimum wage, paid parental leave, and the number of cheaper home batteries installed (450,000 since last July) were all increasing. He also mentioned rising bulk-billing rates and increased first-home buyer activity, contrasting this with the opposition's focus on grievance.

Answer from Anthony Albanese

The Prime Minister stated that housing policy aimed to help first-home buyers, citing examples of people buying homes. He noted that first-home buyer confidence was rising and that they were no longer competing as heavily with investors. He emphasized that the goal was providing a secure roof over heads, contrasting this with the opposition's past housing policies.

Answer from Anthony Albanese

The Prime Minister stated that housing policies aimed to give young people a fair chance by removing taxpayer support for investors competing with first-home buyers. He clarified that people could still invest in negatively geared properties, but first-home buyers would not compete against those with tax deductions.

Answer from Clare O'Neil

The Minister stated that legislation passed the previous week delivered tax cuts for 13 million workers and created a level playing field for first home buyers, aiming to help 75,000 renters purchase homes. She noted that Treasury modelling predicted house prices would continue to grow but at a slower rate, approximately two percentage points less than otherwise, a figure supported by the Commonwealth Bank and the Grattan Institute. The Minister emphasized government support for first home buyers through the five per cent deposit program, Help to Buy, and the new tax reforms.

Answer from Anthony Albanese

The Prime Minister did not directly answer the question about Mick Gatto. Instead, he discussed actions taken after the 2022 election, including expelling John Setka from the Labor Party and excluding the CFMEU from affiliation. He contrasted these actions with the former government's handling of union issues.

Answer from Anthony Albanese

The Prime Minister stated that none of these groups would be negatively impacted by the tax reforms. He contrasted the government's approach with internal disagreements within the opposition, citing comments from shadow ministers about the need for the Liberal Party to rebrand or dissolve. He maintained that the government was determined to make a positive difference for people through long-called-for tax reform.

Answer from Anthony Albanese

The Prime Minister reiterated that no one in these groups would be negatively impacted, dismissing the premise of the question. He criticised the opposition for internal disarray, noting that shadow ministers were calling for the Liberal Party to be dissolved or rebranded. He pointed out inconsistencies in the opposition's stance on tax cuts, stating they had voted against them, then supported them, and now described them as egregious. He concluded that the opposition needed to get its own act together.

Answer from Anthony Albanese

The Prime Minister stated that the government was addressing financial pressures by implementing tax cuts for 14 million taxpayers, increasing the minimum wage, expanding paid parental leave to six months, and making 137 Medicare urgent care clinics permanent. He noted that economic growth and business investment were rising while inflation and unemployment fell, attributing resilience to government action despite global uncertainty caused by the war in Iran and fuel price spikes. He contrasted this with the opposition's record, claiming they had previously opposed these measures and failed to address fuel supply issues.

Answer from Anthony Albanese

The Prime Minister quoted the ASIO director-general's call for mutual respect, tolerance, and a 'fair go' to lower the security temperature. He emphasized that the director-general expressed confidence in Australia's ability to meet challenges and praised the resilience of communities and law enforcement agencies. He rejected the suggestion that anyone in parliament supported terrorism, stating that the rule of law distinguished Australia from authoritarian regimes.

Answer from Anthony Albanese

The Prime Minister stated that inflation had dropped to four per cent, a decrease from 4.2 per cent. He highlighted upcoming tax cuts for all workers, including those on the minimum wage, starting on 1 July. He noted the expansion of paid parental leave to 26 weeks with superannuation contributions. He mentioned that 137 urgent care clinics would become permanent parts of Medicare. He also cited the expansion of endometriosis clinics, $25 billion in hospital funding, and the permanent $20,000 instant asset write-off for small businesses. He reported that 450,000 home batteries had been installed under the Cheaper Home Batteries Program. He concluded by noting the upcoming ban on supermarket price gouging.

