A fiery clash has broken out in Senate Estimates after the Finance Minister failed to answer questions from Nationals Leader Matt Canavan on her plans to address productivity.
Fiery clash breaks out in Senate Estimates after Finance Minister fails to answer questions on productivity amid controversial tax reforms A fiery clash has broken out in Senate Estimates after the Finance Minister failed to answer questions from Nationals leader Matt Canavan on Labor's tax changes and productivity.
A fiery clash has broken out in Senate Estimates after the Finance Minister failed to answer questions from Nationals Leader Matt Canavan on her plans to address productivity. Katy Gallagher and Treasury Secretary Jenny Wilkinson fronted the Senate Economics Committee on Thursday over high inflation and Labor’s controversial plans to alter capital gains tax, negative gearing, and trusts. Treasurer Jim Chalmers' budget reforms, handed down on May 12, included plans to abolish negative gearing for future investors buying existing properties.
It also flagged changes to CGT, replacing the Howard government-era 50 per cent discount with an inflation-indexed model first introduced under former prime minister Paul Keating. Senator Canavan repeatedly quizzed Ms Gallagher and Ms Wilkinson on whether the tax changes in the federal budget would increase productivity. Nationals Leader Matt Canavan quizzed Ms Gallagher and Ms Wilkinson on whether the tax changes in the federal budget increase productivity.
Picture: Sky News "There are a series of tax changes in this budget, which are changes to the business tax system," Ms Wilkinson said in response to his initial question.
"All of those are targeted measures that I think are widely regarded as measures that will incentivise productive and innovative activity in the economy. That's the objective of all those reforms.
" Mr Canavan then repeated his question, stating that he did not receive a satisfactory response to his initial query. "Does the changes to negative gearing, capital gains tax and trusts, do any of those tax changes, increase productivity? " After the Treasury secretary attempted to explain the reforms, Mr Canavan asked again whether the government had modelled the effects of the changes.
The Finance Minister later snapped at Mr Canavan and told him to"take responsibility" for what she called the"decade of inaction". However, the minister failed to mention that productivity, which measures Australia’s GDP against the number of hours worked, had fallen under Labor. When asked again about the effects of Labor's tax reform, Ms Gallagher said:"There is a glossy, there. There are 14, 15 different measures, but I can take you through them, if you'd like.
" But Mr Canavan rebutted by questioning whether the government’s policy"glossy" would actually improve productivity. Chair, I'm trying to answer his question seriously; he's trying to make a joke out of it," Ms Gallagher tells the committee.
"I read it on the night, Minister, thank you," Mr Canavan replied.
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