Peter Khalil
Wills · Australian Labor Party · Australia
“Nationally, I think it's important to note that we've delivered multiple tax cuts, more bulk billing, five per cent deposits for people's first home, expanded parental leave and early education, free TAFE, 20 per cent off HECS and so much more.”
“We've backed local arts, schools, sports clubs and community organisations through all of the different federal government investments, grants and election commitments, which have been so critically important for those communities. In the environment, we've revitalised sections of Moonee Ponds Creek, which is the border of my electorate.”
“It was 10 years ago today that I had the great privilege of being elected as a member of Wills. In my first speech, I said that I was elected by the people of Wills to serve them and to make a difference in their lives. That sounds simple, but it is a really important commitment and promise.”
“It's one of the great privileges of my time in this place. In my first speech, I warned that we must beware of the demagogues and charlatans who take advantage of the disaffected and angry in our society and direct that anger towards minorities and refugees to stir up their own political ends. Sadly, that warning still pertains today.”
“But the fact is that 2.7 million businesses and 98 per cent of all businesses will be eligible for generous capital gains tax concessions. Why? Because these reforms are all about helping businesses invest, innovate and grow. That is because they are the backbone of our economy. We know that.”
“If you're a new business, if you're a startup, if you've got an idea and you want to transform that idea into something productive for the economy, we're making sure that we help unlock investors through those tax incentives to change that culture so people are willing and incentivised to invest in those new small businesses.”
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“It's one of the great privileges of my time in this place. In my first speech, I warned that we must beware of the demagogues and charlatans who take advantage of the disaffected and angry in our society and direct that anger towards minorities and refugees to stir up their own political ends. Sadly, that warning still pertains today. It's as relevant today as it was then. I will continue to stand up for the people who are vulnerable in my community. But it's been a great privilege serving in this parliament and serving my community.”
“Nationally, I think it's important to note that we've delivered multiple tax cuts, more bulk billing, five per cent deposits for people's first home, expanded parental leave and early education, free TAFE, 20 per cent off HECS and so much more. But most importantly, my office and I have really put first and foremost service to the community as our objective. We've assisted constituents to access Centrelink, the NDIS, aged care and, through other government services, helped them navigate what is often a very difficult process, especially if they're vulnerable and unable to do so of their own volition. The thing that I'm very proud about as well—and it's very rewarding but difficult work—over these past 10 years is helping hundreds of refugees and migrants secure visas, begin their new lives in Australia and make their contribution.”
“We've backed local arts, schools, sports clubs and community organisations through all of the different federal government investments, grants and election commitments, which have been so critically important for those communities. In the environment, we've revitalised sections of Moonee Ponds Creek, which is the border of my electorate. It was once a concrete canal—it was all concreted up. We've returned that to nature. We've removed the concrete, and we've done so much to open that up for the local community to enjoy the natural flora and fauna of that urban waterway. I've put two solar community batteries into my electorate. We've funded an amazing arts place called Balam Balam Place in Brunswick that includes an Indigenous art gallery, performance space for artists, and it's just wonderful to visit.”
“It was 10 years ago today that I had the great privilege of being elected as a member of Wills. In my first speech, I said that I was elected by the people of Wills to serve them and to make a difference in their lives. That sounds simple, but it is a really important commitment and promise. What I've learnt over those years is that, in doing so, it wasn't just a one way effort. I was doing it with them. We did it together. We actually worked together to deliver real improvements for the community, and that's been the most satisfying part of being a member representing my community. We've secured a Medicare urgent care clinic in Coburg and in Carlton as well, which is also in my electorate now.”
“by leave—I move: That Mr L O'Brien be appointed a supplementary member of the Standing Committee on Education for the purpose of the committee's inquiry into the factors driving educational attainment. Question agreed to.”
“They are voting against all of the support and economic relief that we are providing in this budget, and they're likely to do so again in the other place. That's where the real harm is. Those opposite voting against it are voting against the Australian people. They haven't really learnt anything from the last election. This is why it's so important to lay out the facts today.”
