Tim Wilson

Answer from Jim Chalmers

The Treasurer defended the productivity assumption of 1.2 per cent, stating it was based on Treasury advice and consistent with international forecasts from the UK, US, and New Zealand. He argued that the previous government had kept assumptions artificially high at 1.5 per cent despite weak growth. He highlighted the budget's broad productivity agenda, including faster approvals and foreign investment reform, as measures to address long-term structural challenges.

Answer from Jim Chalmers

The Treasurer stated that he took his colleagues and economic challenges seriously, noting that the specific matters raised had not come up in a recent briefing on the Intergenerational report. He highlighted the government's focus on inflation, productivity, and global volatility, citing the impact of the war in Iran on borrowing costs. He pointed to the government's productivity package, tax reform, and responsible budget management as evidence of serious engagement with economic risks.

Answer from Anthony Albanese

The Prime Minister acknowledged that Australians faced cost-of-living pressures due to global events including the pandemic, conflicts in Europe and the Middle East, and oil shocks. He stated the government was taking action to provide relief and strengthen the economy against future shocks. He highlighted that all workers received tax cuts, one of five forms of tax relief implemented during the government's term, contrasting this with the opposition's previous stance on reversing such measures.

Answer from Jim Chalmers

The Treasurer argued that the current debt trajectory was $200 billion lower than inherited levels, with over 60 per cent of existing debt accumulated during the previous nine years of Coalition government. He attributed the rise in global bond yields to the escalation of conflict in Iran and broader global economic uncertainty, noting that markets in all major advanced economies were pricing in rate increases. He stated that the government's fiscal management had resulted in surpluses and revenue upward revisions, contrasting this with the opposition's unfunded commitments.

Answer from Clare O'Neil

The minister stated that the government had implemented the largest housing agenda since the postwar period, focusing on building more homes, assisting renters, and promoting homeownership. She claimed supply measures would result in an additional 400,000 homes, including 55,000 social and affordable homes, contrasting this with the previous government's record of building only 373 homes in nine years. The minister highlighted that Commonwealth rent assistance had been raised twice above legislated increases and noted that 270,000 first-home buyers had accessed the five per cent deposit scheme. She argued that recent tax changes would reverse the decline in homeownership rates.

Answer from Clare O'Neil

The Minister confirmed that house prices were softening, noting this was the fourth such occurrence in a decade. She cited the federal budget fact sheet, which stated Treasury modelling predicted a small, temporary slowing in price growth, estimated at around two per cent less over a couple of years compared to no policy change. She argued this would lead to 75,000 more people owning their homes in the coming ten years. She contextualised current trends by noting house prices had grown by 400 per cent over the previous 25 years and almost doubled in Sydney during the previous nine years of Coalition government.

Answer from Jim Chalmers

The Treasurer stated that Australia's debt ratios were low compared to peer nations, citing reaffirmations of the AAA credit rating by Moody's and S&P Global. He argued that most of the current gross debt was accumulated between 2013 and 2022 by the previous government. He noted that gross debt was $200 billion lower than the inherited trajectory, resulting in $7 billion less interest paid this year compared to the previous budget. The Treasurer claimed the opposition's policies would have led to higher debt and deficits.

Answer from Clare O'Neil

The Minister referred to the Prime Minister's clarification regarding the National Australia Bank's statement. She stated that Treasury advice indicated a negligible impact on rents because existing landlords were grandfathered. She highlighted that the government had lifted Commonwealth Rent Assistance by 50 per cent, negotiated improved rental standards, and aimed to help 75,000 renters enter homeownership. She quoted an advocacy group stating that investor tax breaks had fueled the housing crisis.

Answer from Clare O'Neil

The minister stated that there had been more first home buyers each year under the current government than under any previous administration. She highlighted that the five per cent deposit program had assisted 260,000 Australians and that recent tax reforms would help 75,000 rental households purchase their first home. She argued that first home buyers were now on a level playing field at auctions, citing recent sales in Footscray and Wills as evidence of increased activity.

