News and politics live updates: Anthony Albanese capital gains tax claim questioned by Treasury Secretary

The first of the two tax bills has now passed the lower house.

This was the core one that contains the changes to capital gains tax discounts, negative gearing, the working Australian tax offset and the standard deduction.

MPs are now voting on amendments to a secondary bill that makes changes to tax rates to impose the 30 per cent minimum on the taxable portion of capital gains.

The bells have been ringing across Parliament House for the best part of 90 minutes now, calling MPs to a lengthy string of votes related to the tax legislation.

It’s being pushed through the lower house after just two days of debate because the government wants to get it to the Senate when that chamber returns a the next sittings later in June.

This is the bill that replaces the 50 per cent capital gains tax discount with one based on inflation, limits negative gearing to new builds, and creates the $250 annual working Australian tax offset and $1000 standard deduction.

So far, they’ve voted on second reading amendments (which say things like, this House calls on the government to pass laws to end bracket creep, but don’t actually change the legislation) from Opposition Leader Angus Taylor and independents Dai Le, Monique Ryan, Zali Steggall and Kate Chaney.

The vote to move on to the next stage of debate won the support of crossbenchers Andrew Wilkie, Sophie Scamps, Monique Ryan, Zali Steggall and Helen Haines, voting with the Government.

Andrew Gee, Barnaby Joyce, Dai Le, Rebekha Sharkie, Kate Chaney and Allegra Spender joined the Coalition to oppose the bill.

New One Nation MP David Farley, on his third day in the job, apparently couldn’t be found to add his voice.

Treasury Secretary Jenny Wilkinson has admitted that Prime Minister Anthony Albanese’s claims on the capital gains tax returning to a pre-1999 model are misleading.

The Labor Budget is proposing to replace the 50 per cent capital gains tax discount with a minimum 30 per cent tax on inflation-adjusted capital gains.

Mr Albanese last week told Parliament: “We are also changing the capital gains tax regime to go back to 1999.”

But under questioning from Liberal Senator Claire Chandler, Ms Wilkinson admitted Labor’s Budget plan didn’t include the pre-1999 model of allowing capital gains to be averaged out over five years.

“So, Senator, that has not been part of the announcements that the Government’s made in relation to the tax package”, she said.

“That was not announced in the Budget.”

Ms Wilkinson also confirmed the capital gains tax from 1985 to 1999 did not impose a minimum 30 per cent tax on inflation-adjusted gains.

“No, it didn’t, Senator,” she said.

Australia’s domestic intelligence agency ASIO has joined its Five Eyes partners in warning that Chinese spies are attempting to recruit and compromise government and military personnel to gain a tactical advantage over the US and its allies.

In a rare joint bulletin, the intelligence agencies of Australia, the UK, the US, Canada, and New Zealand warned that Beijing is increasingly using professional networking sites and job platforms — including LinkedIn and Indeed — to gain access to classified information.

The statement said that China’s spies “ultimately seek to acquire privileged military, political and economic intelligence that can provide China with a strategic and tactical advantage over the Five Eyes.”

It warns Chinese intelligence officers and their accomplices pose as consultants, human resources professionals, or think tank staff, placing online job advertisements for roles including foreign policy and defence analysts.

Safeguarding our secrets.

Treasury chief Jenny Wilkinson has conceded Labor’s changes to negative gearing and capital gains tax concessions would mean 35,000 fewer homes than otherwise.

“We have done that modelling to the best of our abilities and I think we’ve been open and transparent in that box about what our assessment is,” she told the Senate economics committee on Thursday.

“What we have made clear in that box is that the direct impact of the tax changes might reduce supply by a bit but that would be more than offset by what we estimate to be the impact on supply of the additional infrastructure measures which were also announced in the Budget.”

The Treasury Budget papers admitted weaker house price growth would mean 35,000 fewer homes over the coming decade as a result of Labor’s plan to restrict negative gearing to brand new homes from July 2027, and replace the 50 per cent capital gains tax discount with a minimum 30 per cent tax on inflation-adjusted gains for existing properties.