Answer from Anthony Albanese

The Prime Minister stated that existing arrangements are grandfathered under the proposals. He argued that the government could not accept a broken housing system and required Senate engagement to pass reforms, noting the opposition's refusal to debate. He highlighted that the legislation provides tax cuts for all workers and opportunities for homeownership, contrasting this with the opposition's promise to repeal such measures on day one.

Answer from Anthony Albanese (Prime Minister)

The Leader of the Opposition withdrew the question before the Prime Minister could respond.

Answer from Anthony Albanese

The Prime Minister stated that the government had foreshadowed Treasury's discussion paper and would continue consulting. He noted that all four existing small business capital gains tax concessions were retained and the turnover threshold for the 50 per cent discount was increased from $2 million to $10 million, covering 98 per cent of active businesses. He highlighted $3.8 billion in budget measures supporting small businesses, including permanently allowing the $20,000 instant asset write-off. The Prime Minister asserted that the government was making the tax system fairer and supporting young Australians.

Answer from Anthony Albanese

The Prime Minister stated that tax cuts were being delivered on 1 July of the current and following year, measures which the Opposition had voted against. He noted that the Opposition had also rejected the Working Australians Tax Offset of $250 and a $1,000 automatic tax deduction. He argued that the Coalition had campaigned on higher taxes, including increases on resources, motorists, and the housing construction sector, alongside plans to abolish programs such as the Cheaper Home Batteries Program and free TAFE. He concluded by criticizing the Opposition's leadership choices.

Answer from Anthony Albanese

The Prime Minister welcomed the visit, noting it reflected deep historical bonds. He announced that negotiations for a new comprehensive treaty based on mutual trust would commence. He highlighted Solomon Islands' participation in the Pacific Policing Initiative and the Prime Minister's upcoming visit to the Pinkenba facility. The Prime Minister emphasized that security must be driven by Pacific nations themselves and mentioned plans to reciprocate the visit in a month.

Answer from Anthony Albanese

The Prime Minister stated the economy expanded by 0.3 per cent during the March quarter and 2.5 per cent annually. He attributed economic pressures to global events, specifically referencing the situation on 28 February, and highlighted improved fuel security compared to regional nations. He noted that the migration rate had fallen by 45 per cent and criticized the opposition for ignoring global economic impacts.

Answer from Anthony Albanese

The Prime Minister rejected the premise, stating Australia was growing faster than most OECD countries. He highlighted a 4.7 per cent minimum wage increase, lifting it above $1,000 a week, and pointed to strong private sector investment. He criticized the opposition for voting against tax cuts and talking down the economy.

Answer from Anthony Albanese

The Prime Minister stated that recent legislation supports homeownership for young people, citing examples of first-home buyers in Bexley, Maribyrnong, and Maroubra. He argued that tax changes rebalance the market to assist these buyers. Additionally, he highlighted two tax cut measures: an automatic $1,000 tax deduction and the working Australians tax offset, asserting that the government supports lower income taxes while the opposition supports higher ones.

Answer from Anthony Albanese

The Prime Minister dismissed the question as nonsensical and criticized the opposition for opposing income tax cuts and real wage increases. He highlighted the 4.75 per cent minimum wage increase and the $12,000 annual increase for minimum wage earners since the government took office. He stated that the government supports higher wages and lower taxes, whereas the opposition consistently votes for higher taxes and lower wages.

Answer from Anthony Albanese

The Prime Minister stated that the legislation introduced by the Treasurer aimed to assist young people in purchasing their first home and to increase housing supply. He explained that the reforms adjusted capital gains tax treatment to ensure income from work was treated more fairly compared to income from assets. The Prime Minister highlighted two additional measures: a $1,000 automatic tax deduction for low- and middle-income earners and further income tax reductions. He noted that the opposition had previously voted against stage 3 tax cuts and other income tax reductions, arguing that their stance contradicted their claims about taxation.

