Latest news with #MartinOllman
Perth Now
3 days ago
- Business
- Perth Now
Treasurer's huge call on tax changes
Treasurer Jim Chalmers has announced his ambition for economic and tax reform, and while he remains tight lipped about what's on the table, he has ruled out two key changes. Speaking to the National Press Club on Wednesday, the Treasurer announced the government will hold a productivity roundtable from August 19 to 21 for the purpose of seeking ideas for reform from business, unions, civil society and experts. The gathering will be capped at 25 people and held in Parliament House's Cabinet room. 'Obviously there are some things that governments, sensible, middle of the road, centrist governments like ours don't consider,' Mr Chalmers told The Conversation's Michelle Grattan. 'We don't consider inheritance taxes, we don't consider changing the arrangements for the family home, those sorts of things.' Mr Chalmers said he believes limiting the narrative to 'ruling things in or ruling things out' has a 'corrosive impact' on policy debate, but conceded to ruling out the historically controversial taxes. Mr Chalmers has historically opposed a rise in GST. NewsWire / Martin Ollman Credit: NewsWire Inheritance tax is a tax you pay on assets inherited when you are the beneficiary of a will. While inheritance taxes used to be common in most states, by 1981 all Australian states had abolished them. The GST was another key tax eyed for the roundtable. Mr Chalmers has historically opposed lifting the GST but is facing increasing pressure from the states to do just that. The GST has remained at 10 per cent for 23 years. 'You know that historically I've had a view about the GST,' Mr Chalmers told the Press Club. 'I think it's hard to adequately compensate people. I think often an increase in the GST is spent 3 or 4 times over by the time people are finished with all of the things that they want to do with it.' Mr Chalmers said he hadn't changed his view on GST and he won't walk away from it but stressed he's open to hearing ideas on the issue at the roundtable. 'I've, for a decade or more, had a view about the GST,' he told The Conversation. 'I repeated that view at the Press Club because I thought that was the honest thing to do, but what I'm going to genuinely try and do, whether it's in this policy area or in other policy areas, is to not limit what people might bring to the table.' Mr Chalmers has ruled out changes to tax on inheritance and the family home in a wide ranging interview. NewsWire / Martin Ollman Credit: NewsWire Two years ago, Mr Chalmers warned that raising the GST would likely not fix federal budget issues since even though the tax was collected by the federal government before it was distributed back to the states. 'From my point of view, there are distributional issues with the GST in particular. Every cent goes to the state and territory governments, so it wouldn't be an opportunity necessarily, at least not directly, to repair the Commonwealth budget,' he said. One thing that will remain in play though is the government's pledged superannuation changes, that would increase tax on investment returns, including interest, dividends or capital gains, on balances above $3 million. 'What we're looking for here is not an opportunity at the roundtable to cancel policies that we've got a mandate for; we're looking for the next round of ideas,' he said. 'I suspect people will come either to the roundtable itself or to the big discussion that surrounds it with very strong views, and not unanimous views about superannuation. 'But our priority is to pass the changes that we announced, really some time ago, that we've taken to an election now, and that's how we intend to proceed.' Mr Chalmers said the idea of extending the capital gains tax on superannuation balances to other areas had not been considered 'even for a second'.
Perth Now
08-06-2025
- Business
- Perth Now
Shock $1.5m admission on pollie furniture
A $60,000 lounge is among $1.5m worth of Parliament House furnishings wasting away in off-site storage, officials have revealed. The Department of Parliamentary Services' spending came under a spotlight in February when it was grilled on a $3.8m furniture bill. It sparked concern at the time by disclosing a $20,000 desk sitting in storage. 'My concern, of course, is that there is this pervasive culture of waste and now there is numerous evidence that this has been an ongoing problem,' former opposition finance spokeswoman Jane Hume said during senate estimates. 'I understand that we don't necessarily want some of the beautiful rooms in Parliament House filled with furniture that looks like it came off a hard rubbish collection – that's fine. 'But this is, I think, of great concern. The $20,000 desk that is in off-site storage – clearly there are other things that are in off-site storage too – if I can, can I, on notice, have a full inventory of this collection and the estimated cost of construction for each piece of furniture that is in off-site storage, if you have the paperwork, and its current market value.' Liberal senator Jane Hume grilled the Department of Parliamentary Services on its $3.8m furniture bill during senate estimates. NewsWire / Martin Ollman Credit: News Corp Australia She suggested the 'taxpayer can recoup some of the waste of that department's decisions by maybe selling some of the stuff that is off-site that we are clearly never going to use'. Responding to Senator Hume's query now, the DPS confirmed the desk was now in use but revealed items worth far more were sitting idle at two off-site facilities. 'The Department of Parliamentary Services uses off-site storage facilities both for the storage of, and as staging areas for, furniture that is either excess to current use requirements, earmarked for disposal or requires maintenance and refurbishment,' the department said. 'There are currently two off-site storage facilities in use for Parliament House furniture. 'Furniture retained in the off-site storage areas are high value items from the original Parliament House furniture collection intended to be used in designated areas of Parliament House. Department of Parliamentary Services officials have revealed furnishings for Parliament House worth $1.5m are sitting in off-site storage. NewsWire / Martin Ollman Credit: News Corp Australia 'Where possible, lower value office furniture is not retained in off-site storage. 'As these items do not have heritage value, they are more easily disposed and/or can be repurposed throughout other APH office spaces.' It said that as of April 30, 891 tagged items were in storage, including 189 'furniture components' – seat pads or frames, for example. The indicative cost of these was about $800,000. 'The Department of Parliamentary Services does not maintain current market value of each individual item due to the bespoke nature of each piece,' it said. 'However collective value of furniture in storage at the main facility is currently valued at $1.5m.' Aside from the lounge, other costly items included a $40,000 'cocktail/TV cabinet', a $38,000 credenza, a $36,000 desk and a $27,000 dining table.
