Andrew Bragg criticizes Treasurer's budget backdown, defends multiculturalism

Andrew Bragg says he doesn't agree with One Nation leader Pauline Hanson's characterisation that multiculturalism is flawed.

Hanson said in a speech to the National Press Club on Wednesday said while the country is multiracial, it should be monocultural.

The Liberal frontbencher says Australia has been a multicultural country for the past 250 years and says it's something we should be proud of.

Speaking to ABC Radio National Breakfast, Bragg says he does think there has been a loss of shared purpose and disappointment in the direction of the nation.

"I think what we need to do is to work out what are the things that we have in common, what are the golden threads of this great country, and focus on that rather than on division," Bragg says.

Liberal frontbencher Andrew Bragg says the treasurer's backdown on key budget measures shows he's "failed at his job".

Labor backed down on some key measures in May's budget related to capital gains tax and testamentary trusts yesterday.

The government is increasing the small business turnover threshold for capital gains tax concessions from $2 million to $10 million.

And income from all types of testamentary trusts will be exempt from the minimum tax, including future discretionary testamentary trusts.

Speaking to ABC Radio National Breakfast, Bragg says the budget measures have "more holes than a piece of Swiss cheese".

"Younger Australians will now face a punitive tax system on the capital side or on the income pay-as-you-go side. So that's what we really object to that," Bragg says.

"This has not been a recalibration of the tax system. This has been an increase in capital gains tax and virtually nothing on the pay-as-you-go side."

Mark Butler has appeared on Channel Seven for his regular Friday morning spot, this time with Shadow Treasurer Tim Wilson.

The health minister has defended the changes announced yesterday as "sensible" and still retaining the government's original intention of tax reform.

Labor backed down on some key measures in May's budget on capital gains tax and testamentary trusts yesterday.

The federal government is increasing the small business turnover threshold for capital gains tax concessions from $2 million to $10 million.

"There was some consultation happened before budget night, we've continued that in a very deep engagement with business in particular and I think delivered a clearer and more balanced package," Butler says.

Wilson says the government has lied to the Australian people for a budget which he says has "fallen apart".

"It's quite clear yesterday the prime minister and the treasurer were hostage at their own press conference as they've been brought to heel by the Australian people," Wilson says.

"The government is now trying to gloss over it and polish a turd is the expression I'm using, or polish a tax turd."

Pauline Hanson's openness to discuss a winding back of paid parental leave is concerning and harks back to an Australia that no longer exists, advocates say.

The One Nation leader questioned "why should business pay [parents] if they're not at work?" while challenging the pay gap between men and women in her speech at the National Press Club this week.

The party is willing to consider pulling back paid parental leave, though it has not finalised its policy on workplace relations.

It is a long-held view of Senator Hanson's. In a 2017 speech opposing an expanded paid parental leave scheme, she opposed a "welfare handout mentality" because she raised children as a "single mother and held down a part-time job".

Read the full story from political reporter Nicholas McElroy in the link below.

Opposition Leader Angus Taylor has refused to say whether he would support an extension to the fuel excise cut.

The fuel excise cut, which the government introduced at the beginning of the Middle East war, expires at the end of this month.

Prime Minister Anthony Albanese has flagged the government will make a decision within the week.

Speaking to ABC News Breakfast, the opposition leader says the focus needs to be on reducing inflation but hasn't weighed into an extension.

"The oil price is down from where it is. We're watching it very closely. It could pop in the other direction very quickly as well," Taylor says.

"We'll watch it over the next couple of days. There's definitely been a big reduction since the ceasefire has occurred and that is a good thing."

The opposition leader says Labor's changes to its budget don't go far enough and has called for capital gains taxes to be axed.

Speaking to Channel Nine, Angus Taylor says the changes impose a "ceiling on ambition and aspiration" and are too little too late.

"We need these taxes axed, not carved up and frankly they are a punishment on hard work, they're a punishment on aspiration," Taylor says.

Changing topics and Taylor has been asked whether there's anything about Pauline Hanson's speech at the National Press Club he agrees with.

The opposition leader says there wasn't enough detail to comment on the speech and says there needs to be a credible plan.

"It's not enough to be angry, I can understand the anger, I do get it, but we have to have a credible plan."

The treasurer is continuing his media blitz this morning on ABC News Breakfast to sell his budget changes announced yesterday.

The federal government backed down on some key measures in May's budget on capital gains tax and testamentary trusts yesterday.

The federal government is increasing the small business turnover threshold for capital gains tax concessions from $2 million to $10 million.

Income from all types of testamentary trusts will be exempt from the minimum tax, including future discretionary testamentary trusts.

Asked if the government was pushed to make the changes following backlash from the small business community, Chalmers says the government expected a partisan campaign against the changes.

He's taken a swipe at One Nation while he's at it.

"Obviously there are people in our community who would prefer things stay exactly as they are. That's the irony of the One Nation position. They want to change the government in order to leave the tax system and the housing market exactly as it is," Chalmers says.

"We're delivering real change here and when you deliver real change like this economic reform, it's always contested, it's always contentious."

Treasurer Jim Chalmers says he thinks the government has lost some support following May's federal budget but doesn't regret pressing ahead with the changes.

Labor backed down on some key measures in the budget and announced carve-outs for small businesses from capital gains tax changes.

The federal government is increasing the small business turnover threshold for capital gains tax concessions from $2 million to $10 million.

And income from all types of testamentary trusts will be exempt from the minimum tax, including future discretionary testamentary trusts.

Speaking to ABC Radio National Breakfast, Chalmers says the government thinks it has made the right decision in the interests of young people.

"I think we have lost some political paint, but it's worth it because we're doing the right thing here and if we're given the choice between taking the easier path politically or doing the more difficult thing, but the right thing in the interests of particularly first home buyers, young people, workers in the tax system, then it will be worth it," Chalmers says.

Labor needs the support of the Greens to pass its budget measures through the Senate, but Chalmers hasn't said whether he's inching closer to a deal with the minor party.

"We'll continue to discuss with the crossbench in the Senate the best way to pass this legislation. Obviously, there have been some discussions, those discussions aren't concluded yet."

Listen to the full interview in the link below.