Answer from Anthony Albanese

The Prime Minister rejected the premise of the question as fantasy, citing his recent collaboration with the Western Australian Premier on housing projects under the $47 billion Homes for Australia Plan. He stated that Labor members were proud of the government's commitment to fixing the housing system and delivering income tax cuts funded by these measures. The Prime Minister emphasized the responsibility to deliver real change for future generations, ensuring they could afford to buy homes rather than just inherit them.

Answer from Anthony Albanese

The Prime Minister welcomed the opportunity to discuss the opposition's tax policy, noting that the government was introducing tax reductions the following day. He highlighted that the opposition had previously voted against tax cuts and had lost the election as a result. He listed several opposition policies that would increase taxes or costs, including abolishing production tax credits, the EV concession, the Cheaper Home Batteries Program, and free TAFE. He asserted that the government's policy was to lower income taxes for all workers from 1 July, whereas the opposition's policy would result in higher taxes.

Answer from Anthony Albanese

The Prime Minister stated that existing concessions for small businesses had not changed. He highlighted $312 billion in new budget measures to lower taxes and encourage investment, including keeping the $20,000 instant asset write-off in place permanently, introducing a permanent two-year loss carry-back, and expanding venture capital incentives. He cited support from the Council of Small Business Organisations, the National Farmers' Federation, and the Australian Chamber of Commerce and Industry, noting these groups welcomed the stability and planning opportunities provided by the reforms.

Answer from Anthony Albanese

The Prime Minister reiterated that the budget includes $312 billion in support for small business, including five tax cuts. He listed measures such as the instant asset write-off, loss carry-back, and venture capital incentives, citing support from the Housing Industry Association and Business NSW. He argued that these measures lower taxes and support aspiration for all, contrasting this with the opposition's support for the status quo.

Answer from Anthony Albanese

The Prime Minister stated that the budget decreases taxes for small businesses through $312 billion in measures, citing support from various industry groups. He explained that the capital gains tax changes revert to the 1999 system, taxing real gains rather than nominal gains, which produces fairer outcomes. He emphasized that this shift treats income from assets similarly to income from work.

Answer from Anthony Albanese

The Prime Minister reiterated that the budget reduces taxes for small business through $312 billion in measures. He explained that capital gains tax changes replace one discount with another based on real gains. He noted that consultations with the Council of Small Business are ongoing and that legislation would be introduced on Thursday.

Answer from Anthony Albanese

The Prime Minister highlighted recent visits to housing projects, including the Housing Australia Future Fund site in Rosanna, Melbourne, and developments in Hobart and Perth. He noted that 250,000 first-home buyers had purchased properties using a five per cent deposit. He stated that reforms to negative gearing and capital gains tax were designed to improve housing supply and aspiration for younger Australians. He referenced comments from a former Liberal leader regarding young Australians' frustration with the housing market.

Answer from Anthony Albanese

The Prime Minister stated that the Coalition had campaigned on increasing taxes for all 14 million Australian taxpayers, including higher taxes on resources, motorists, students, and power bills. He noted that the Coalition also proposed abolishing the home batteries program, free TAFE, Build to Rent, Help to Buy, and the Housing Australia Future Fund. He ruled out all the tax increases and policy reversals proposed by the Coalition during the election campaign, asserting that Labor had gone to the election with lower taxes.

Answer from Anthony Albanese

The Prime Minister criticized the Opposition's leadership instability and past performance, noting that they campaigned on opposing tax cuts and reversing policies. He stated that the Coalition had no policy going forward and sought to divide Australians. He argued that Australians want their children to get ahead, which the budget supports, contrasting this with the Opposition's lack of a coherent plan.

Answer from Anthony Albanese

The Prime Minister stated that the government was changing the tax system to assist young people in purchasing their first home. He described this as a policy change necessary to prevent a generation from missing out on homeownership. He cited a former shadow Treasurer who had previously admitted the opposition was timid in addressing challenges faced by younger Australians. The Prime Minister emphasized that the government was acting to support aspiration and housing supply, distinguishing between investing in new homes, which benefits the nation, and negative gearing on existing homes, which primarily benefits investors.