Last week at the Productivity Roundtable, a concerning proposal was floated—one that would force homeowners with a spare bedroom to take in strangers as renters, under threat of a financial penalty (tax) if they refused. I asked the Minister why such a monstrous idea was even being entertained and pressed her on whether the government would rule it out to give our elderly peace of mind that they won’t be forced to share their family homes.
In response, Senator Gallagher claimed she wasn’t present at any session where that idea was raised and said it’s not something the government is working on. She acknowledged that tax reform and housing were discussed “broadly”, yet denied that specific proposals like this—or death tax or land tax on the family home—were part of any formal outcomes.
I asked whether these proposals were designed to push everyday Australians out of their homes to make way for large, co-located families among new arrivals—who, according to Labor-aligned researcher Kos Samaras, tend to vote Labor. Senator Gallagher refused to rule this out.
Transcript
My question is to the Minister for Finance, Senator Gallagher, relating to taxation proposals debated at last week’s productivity roundtable. The proposal was to force homeowners with a spare bedroom to take in strangers as renters under threat of financial penalty—a tax—if they don’t. Why did the roundtable even consider this monstrous idea, and will you now rule the idea out so our elderly can have peace of mind they won’t have strangers forced into their family homes?
Senator GALLAGHER (Australian Capital Territory—Minister for Finance, Minister for the Public Service, Minister for Women, Minister for Government Services and Manager of Government Business in the Senate): I thank Senator Roberts for the question. There was a pretty wide discussion on tax and Australia’s tax system. I did not attend all of the sessions and I was not at a session where that was raised. There was discussion around housing, as you would expect, and different views were being put around the table.
What I picked up from the two sessions that I attended late on the third day was a view about ensuring that the tax system is efficient. There were certainly views about it being simplified. There were different views around business taxation, and there were discussions around intergenerational equity—about how the tax system is working for different generations. But the specifics of what you’ve raised were not raised with me by any roundtable participant, and I was not at a session where they were raised as something that people were seeking. It’s not something the government has worked on.
The PRESIDENT: Senator Roberts, first supplementary?
Additionally, the roundtable debated a death tax on the family home and a land tax on the value of the property. Are these mutually exclusive taxes, or will this government be introducing all three?
Senator GALLAGHER: Again, in the sessions that I was a participant at, that was not raised. I think the Treasurer and the Prime Minister were clear in the lead-up to the roundtable that there are no plans to change the taxation of owner occupied homes, and I have not been part of any discussions around that. Part of the discussion that was had was much more high level around how the tax system is working, how complicated it can be and whether or not the system is fair and working in the interest of every generation in this country. There were mixed views about that. But there were certainly no outcomes that went anywhere near what you have been asking about today. The tax reforms we will be doing are the ones we took to the election around standard deductions and income tax.
The PRESIDENT: Senator Roberts, second supplementary?
All three of these new proposals will force everyday Australians out of their homes to make way for the large families and family co-location evident amongst new arrivals. Labor Party aligned researcher Kos Samaras has shown that these new arrivals vote heavily for Labor. Minister, why are you forcing Australians out of their homes to make way for Labor-voting new arrivals, and where are Australians supposed to go?
Senator GALLAGHER: There was a lot in that. I hope that I have answered your concerns around some of the ideas you say. They were not outcomes. In fact, in the sessions I was at, they were not raised. I don’t know anything about that. In relation to housing more generally, we are trying to build more housing. That is part of what we’ve been doing in this place and will continue to do, and, indeed, the announcement by the Prime Minister and the housing minister today was about how we ensure that owning your own home isn’t out of reach for generations of Australians and how we build more supply. In that respect, I hope that answers the second part. In terms of migration numbers, they’re outlined in the budget papers.