“All of them are going to get a tax cut. We're about delivering tax cuts for small businesses. We're about supporting those small businesses as well. But here's the real harm on the other side. All of those opposite voted against the tax cuts. They voted against the tax cuts in this House, and they're likely to vote against them in the Senate. So all of the detail and facts that I've just given, they're voting against that. That's where the real harm is. They can jump up and down all they want and create all sorts of smoke and mirrors to hide that fact, but the real harm comes from the fact that they are voting against tax cuts for the Australian people. They are voting against tax relief for small businesses.”
“But the fact is that 2.7 million businesses and 98 per cent of all businesses will be eligible for generous capital gains tax concessions. Why? Because these reforms are all about helping businesses invest, innovate and grow. That is because they are the backbone of our economy. We know that. We need to support the incredible work and services they provide our country. In conclusion, where is the real harm? I reckon there's a fair bit of harm coming from the ranting and raving from the opposite side, because they're not dealing in facts. That's where the real harm is coming from. They're not talking about what the actual budget measures are. There's a lot of carry-on that's going on. But, over here, we're about making sure that we deliver these tax cuts for the vast majority of Australian workers—13.3 million.”
“Overall, the government amendments to our tax legislation will mean—and this is another fact; it might be a bit boring again—2.7 million active small businesses— Thank you to the member from Wagga Wagga—I haven't got the same hyperbolic excitement as some of your colleagues, but I'll take that interjection. I appreciate that it's not boring to the small-business owners. So 2.7 million small businesses and 98 per cent of all active businesses will be eligible for generous capital gains tax concessions. You wouldn't think so with all the jumping up and down that we've seen from those opposite, all of the misinformation and all of the ranting and raving, hyperbole and misinformation that's been put out there. We're not allowed to use the other word.”
“It's a $1,000 instant tax deduction to allow workers to deduct up to $1,000 of their taxable income without providing receipts. That's a fact. That's going to go into their pockets as well. These are real, tangible budget reforms that are being made that are reducing tax, that are lowering taxes, which belies the hyperbole that we've heard from those opposite. The reason it's so important to support small businesses is that we do care about their views. As I said, there are so many opportunities for young people and people of all ages, frankly, to create small businesses, to take ideas and transform them into something special that is productive in the economy. That's why we've made these changes and have his support.”
“I could get myself up on social media with a bit of a jig or whatever. I'm not going to do that. I'm sticking to the facts about what these tax reforms mean for the Australian people. When we talk about hyperbole, one of the points of it is to create humour. It's quite funny that the MPI says 'the government's plan for higher taxes'. Actually, it's the opposite. It's lower taxes. It's tax cuts for 13 million Australians. Let me set out the facts for you. There's a $250 tax offset for every working Australian taxpayer. That's a fact. That goes into their pockets. That's a fact. That's a reality. It's going to automatically reduce workers' tax liability on the income earned from working from the year 2027-28. There's an instant tax deduction that we're introducing.”
“If you're a new business, if you're a startup, if you've got an idea and you want to transform that idea into something productive for the economy, we're making sure that we help unlock investors through those tax incentives to change that culture so people are willing and incentivised to invest in those new small businesses. We're ensuring about 1.5 million sole traders benefit from our $250 tax offset as well as part of our plan to reduce the tax burden on all working Australians. We've very clearly included those 1.5 million sole traders, who often are small-business owners and run small businesses. I've given a couple of facts and numbers. They're not very exciting. I haven't shouted. I haven't ranted. I haven't raved. I haven't jumped up and down. I haven't even used hyperbole. I could do a dance.”
“We're introducing loss refundability to help startups grow in their first two years. And we're expanding tax incentives for venture capital to help unlock more investment in young and expanding businesses. That one is critical. The culture here—and it has been exacerbated by changes made by previous governments, and I speak specifically of the coalition government, around what they did to some of these tax treatments—has been that it was more difficult for startups in this country to get that venture capital and that investment in those new ideas.”
“That's going to deliver around $890 million in cashflow support over the next five years. It's going to slash compliance costs for small businesses by around $32 million a year and save them 366,600 hours on record keeping. Anyone who runs a small business knows how important cash flow is. Cash flow is king—or queen, depending on who you are. But the point is that cash flow is critical. Having run two small businesses myself before politics, I understand that, and how difficult it is. So, that is real relief for those small businesses. There's also a permanent two-year loss carry back for companies that have a turnover of up to $1 billion, from 1 July 2026, so that small businesses can return to profitability faster and can have the confidence to invest earlier and withstand volatility.”
