Australian Budget Bill Sparks Debate: Greens' Concerns, US Tariffs, and Housing Policy

Key Events

James Paterson gives Greens credit for questioning ministerial powers in budget bill

By Joshua Boscaini

Liberal frontbencher James Paterson has given the Greens credit for raising concerns about ministerial discretion in Labor's budget bill.

Greens senator Nick McKim has raised concerns about the "power to fundamentally alter" the tax changes after they become law.

Treasurer Jim Chalmers says it's standard for tax legislation to be constructed that way, and concerns about the powers are a "beat up".

Labor needs the support of the Greens to get its budget through the Senate, but Paterson has told Sky News he hopes they don't back it.

"I actually give the Greens some credit here. They're in principle in favour of higher taxes, particularly on capital gains and negative gearing and other things, but they also defend the principle of the parliament," Paterson says.

"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."

Get ready to go deep on the budget tax policies

T By Tom Crowley

It's Treasury's turn at Senate estimates today, starting with Secretary Jenny Wilkinson.

She gave a speech last week, offering some analysis of why the government proposed to change negative gearing and the capital gains tax. A comment about the need to raise revenue caught fire, seized on by the Coalition as evidence this was a 'tax grab'. Expect questions on that.

But first, Labor Senator Charlotte Walker asks a generic question about the rationale for Labor's change, and Wilkinson steps it through. The government, she says, cares about declining home ownership, the pressure on wage earners, and that the benefits of negative gearing and the capital gains tax discount were concentrated at the top.

She adds that the existing CGT discount of 50 per cent had "sometimes overcompensated for inflation and sometimes undercompensated", raising questions about whether it was doing a good job of accounting for inflation.

Government provides $5 million towards preventing spread of Ebola

J By Joshua Boscaini

The federal government will provide $5 million to the Red Cross and World Health Organization to help prevent the spread of Ebola.

In a statement, Foreign Minister Penny Wong says the funding will go towards vital medical care and supplies and water sanitation services.

It will also be directed towards outbreak surveillance and preparedness and strengthening local health systems.

"We are acting to support the responders and local communities that are on the front line and prevent the further spread of Ebola," Wong says.

"Strong international partnerships are critical to managing health threats like Ebola and reducing their wider impacts."

Housing minister says government wants to see 'sustainable' house price growth

J By Joshua Boscaini

The housing minister says the government wants to see "sustainable" house price growth over the long term.

Speaking at a press conference in Canberra, Clare O'Neil says that if home prices continue to rise at the current rate, people will only be able to get into homes by inheriting money from their parents.

"I think anyone looking at the housing situation today can see that 400 per cent price growth that has occurred over a 25-year period is not sustainable for our country," O'Neil says.

"If we saw that kind of growth happen for another generation, we will be living in a country where the only way to get into home ownership is by inheriting money from your parents, and that is not Australia."

Proposed 12.5pc tariffs on Australian exports 'unwarranted', Chalmers says

J By Joshua Boscaini

Treasurer Jim Chalmers says the United States' proposed 12.5 per cent on Australia tariffs are "unwarranted".

Washington has cited concerns about modern slavery and forced labour for its decision, but Chalmers says Australia has world leading laws to combat modern slavery.

"We will continue to take every opportunity that we can to stand up for Australian exporters and to stand up for the workers and businesses in those industries, who would be right to consider these tariffs as unjustified, unwarranted, unnecessary, and inconsistent with our free trade agreement," Chalmers says.

Chalmers says concerns about ministerial discretion in budget reforms are a 'beat up'

J By Joshua Boscaini

Treasurer Jim Chalmers has spoken to journalists as he enters Parliament House, where he's expected to oversee the passage of the government's budget measures today.

The Greens have raised concerns about the level of ministerial discretion contained in the budget legislation.

Asked if he's worried the Greens might hold up passing the budget reforms through the lower house, Chalmers says it's standard procedure for tax legislation to be constructed this way.

