Summary
Two tax reform bills, the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 and the Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026, were introduced at second reading, proposing changes to income tax brackets and rates. The Aged Care Amendment (Restoring Human Override for Aged Care Needs Assessments) Bill 2026 was introduced at both first and second reading, seeking to require human assessors to approve aged care needs assessments rather than allowing automated systems to make final determinations under the Aged Care Act 1997. No divisions were held. In question time, Senator Paterson asked Minister Wong to distinguish between small businesses and innovative businesses under proposed capital gains tax rules, receiving no direct distinction in response. Senator Chandler asked Minister Gallagher to name a country with a higher real capital gains tax rate than Australia, which the minister did not directly answer. Senator Hodgins-May asked whether the government would impose a 25 percent minimum tax on gas exports, which Minister Wong declined to commit to. Senator Cox asked about consultation outcomes on the tax reform package, and Minister Gallagher outlined amendments including raising the small business CGT concession threshold to 10 million dollars. Senator Thorpe asked about accountability for Aboriginal deaths in custody, with Minister McCarthy referencing Commonwealth justice reinvestment programs.
Questions
Budget
Senator Paterson asked the minister to explain the difference between small businesses and innovative businesses under the government's proposed capital gains tax rules. Minister Wong deflected from a direct answer, instead criticizing the opposition for not reading the consultation paper, defending the government's small business provisions, and accusing the opposition of planning to vote against them, while referencing page 6 of the paper for business activity requirements without clearly distinguishing the two categories.
Capital Gains Tax
Senator Chandler asked Minister Gallagher to name a country with a higher real capital gains tax rate than Australia. The minister did not directly answer the question, instead arguing that comparing tax rates across countries is difficult due to different tax arrangements, and pivoted to defending the government's capital gains tax changes as aligning taxation of assets with taxation of income.
Gas Industry: Taxation
Senator Hodgins-May asked whether the Labor government would implement a 25 percent minimum tax on gas exports, given a Senate inquiry's recommendation to revisit this once Middle East conflicts resolved. Minister Wong declined to commit to this policy, arguing that global energy markets remain unstable and that the government's priority is instead implementing a gas reservation scheme to ensure Australians benefit from gas resources.
Aboriginal Deaths in Custody
Senator Thorpe asked what specific actions the minister has taken to hold state and territory governments accountable for Aboriginal deaths in custody, citing a recent death in the same prison where another Aboriginal man died a year earlier. The minister deflected from the accountability question, instead emphasizing Commonwealth-level justice reinvestment programs across the country and calling on states and territories to do more, while acknowledging that states and territories are responsible for incarceration.
Artificial Intelligence
Senator Pocock asked Minister Ayres whether the government still has no plans to allow AI companies to mine Australian creatives' data. Minister Ayres reiterated the government's commitment to protecting copyright while emphasizing Australia's strategic interest in securing technology capabilities, but did not directly address whether the government's position on text-and-data-mining exceptions remains unchanged.
Snowy 2.0
Senator Roberts asked Finance Minister Gallagher for a comprehensive total cost figure for Snowy 2.0 including construction, financing, maintenance, transmission lines, and renewable energy installations. The minister provided the current estimated cost of approximately $12 billion (up from an initial $2 billion estimate) and noted that the Snowy board is conducting a cost reassessment due in late July, but did not provide the detailed breakdown across all the categories requested.
Budget
Senator Colbeck questioned the Prime Minister's commitment to election promises, accusing the government of breaking tax pledges through deals with the Greens. Minister Wong acknowledged the government changed its tax policy but defended the changes as necessary to address housing affordability and help first home buyers, while pivoting to criticise the opposition's position on taxes.