00:01This speech was really a pitch to small business owners and the aspirational youth.
00:08Much of what the Shadow Treasurer Tim Wilson set out in his National Press Club address
00:13today are policies that were already unveiled by the opposition leader last week, including
00:18a pledge to repeal Labor's tax reforms, also to increase the instant asset write-off to
00:27$50,000 and make that a permanent feature of the tax system and to index the income tax
00:35brackets to inflation.
00:37What was new was a pledge to introduce new laws that would protect small businesses in
00:44the future.
00:45So this so-called Small Business Act would essentially legislate a pathway for small businesses to
00:52have input on all new legislation that passes through federal parliament and also to streamline
01:00the definitions of small business or the definition to make it just one across all Commonwealth
01:06legislation.
01:08So, Tim Wilson really capitalising on some of the backlash that has been expressed from
01:15small business owners, particularly online.
01:17We've seen memes depicting the Prime Minister as a part owner in people's businesses because
01:23of these proposed changes to the capital gains tax discount.
01:28Here's a bit of what Tim Wilson had to say to those Australians.
01:33The self-starters are what built this country and we are going to back you in to be its future.
01:41You work, you risk, you should get ahead.
01:47And that is why the coalition is being explicit.
01:51We will oppose the higher taxes the government has put forward and we will repeal them if necessary.
01:59Opposing Labor is not enough.
02:01That is why last Thursday night, the leader of the opposition, Angus Taylor, committed to indexing
02:06income tax thresholds to address bracket creep.
02:09And under our changes, young Australians will keep what they earn, not have it taxed by stealth.
02:15Tim Wilson there.
02:17And Sarah, what are the accusations flying over those tax reforms outlined in the budget?
02:22Yes, so the main charge is that because Labor is scrapping the 50% discount on capital gains,
02:29replacing it with a minimum 30% tax on the real gain, so that's the gain minus inflation,
02:37that that could see small businesses pay up to 47% on the profits when they sell their business.
02:45Now, the Treasurer is saying that is just patently untrue,
02:48pointing out that 91.5% of small businesses that earn less than $2 million a year and hold assets
02:58up to $6 million will still have access to the existing exemptions on capital gains for small businesses.
03:08There are four existing exemptions.
03:11So, look, the Treasurer, Jim Chalmers, seizing on one of the examples Tim Wilson gave in his speech
03:17of a young entrepreneur, Sienna, who might have to pay up to, give up half her profits to the government.
03:24He was asked about that by the ABC's David Spears.
03:29And Tim Wilson was forced to acknowledge that she might not pay 47%, she might pay 0%.
03:37So, here's the Treasurer, Jim Chalmers, on that.
03:40The one example that Tim Wilson began his speech with, he was asked,
03:45could this person pay less tax under these new arrangements?
03:49And his answer was essentially maybe.
03:51And so, Tim Wilson was unable to explain his policy for bigger deficits, more debt and more inflation.
03:58He was unable to justify the last time that the Parliament cut income taxes.
04:02And that's because they voted against it and said that they would increase income taxes.
04:09Now, Jim Chalmers has also faced criticism from New South Wales Premier Chris Minns,
04:15who is not helping his federal Labor colleagues sell this federal budget.
04:20Chris Minns saying that there needs to be urgent action to address bracket creeps,
04:28stating that under the current tax settings, people spend Monday, Tuesday and half of Wednesday
04:33working for themselves, and the other days in the week working for the government.
04:39Look, in a general sense, I know budgets are under pressure, but in a general sense,
04:45whether it's now or in the future, we do need to make sure we're taking urgent action
04:50when it comes to personal income taxes, because at the moment, a lot of working families are getting stung.
04:57Now, Jim Chalmers has pointed out that Labor has handed down three tax cuts
05:02and has also introduced the working Australian tax offset of $250 that will kick in from 2028,
05:10as well as an automatic $1,000 deduction that will kick in from 2027.
05:16The budget also flagging that some of the extra revenue that's raised through these tax reforms
05:23could eventually be used in the form or passed on in the form of additional tax cuts.
05:29Thanks, Joe.
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