The assistant minister charged with helping Treasurer Jim Chalmers put together the upcoming federal budget has refused to say if Australians can expect an extra tax cut next financial year.
Labor has kept tight-lipped about what is in the budget, which it promises to be both ambitious and frugal amid inflation-inducing global energy shocks.
Asked on Sunday if a tax cut was in the works, Assistant Treasurer Daniel Mulino refused to “get into the specifics of this budget”.
“I’m not ruling anything in or out,” he told Sky’s Sunday Agenda.
“I have been willing to talk about the broader context and also the government’s broader tax agenda, but I think I’ll really leave the details for budget night itself, for the Treasurer to announce.”
Mr Mulino also refused to rule out hiking taxes on family trusts and investment properties as part of efforts to fight intergenerational inequity.
Trusts allow someone to manage property or assets for beneficiaries and are generally untaxed.
The Australian reported this week that Mr Chalmers was considering a minimum levy on trusts of 30 per cent covering thousands of small businesses and families with a possible carve out for farmers.
The proposal could rake in up to $5bn over the next four years, the paper reported.
“Clearly, trusts are suitable for a number of people … and as a broader tax consideration, what I would say is that we want a tax system which treats different means by which income is earned and distributed as evenly as possible and as fairly as possible,” Mr Mulino said.
The Albanese government has hinted capital gains tax and negative gearing reforms are on the table.
CGT is paid on the profit made when an asset sold has increased in value.
But there are two key concessions.
The first is an exemption for family homes in which property owners selling their main residence are typically exempt from the tax.
The second, and more controversial concession, is a 50 per cent discount for property owners who hold an investment for more than 12 months.
Critics argue the discount makes property too attractive to investors and stacks Australia’s supply-starved housing market against first-home buyers, especially when combined with negative gearing, which lets investors deduct rental losses from their salary.
$1.8bn for Urgent Care clinics
The Albanese government has been more open about other funding commitments.
Earlier on Sunday, it pledged an extra $1.8bn over five years from 2025-26 and $525.6m a year ongoing from 2030-31 to fund Medicare Urgent Care Clinics.
The clinics, a flagship health policy of the government, offer walk-in and bulk-billed urgent care.
“Our number one priority is delivering cost of living relief for Australians – our network of Medicare Urgent Care Clinics are doing exactly that,” Anthony Albanese said in a statement.
“When you go to an Urgent Care Clinic, all you will need is your Medicare card, not your credit card.
“These clinics are good for wallets, good for health, and are taking pressure off local emergency departments.
“Labor’s historic investment in Medicare is making a difference, that’s why we’re making Medicare Urgent Care Clinics permanent.”
The clinics have drawn criticism for being a far more costly way of delivering healthcare, with government findings revealing they are five times more expensive than standard GP consultations.
The Royal College of Australian General Practitioners has also said the “value in addressing Australia’s patient care challenges remains unclear”.
More to come
