Senate

Answer from Penny Wong

The minister stated that the government had consulted with the small business sector and maintained four existing tax concessions, raising the threshold for one to include more businesses. She noted that a consultation paper on capital gains tax reforms for innovative startups had been released, with submissions open until mid-July. The minister highlighted that the government was delivering $3.8 billion in new business tax relief, including a permanent $20,000 instant asset write-off and allowing firms with sales under $1 billion to carry back losses for two years. She also mentioned increasing the turnover threshold for the 50 per cent active asset reduction capital gains tax concession from $2 million to $10 million.

Answer from Katy Gallagher

The minister described the budget as focused on relief, resilience, and reform, addressing cost-of-living pressures exacerbated by global conflicts. She outlined that tax reforms aimed to level the playing field, support homeownership, and improve productivity, lowering taxes for more than 13 million employees. The minister noted that the threshold for the 50 per cent small business capital gains tax discount was increased from $2 million to $10 million, making 2.7 million active small businesses eligible. She confirmed that consultation on the Innovative Business Capital Gains Tax Concession was open for three weeks. Additionally, she highlighted that over 14 million Australians would receive tax cuts of up to $268 from 1 July, with average wage earners paying up to $2,800 less tax than under the previous government.

Answer from Penny Wong

The minister reiterated that the government had lifted the turnover threshold to $10 million for small business capital gains tax concessions, covering 98 per cent of active businesses. She stated that the Treasurer was engaging in consultation regarding innovative startup arrangements, with a consultation paper released on 18 June. The minister advised that the government would proceed with consultations in good faith and introduce amendments as necessary, but did not specify the exact timing of eligibility assessment for innovative startups.

Answer from Penny Wong

The minister rejected the premise, stating that the government had delivered measures including urgent care clinics, energy price relief, and wage increases for various sectors. She invited the Greens to support the proposed tax changes and criticized their approach as divisive. The minister emphasized that the government was committed to addressing cost-of-living challenges and urged the Greens to focus on opposing conservative policies rather than attacking the government.

Answer from Murray Watt

The minister stated that the Fair Work Commission raised modern award pay by 4.75 per cent and the national minimum wage by six per cent starting 1 July, marking the fifth consecutive real wage increase under the government. He noted that the minimum wage would rise above $1,000 per week, representing a $12,079 annual increase since the government took office. Regarding early childhood educators, the minister highlighted a $3.6 billion investment providing a $255 weekly pay rise, aimed at helping educators stay in the sector and reducing costs for parents.

Answer from Murray Watt

The minister stated that the government had already invested $113 million in preparedness efforts, including $11 million in the current budget, based on susceptibility analyses of at-risk species. He noted that only two cases had been confirmed and that the government was treating the matter seriously. Regarding habitat clearing, the minister referenced recent environmental law reform legislation supported by the Greens, which included protections for threatened species. He declined to implement a moratorium, citing the existing legislative framework.

Answer from Penny Wong

The minister stated that the innovative business capital gains tax concession was subject to innovation criteria and not limited to specific sectors. She highlighted government support for the resources sector, including a $5 billion investment in the Critical Minerals Facility and a 10 per cent production tax incentive for critical minerals. The minister also referenced a $3.4 billion commitment to the Resourcing Australia's Prosperity program. She criticized the National Party for voting against the critical minerals production tax incentive, suggesting hypocrisy in their criticism.

Answer from Katy Gallagher

The minister stated that productivity growth had been slow for decades and that the budget included measures to drive improvements, such as regulatory reform and infrastructure investment. She noted that Treasury had revised productivity assumptions downward based on evidence. The minister rejected the link between migration and low productivity, emphasizing the value of migrant contributions and stating that net overseas migration had decreased by 45 per cent. She highlighted that the government was addressing productivity challenges through various economic reforms.

Answer from Penny Wong

The minister stated that budget papers indicated an increase in housing supply over the decade, with 75,000 additional first home buyers supported. She noted that negative gearing would remain available for new builds, which could choose between CPI indexation or a 50 per cent capital gains discount. The minister highlighted that over 660,000 homes had been built since the government took office and that new home starts were up 26 per cent. She stated that legislation defining new builds would be introduced later in the year following consultation.

Answer from Jess Walsh

The minister stated that one million families relied on the early childhood sector weekly. She highlighted that funding for the 15 per cent pay rise for educators was tied to fee capping, putting downward pressure on costs. The minister noted that cheaper childcare reforms saved the average family $312 this year, and the three-day guarantee saved families up to $1,500 annually. She emphasized the importance of qualified educators in child development and the government's commitment to supporting the sector.