Labor denies tax-revamp rush after ‘exhaustive’ debate
Ministers denied tax reform measures were rushed through parliament, but just two days had been allocated for an investigation into the “once-in-a-generation” changes.
Amendments to limit negative gearing for new homes from July 2027 and reduce the 50 per cent capital gains tax deduction to an inflation-based rate were passed by the House of Representatives on Thursday.
However, the future of the laws is uncertain; The Greens have not yet indicated whether they will support federal budget reforms through the Senate.
A two-day Senate inquiry will review the legislation before it goes to the upper house in late June, with opposition and opponents saying the measures are being rushed.
Deputy Finance Daniel Mulino said that the laws were not rushed because the tax and housing issues have been on the agenda for a long time, as well as the debate that has lasted 17 hours in the parliament so far.
“This is one of the most comprehensive debates I have ever seen in parliament,” he told ABC Radio on Friday.
“The budget was framed in that broader context and so there has been a long-standing debate around these types of issues and, in fact, many of the issues addressed in the budget have been examined in previous tax inquiries.”
While the government has faced criticism for trying to enact tax changes first and potentially implement tax changes and exemptions later, Mr. Mulino said that was par for the course.
“There will be consultations on some detailed issues related to trusts over the next few months. So that’s quite normal,” he said.
“When you look at previous major tax reforms, such as the GST under the Howard government, there were similar tranches of legislation.”
But deputy opposition leader Jane Hume said the changes had not been approved by voters.
“If these were generational reforms, they certainly should have been put to an election so that the Australian people could decide on them,” he told ABC Radio.
“Two days is not enough. There is no need to rush these changes because they will not come into effect until 2028.”
The clashes over the legislation come as Prime Minister Anthony Albanese puts more emphasis on tax reforms, saying changes to the measures would undermine his aims.
The Prime Minister is expected to tell the Australian Economic Outlook summit hosted by News Corp on Friday that reforms are needed to stem rising voter discontent.
“We can decide whether the social and economic dislocation we see abroad will be a warning that we will take action, or a preview of what is to come,” he will say in his speech, according to quotes provided to The Australian.
“If you look around the world, you can see what happens to countries and economies when people decide that the system is broken beyond repair.”
Mr Albanese will say a long process of exempting large groups from tax changes will only lead to tinkering around the edges of the status quo.
“Our government has no intention of wringing our hands about the consequences of a system that doesn’t work for people. Instead, we’re taking action to fix it,” he will say.
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