Penny Wong has been called out by the Opposition for using ‘tricky language’ while answering the question: will the government now crack down on negative gearing?
The Foreign Affairs Minister took a stand during a fiery Senate Question Time on Tuesday – the first of the year – to refute suggestions her government could no longer be trusted after breaking a key election promise.
Prime Minister Albanese shocked voters when he walked away from his commitment not to change the already legislated Stage Three tax cuts.
But amid questions about the government’s focus on the cost of living crisis, Mr Albanese spectacularly backflipped on his promised policy by reducing the tax break high income earners will receive come July 1.
Opposition Leader in the Senate Simon Birmingham today questioned whether that meant changes to policy on negative gearing – where Aussies get tax benefits for investment properties when their expenses are greater than their income – and franking credits.
Senator Wong fired back: ‘The reality is those opposite are desperate to find another fight.
The Foreign Affairs Minister took a stand during a fiery Senate Question Time on Tuesday – the first of the year – amid suggestions her government could no longer be trusted after breaking a key election promise
‘After a period of huffing and puffing they’re now backing Prime Minister Anthony Albanese‘s tax plan. So they’re desperate to talk now about what we are not doing instead of what we are doing.’
When probed further by Mr Birmingham, Ms Wong said: ‘We are not proposing any other changes in the areas the senator has mentioned.’
That line is similar to the official line taken by Treasurer Jim Chalmers when he was asked if the government will make further major economic changes.
It also echoes the one pedalled by the Prime Minister in the 24 hours before he implemented the Stage Three changes.
Her language did not go unnoticed in the chamber, prompting criticism from a number of Opposition Senators about the ‘tricky language’ Labor has developed a penchant for using.
Opposition Leader Peter Dutton pointed out today that the problem with having ‘a liar in the Lodge’ is that it makes it hard to trust and rely on any other promises he’s made during his time in office
‘We are reforming the income tax system and we are providing relief to Australians doing it tough. We are not looking at changes to the other tax system, we are looking at the changes in the income tax system,’ she said.
‘The reason we are doing that is because Labor MPs, Senators and ministers have understood how important it is to respond to cost of living pressures.’
As the volume rose in the chamber with senators shouting insults at one another, Ms Wong added: ‘I know you don’t want to talk about it.
‘Those opposite have backed in Anthony Albanese’s tax plan. And now they’re trying to distract from it with another scare campaign.’
The Coalition have repeatedly expressed concerns about the future of negative gearing and franking credits since the government walked away from Stage Three.
Opposition Leader Peter Dutton pointed out today that the problem with having ‘a liar in the Lodge’ is that it makes it hard to trust and rely on any other promises he’s made during his time in office.
Dr Chalmers was asked last week about any future potential changes to negative gearing policies.
‘The reality is those opposite are desperate to find another fight,’ she shouted, as tensions rose in the chamber
Prime Minister Albanese shocked voters when he walked away from his commitment not to change the already legislated Stage Three tax cuts
The Treasurer was adamant such a policy change wasn’t on the horizon – but repeated the same words Mr Albanese used when he ruled out breaking his promise on the Stage Three tax cuts.
‘We’re not contemplating or considering resurrecting the policies that we took to the 2019 election,’ he said.
‘We haven’t changed our view.’
That last sentence was Prime Minister Anthony Albanese‘s go-to line before he announced he was, in fact, changing the Stage Three cuts.
‘We have not changed our position,’ Mr Albanese told voters, journalists and colleagues.
Negative gearing is when the cost of owning a rental property outweighs the income it generates, creating a taxable loss which can be offset against other income.
For example, if someone rents out an investment property for $20,000 a year but they pay $30,000 in interest on their mortgage they can essentially subtract $10,000 from their salary and only pay tax on what remains.
Negative gearing benefits investors looking to expand their property portfolio rather than first-time buyers.