"We're aware of the concerns that the Greens have raised, we're in discussions with them. Nobody has the numbers in the Senate on their own, and so we're in those discussions with the Greens," Chalmers says.

"Unfortunately, it’s yet another beat up about these sensible, common sense tax reforms at the core of the budget."

So is the treasurer confident that he'll pass the legislation before the midwinter break? Chalmers says it remains to be seen.

Sam Rae says he's been concerned about MND aged care rules for weeks

J By Joshua Boscaini

The government yesterday decided to amend the aged care rules to give priority support at home services for older Australians with Motor Neurone Disease (MND).

Mayo MP Rebekha Sharkie, who raised the matter in parliament this week, has welcomed the move but says it shouldn't have taken her asking a question in parliament to get change.

But Sam Rae says he's been concerned about the matter for weeks and has been developing a response.

"It's the latest step in a long line of continuous improvements in the system to get the best outcomes for older people," Rae says.

"MND is a rare but incurable disease, and it's characterised by a very rapid deterioration in people's condition, and that's why we want to make sure that those people get the priority access that they need. That's why we're making these changes."

Angus Taylor says proposed 12.5pc US levy on exports are 'rotten tariffs'

J By Joshua Boscaini

Opposition Leader Angus Taylor says the United States should not impose new tariffs on Australian exports.

Washington has proposed slapping a 12.5 per cent tariff on Australian exports, citing forced labour and slavery concerns.

But the opposition leader says the United States is "wrong", "shouldn't do it" and has labelled the proposed levies "rotten tariffs".

"We fought with them, in every war, every major war, they shouldn't be imposing tariffs on us," Taylor says.

"This is a tax, on our exporters and we don't want to see it."

Nationals Leader Matt Canavan says the proposed tariffs are not the act of a friend and that there's no evidential basis for applying the tariffs.

"These are wrong. These tariffs are unjustified, they're unwarranted and they're not the act of a friendly country," he says.

Coalition open to working with Greens to block government's budget measures

J By Joshua Boscaini

The opposition leader hasn't ruled out working with the Greens to block the government's budget measures through the Senate.

The minor party has expressed concerns about ministerial discretion contained in Labor's budget legislation, which is due to pass the lower house today.

Angus Taylor says the Coalition will work with anyone to stop the budget measures from passing parliament.

"Well, we'll work with anyone to stop toxic taxes, and that's what Labor is proposing. And we'll work with whoever we can," Taylor says.

"The Greens have an opportunity here to stop this legislation, and we'll work with whoever we can to stop this toxic legislation getting through the parliament."

Taylor won't be drawn on whether he thinks house prices should rise or fall

J By Joshua Boscaini

Opposition Leader Angus Taylor has refused to say whether he thinks house prices should either go up or down.

The opposition leader says housing should be more affordable, but hasn't said whether he thinks prices should fall.

"If you want more affordability, you're going to have lower interest rates," Taylor says.

"We need more affordable homes for young Australians. That means they've got to have rising incomes, they have lower interest rates."

But pressed again if he would be happy if prices came down in some areas of the market, Taylor says he's not a house price forecaster.

Angus Taylor weighs in to Greens' reservations about budget legislation

J By Joshua Boscaini

Opposition Leader Angus Taylor has stepped up in Canberra with Nationals Leader Matt Canavan.

The federal government is expected to pass the first tranche of its budget legislation through the lower house today, but it still has to get through the Senate.

Taylor has commented on the Greens' reservations about the level of ministerial discretion contained in the government's budget legislation.

"Well, it's finally dawned on the Greens. And so there's a test for the Greens here, but there's a bigger test for Labor. Are they going to do a dirty deal with the Greens on this legislation?" Taylor says.

Aged care minister defends tool used to assess funding for at-home care

J By Joshua Boscaini

As friend of the blog Evelyn Manfield reported yesterday, the government has decided to review the mechanism it uses to assess how much funding older people should get to help them live at home.

The Integrated Assessment Tool has come under controversy because it then can't be overridden by humans.

