00:01We heard on Tuesday night the government is planning to cap negative gearing to new builds
00:08only and to reduce the capital gains tax discount so that people selling assets like houses
00:14and shares would end up paying a bit more tax.
00:17Now the opposition says it would scrap both those two policies entirely if it were elected
00:22to office and do something else and that is tie income tax rates to inflation to prevent
00:29bracket creep.
00:30Now bracket creep is this thing that happens where inflation pushes your tax up to potentially
00:36the next tax bracket but your buying power is an increase because of that same inflation.
00:42So Angus Taylor says he will do this by addressing the bottom two tax brackets first and then
00:48by 2031 he would extend it to all tax brackets.
00:52Now this is a policy that the coalition has said will cost $22.5 billion over four years.
00:58It's not saying exactly where it will get that money from.
01:01In fact Australia used to have this policy but it was scrapped because it was so expensive.
01:06But the nationals leader Matt Canavan, the coalition partner, has said today that the government
01:12is spending too much money on net zero, on programs like vehicles emission standards, on giving
01:17welfare to new migrants who are not citizens yet and he says those are the sorts of things
01:23that the coalition would cut in order to pay for this.
01:26Of course we had to spend more money in Canberra during COVID for JobKeeper, to keep the country
01:32moving, to bail out our airlines.
01:34But then once all that ended this government just kept the spending really high on a whole
01:39lot of other corporate welfare bureaucracies that can and should be scaled back so the Australian
01:44people don't have to pay so much tax.
01:47Now on housing specifically they've also said they would scrap the Housing Future Fund because
01:53it's not actually building any houses and instead tie housing to migration.
01:58So for every one house built in this country they would allow in one migrant.
02:04So Isabel, what's the response been from business groups to the coalition's plan?
02:09Well the Business Council of Australia, which is traditionally quite supportive of coalition
02:14policies, has raised some issues with the migration plan in particular.
02:19They say we do actually need skilled migrants in particular in this country to build the houses,
02:24that the coalition agrees that we do need.
02:27So there is some concerns about the rate of migration the coalition is hoping to pull back on.
02:33There is some happiness though at the plans for tax reform.
02:39They do encourage the government to be doing some of those things that could address bracket creep.
02:46We've heard from the Treasurer Jim Chalmers this morning from the government's response.
02:51They've called this budget nonsense, that it's not costed and that it's not addressing the
02:57actual problem that the country has, which is housing.
03:01Ours is a plan to strengthen the economy.
03:04Angus Taylor's is a ploy to stave off One Nation.
03:07What we saw last night from Angus Taylor was not a budget reply, it was a bin fire.
03:13It wasn't a budget reply, it was a bin fire of higher deficits, more debt, more inflation and more division.
03:21Jim Chalmers there and we should point out that the government has also flagged that it does
03:26want to address bracket creep in similar ways to reduce income tax.
03:30But those exact plans are yet to be laid out.
03:33Jim Chalmers.
03:33Jim Chalmers.
03:34Jim Chalmers.
03:36Jim Chalmers.
03:36Jim Chalmers.
03:36Jim Chalmers.
03:36Jim Chalmers.
03:36Jim Chalmers.
03:36Jim Chalmers.
03:37Jim Chalmers.
03:37You
Comments