Summary
The Senate received first and second readings for the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 and the Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026, which propose changes to income tax rates affecting individuals and businesses. Appropriation Bills for supplementary 2025-26 spending and the full 2026-27 budget, including parliamentary departments funding, were also introduced. Additional bills tabled covered long service leave for coal miners, two amendments to secrecy provisions, telecommunications consumer protections, tax system administration, unfair trading practices, military discipline reform, and business registry and director identification requirements. No divisions were held. During question time, Senators Hume and Cash each pressed Minister Wong on the definition and timing of an innovative business capital gains tax carve-out; Wong referred to a consultation paper released on 18 June without providing direct answers. Senator Grogan asked Minister Gallagher about budget cost-of-living measures, and Gallagher outlined tax cuts, first home buyer support, and related measures. Senator Sheldon asked Minister Watt about the Fair Work Commission wage review, and Watt confirmed modern award wages would rise 4.75 per cent and the minimum wage 6 per cent from 1 July. Senator Hanson-Young asked about a $200 million wildlife funding proposal in response to confirmed H5N1 cases; Watt noted existing government investment of $113 million but did not address the specific proposal.
Questions
Budget
Senator Hume asked what criteria would qualify a cafe as 'innovative' to receive favourable capital gains tax treatment under the government's announced reforms. Minister Wong did not directly answer the question, instead discussing the consultation process on tax reforms and noting that the government has maintained existing small business tax concessions while raising eligibility thresholds, without clarifying the specific definition or criteria for 'innovative' businesses.
Innovative business CGT carve-out
Senator Cash asked when the innovative business capital gains tax carve-out would apply - at founding, investment, or only when gains are realised. Minister Wong did not directly answer the timing question, instead noting the government is consulting on innovative start-up arrangements through a consultation paper released 18 June, and deflected to criticise the Opposition.
Cost of Living
Senator Waters questioned the government's cost-of-living measures, citing billionaire wealth growth and arguing that working people and welfare recipients received insufficient support. Minister Wong deflected from the direct question about One Nation support by pointing to the government's existing cost-of-living initiatives (urgent care clinics, energy relief, worker protections, wage increases) and calling on the Greens to support tax reform rather than engaging with the criticism.
Avian Influenza
Senator Hanson-Young asked whether the government would support a $200 million two-year funding boost for wildlife resilience and habitat protection in response to confirmed H5N1 bird flu cases in Australia. Minister Watt acknowledged the serious threat to wildlife and noted the government has already invested $113 million in preparedness efforts, but did not directly address the specific $200 million funding proposal.
Capital gains tax mining
Senator MacDonald asked whether the government agrees with Western Australia's Premier that proposed capital gains tax changes will deter mining investment and exploration. Minister Wong did not directly concede this point, instead outlining other government support mechanisms for the sector including a $5 billion critical minerals facility and a 10 per cent tax incentive, while noting the CGT concession would be subject to innovation criteria.
Budget
Senator McDonald asked whether the government agrees with Western Australia's premier that proposed capital gains tax changes will deter mining investment and exploration. Minister Wong acknowledged the premier's concerns but defended the government's position by explaining that the CGT concession will be subject to innovation criteria and outlined other support measures for the sector, including investments in critical minerals facilities and tax incentives.
Migration
Senator Hanson asked the minister how many permanent visas and citizenships the government is issuing this financial year, given that over 350,000 were issued last year. The minister deflected from the specific question, instead highlighting that the government has nearly halved net overseas migration by 45 per cent since it peaked post-COVID and emphasized efforts to fix the migration system inherited from the previous government.
Economy, Migration
Senator Roberts asked Finance Minister Gallagher what productivity impact the 301,000 net overseas migrants would have on GDP per hours worked across the forward estimates. Minister Gallagher deflected by discussing the government's broader productivity agenda, including previous decade productivity slowness, budget adjustments, and various reform measures, without directly addressing the specific question about migration's impact on the productivity metric cited.
Budget
Senator Bragg questioned the government's housing supply measures in the budget. Minister Wong responded directly by highlighting budget commitments including increased housing supply over the decade, support for 75,000 first home buyers, and measures supporting negative gearing for new builds, while contrasting this with the previous government's record on social and affordable housing.
Early Childhood Education and Care
Senator Tyrrell asked Minister Walsh to explain the importance of early childhood education and care and outline the government's support measures. The minister directly answered by stating that one million Australian families rely on early education services weekly, and highlighted the government's investment through a historic pay rise for educators, a three-day childcare guarantee, and funding for new centres, while contrasting this approach with One Nation's skepticism about the sector.