Government tax changes divide voters on capital gains | Sunrise

Search has found most voters believe the government should try to cut spending instead of making changes to negative gearing, capital gains tax and trusts.A new survey in the Australian Financial Review has found the changes to capital gains tax discount is the least popular part of the new budget with a net support rating of zero.The next least popular was limiting the future of negative gearing which had a net approval rating of just seven percent.This comes as Max Common, the CEO of the Commonwealth Bank, suggests the new capital gains tax changes should only apply to non -passive assets like housing.For their take, let's bring in Housing Minister Clare O 'Neill and Liberal Senator Michaelia Cash.Good morning to you.

So Clare, according to this survey, just to explain it, when it comes to the capital gains tax overhaul, 36 % support it, 36 % oppose it.That's how they get the net approval rating of zero.Does that level of division, I guess, concern you?

Look, Nat, I've had a look at the survey results, and what they show is that lots of people are supportive of what the government is doing, and then some people don't support what the government's doing.That is what you'd expect to see in a budget that does some tough but necessary things for the country.And I'd say to people at home, you know, if you're looking around Australia and thinking everything's going perfectly right now, maybe this is not the budget for you, but that's not what I see.I see a country with a broken housing market, a budget that is heaving with the weight of an ageing population, additional defence needs, needs, and a national disability insurance scheme that's not working properly for the country.And finally, a government that's willing to stand up and say, we need to make some hard calls about this.Now, in politics, you don't do the popular thing, you do the right thing.

That is our obligation as politicians for this country.And that's what this budget is all about.Some rebalancing of the tax system to make sure that we can give workers out there a break, some tax cuts for every single Australian worker.And somebig changes to housing that will you know do some hard things but get many more Australians into first home ownership which is something that I fiercely believe in.So yes it's a difficult budget but it is the tough and necessary thing we need to do for Australia.

Michaelia, does this alarm you, this survey, because you've got just as many people supporting it as opposed to it and interestingly it found that 50 % of people believed it was okay to break a promise if it was a, quote, tough decision in the national interest compared to 37 % who didn't like it.That should concern your party, shouldn't it?

Well, I think what's clear is the more Australians hear about these toxic taxes that the Anthony Albanese government is proposing, the more they don't like them.I mean, what they're saying to young Australians in particular, who can't afford to get into the housing market, but are trying to do the right thing by their future.You know, they're investing in shares, they're investing in ETFs and other assets.They're aspirational.They want to save that housing, that deposit.The Albanese government is now saying we want to take a greater share of that.

This is nothing more and nothing less than attacks on aspiration, attacks on Australians taking risk and attacks on innovation.And that is not the Australia that I think most people want to live in.So I'd say to Mr Albanese, listen to Australians, listen to businesses, listen to economists.They are all telling you the same thing.axe the toxic taxes and go back to the drawing board.When a government is now scrambling to make changes to its tax policy, but a week or two after the election, perhaps it wasn't the right tax policy in the first place.

But I will never tax aspiration, I will never tax risk -taking and I will never, ever taxbecause they are the three things which has made this country the great country that it is.So axe the toxic taxes Clare, go back to the drawing board, admit that you're wrong.Admit that you're wrong, go back to the drawing board and quite frankly apologise to Australians.

be on housing instead of start -ups, small business on shares because it will stifle new business in this country.Do you see his point?

Look, there's a lot that I agree with Matt Common on.One of the most important points that he made last night is that Australian workers are not getting a fair go in our tax system.And that's why we're rebalancing a bit the way wealth is taxed in Australia and giving that back to Australian workers through tax cuts.So if you're watching at home and you're someone that gets paid by a paycheck like the majority of Australians, you are getting a tax cut out of this budget, the fifth tax cut that our government has executed on.aspects of the budget with regard to small business.with small business at the moment.

how these tax changes will affect them and we're doing that in really good faith.In fact we were doing it before the federal budget.So we'll work this through and we'll get the right outcome for the country.

Okay so there's a chance that you might carve out more for small businesses other than the startups and the tech sector?

Well look Nat, it's a bit complicated but the way that the new tax arrangements will work will be will not really work well for businesses that start with a value of zero.So I don't want to get too much into the tax complexities.But for people who build up a business from literally nothing to a very big business over a short period of time, these tax arrangements are not going to work perfectly for them.But we understood that before the budget.It's actually in the budget papers, Nat, that we're going to work through and consult with business on this.And that's exactly what a good government would do.

We do need to make these changes, but we'll do it in a way that's fair to everyone.OK, Michaelia, they say they're in consultation.

Is that good enough for you?

Nat, 50 times before the election, the Prime Minister looked the Australian people in the eye.He looked mum and dads in the eye.He looked young Australians in the eye who just want to get ahead.And in direct response to, will you be making any changes to negative gearing and CGT, the Prime Minister said, No, he blatantly lied to the Australian people.They are now seeing what is the result of that lie, a government that wants to tax aspiration, a government that wants a stake in your future.I don't want the government to have a stake in your future, I want you to have a stake in your future.

So if the government like Clare is so confident that this is the right thing to do, well I look forward, Clare, to you agreeing that these changes do need to go to a Senate committee and let's go around around Australia and let's ask Australians what they think of them.Because this is nothing more and nothing less than a broken promise.A broken promiseNat, that the Prime Minister made 50 times before the election.So I now look forward, if the Prime Minister is so confident in his tax changes, let's explore them via the Senate committee process.Because as far as I can see, a tax on aspiration, a tax on innovation and a tax on risk taking, That's just taking a stake in an Australian's future.

I want them to have a stake in their own future, not this Prime Minister.

Australians are saying?Well some of them and we're asking people their opinion this morning, so we'll get people texting.Thank you both.We'll see you next week.Here's Sheva.