By Matthew Cranston
Former Treasury assistant secretary for tax Geoff Francis is among a host of critics knocked back from participating in a hastily convened inquiry into the Albanese government’s controversial tax bill, where such experts were hoping to expose “wrong and misleading” statements in the budget.
The two-day inquiry scheduled for Monday, and which by Thursday evening still did not have a program, will also block the Financial Services Council and investors such as Stockspot founder Chris Brycki from voicing concerns about the biggest changes to capital gains and negative gearing in decades.
Jim Chalmers has introduced a bill seeking to remove the 50 per cent capital gains tax discount in favour of an inflation-indexed discount, as well as introduce a minimum 30 per cent CGT, while banning negative gearing for new investors in existing properties.
The inquiry has received hundreds of submissions but only 21 had been uploaded by Thursday night. Mr Francis, whose submission was not uploaded, said there needed to be a proper airing of what he said were misleading statements by Treasury.
“I think there are a lot of views that need to be aired. I think there was a lot of work by Treasury in the budget that was wrong and misleading,” Mr Francis said.
“If you are just going to invite people who don’t have critical views then it’s not worth having such a hearing. Its not a proper democratic process. I would be happy to debate Ken [Henry] publicly on these matters. He was my former boss and I think it would be worthwhile.”
Dr Henry was called upon by the Treasurer to participate in an economic reform roundtable at parliament last year. He also took part in a Senate inquiry into capital gains tax earlier this year.
Wilson Asset Management chairman Geoff Wilson said he had also been blocked from the inquiry. Financial Services Council chief executive Blake Briggs said exclusion from the inquiry showed the government was trying to shut down proper scrutiny of the tax changes.
“The government has abandoned the principle of good governance by refusing the FSC and other industry experts the right to appear and provide evidence of the negative impact on the financial services sector and its customers,” Mr Briggs said.
“Senators are being deprived a clear picture of the impact these tax increases will have on Australians, particularly younger Australians who have invested in shares and ETFs in an effort to save for their first home.
“The Treasurer himself described the government’s tax increases as ‘the most significant tax reform package in more than a quarter of a century’ and has stated that he is willing to argue with the conviction of his beliefs that these changes are right for the country. If this is true, the government should not shut down proper Senate scrutiny of the tax increases.”
Opposition Treasury spokesman Tim Wilson described the inquiry as a “stitch-up”.
“A two-day inquiry into Labor’s toxic taxes is already a stitch-up. The least the government-controlled Senate economics committee can do is stop stacking the agenda and hear from the people who will actually pay the price.”
Labor senator Lisa Darmanin who chairs the committee responsible for the inquiry, was unavailable for comment. The government has allowed only two days for the inquiry and wants the bill passed through the Senate before July 2, when parliament rises for the five-week winter break.
Last week the Greens and independent senator David Pocock said the high level of ministerial discretion in the Treasurer’s new tax bill was a concern and needed to be wound back to win their support for the bill.
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