Federal Parliament has returned for two final sitting weeks before a five-week long winter recess. Twin fights over proposed tax reform and an overhaul to the National Disability Insurance Scheme are set to dominate debate in the coming days.
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TRANSCRIPT
Federal Parliament has returned for two final sitting weeks before a five-week long winter recess.
And it's set to be a busy fortnight, with Labor expected to try to push its controversial changes to negative gearing and the capital gains tax through parliament before the break.
Opposition Leader Angus Taylor has made clear it won't be an easy fight, reiterating his party's ongoing, strident opposition to the changes.
" We've said from the start, it should be axed. We don't need a carve out, we need an axe. And we've said that from the start."
Under the changes, the government would limit negative gearing to new builds from 1 July 2027, and replace the 50 per cent Capital Gains Tax discount with one based on inflation.
In an effort to allay fears the reforms would hurt small businesses, the Albanese government has announced a set of exemptions.
Businesses with annual turnover of up to $10 million dollars would be eligible for existing CGT exemptions - which include a 50 per cent discount - as would certain start-up founders deemed to be 'genuinely innovative'.
Minster for Industry Tim Ayres has told Channel 9's Today Show he's confident the changes, along with the broader budget package, will bolster productivity and business.
"All the measures in the budget when you put them together, it's a very substantial package. In my area, supporting research and development the tax incentive there, strengthening those measures, loss carry-back, instant asset right offs, all these measures support dynamism and productivity in our small business sector."
But Deputy Opposition Leader Jane Hume has labelled the changes an 'assault on aspiration', saying proposed carve-outs don’t go far enough.
The Opposition is also claiming a drop in auction clearance rates over the weekend is a result of the government's proposed tax reforms.
Nearly 1,900 homes went to auction on Saturday ((20 June)), but only 47.4 per cent of them sold according to property research firm Cotality, marking the lowest auction clearance rate since April 2020.
Ms Hume says these latest figures reflect widespread uncertainty.
" No wonder people aren't selling. They're choosing not to sell, because they're waiting to see what the affect of these taxes are going to be. And no wonder people are choosing not to buy, because they don't know how these taxes are going to affect them, how they're going to affect their businesses, their prospects."
Investor groups have warned the federal government's decision to wind back negative gearing and the capital gains tax concession could make housing a less appealing investment.
But, the government says the tax changes are necessary to give younger Australians a chance to enter the property market.
Minister for Social Services Tanya Plibersek has told Channel 7's Sunrise program the government still wants house prices to increase, but at a slower rate.
"House prices have been growing too fast, and that has meant young Australians haven't been able to afford a home of their own. It used to be that the average house cost about four years of the average wage, now it's about eight and a half years of the average wage. People just can't keep up with that, because they've been competing with property investors for those houses.
With the Opposition promising to continue to oppose the changes, the Labor government requires the support of the Greens to pass its tax reforms.
The Greens have so far withheld their support, arguing the grandfathering of tax concessions is too generous.
Labor is attempting to leverage the minor party's support for the reforms in exchange for extending an inquiry into a planned overhaul of the National Disability Insurance Scheme.
Greens Senator Jordan Steele-John has told parliament the Greens firmly oppose the government's proposed changes to the scheme, labeling it an 'inhuman' piece of legislation.
"Labor's NDIS bill is just cruel. It should be scrapped. It should be withdrawn, it should be removed, it should be torn up, quite frankly, loaded into a cannon, and if I had my way, fired into the sun."
Under the reforms, more than 160,000 people would be removed from the N-D-I-S in an attempt to rein in spending on the program.
The government says those who no longer meet the criteria for the scheme would be redirected into State and Territory-run support programs.
But Senator Steele-John says proposed cuts are drastic, and will leave thousands without adequate support.
"$185 billion dollars over the decade, that is the largest cut to a commonwealth program in the history of this nation. These cuts go to far, they go too far, they will cost too many jobs. They put at risk too many lives."
Last week, an ongoing parliamentary inquiry into the overhaul of the scheme delayed its report for a second time, pushing the deadline back to Tuesday ((23 June)).
Opposition Leader Angus Taylor says his party supports the Green's calls for more scrutiny of the proposed changes.
"Because we want it to work. Because we need a sustainable NDIS. This is critically important for those Australians who are most in need of that disability support. We want to see it work. We also want it to be financially and economically sustainable. And it clearly hasn't been."
As heated debate over these twin reforms continues, Prime Minister Anthony Albanese is meeting with state and territory leaders to discuss fuel security.
The meeting follows the government's announcement over the weekend that the fuel excise cuts would be extended for another month at a lower discount.
The change means the current 32-cent-a-litre discount on petrol will be halved to 16 cents a litre from July.