“Lower house price growth will have a modest impact on housing supply, with the increase in supply over the next decade expected to be only around 35,000 dwellings fewer compared to no tax policy change, equivalent to around a quarter of a per cent of the current dwelling stock,” it said.

The Budget papers also forecast Australia having 75,000 more owner-occupiers in the housing market during that time.

Finance Minister Katy Gallagher has accused a Liberal senator of being patronising after she pointed out Labor’s capital gains tax changes aren’t a complete reversion to what existed before September 1999.

Liberal senator Claire Chandler noted the original capital gains tax, in place from 1985 to 1999 before a 50 per cent CGT discount, didn’t have a minimum 30 per cent tax and cited Prime Minister Anthony Albanese telling Parliament on May 26 that “we are also changing the capital gains tax regime to go back to 1999”.

Senator Gallagher defended this statement, arguing the Budget proposals do include a reversion to an indexation model on capital gains before Liberal PM John Howard’s CGT concessions.

“I don’t have all the transcripts that you’re reading from but the Government has been very clear, when making statements like that, that it’s relating to how you treat gains as opposed to the changes that were brought in by prime minister Howard and reverting back to the system that existed before that, adjusting for indexation and taxing real gains,” the Finance Minister told the Senate economics committee on Thursday.

“It’s a bit early to start the patronising - we’ve got a long day ahead of us. The Prime Minister has been clear about the changes that we have brought in.”

Penny Wong has stressed that Australia must be “active in shaping” the alliance with the United States, as Donald Trump “envisions a different role for the United States and the world”.

Appearing before a Senate Estimates hearing on Wednesday, the Foreign Minister spoke of the need for Australia to act as a sovereign, independent nation in the face of US actions globally.

“We have always understood that President Trump envisions a different role for the United States and the world,” Senator Wong said.

“Nevertheless, the United States remains the world’s largest economic military power with daily influence on international events that have consequences for Australia.

“This fact reinforces why being active in shaping our alliance is in Australia’s national interest. “For decades, this alliance and America’s network of partnerships with many of our neighbours has made our region more stable and deterred potential aggressors.

“As with all our partners, there have been times over the 75 years of our alliance with the United States when we’ve had differences of view and differences of approach.

“We’ve always exercised our own agency, asserted our sovereignty, and made decisions in Australia’s interest in all our foreign policy.”

Angus Taylor says the opposition could join forces with the Greens to fight Labor’s proposed tax changes in the Senate as the government pushes to pass the contentious legislation before parliament breaks for its Winter recess early next month.

The Greens and independent David Pocock have expressed concerns with Labor’s package, particularly new powers they say would allow Treasurer Jim Chalmers to alter the laws once passed.

“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,” Mr Taylor told reporters.

“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.”

Treasury secretary Jenny Wilkinson has admitted Federal governments are too reliant on income tax revenue as Labor resists an Opposition call to index tax brackets.

In response to a question from 22-year-old Labor senator Charlotte Walker, she told the Senate economics committee in Canberra the Commonwealth was heavily reliant on pesonal income tax revenue.

“In terms of a policy challenge, is the pressure within the tax system on personal income tax, personal income taxes going forward in terms of the pressure within the system to use personal income taxes as part of revenue raising in order to fund government Budgets,” she said.

Personal income tax is expected to make up 51.9 per cent of Federal Government revenue in 2026-27, or $382.4 billion out of the $737.1 billion in tax receipts.

The working age population bears the financial brunt of the income tax burden as capital gains tax concessions for property investors benefit older Australians.

Ms Wilkinson described this as an intergenerational issue.

“In relation to intergenerational equity, there are really three sets of issues which are raised. One of them is the longstanding decline in home ownership rates,” she said.

Gulf hostilities have flared again as Iranian attacks on Kuwait damaged its airport and injured dozens while the US military carried out strikes near the Strait of Hormuz, with diplomacy to halt the war showing little sign of progress.

The attacks are the latest to test a shaky ceasefire, sending oil prices up more than two per cent, as the strait remains largely closed more than three months after the US and Israel launched strikes on Iran.

Flights at Kuwait International Airport were suspended after an Iranian drone and missile attack damaged airport facilities and diplomatic missions, killing one person and injuring more than 60 others, Kuwaiti authorities and state media said

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