“This means something to those 13 million Australian workers we've talked about. It's relieving the tax burden for so many Australians. It's giving support to 75,000 more homeowners to get into the housing market. That's support; it's not harm. And, to be fair, the shadow Treasurer talked a lot about small business—very passionately, very aggressively—and how much he loves small business. Well, let's have a look at the tax reforms around small business. We're delivering $3.8 billion in new business tax relief measures. That's a fact as well. And they are designed to support resilience and investment growth, particularly among small businesses. So let's go to the facts and the numbers: 20,000 permanent instant asset write-offs to give businesses more certainty to invest.”
“We've delivered this because we're focusing on relief, resilience and reform. Those things make it easier for Australians. Let's talk about the support side of things. There are tax cuts and tax relief for 13.3 million Australians. That's just a fact. It butts up against some of the rhetorical flourishes we've just been subjected to over 10 minutes, but the fact is that there are cuts in taxes for 13 million Australian workers. In fact, the reforms also go to making it easier—that's relief, not harm; it's support, not harm—for 75,000 Australians to buy their first home. That's a fact. All of this has been something we've been debating, and I haven't really heard many facts being put forward by the shadow Treasurer. There's been a lot of hyperbole, a lot of rhetorical flourish, but no facts.”
“'Hyperbole'—I looked up the definition in the dictionary: 'a figure of speech or a statement that uses extreme, deliberate exaggeration to make a point, emphasise emotion or create humour'. Now, far be it from me to accuse the shadow Treasurer of hyperbole or of being a hyperbolic person, so I won't do that, because it could be unparliamentary. But let's look at his MPI and how it stacks up against the facts. There are claims around harm; I'm going to talk about the economic support. There are claims around higher taxes; I'm going to talk about facts: there are lower taxes and cuts in taxes. In fact, we're reforming the tax system for workers, for small businesses and for future generations through a very significant set of reforms—probably the most significant in a quarter of a century.”
“It's one of the most important things you can do for yourself and for your family and for the people who rely on you and who love you. I think that's an important message for men across the country. So, in honour of Men's Health Week, I encourage all men to get a check-up and check in on both their mental and their physical health and seek support when they really need it.”
“Most blokes in this country are more often comfortable talking about the footy—I know I am, talking about the World Cup—or talking about work or whatever they're doing on the weekend than they are about talking about their own health. But having those conversations can literally save lives, having them early as well can save lives and, in a sense, too, being able to talk to your mates can save lives. It sounds a bit melodramatic, but having someone to talk to that understands is really, really important. So, if you're a bloke—and there are a lot of blokes out there—and you've been putting off a check-up or a blood test or a conversation with your GP, now is the time to do it. Go and do it. Make the booking. Looking after your health isn't a sign of weakness.”
“This event showed that, when we come together, we can build positive support networks that lead to a greater connection amongst young men. And this is what it's about. It's about human connection—getting them offline and actually connecting with others, connecting with peers, connecting with mentors. Having that human connection is so critically important for their development as young men. That's why organisations like Man Cave actually matter. They help young men build positive habits early, because men, frankly, continue to experience poor health outcomes when comes to a range of areas. They're less likely to engage in preventative health checks, and a lot of health experts agree that early detection remains one of the most effective ways to improve health outcomes and save lives.”
“Earlier this week I got to play basketball, and, given my prodigious height, this was quite a sight! I did it for a great cause with some of my good mates, the member for Macnamara and the member for Hunter. It was put on by the Man Cave. It was a great cause by a great for not-for-profit organisation in my electorate, which focuses on preventive mental health for boys and young men. This year's Men's Health Week theme is Partners in Care, which highlights how relationships, communities and support networks shape men's health outcomes across their life span. The event brought to life the fact that when you unite boys and young men with their role models and with other leaders and you do it on the court in any sporting environment, that physical, mental and emotional health are really deeply connected.”
