Treasurer Jim Chalmers has dismissed comments from NSW Premier Chris Minns, who suggested the federal budget failed to address bracket creep. Chalmers argued the government has already taken action through changes to stage three tax cuts, the Working Australian Tax Offset, and standard deductions.
Assistant Treasurer Daniel Mulino defended the government's record, stating that the average worker is about $2,800 better off due to these measures. He emphasized that tax cuts for all Australian taxpayers, including teachers and nurses, have helped offset the impact of bracket creep.
Independent MP Zali Steggall criticized the government for blindsiding small businesses and start-ups with changes to capital gains tax (CGT). She noted a lack of consultation on how CGT changes affect business investment, particularly for start-ups, though she acknowledged benefits like the instant asset write-off.
Mulino reiterated that 90% of businesses will not be impacted by the CGT changes, and exemptions for small businesses with less than $2 million turnover or $6 million in assets remain. He also highlighted the permanent $20,000 instant asset write-off and loss carry-back arrangements as key wins for small business.
On the suggestion from Nationals Senator Matt Canavan to test tax policies at an election, Mulino declined, pointing to enacted measures like student debt reduction. He said the government heard public demand for housing action and is working on proposals to make a meaningful difference for young people.
Separately, the Commonwealth is preparing a support package to address a diphtheria outbreak, with over 220 cases reported across Australia. Health Minister Mark Butler called the numbers very concerning, as federal and state governments mobilize to boost vaccination rates.