Perth Now
02-06-2025
- Business
- Perth Now
Price of common Aussie staples to soar
Milk and butter prices are predicted to surge, with floods destroying dairy farms in NSW and the driest conditions on record crippling those in Victoria and South Australia. Many NSW farmers are embarking on gruelling post-flood clean-up efforts, returning to their properties to find their cattle dead or missing, fences and infrastructure destroyed, and machinery submerged in flood waters that will likely need to be replaced. Dams and paddocks are also dry in Victoria and South Australia, with fodder prices reaching nearly double their usual amount. 'I think the whole eastern seaboard is going to feel the shortage of milk and dairy products one way or the other,' EastAUSMilk president Joe Bradley told The Age. 'There's no ifs or buts … it's a disaster. Prices have to rise.' Map of Australia highlighting dairy shortages across the nation. NewsWire Credit: NewsWire The hardships in the dairy industry are tipped to send the prices of items like milk and butter soaring, according to industry experts. NewsWire / Martin Ollman Credit: News Corp Australia EastAusmilk chief executive Eric Danzi warned this may be the first time many Australians see the devastation of the floods would be when they go to their local supermarket. 'There is going to be a real shortage of milk and products,' he told 2GB. 'How that plays through to consumers I don't know. 'Between the floods now, ex- Cyclone Alfred and the drought in South Australia as well as Victoria you're going to have a massive reduction in milk production across Australia.' Leaders of the Australian dairy industry have called on governments to take immediate action. 'More than 40 per cent of Australia's dairy farmers are in drought, many of them battling the driest conditions on record, including in South Australia, South West Victoria, and extending into Gippsland, Northern Victoria and southern NSW,' a statement from industry body Australian Dairy Farmers said. EastAusmilk chief executive Eric Danzi has warned the issues being faced by diary farmers may be passed onto Aussies at the checkout. NewsWire / Martin Ollman Credit: News Corp Australia 'Meanwhile, dairy farmers in NSW are cleaning up after a 1-in-500 year flood. 'We've issued an urgent plea to state and federal governments for meaningful support for dairy farmers.' Among the requests is for the NSW government to roll out Category D and C disaster grants. Currently, personal hardship assistance grants of $180 per individual or $900 per family are available, along with $1m community recovery grants for affected local councils. NSW Nationals leader Dugald Saunders said that these are not going far enough to support flood-impacted residents. 'When you've got people who have lost literally everything – whether it's their home in town or their home out of town, and their hundred cattle or two hundred cattle, or all their fences or all of their fodder crops … 180 bucks or 900 bucks isn't going to help,' he told 2GB. 'Category D means everything is on the table. There are primary producer grants, there are small business grants, there are more household grants available, there are more council grants available.' Over the past two weeks, a majority of Victoria received 20 per cent or less of the average typical rainfall expected in May, and the latest reporting from the Bureau of Meteorology indicated these conditions are likely to continue into June. The Victorian Government on Friday announced it will deliver a new and expanded Drought Package due to the worsening conditions – supported by an additional $37.7 million in funding. New analysis by the Treasury estimated that the immediate loss of economic activity from natural disasters so far in 2025 will be $2.2 billion.