Answer from Anthony Albanese

The Prime Minister listed government measures including tax cuts, increased bulk-billing to 84 per cent, 800,000 free TAFE enrolments, wage justice for educators, and gig worker protections. He mentioned cheaper medicines and the new Fair Work Court. He contrasted this with the opposition's past policies, citing a report by the current Leader of the Opposition that suggested offshoring aluminium production to China.

Answer from Clare O'Neil

The Minister directed the member to the budget documents, specifically page 5 of the factsheet on capital gains tax and negative gearing. She quoted Treasury modelling indicating that reforms would increase the owner-occupier share of the market by around 75,000 over the next decade, reversing ten years of decline in home ownership rates. The Minister stated that the reduction in investor demand was expected to cause a small, temporary slowing in house price growth, estimated at around two per cent less over a couple of years compared to no policy change.

Answer from Clare O'Neil

The Minister rejected the premise of the question as a misrepresentation of her previous statements. She reiterated that the housing market had favored investors for 25 years, causing a 400 per cent price increase and falling homeownership rates for young people. She argued that the government aimed to create a fairer market for first-home buyers and noted inconsistencies in the opposition's position, citing their shadow spokesperson's desire for price declines.

Answer from Jim Chalmers

The Treasurer stated that inflation had fallen for the second consecutive month. He noted that the Shadow Treasurer had acknowledged on social media that the war in the Middle East was worsening inflationary pressures. He argued that the Shadow Treasurer inadvertently credited the budget settings for the substantial drop in inflation. He warned that the opposition's $110 billion in unfunded commitments would lead to higher inflation and interest rates. He criticized the Opposition Leader for trying to outdo One Nation on policy.

Answer from Jim Chalmers

The Treasurer explained that the amendment reduces risk to retirement savings and secures passage of fairer tax reforms. He cited the Murray inquiry, which found direct borrowing by super funds inconsistent with retirement savings objectives. He clarified that the change extends the ban on borrowing but grandfathers existing arrangements with a 45-day transition period. Regarding trust, he pointed to falling petrol prices across major cities since March, contradicting the Shadow Treasurer's claims that prices were not falling.

Answer from Jim Chalmers

The Treasurer clarified that a discount for capital gains would remain, reflecting real gains rather than an arbitrary figure. He stated that 98 per cent of all active businesses would access concessions and carve-outs, with 100 per cent of active small businesses accessing the higher turnover threshold. He criticized the shadow treasurer for running a scare campaign against changes he had previously called for. The Treasurer asserted that the opposition voted against measures to help first home buyers and workers.

Answer from Anthony Albanese

The Prime Minister stated that legislation to lower taxes had just passed the House, which the Opposition had voted against. He noted that the member for Goldstein was absent during the vote but that other Opposition members rejected the tax cuts effective from 1 July of the current and following year, as well as the Working Australians Tax Offset and the $1,000 automatic deduction. He criticized the Shadow Treasurer for arguing for higher taxes and deficits during the last election.

Answer from Jim Chalmers

The Treasurer disputed the opposition's productivity figures, noting they included data from before the government took office. He argued that the previous government's policies locked young people out of housing and that the current budget focused on productivity challenges. He stated that leaving the tax system unchanged was not a solution to long-standing productivity issues.

Answer from Jim Chalmers

The Treasurer criticized the opposition for voting against tax cuts for 13 million workers. He stated that the government would vote to return bracket creep through tax cuts, while the opposition would vote to keep it. He noted that the government has returned bracket creep five times using three mechanisms, with another tax cut effective from 1 July. He asserted that the government supports tax cuts while the opposition supports higher taxes.

Answer from Anthony Albanese

The Prime Minister cited the 1999 Ralph Review, commissioned by the Coalition government, which stated that averaging provisions allowed asset holders to reduce capital gains tax to near zero while others paid full marginal rates. He noted that the Howard government had removed these provisions due to inequity and criticized the current opposition for moving further to the right than the previous Coalition government.

Answer from Anthony Albanese

The Prime Minister did not directly answer the question but cited comments from the Institute of Public Accountants stating that over 90 per cent of small-business owners would qualify for CGT concessions. He also quoted Nash Advisory, which said the preservation of small business CGT concessions was the most important detail for business owners considering a sale. He began to quote Daniel Petre, co-founder of Airtree Ventures, but was interrupted by opposition interjections.

