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Labor refuses to rule out a spare bedroom tax, Matter of public importance

This is no laughing matter, because the proposal to tax the spare bedroom to solve the housing crisis in this country was not ruled out today by this government.

We have today put to the government that if it opposes this scheme, this crazy idea which was one of the many controversial tax plans voted by industry leaders and economists during last week’s Economic Reform Roundtable, then why hasn’t the government ruled this out? We know that this government is coming after the money of Australians. Labor promised cheaper power, more homes, free visits to the doctor and lower taxes. Instead we see bills going up, housing targets missed, out-of-pocket costs skyrocketing and new taxes on the table. This is the cost of Labor—higher living costs, weaker growth and declining living standards and productivity. Why do you think we had the productivity roundtable? This was simply cover for this hopeless, incompetent government which for three years has told Australians that everything is fine. Now, after the election, we hear the cries for reform, that everything is not going so well. Now it seems that everything is on the table, courtesy of the government’s roundtable.

I do note with concern Senator Hodgins-May’s contribution, where she raised serious concerns about the Victorian Labor government’s incapacity to invest in sufficient social housing. But something else is happening in Victoria, and that is attacks on the primary place of residence for anyone with significant business activity. Because land tax thresholds have dramatically reduced, Labor is now charging Victorians with home based businesses land tax on their own home if they make just $30,000 using a portion of their own home to do so. This affects startups, side hustles, freelancers, hairdressers, PTs, physios with home studios, Airbnb hosts, online businesses and allied health workers. Labor is coming after your home if you are a Victorian and you run a small business in Victoria. What an absolute disgrace. This has caused huge controversy in my home state. We are already seeing what this government is capable of, what Labor is capable of, through what they are doing in Victoria. They are going after people’s homes.

If this is such an abhorrent idea, I ask why the government has failed to rule out this proposal here today. We’ve got the Prime Minister at odds with the Treasurer. The Prime Minister has insisted the government will not implement any new taxes before the next election, which is due in May 2028. So he’s just sitting in his hands. The Treasurer, Mr Chalmers, has a very different view. He will not rule out introducing new taxes in the next budget, declaring that it remains to be seen. Now, of course, off the back of a study which showed that just over 60 per cent of houses are lived in by one or two people, with more than three-quarters of properties with three bedrooms or more, the Labor Party is opening the gates to the discussion about a spare bedroom tax. Labor has form in coming after your own home. They are doing it in Victoria for anyone trying to run a small business in their own home. Now they are failing to rule out a spare bedroom tax here in this chamber, and that is to be condemned.

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