Treasurer addresses "outdated" tax benefit numbers | Today Show Australia

Well Labor's controversial changes to capital gains tax and negative gearing is this morning under fresh scrutiny as it's revealed the Treasurer will have new powers allowing him to decide key elements of the package.It comes amid a bombshell new poll showing One Nation surpassing Labor for the first time and fresh accusations from the Reserve Bank that they've pushed house prices higher.So a little bit to get through.We're joined this morning by Treasurer Jim Chalmers live in camera.Treasurer, good morning to you, good to see you.So are you playing God when it comes these new tax policies, giving yourself the power to decide which assets are eligible for CGT discounts?

Of course not.This is another beat -up, unfortunately, Sarah.It's not unusual in tax legislation for the definitions to be settled in what's called legislative instruments.Those legislative instruments are disallowable by the Parliament.Tax law is full of these kinds of examples.We made it really clear in the Budget papers that when it comes to new builds, people who are investing in new builds can decide between the two different kinds of discount We made that clear and we said that that would be settled in the usual way and that's what's happening.

So you will have ministerial discretion on that though?

Only to the extent that we determine the legislative instrument.That's disallowable by the Parliament if the Parliament doesn't like it.But the tax law is full of these kinds of examples.That's what makes this just another beat -up, unfortunately.

I guess that's part of the issue that you're facing.But before we get to that, I just wanted to ask you as well about this, because there are some figures that seem to be outdated.So is Treasury using outdated numbers for its modelling?The Treasury Secretary has used figures, I think, from 1991, which are obviously half of what today's figures are.

Well if you look at that story today about the Treasury Secretary's speech last week, the point that Jenny Wilkinson was making still stands.Whether the average worker is better off by $5 ,000 or $10 ,000, the comparison that she's making is with the top 1 % benefiting by $6 ,000.,000.So whether you compare that to $5 ,000 or $10 ,000, the point still stands.People who are already doing very well...

Not when you inflate the numbers though.Everyone appreciates that a higher bracket is obviously going to earn more or pay more.But when you're inflating the numbers significantly for the lower classes, then that doesn't make sense.

Well the difference between $5 ,000 and $10 ,000 for the average worker versus $700 ,000 for the top 1%, I think the point still stands, the point that Secretary Wilkinson was making, is that people who are already doing very well are the biggest beneficiaries by a long way.

Again, no one argues with that Treasurer, it's just about whether the modelling, whether the data you're using to actually set your policies in place is accurate and that's the issue I mean if you had your time again would you change anything about this budget you know perhaps around the messaging at the very least?

No, I'm confident that we've made the right decisions for the right reasons, Sarah.There will always be accompanying major economic reform or tax reform.There will always be scare campaigns full of lies.The Treasury Secretary corrected a number in a speech, but the overwhelming point that she was making still stands.Our tax changes are all about making it easier for people to buy their first home.They're all about cutting income taxes again and again.

for working people.When you're trying to make these sorts of changes, there will always be the usual scare campaigns.Of course there are people who would prefer the current arrangements stay in place exactly as they are, but the current arrangements are locking too many people and especially too many young Australians out of housing and that's why we're acting decisively to change them.

can choose your battles here, surely you have to take some responsibility for it and especially with when we're looking at the polls when we're seeing this rise in One Nation which is directly linked toin large part, the public being unsatisfied, unhappy with your budget.

Well, first of all, there are a lot of lies being told about inheritance taxes, the treatment of small businesses.That's just a fact.Like the lies that you told?Secondly, when it comes to taking responsibility, I do take responsibility for the budget and for the ambitious tax reforms which are at the core of the budget because they are about cutting taxes for workers.making it easier for people to buy their first home and cutting taxes for business as well.So I do take responsibility for that.

And this week is a really important week, Sarah.This week is all about higher wages and lower taxes for workers and a fair go for first home buyers in the housing market.That's what we are doing here with the legislation which is before the Parliament and the decision to be taken by the Fair Work Commission today.That decision will be made by the Fair Work Commission and announced.And what it means is, what we want to see and what we have called for is a decent, sustainable real wage increase for millions of workers on the minimum wage and on award wages.The minimum wage has already gone up $9 ,000 under this Albanese Labor Government.

We've made our view clear today.Minimum wage workers and award workers need and deserve a decent pay rise today and that's what we've called for.

Treasurer, only a few weeks after your budget you've got a third of the country that has more faith in Pauline Hanson than in you and your government and that's I think saying a lot and you need to be open to that.You're pushing through policies that the public doesn't even agree with.You've also said that it's a good thing that house prices are falling.

No, I haven't, Sarah.

Well, you said that house prices falling is a good thing for those trying to enter the market, but those who have just entered the market, for example, let's say in the past six months under your Help to Buy scheme, are the ones who are seeing their home values drop.I mean, you're leaving them in negative equity, aren't you, if it's a good thing?

Well, first of all, Sarah, I didn't say that.I said that it's a good thing if first home buyers are getting a crack at auctions.I was asked about clearance rates when I made that comment.So let's make sure that we're repeating that accurately.But one of the reasons why we're making these changes is so that first home buyers get a fair go.at auctions.

That's one of the policy objectives here.

Well the RBA disagrees with you and says your first term housing policy isn't working.

We've done a lot since the first term, Sarah.You're asking me about some of these subsequent steps that we have taken.And what they mean is when first home buyers go to an auction, they're less likely to be competing with someone who's already bought five or ten or fifteen established homes.That's one of our objectives here.I was asked about auction clearance rates and I said it's a good thing if first home buyers are getting a fair go at auctions.That's the point that I have made.

Now when it comes to the broader politics of this, of course we're making contentious changes.It would be surprising.at a time when we've got this global oil shock, we've got a budget full of hard decisions and not handouts, we've got a scare campaign full of lies being run, it will be unusual if our vote did go up.But we didn't do this to boost our primary vote, we did this to boost home ownership.That's what this is all about.And if it means there are some difficult politics in order to get the policy right, then so be it.

Alright Treasurer, thanks for your time this morning.

Thanks Sarah.