Answer from Anthony Albanese

The Prime Minister resumed his previous answer, quoting Daniel Petre of Airtree Ventures, who dismissed claims that founders would move overseas due to tax changes. He also quoted Jevon Le Roux of Keeyu, who highlighted that the government currently returns 43 per cent of R&D dollars spent to founders immediately, rather than waiting for an exit.

Answer from Anthony Albanese

The Prime Minister denied the claim, stating that no such tax was being imposed.

Answer from Jim Chalmers

The Treasurer questioned the validity of the example, suggesting the individual might be exempt or eligible for concessions. He quoted the Shadow Treasurer's past writings and parliamentary statements arguing that the current tax system favors asset holders over workers and disadvantages young Australians. He stated that the government's reforms addressed these inequities and that the Shadow Treasurer was now opposing changes he had previously advocated for.

Answer from Anthony Albanese

The Prime Minister stated that exemptions for vulnerable people were included in the budget announcement. He criticized the opposition for using scare tactics regarding vulnerable people to gain political advantage.

Answer from Anthony Albanese

The Prime Minister stated that Labor is the party of homeownership and wants more Australians to own their first home. He criticized the Coalition for campaigning on higher taxes and opposing tax cuts and housing reforms. He quoted the Shadow Treasurer acknowledging that the current tax system favors established interests over young Australians. He asserted that Labor protects the family home for future generations, contrasting this with the Coalition's shrinking caucus.

Answer from Jim Chalmers

The Treasurer stated that net overseas migration had decreased by 45 per cent from its peak, which was inherited from the previous government. He noted that in the last full year, migration was 30,000 fewer than the Treasury forecast. The Treasurer highlighted that dwelling commencements were up 26 per cent, building approvals up 13 per cent, and dwelling investment up 5.5 per cent, contrasting these with declines under the previous government. He mentioned an extra $2 billion investment in the budget to support 65,000 homes by funding local infrastructure such as drains, power, and roads.

Answer from Jim Chalmers

The Treasurer stated that the tax reforms aimed to align the tax treatment of workers with those earning income from other legitimate sources, addressing distortions that made it harder for young people to buy homes. He noted that the tax package provided cuts to 13.3 million workers. The Treasurer quoted the Shadow Treasurer's past writings and speeches, which criticized the preferential treatment of capital gains and argued that the tax system favored established interests over young Australians, suggesting the Shadow Treasurer's current position was inconsistent with his previous views.

Answer from Jim Chalmers

The Treasurer criticized the opposition's fiscal record, noting their promises of higher taxes and deficits. He highlighted that the government had found $114 billion in savings across seven budgets, including $20 billion in the December update. He stated that the May budget would be responsible, focusing on savings, tax reform, and productivity. The Treasurer emphasized the government's achievement of turning deficits into surpluses and banking revenue revisions. He argued that the opposition's policies would have worsened inflation and economic challenges, citing their proposed $11 billion larger deficit.

Answer from Jim Chalmers

The Treasurer highlighted that the government's plan included relief for heavy vehicle users, which the opposition had allegedly ignored in their costing. He stated that the government was providing more relief in a responsible manner due to a stronger underlying cash position compared to the previous election. He noted that $114 billion in offsets had been found in less than four years and that further budget decisions would be made methodically before the May budget. He emphasized that the measures were temporary cost-of-living relief.

Answer from Jim Chalmers

The Treasurer criticized the shadow treasurer's recent call to end the Reserve Bank's dual mandate, arguing it would lead to higher rates and unemployment. He stated that responsible treasurers do not comment on future rate movements and noted that three rate cuts had occurred in the previous year. He emphasized the importance of the dual mandate for balancing inflation and employment, acknowledging that while inflation was lower than under the previous government, the Middle East conflict complicated the challenge.

Answer from Anthony Albanese

The Prime Minister stated that the previous government had no housing minister and set a target of zero homes. He noted that net migration had been cut by over 40 per cent in a year, with current arrival numbers lower than under the Coalition. He cited projections that population growth would decrease to 1.3 per cent this financial year and 1.2 per cent starting in 2026-27. He highlighted that 1.2 million jobs had been created and that the budget bottom line was $233 billion better over seven years.

