I’ve attended a number of functions hosted by the Governor-General in both Sydney and Canberra, and I want to thank the Governor-General and Simeon for their generosity of spirit. They are incredibly welcoming, and I’ve seen people from all parts of the Australian community come together at the Governor-General’s residence and be treated with warmth, treated as individuals, made to feel welcome, and made to feel as though they are truly part of the Australian story. I commend Her Excellency for the way she discharges her responsibilities.
The second point I want to make is that democracy is a wonderful thing. As Parliamentary Co-Chair of the Friends of Refugees, I note that last year Australia welcomed its one millionth refugee since World War II. That is absolutely extraordinary. So many of those people have contributed enormously to the Australian story. Many also bring with them a deep appreciation of how important institutions like this Parliament are. The fact that we have elections every three years, and that every person in this place holds a mandate from the people of their home state or territory, is not something that can be taken for granted. In much of the world, that is not the case. Many refugees who come to Australia have a profound appreciation of the importance of our freedoms and liberties. These are things we must always remember. We are extraordinarily fortunate to live in this beautiful country.
The Governor-General’s address also provides an opportunity to review some of the events of the past 12 months. I am afraid to say, Acting Deputy President, that after those warm introductory remarks, I am now going to change tack somewhat.
I noted on the second page of the Governor-General’s address that, when the Governor-General addresses Parliament, she is effectively conveying a message from the incoming government and setting out its priorities. In this case, that message came from the Labor Government. Twelve months ago, the address stated:
“The Government will work to repay the trust Australians have placed in it.”
We now have the opportunity, 12 months on, to assess whether the Government has repaid that trust. Unfortunately, the report card does not make for good reading.
We know that in the last Budget the Labor Government breached that trust. In the Prime Minister’s own words, repeated some 50 times before the last election, there would be no changes to capital gains tax and no changes to negative gearing. Those commitments formed part of the basis on which the Prime Minister sought a mandate from the Australian people. Yet in government, through the last Budget, that trust has been broken.
The Government has done the opposite of what it promised before the election. That is reflected in legislation passed through this place over the last 12 months, with the support of the Greens. The Greens supported that breach of trust hand in glove with the Labor Government. That is something we should reflect upon.
We should also reflect on another statement contained in the address. It declared that the re-elected Government would continue building on the foundations of its first term, fostering aspiration and opportunity, and shaping an economy that rewards effort and innovation.
Yet what do we see? We see tax changes that will drive entrepreneurs, particularly young entrepreneurs, elsewhere. Why would you start a business in Australia and pay punitive rates of tax on capital gains when you can go to Canada and pay less, go to New Zealand and pay less, or go to Singapore and pay less?
That is my deep concern about the Government’s performance over the last 12 months. It is taxing ambition, taxing the entrepreneurial spirit, and taxing those who want to create wealth and prosperity for themselves, their families, and the Australian people.
I came originally from the mining industry, and the exploration sector is critically important to Australia’s mining future. We have a long tradition of small and retail investors supporting exploration companies as they search for the next mineral deposit, whether critical minerals or other resources that may one day become the next major mine and provide hundreds, if not thousands, of jobs.
However, the changes to capital gains tax will have a devastating impact on the exploration industry. That is what we are hearing directly from smaller mining companies that are out there searching for the next opportunity to build wealth for our country. They have options. They can go to Canada, South America, or elsewhere and take those opportunities with them. That is what concerns me.
I want Australia to be a country where the next Seek Limited can be founded and flourish. We all know Seek Limited—the online platform where Australians go to find jobs. Politicians, after all, always need to keep their options open after an election. Seek was founded in Australia in the 1990s and has grown exponentially. Yet its founders have raised concerns about these tax changes and the disincentive they create for innovation and investment in new businesses.
Now is not the time to discourage that investment. We need to harness all the energy, creativity and talent that exists across the Australian community. We need to harness it for the benefit of the Australian people and reward the effort that goes into building new businesses.