“By increasing the consequences for those dealing in the marketplace of illicit tobacco, we are further strengthening our ability to thwart the harms placed on our citizens, our shop owners, our businesses and our communities. Together, the reforms in this bill are aimed and will protect public health, support legitimate businesses and disrupt the organised crime networks that profit from the illicit tobacco trade. Our coordinated national response further ensures Australia remains safer, healthier and fairer for future generations to come. I commend this bill to the House.”
“We have also appointed the first ever Illicit Tobacco And E-Cigarettes Commissioner, with $21.3 million allocated in the 2025-26 budget to help coordinate national efforts to combat illicit tobacco. We are seeing real and tangible outcomes as a result of the government's policy. Since January 2024, more than 14 million vaping products and accessories have been seized by the Australian Border Force. In just the last six months of 2025, more than one billion illicit cigarettes were also seized. Interjurisdictional relationships have also improved, as it is crucial that the Commonwealth, the states and the territories work together on these efforts. That includes new cooperation through the National Illicit Tobacco and E-cigarette Coordination Forum.”
“We're going to disrupt and dismantle border threats to stem the flow of illicit tobacco before they make it to our shores. We're going to enhance detection, disruption and destruction of illicit tobacco and vapes at the border and within the community. And we're going to have better connection and coordination of efforts across the Commonwealth and the states and territories, including the establishment of a national disruption group. This bill will work in conjunction with our existing efforts to crack down on illicit tobacco. Since 2023, the Albanese government has provided $346 million in funding to the Australian Border Force to crack down on illicit tobacco and vaping products.”
“We shouldn't have to put up with this. We're not used to ongoing crime like this in our country.' It is unacceptable that members of my community do not feel safe going to work or running their businesses. The illicit tobacco trade is fuelling this violence and this intimidation. The risks and the harm that illicit tobacco pose to our community cannot be understated. That is why this bill is so needed. It's so vital to come down hard on these criminals. Allowing this trade to continue would not only risk unwinding decades of success in tobacco control and lowering smoking rates in Australia but risk tearing apart the very safety and wellbeing of our own communities, such as in my electorate of Wills. We can't let this wave of violence continue. We have a responsibility to wipe out illicit tobacco and the organised crime crisis it brings.”
“This bill responds decisively to a growing threat to public safety. In my electorate of Wills, organised crime groups have firebombed storefronts in Coburg, in Brunswick East, in Glenroy, in Hadfield, in Pascoe Vale and in Fawkner. This is a list of nearly every suburb in my electorate that has had a firebombing. Earlier this year, in my local suburb of Glenroy, organised crime groups committed six different arson attacks and shootings in two months alone. One shop in Glenroy had been targeted twice in one month, and another shop was firebombed and then shot at three weeks later, making those incidents the fourth attack on a single business. Local traders in Glenroy have expressed that they will be the next shop targeted. One trader was quoted in the Sydney Morning Herald as saying: 'I don't feel safe, but I still have to go to work.”
“One has just got to turn on the nightly news to see that criminal groups have used illicit tobacco as a vehicle to bolster their profits and to fund intergang warfare. Organised crime groups are earning a whopping $4 billion to $7 billion in profits. This is funding other crimes such as arson attacks and murder. This trade is further fuelling that violence, the fire bombings, the intimidation as these groups actually fight each other in a turf war around distribution—something that has become an all too common practice here in Australia—and they are not victimless crimes. They harm communities, they harm honest retailers, they harm workers, they harm people living in nearby homes and they are a harm and a risk to public safety, not to mention to the lives of the firefighters who are put into danger every time one of these attacks occurs.”
“Taken in conjunction, the reforms in this bill seek to rebalance the risk-to-reward calculation made by criminal actors. This bill will raise offence penalties to match the severity of the harm being caused by the illicit tobacco trade and will enhance Australia's proceeds of crime regime to better target criminal profits from illicit tobacco. This illicit tobacco problem is really a wicked problem for Australia. It has caused wide-reaching problems for public health and public revenue, and it now presents itself as a serious organised crime crisis. Communities across our country are increasingly witnessing the violence and intimidation linked to illicit tobacco operations, from illegal storefronts to organised fire bombings and extortion.”
