Tim Wilson has thrown himself into fighting the reduction of the capital gains tax discount in Labor’s budget, as well as the abolition of negative gearing on existing properties. But as Jim Chalmers pointed out in parliament, quoting from the shadow treasurer’s 2020 book The New Social Contract, these are changes he has advocated for himself.

double quotation markCapital gains from appreciation of having and holding assets are taxed at half the applied rate, effectively entrenching the benefit of having and holding assets that can only exist if you are established. There is no intergenerational justice in such preferential arrangements.

double quotation markCapital gains from appreciation of having and holding assets are taxed at half the applied rate, effectively entrenching the benefit of having and holding assets that can only exist if you are established. There is no intergenerational justice in such preferential arrangements.

While the capital gains and negative gearing changes passed the lower house last week, they are still to face the Senate.

When Wilson was appointed shadow treasurer this year, Chalmers criticised his counterpart’s “dangerous ideology” (encapsulated by his lack of support for “Medicare, penalty rates, superannuation, work from home”).

In drawing on Wilson’s book, the treasurer was defending the very modest attempts in the budget to shift the balance between taxing labour and capital, and to create a more level playing field, in which income from different sources is taxed differently.

He could also have quoted this:

double quotation markFavourable treatment should not be extended to income derived from the holding or investment of capital that is principally beneficial to established interests. Indeed such income should be treated consistently with the income derived from labour and the application of skills.

double quotation markFavourable........

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