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Chalmers has also been pressed on what has been dubbed a “widow’s tax” and was removed by Labor’s budget after questioning from the independent Senator, David Pocock.
David Speers:
You talk about certainty, but with that haste comes the risk of unintended consequences, and one of those was this issue of negatively geared properties that are jointly held, when a couple divorce or a partner dies. It’s been dubbed the widow tax. What is gonna happen there?
When the amendments were put before the Senate, we had to make clear that we were working through that issue, and we intend to address it in subsequent pieces of legislation, and that’s the case …
I don’t want to preempt the outcome, but in saying that we’re going to address it, I think we’re making it incredibly clear, that we understand that this is an issue that has been raised with us, we intend to address it.
This is how we deliver cost-of-living relief and deliver real change in the tax system.
It’s not unusual for the core elements, so big tax reforms to be legislated first, and then for there to be subsequent consultation and other pieces of legislation … We’ve seen in those other episodes of tax reform in this country, and that’s what we’re seeing now.
Whenever tax reform is undertaken in this country, it’s hotly contested, it’s contentious. There are all kinds of predictions that the sky will fall in, and all other kinds of predictions, which turn out to be wrong.
We expect that to be the case again. But we’ve legislated the core elements quickly, because we want to provide that level of certainty.