“Previously there has been legislative amendments introduced to address the risks associated with the illicit tobacco market, including on its profitability, however, the market has continued to have exponential growth and profitability for criminal factors. It is quite obvious to all that more work is needed to deter, disrupt and prevent further growth in the market and that's exactly what we are debating today—tougher penalties for those who profit from illicit tobacco—because without these amendments penalties and law enforcement powers will remain inadequate. I would hope that all those across the aisle would understand that. Without these amendments, law enforcement will not have the powers they need to combat these criminal groups. Without these amendments, things will only get worse.”
“We're enhancing powers to investigate illicit tobacco offending and increase the consequences. The key measures in the bill include increasing criminal penalties for the importation, possession, buying, selling, supply, production or manufacturing of illicit tobacco; enabling the use of telecommunications access powers in relation to illicit tobacco related offences; and expanding the scope of search warrant powers, information disclosures, the availability of examination orders and the grounds for making a non-publication order. These amendments do not introduce unprecedented investigative powers. Instead, they aim to provide greater consistency and clarity across existing search warrant frameworks. They're also not expected to impose additional legislative burdens on business or community organisations in Australia.”
“Organised criminals need to know that importing illicit tobacco carries serious penalties, including jail time. Under our government, we are going to crack down on these criminals because there is no place for this illegal criminal activity in our community. Selling cigarettes is not against the law. These laws are aimed at organised criminals and the front companies they use. This government is doing everything to balance the need to combat criminal activity without undue burden on legitimate and legal business. So the bill will seek to amend the Customs Act 1901, the Excise Act 1901 and other relevant Commonwealth legislation to expand law enforcement powers to investigate illicit tobacco related offending and to raise the penalties for such offences. These aren't new powers.”
“This bill will address a regulatory gap, allowing our law enforcement agencies greater enforcement powers, because no Australian should have to live in fear of the next firebombing in the illicit tobacco gang war. That's exactly what people have been fearful of. We've seen this across the news for the last period of time where the firebombings and the threats have occurred. This is serious also in the sense that illicit tobacco directly funds the commission of other crimes like murder, kidnapping, arson and assault, and organised criminals have turned to importing illicit tobacco because they believe it is less risky than smuggling drugs. This government, the Albanese government, is going to change that calculus. Our focus is to shut down illegal shops and make this trade unprofitable so that the crime is not worth the risk.”
“The Albanese Labor government is cracking down on illicit tobacco in Australia, and the Combatting Illicit Tobacco Bill 2026 is really about restoring the rule of law in a market increasingly dominated by organised criminal activity. Illicit tobacco is not a victimless crime. It funds criminal networks, undermines legitimate businesses and places unregulated products into the hands of Australians. Effective regulation depends not only on strong laws but on the public's confidence that these laws are enforced fairly and consistently. The rapid growth of illicit tobacco threatens public health, undermines confidence in our regulatory system and funds other illegal criminal activities.”
“Today, around only two per cent of social housing tenants are under 25, despite young people making up almost 15 per cent of Australians experiencing homelessness. This is smaller in the grand scheme of things in this big budget. I talked about billions of dollars supporting small business. But this investment is really important for 40,000 young people who can't find a home or find a place to sleep tonight. That's the culmination of years of work and advocacy—and I want to congratulate them—by the Home Time campaign, who've elevated the voices of young people who have experienced homelessness. That's an investment in the youth of this country. That's what matters. This whole budget is about what matters for the Australian people.”
“That's why the Albanese Labor government is investing $60 million—$59.4 million, to be exact, in case I'm accused of misinformation—to help vulnerable young people access stable housing and avoid homelessness. That's the national youth housing incentive, which fixes a structural flaw in Australia's housing system that has discouraged providers from offering tenancies to young people and disadvantaged youth housing proposals in funding rounds. That flaw, known as the youth housing penalty, makes young people financially unviable tenants. We're changing that. It's meant in the past that generations of young people haven't been able to access social housing to escape homelessness. We're changing that.”
