Senate Economics Legislation Committee, , 8:09:25 to 8:13:24
Officials explain that tax reform is a non-linear process involving constant monitoring of the system and engagement with industry stakeholders.
Topics: Law reform, Integrity
Speakers: Katrina Di Marco, Senator Dean Smith, Hon Katy Gallagher, Senator Lisa Darmanin, Unknown Speaker
If I could just add something very short, Senator Light. When I say Treasury is undertaking tax reform all the time, by that I mean tax reform is not a linear process. There's not a very sequential process that obviously budgets are a sequential process, but tax reform is not. Sorry, are constantly looking at the data that we're seeing in the tax system as part of, I think the Minister's already mentioned as preparing the tax expenditure and insight statement. Members of Ms. Berger Thomson's team were constantly talking to industry stakeholders. You're constantly talking to the academic community, you're talking to the ATL about practices that we're seeing when it comes to the tax system. It is not that we start tax reform and then we finish tax reform. It is not sequential, it's not linear. It is something that we are always thinking about and prepared to provide advice to government.
But you wouldn't be thinking about tax policies that the Treasurer has publicly excluded, would you? There would be a waste of your valuable time.
Well, Senator, I'm not in the business of wasting valuable time, but we are in the business of considering structural tax structure, the structure of the tax system, risks to revenue and opportunities for reform.
So Treasury officials were considering changes to the Treasury officials were considering changes to the CGT, negative gearing and a 30 per cent minimum tax trust, despite the fact that the Treasurer said in 2024 that they were not being contemplated. So you were considering them. That was part of the work.
I know how you do it, Senator Smith, where you try and put something back to somebody that they haven't said as fact. So let's step through this.
I'm just trying to.
Revenue side of Treasury, it's always looking at the tax system. Understood. Always the evidence before here. They release information about the tax system, including around how tax concessions are operating across the economy. That is published every year. So that is the nature of the work that this group does. In relation to the support that Treasury provides the Treasurer and through the Treasurer to the government. That work was done to support decisions taken in the budget. So let's just be clear about that.
So let me be clear then. I just want to be crystal clear. Was Treasury consulting and sharing with stakeholders ideas about changes to CGT negative gearing and a 30% minimum trust tax before the budget was announced?
That is not Treasury's job. It is government's job to take decisions about the government.
I don't think you're listening to what Ms. Di Marco is saying. Ms. Di Marco said that the Treasury is constantly engaging with stakeholders, talking about policies, coming up with ideas. It's a not a linear what was the It's not a linear process. You can't have it both ways.
I'm going to need to rotate the call if we can let the officials respond to that last comment and then we will move on.
I'll be very brief. Senator, what I'm saying is we are always looking at the operation of the tax system, and that does involve talking to stakeholders. It doesn't mean going out and putting to stakeholders this is what we want to do with the tax system or this is a reform idea we have. It is about listening to stakeholders looking at the operation of the tax system and being prepared to provide advice on when requested.
I have Senator McKenzie on the list next. And I'll just note for people because it's 4.56 that there's going to be a change at 5 pm of ministers, just so that the committee is aware. So Senator Gallagher will swap over with Senator. Yep, but um over to you. I think we're still on the same theme. I think Senator McKenzie is on the same test theme. Um over to you, Senator McKenzie.