Perth Now
02-06-2025
- Business
- Perth Now
‘Too lazy': Labor blasted over ‘rigged' system
Aussies keen to see their student loan debts cut by 20 per cent as promised by Labor in the federal election may not be so happy when they check their accounts. Since Sunday, students with HELP or HECS loans would have seen their debts increase by 3.2 per cent as indexation kicked in. Indexation serves to adjust student loans according to inflation – but the timing at which they are applied has been heavily criticised for years. 'HELP debts aren't actually very helpful,' independent Tasmanian senator Tammy Tyrell said. 'Today, students are watching their debts go up, with the money they've paid through the year nowhere in sight. Senator Tammy Tyrrell has called for the government to address HECS/HELP indexation. NewsWire / Martin Ollman Credit: News Corp Australia 'Banks reduce your loan before charging interest. Credit unions do too. Just not the government who pretend someone's repayments don't exist. It's costing students thousands of dollars all because Labor is too lazy to fix its accounting. 'Labor's HELP debt changes are one-off sugar hits. If they're genuine about making a difference for students, they could fix this rigged system when parliament returns. Just count someone's payments before interest is charged. 'It doesn't make sense to me that someone's debt is indexed before taking into account the thousands of dollars they've paid throughout the year,' she said. It does not take into account debt that has been paid off throughout the year, Senator Tyrrell said. NCA NewsWire /Brendan Beckett Credit: News Corp Australia 'Imagine if banks did that with your home loan – took your money, charged you interest but the repayments don't come off the outstanding balance. I reckon people would be pretty upset about that, so why do we expect students to put up with it? 'A student's HECS-HELP debt should be indexed after the yearly repayments are taken off. 'No matter what the indexation rate is, it's not a fair system when you're indexing badly. We need to change the timing, not the rate.' Education Minister Jason Clare said Labor's policy to reduce HECS debts by 20 per cent would be backdated to June 1 before indexation was applied. Education Minister Jason Clare says legislation will be backdated so debt is actually cut by the promised 20 per cent. NewsWire / Martin Ollman Credit: News Corp Australia 'It will be the first Bill that we introduce into the parliament when parliament sits for the first time in the last week of July,' Mr Clare told ABC radio. 'What that legislation will do is cut everyone's debt by 20 per cent and backdate that cut. And that's important because every 1st of June in every year HECS debts or student debts get indexed. 'That 20 per cent cut will come into effect before that indexation effectively happens to make sure that we honour the promise we made and we cut everyone's debt by 20 per cent. The Australian Universities Accord Final Report 2024 determined that the indexation should be applied later in the year after compulsory repayments made during the previous financial year were deducted from a student's balance.
Perth Now
02-06-2025
- Business
- Perth Now
Real number of Aussies hit by super tax
Politicians have clashed over the number of Australians that will be caught up in Labor's proposed super tax. Labor MP and Assistant Minister for Foreign Affairs and Trade Matt Thistlethwaite was pressed over the Albanese government's proposal to roll back concessions on ultra-high super balances and tax unrealised gains that would penalise younger generations in the future. The plan, one of the government's key economic policies, will hit those with more than $3m in their superannuation accounts with an extra 15 per cent tax – initially forecast to be about 80,000 people by 2025-26 – on top of the 15 per cent all super fund members are taxed on their earnings. That number has now jumped to up to 1.2 million Australians, significantly more than the original figure. '1.2 million Australians in the long run – that's not the small amount you've all been saying,' Sky News' Pete Stefanovic questioned Mr Thistlethwaite on Monday morning. Matt Thistlethwaite said the proposal was to ensure 'fairness and equity' in the Australian taxation system. NCA NewsWire / Martin Ollman Credit: News Corp Australia 'Well, this is a policy … that's aimed at ensuring that we got fairness and equity in our taxation system,' Mr Thistlewaite began, before being cut off swiftly by Stefanovic: 'How's that fair if the PM gets a pass?' The proposal has come under fire for the inclusion of 'special rules' that would exempt Anthony Albanese until after the Prime Minister retires. Mr Thistlewaite continued: 'Everyone who's on a defined benefit scheme will be treated the same. That's the basis of it. 'Regardless of your occupation, where you live, (everyone) will all pay the same … at the moment, some people can divert money from income to avoid paying income taxation into superannuation to get a concessional rate. 'Now the average teacher, the average childcare worker or emergency services worker can't do that, so we just want to make sure that the system is fair and equitable, and everyone pays their fair share of tax.' The $3m figure will not be indexed, leaving about 1.2 million people within 30 years liable for the tax, Assistant Treasurer Daniel Mulino revealed last month. Liberal senator Hollie Hughes accused the government of not considering the 'unintended consequences'. Liberal senator Hollie Hughes accused the government of not considering 'unintended consequences'. NCA NewsWire / Martin Ollman Credit: News Corp Australia 'I had dinner with a small-business owner last week whose office building is part of a superannuation plan, and her message to me was incredibly clear that if this goes ahead she does not know what she can do because this is something that the business is invested in, she's invested in,' Senator Hughes said. 'It's her business, and now, because of the increase in property prices she doesn't know if she can afford to pay a tax on an unrealised gain.' She said the tax would come 'knocking on the doors' of everyday Australians, especially small business owners and farmers. Questioned again about the confirmed number of Australians to be impacted by the tax, Mr Thistlethwaite said: 'Initially, it's a very small it's a very small number of Australians, less than 0.5 per cent of the population. Treasurer Jim Chalmers was accused of writing 'special rules' that exempt Prime Minister Anthony Albanese from Labor's super tax. NewsWire / Martin Ollman Credit: News Corp Australia 'I think we got to realise we're only talking about (balances) above $3m, and we're talking about something that hasn't been legislated yet, but at the moment people have the choice. 'They can pay their income tax or they can divert it into superannuation to get a concession.' He said the Labor government would 'work' with the opposition if it were prepared to be 'fair and reasonable'. The tax is proposed to take effect from the start of the next financial year, July 1.