“They're certainly not part of that four per cent making income through assets. They have nowhere to live—40,000 too many. Behind every statistic on youth homelessness is a young person who deserves stability, opportunity and hope. Every night, thousands of young people across Australia face uncertainty about where they will sleep, and that is simply unacceptable. We're having a debate about young people who are going to be impacted by these CGT discounts and so on; 40,000 of them haven't even got a place to sleep. So let's talk about what really matters right now. Early intervention and community support can change the trajectory of a young person's life.”
“Young people who can't afford to own their own home should not be subsidising the underperforming investments of the asset-owning class. That's just a fact. I think it's an important one to put out there. It's unfair, and that's why we're changing it. I know it's hard, and it's been difficult for previous governments of other political persuasions to make these tough decisions, but we're doing it because it will make a difference in the future. I guarantee you that in five years time we'll look back on this and think: 'Oh my God, look at all that crazy misinformation that was flying around. These changes were so important.' Every year, there are almost 40,000 children and young people who have nowhere to live across this country. I want to talk about the really vulnerable now.”
“Some people online have also said, 'This is so unfair to young people who are trying to save a deposit by investing in the share market.' But the truth is that most young people—just take a walk down your local electorate; it's certainly the case in mine—don't make income from capital gains, buying and selling assets. They make it from working. Taxpayers aged between 18 and 34 account for—wait for it—four per cent of the total value of capital gains declared by all taxpayers. Let's say that again. Four per cent of 18- to 34-year-olds represent capital gains declared by all taxpayers. Let's quote the Betoota Advocate. That's a good one. They said it with their headline: 'Regional supermarket employee has no option but to walk away from her diversified share portfolio thanks to Labor'. It's funny, but it's true.”
“So there's a lot of misinformation in the ecosystem, but we know this: small businesses are the backbone of the Australian community and of employing people. This government will continue to support them through all this noise, through all this white noise and this smoke and mirrors, by delivering through these bills into law the support that they need to be able to be successful in small business. So we change the culture and the distortions that have occurred for decades, which have funnelled people away from investing in small businesses. As some of the people on the other side would know, there are exemptions all the way through already for businesses with a turnover of under $2 million or assets of less than $6 million, so 90-plus per cent of small businesses are not affected by any of these changes.”
“How come no-one's putting that out on social media in the same way and spreading that information? Guess what? If anyone knows anything about investing in small businesses, you know that upfront is where you need that support—when an idea is just an idea, when there's the passion of the entrepreneur. So all the things I've just talked about—the $3.5 billion in tax relief and tax measures to help small businesses and startups—is actually what matters. And then we've got all this misinformation about how on the back end the discount through indexation will somehow be terrible for the investor down the end. Well, I'll tell you what—some investors and some of these businesses will actually benefit from an indexed tax discount, depending on inflation rates.”
“As I mentioned, there'll be a consultation process going forward on some of this. The fact is we're delivering $3.5 billion of tax relief to new businesses, which includes the $20,000 instant asset write-off becoming permanent. That's going to wipe away around $890 million in cash flow burden. We're delivering a permanent two-year loss carry-back so that small businesses can return to profitability faster and have the confidence to invest earlier and withstand volatility. We're introducing loss refundability to help startups grow in their first two years. We're expanding tax incentives for venture capital to help unlock more investment in young and expanding businesses, in startups, in transforming ideas into great businesses that can be productive in the economy. How come there are no memes on that?”
“One of the main proponents of the social media campaign actually explained the issue with the memes by saying, 'Unfortunately, the more nuance you have, the quicker someone will scroll past and not really care about what you're saying.' That's the motivation for putting information out to misinform the Australian people? It's remarkable. So let's not scroll past right now. I've got a small audience here, maybe a few more people that might watch this if I put it up on social media. Let's not scroll past. There are four key capital gains concessions for businesses that are unchanged in the budget. We are supporting small businesses to get ahead, and it's a big focus of this budget. We're actually consulting and working with the sector on how the new rules will actually apply to start-ups.”
“This includes contracts entered into. And if you want a negative gear going forward under the new system, you can. You absolutely can. We ask that you contribute to the national goal of building more homes by negatively gearing on new builds. That's a fact. People who've been online recently would have seen all these AI generated images of the PM as a silent partner, taking 47 per cent of profits from a small business or start-up. I'm sure this has been spread around everywhere by bots and others who want to create mischief and further misinformation. Well, these posts are referring to 47 per cent marginal tax rate that has existed for more than a decade. It doesn't change in this budget at all. You've got all of these memes going around and all the rest of the social media campaigns by the proponents.”
