Senate

Answer from Penny Wong

The minister stated that amendments would allow 98 per cent of active small businesses to access concessional capital gains tax treatment. She noted that page six of the consultation paper outlines business activity requirements for innovative small businesses, including innovation, commercialisation, scalability, and growth potential. She argued that the opposition was opposing consultation with the startup sector despite claiming to support small business. In response to supplementary questions, she indicated that some terms were drawn from existing legislation and policies, and she criticised the opposition for complaining about consultation while blocking tax reforms.

Answer from Penny Wong

The minister outlined three goals of the tax reforms: aligning tax treatment for income from work and other sources, helping Australians enter the property market, and improving productivity through investment and innovation. She stated the reforms would cut taxes for more than 13 million workers, support 75,000 additional homeowners, and deliver $3.8 billion in measures lowering taxes for businesses and startups. She also noted a reduction in compliance costs by $540 million annually. In response to supplementary questions, she confirmed that 2.7 million active small businesses, representing 98 per cent of all active businesses, would be eligible for capital gains tax concessions. She warned that the opposition parties were likely to block these reforms.

Answer from Katy Gallagher

The minister stated that comparing tax arrangements internationally was difficult due to differences in laws. She argued that the reforms aimed to better align tax on assets with tax on income, noting that working people pay tax on real income. She cited an example where, assuming a 5.1 per cent return on the S&P/ASX 200, the tax rate was around 21.4 per cent. She claimed this was lower than rates in the UK (24 per cent), Germany (26 to 28 per cent), France (34 to 35 per cent), Ireland (33 per cent), the Netherlands (36 per cent), Denmark (42 per cent), and California. In response to supplementary questions, she defended the reforms as fairer for working people and noted that the opposition had promised higher taxes in the previous election.

Answer from Penny Wong

The minister stated that even if the peace agreement held, it would take time for global supply and markets to recover from the significant shock to energy markets. She affirmed that gas companies should pay their fair share and Australians should benefit from gas resources. However, she emphasised that the government's priority was the domestic gas reservation scheme, which she argued benefited the economy, workers, businesses, and households. In response to supplementary questions, she rejected suggestions that the government was taking advice from gas executives or Donald Trump, stating that policy decisions were based on what was best for the Australian people. She maintained that the reservation scheme was a substantial reform not universally supported by the gas sector.

Answer from Malarndirri McCarthy

The minister stated that the Commonwealth's role was to promote justice reinvestment programs, of which over 30 were running across the country, including successful initiatives in the Northern Territory. She emphasised that states and territories were responsible for jailing citizens and called on them to work harder to reduce incarceration rates. In response to the suggestion to scrap Closing the Gap, she firmly rejected it, noting that over 800 members from 80 organisations were involved in the agreement. She argued that giving up was not an option and that the government must continue to work with all jurisdictions to improve lives. In response to further questions about tying funding to progress, she stated she had already advocated for accountability through federal funding agreements, citing the Northern Territory Remote Aboriginal Investment as an example.

Answer from Katy Gallagher

The minister stated that the project cost had been reset to approximately $12 billion after the government inherited it, as the initial $2 billion estimate lacked proper scoping and geological surveys. She noted that the Snowy board was undertaking a cost reassessment due to the government in late July. She emphasised that the project was more than half built and crucial for energy grid security. In response to supplementary questions, she refused to cancel the project, citing its importance for energy stability. She noted that the ANAO report found project management partially effective and that Snowy Hydro had accepted most recommendations. She argued that the market was not investing in new coal-fired power stations, whereas renewables were delivering cheaper and more reliable energy.

Answer from Tim Ayres

The minister reported that Australia had 44 days' worth of petrol, 39 days' worth of diesel, and 32 days' worth of jet fuel, all increases since the conflict began. He noted that fuel stocks were at their highest level since the minimum stockholding obligation commenced in 2023, with 51 ships en route and 3.9 billion litres contracted for delivery. In response to supplementary questions, he stated that Export Finance Australia had secured an additional 50 million litres of diesel and that a shipment of urea had docked in Brisbane. He confirmed that supplies of diesel totalling 800 million litres, jet fuel amounting to 155 million litres, and 340,000 tonnes of fertiliser had been secured. He also highlighted a $14.8 billion budget package for fuel security, including $3.2 billion for a strategic fuel reserve.

Answer from Penny Wong

The minister stated that the government had been upfront about changing policy to address housing affordability and help young people enter the market. She argued that the status quo was unacceptable and that action was needed to benefit Australians. She criticised the opposition for having no answers to housing affordability issues. In response to supplementary questions, she reiterated that the government was acting on wages, energy prices, and tax to help those struggling. She accused the opposition of preparing to support increased levies on employees and locking Australians out of the housing market, contrasting this with the government's focus on delivering real change.

Answer from Jenny McAllister

The minister confirmed that all 137 promised Medicare urgent care clinics were now open, including 29 in Victoria. She stated that about four out of five Australians lived within a 20-minute drive of a clinic, and there had been 3.1 million visits since the first opened in June 2023. She noted that 45 per cent of patients would have otherwise visited an emergency department or called an ambulance. In response to supplementary questions, she reported that the proportion of bulk-billed services reached 81.9 per cent in the first quarter of the year, a 4.6 percentage point increase. She attributed this to an $812 billion investment in bulk-billing and criticised the previous government for neglecting Medicare and allowing bulk-billing rates to fall.