Aged Care Minister Sam Rae says all clinical assessments are conducted by a person, always by a person.

Speaking to ABC Radio National Breakfast, Rae has defended the system and says the automatic assessments help create a more efficient system.

"The automated component that you're talking about is the application of the aged care rules and the rules have to be the same for everyone," Rae says.

"This ensures that across our country, across all of the diverse communities and indeed across the diverse assessment organisations that actually do the assessments, we get an equitable outcome, we get a fair outcome, we also get an efficient outcome for older people."

Pressed on whether human can override the decision of the Integrated Assessment Tool, the minister hasn't been able to definitively say.

Budget estimates gets heated as Tim Ayres provides update on housing builds

I By Isabella Tolhurst

Last night's budget estimates hearing on housing got pretty heated, with Tim Ayres and Shadow Housing Minister Andrew Bragg going at each other's throats for hours.

Bragg pursued several lines of questioning about the Housing Australia Future Fund, the 5 per cent home deposit scheme and the government's changes to the capital gains tax discount and negative gearing.

At one point, Bragg accused the government of being "communists", while Ayres told Bragg he "needed a holiday to settle down".

Between the shots fired, there were some interesting updates on the housing sector.

Ayres fought in favour of including non-citizens in the 5 per cent home deposit scheme, from which about 51,000 permanent residents have received support.

Australians who are permanent residents have settled permanently here in Australia. Many of them are in our suburbs in families where they are grandparents, taxpayers, in our defence forces, they are part of the Australian community," Ayres said.

"This is a country where permanent migration has been an important part of the Australian story".

The government also justified its budget policies that will see a 35,000 reduction in housing supply, arguing it's a small number in the context of broader measures in the budget to increase supply.

They say about 179,000 new homes have been built this year, and government is pleased with the progress.

Greens signal concerns about ministerial discretion in budget legislation

J By Joshua Boscaini

The Greens have raised concerns about the level of ministerial discretion contained in Labor's budget legislation set to pass the lower house today.

The federal government's needs the support of the Greens to pass its budget measures through the Senate.

Greens economic justice spokesperson Nick McKim his party is concerned about the ability for the treasurer to alter the tax changes.

"We aren't talking about minor tweaks and adjustments here. The Treasurer would have the power to fundamentally alter these tax changes after it became law," McKim says.

"It is a concern to the Greens and it is something we want to explore in the upcoming inquiry."

Independent senator David Pocock says the legislation provides the treasurer with the power to make changes about what kind of trusts are captured by the government's reforms.

"I will be digging into this deeper during the very brief senate inquiry into this bill and seeking to move amendments that restore proper parliamentary oversight and wind back ministerial discretion," Pocock says.

Government has to be 'very careful' about further cost-of-living support: Albanese

J By Joshua Boscaini

The prime minister hasn't indicated whether the government will continue to provide support Australians amid the challenging economic outlook.

Anthony Albanese has pointed to this week's Fair Work Commission decision to increase minimum and award wages and income tax cuts.

He says the government has to be "very careful" about anything that it does but hasn't indicated further cost-of-living support.

"We'll be very careful, of course, in anything that we do. We want to make sure we continue to do what we can to put downward pressure on inflation," Albanese says.

PM open to engagement with crossbench on government's budget measures

J By Joshua Boscaini

The federal government's first tranche of budget measures are expected to pass the House of Representatives today.

Labor needs the support of the Greens to pass the legislation through the Senate; the left-wing party has raised concerns about the extent of ministerial discretion in the bill.

The bill has to go to a parliamentary inquiry first and will report back by June 22, when the Senate next resumes sitting.

Prime Minister Anthony Albanese says the government is "engaging respectfully" and that his door is always open to other parliamentarians.

"The parliament will have the opportunity to examine it, just as today in the parliament, there'll be a consideration in detail debate," Albanese says.

'Ideological disagreement' exists between Australia and US on tariffs, PM says

J By Joshua Boscaini

Prime Minister Anthony Albanese has defended Australia's modern slavery protections as the US