“What's disappointing is partly the misinformation that has flooded the information landscape, conflated with rather, I think, deceptive messaging around and a misunderstanding of what's happening to confuse people and to scare people. We heard the previous speaker talk about scare campaigns. Well, this has become almost a kind of characteristic of our current information landscape—that it's almost expected—but that's not good enough. This might not reach many people, but at least we can actually debate in this place what we're doing and why we're doing it. Hopefully, people can see and hear that. Australians who are currently negatively gearing will not see any change to their arrangements. That's just a fact. They'll continue to be able to negatively gear. Nothing changes for properties purchased before the budget.”
“As we go through this process before the implementation, there is a lot of consultation going on with business to make sure we get all of this right. There's been a lot of discussion as well about the negative gearing changes that we're debating. Our negative gearing changes put homeowners first and will help more Australians get a foothold in the housing market. Going forward, we are limiting negative gearing for residential property so it can only be used for new builds. You can still negatively gear. You can do it on a new property, and it stimulates new home builds. We knew that something had to change. Too many people, too many young people, have been locked out from owning property by the fact of the distortions in the systems for the last several decades. But we're making these changes in a very responsible way.”
“The announcement that was made at the budget was to replace the 50 per cent CGT discount with inflation-adjusted indexation from 1 July next year to restore the taxation of real gains, as well as a minimum tax on realised gains. It's all about fixing the tax treatment of capital gains so that it operates as originally intended—helping to ensure investment flows where it's most productive. Returning to indexation will mean in the future only real capital gains are subject to tax, supporting investment in assets like medium-density housing, thus ensuring everyone pays a fair share when they make a capital gain. Income support recipients, including pensioners, will be exempt and there will be a grandfathering of gains made before 1 July.”
“The return to indexation will mean, in future, that only real capital gains are subject to tax, supporting investment in assets like shares and medium- and high-density housing. The announcement that was made in the budget was to replace the 50 per cent CGT discount with inflation-adjusted indexation from 1 July next year, to restore the taxation of real gains, as well as a minimum tax on realised gains. It's all about fixing the tax treatment of capital gains so that it operates as originally intended, helping to ensure investment flows where it's most productive. The return to indexation will mean in future that only real capital gains are subject to tax, supporting investment in assets like shares and medium- and high-density housing.”
“Unfortunately, in the information landscape in which we all operate, there's been a lot of misinformation about the recently announced changes to the capital gains tax discount. Let's just have a bit of clarity and the facts. Under the Howard government, a 50 per cent capital gains tax discount was applied to the sale of all assets that had been held for more than 12 months. It basically cut that tax in half, given that discount. That system distorted the market by encouraging people to invest in established houses, not units or shares. On average, the 50 per cent discount tends to overcompensate investors in housing for inflation and to undercompensate investors in units, especially in the regions, and in shares.”
“But they risk repeating their history, and making the same mistakes that they've made in the past, if they don't support these tax reforms—if they once again vote against tax cuts and against aspiration. The aspiration to homeownership is at the heart of the budget that we delivered recently. House prices have risen over 400 per cent over the last two decades or so. They've gone from four times to eight times incomes over the past 20 years. And ownership for young people is down by seven per cent. These are all facts that they can't hide from. And our reforms, frankly, will be helping to level the playing field for first home buyers and to ensure investment flows to where it's most productive, including new housing supply.”
“And this week we will introduce the legislation to cut income taxes further—including a $1,000 instant deduction, and also the working Australian tax offset of $250. We're reforming the tax system to support 75,000 more homeowners into the housing market—that's significant. We're also investing an extra $2 billion for enabling infrastructure to support up to 65,000 more homes, taking our Homes for Australia plan to over $47 billion in investments over our time in government. We're also helping to secure social housing for more than 4,000 eligible young people at risk of homelessness, with a $59.4 million package for states and territories. Now, it may be the case that those opposite are unaware of history.”