Senate

Answer from Katy Gallagher

The minister stated that the reforms restored concession arrangements indexed for inflation rather than the previous 50 per cent discount. She noted that the legislation passed last week aimed to balance tax on wages and assets and assist first-home buyers. Regarding income averaging, she explained it was removed in 1999 for integrity reasons following a business tax review. She cited Treasury analysis indicating capital gains are predominantly realised by high-income earners. She confirmed that tax cuts for low-income earners, including those under $45,000, commence on 1 July.

Answer from Katy Gallagher

The minister confirmed that tax cuts commence on 1 July, lowering the 16 per cent rate to 15 per cent for those earning under $45,000, with a further reduction to 14 per cent from 1 July 2027. She highlighted the Working Australians Tax Offset of up to $250 annually and a $1,000 instant deduction from 2026-27. She noted that the national minimum wage will rise by six per cent and modern award wages by 4.75 per cent. Paid parental leave will extend to 26 weeks, and social security payments will be indexed for 2.6 million Australians. She stated these measures are funded by reforms to negative gearing and capital gains tax.

Answer from Penny Wong

The minister stated the government does not tolerate corruption or criminality in the construction industry. She noted that the Minister for Infrastructure had written to states regarding these issues and that she would seek further information on specific contracts. She clarified that the conduct suggested would be illegal. She added that Mr Gatto is facing charges as a result of actions taken by the administrator appointed by the government. She confirmed that federal funding agreements now include strong governance and accountability mechanisms.

Answer from Don Farrell

The minister rejected the claim that the government was not doing enough, pointing to more than $110 million allocated for gambling harm reduction in the budget. He outlined $112 million over five years for consumer protections, including $39 million for financial counselling and $28.7 million to enhance BetStop. He asserted that the government had delivered the most significant gambling advertising reform in Australian history. He did not pledge to ban ads on public broadcasters, restating the scope of the current reforms.

Answer from Jess Walsh

The minister stated that the pay rise, combined with minimum wage increases, will make a typical full-time educator $255 a week better off. She noted that job vacancies in the sector have fallen by almost a third and staffing waivers by 40 per cent since the announcement. She explained that a stable workforce ensures children have consistent educators, which fosters safety and readiness to learn. She warned that without this support, quality would suffer, harming children and parents who rely on the system.

Answer from Katy Gallagher

The minister stated that existing contracts were entered into prior to the current concerns and that there is no evidence of unethical behaviour in current government contracts. She noted that ministers cannot cancel contracts as it would be unlawful. She confirmed a pause on new KPMG contracts until a review led by Dr Ian Watt is completed. Regarding the TPB chair, she stated she expected the board to manage any conflicts of interest appropriately. She noted that the Assistant Treasurer is releasing a discussion paper on regulating these firms.

Answer from Penny Wong

The minister highlighted benefits for small business, including a permanent $20,000 instant asset write-off, a two-year loss carryback, and an increase in the active asset reduction CGT concession threshold from $2 million to $10 million. She said that 98 per cent of active businesses would qualify for concessional treatment. She did not provide a specific number of businesses that would be worse off, instead noting that the government had consulted with small business and introduced support measures. She criticised the opposition for voting against tax cuts for 13 million Australians.

Answer from Katy Gallagher

The minister rejected the claim, stating the government has done more for productivity than any recent administration. She explained that tax reforms aim to create neutral tax settings so investment decisions are based on productivity rather than tax concessions. She noted that $3.8 billion is invested in business through R&D incentives and venture capital arrangements. She stated that the reforms ensure wage earners are not taxed more than asset owners, creating a fairer system across all industries.

Answer from Katy Gallagher

The minister stated the government is cutting taxes five times in three ways, including the instant tax deduction and Working Australians Tax Offset. She noted that real wages have grown for the first time in a decade since the government took office. Regarding the fuel excise, she explained that the temporary halving was extended at a lower level to help households adjust as petrol prices fell. She emphasised that the government continues to roll out cost-of-living help, including Medicare investments and cheaper medicines.

Answer from Penny Wong

The minister stated she would take advice on the regulatory impact statement. She cited Treasury advice indicating that less than 10 per cent of SMSFs have such arrangements and that they account for under one per cent of all residential property lending. She noted that transitional arrangements are in place. She referenced the Murray inquiry and the Council of Financial Regulators, which identified limited recourse borrowing as a significant risk to retirement savings, particularly for low-balance funds.

Answer from Penny Wong

The minister described the treaty as transformative, strengthening security and development partnerships. She noted it confirms Australia as Vanuatu's primary policing partner and ensures Vanuatu will not allow foreign military bases or infrastructure. She stated that strong regional relationships enhance Australia's security in a contested world. She attributed success to mutual respect and listening to Pacific priorities, contrasting this with previous government neglect. She listed other agreements like the Pukpuk alliance and Falepili union as evidence of restored standing.

Answer from Katy Gallagher

The minister stated she was not aware of the specific issue or the status of the response. She undertook to take the matter on notice, consult the Treasurer's office, and return to the senator directly with further information. She repeated this commitment in response to subsequent questions.