The Australian Greens warn that the government's tax reform legislation grants the treasurer the ability to alter key provisions such as negative gearing, CGT discounts and trust rules through legislative instruments, raising concerns about potential future exemptions for specific regions and the risk of policy roll‑backs by later governments.
But they hold concerns about the specifics contained within the bill which could allow treasurers to "fundamentally alter" the lawsThe Greens have seized upon powers within the government's signature tax reform bill, questioning whether it allows the treasurer to exempt home owners in his Queensland electorate.
While the party has indicated it is willing to help Labor pass the tax laws — which includes changes to negative gearing, the capital gains tax discount, trusts and the $250 tax offset — by early July, the Greens hold concerns about the specifics contained within the bill. The bill, which passed the lower house on Thursday unchanged, allows some asset definitions to be determined by the treasurer via legislative instrument, which can be overturned by the Senate.
Greens senator Nick McKim says the bill could potentially allow future treasurers to "fundamentally alter" the laws once they are passed in their current state. Senator McKim questioned whether Treasurer Jim Chalmers would theoretically have the powers to exempt property owners in his home city of Logan from changes to CGT calculations.
"The minister could for example decide to exempt all houses in Logan from the new arrangements and allow those owners to have access to the very generous 50 per cent discount. Could the minister not do that?
" Senator McKim asked in Senate Estimates on Thursday. He also asked if the government was worried about "future treasurers who might be from the Liberal Party or, horrifically, a One Nation treasurer, might use these powers to walk back some or all of your capital gains tax reforms". Finance Minister Katie Gallagher noted the powers were "disallowable instruments", which mean any change a treasurer might make could be stopped by the Senate, which Labor does not control.
Support from the Greens is crucial for the passage of the bill through the Senate. Mr Chalmers said he was well aware of the concerns from the Greens and was in talks with the party, saying the powers contained within the laws were standard procedure.
"Nobody has the numbers in the Senate on their own, and so we're in those discussions with the Greens," Mr Chalmers said. "Unfortunately, it’s yet another beat up about these sensible, commonsense tax reforms at the core of the budget. "Mr Taylor says he'll work with whoever he can. And Opposition Leader Angus Taylor said the Coalition would work with anyone to stop Labor's "toxic taxes".
Liberal Senator James Paterson told Sky News he supported the Greens "defending the principle of the parliament".
"I really hope the Greens and others don't allow the government to abuse the parliament like this, to abrogate the powers of the parliament like this. " Meanwhile, independent senator David Pocock said the changes contained within the government's bill were complex and needed more time to be examined.
Senator Pocock said he wanted the bill, which combines a number of changes in an attempt to wedge the opposition into support, should be broken up so it can be examined in greater depth.he said.
Tax Reform Greens Party Treasurer Powers Capital Gains Tax Negative Gearing
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