Answer from Jim Chalmers

The Treasurer attributed the rise in public demand to defense spending, which the opposition had supported. He argued that over the full year, private demand had grown faster and contributed more than three times as much to growth as public demand. He highlighted that the government had delivered budget surpluses and reduced debt by $176 billion. He criticized the opposition for talking down the economy and noted the Shadow Treasurer's personal investments in betting against Australia.

Answer from Anthony Albanese

The Prime Minister countered that the opposition had missed the creation of 1.2 million jobs and the upcoming extension of paid parental leave to six months. He listed several government measures opposed by the opposition, including a 20 per cent cut to student debt for over three million Australians, protection of penalty rates, increases to social services payments, expansion of the five per cent deposit plan for first home buyers, tripling of bulk-billing incentives, opening of urgent care clinics, and reducing medicine costs from $42.50 to $25.

Answer from Jim Chalmers

The Treasurer stated that living standards had risen in the latest national accounts and that per capita income growth was more than twice the OECD average. He highlighted that real wages had grown in eight of the last nine quarters. He criticized the shadow Treasurer for talking down the economy and noted reports that the shadow Treasurer held investments that profited when the Australian market underperformed.

Answer from Jim Chalmers

The Treasurer stated that the government ensures public money is spent appropriately and takes steps if funding is deemed unsuitable. He criticized the opposition for focusing on this issue rather than economic challenges like inflation and productivity. He invited the opposition to ask questions about central economic concerns instead.

Answer from Anthony Albanese

The Prime Minister stated that the National Anti-Corruption Commission is independent and established to operate without political interference. He affirmed that the commission can conduct inquiries and refer matters as it sees fit.

Answer from Amanda Rishworth

The minister reiterated that her office had never requested changes, omissions, or different versions of the report. She emphasized that the report was provided to the administrator, not the government, and that the administrator handled its distribution. She maintained that the government had no involvement in the content or redaction of the report.

Answer from Jim Chalmers

The Treasurer clarified that insolvency rates as a proportion of companies were the lowest on record, lower than under previous governments. He noted that 26,000 new companies were being created monthly, a 20 per cent increase over the previous government. He stated that the government was providing over $2 billion in targeted support for small businesses.

Answer from Jim Chalmers

The Treasurer argued that the opposition was misrepresenting the Australian Energy Council report, which supported a transition to renewables. He cited multiple energy CEOs and experts stating that abandoning net zero would increase costs and reduce investor confidence. He claimed the opposition's policy uncertainty was harming the economy and that their focus was on internal party politics rather than energy prices.

Answer from Amanda Rishworth

The minister stated that the government was dedicated to addressing criminal activity and corrupt practices within the building sector. She pointed to cases of people excluded from the industry under the present administration who had earlier been treated leniently by the ABCC. She verified that Zach Smith remained on the forum.

Answer from Amanda Rishworth

The minister rejected the allegations and detailed actions taken over 16 months, including the removal of 60 staff and the establishment of an integrity unit. She noted the administration had received over 500 whistleblowing complaints and referred matters to police and regulators. She mentioned specific investigations by the Fair Work Ombudsman and Operation Rye led by the AFP. She asserted the government was doing more than the previous administration to combat corruption.

Answer from Amanda Rishworth

The minister stated there was no tolerance for intimidation of journalists or anyone else. She focused on whistleblower protections within the CFMEU administration, noting specific provisions in the Fair Work Act and the administration's code of conduct. She emphasised that the administrator prioritised the safety of staff and all Australians, asserting the government was seriously addressing violence and corruption in the building industry.

Answer from Anthony Albanese

The Prime Minister stated that the government had taken action against CFMEU construction bans during the previous term. He highlighted his role in removing John Setka from the Labor Party in 2019. He emphasized the government's efforts to reduce the power of union leaders who had controlled branches. The answer did not directly address the impact on housing prices.

Answer from Jim Chalmers

The Treasurer stated that the policy would impact approximately half a per cent of the superannuation system, which aligns with the previous estimate. He noted that the impact varies by fund, citing Hostplus as an example where only 57 members out of 1.86 million would be affected. He emphasised that concessional tax treatment remains for all balances, with slightly reduced concessions for those over $3 million.