Teal party power and Albo’s political booby trap: the week in politics

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What recent budget changes has the government introduced?

Waleed Ali 0:01
I'm guest host Waleed Ali, and you're listening to 7am. Well, the budget blowback is showing no signs of easing. But this week, the government doubled down, introducing the legislation for its tax changes to parliament. Albeit with the detail around CGT still TBC, and with an inbuilt political booby trap for the coalition. At the same time, Pauline Hanson is floating her own negative gearing model as One Nation continues its surge in the polls.

How is Pauline Hanson influencing negative gearing discussions?

Waleed Ali 0:34
And while Labor and the Coalition wrestle with how to fend off Hanson's rise, the Teals are mulling a plan of their own. A Teal party combining the power of independents like David Pocock, Zali Stegall and Allegra Spender. But are they really better together? Today, political editor at news.com.au, Sam Maiden, on Albo's budget resolve, Pauline's proposal and Teal Party power. It's Saturday, May 30th.

What is the Teal party's strategy in response to political challenges?

Waleed Ali 1:14
Sam, what a week. I mean, the post-budget smackdown is well underway. It's now moved into parliamentary sitting and the passing of legislation. It's interesting looking at the way that the Albanese government's trying to legislate this, because they're chucking the whole thing together, it seems. All the CGT stuff, subject to changes, which we might get to in a moment, what they might be, but all of that, but also the Watto legislation.

How is the Albanese government navigating tax legislation?

Waleed Ali 1:39
which I think is the correct pronunciation, the $250 tax off square. I like the Lamington more.
Sam Maiden 1:43
Remember when you had the Lamington?
Waleed Ali 1:44
Yeah, Lamington was evocative, wasn't it? Yeah. Yeah. But by putting all of these things together, what's happening here? They're just trying to wedge the coalition into if they don't want to accept the CGT stuff, they're going to have to vote against the tax cut as well.
Sam Maiden 1:57
Yeah, I mean, like it's just classic wedge politics. All governments do it and they're basically trying to set up a situation where

What concessions are being discussed regarding capital gains tax?

Sam Maiden 2:04
Angus Taylor finds himself back in that position that he found himself before the election. which was really important in terms of really making life extremely difficult in retrospect for Peter Dutton because they voted against tax cuts. And there's so much kind of material on the public record about how Liberal Party elders recognised that this was a huge mistake. So they're trying to set that situation up again. I mean, they kind of are putting everything into one legislation and they're not because while the bulk of the, you know, if you want... headline skeleton changes that we're going to do something to negative gearing we're going to do something to cgt yes that's in the legislation but the detail as it applies for example to some of the more controversial elements like startups and things like that they're putting off to a later tranche of legislation and they've also been forced to put some of it off to a short sharp senate inquiry on
Sam Maiden 3:00
I don't see that as catastrophic as some people want to make it because the Greens are really controlling that. They have said, look, we can get this done in a pretty tight timeframe. I think it's June 22 or something like that. I mean, it's very fast, right? So if they have to accept a three-week delay to get the Greens to go through the motions of doing this, the Greens obviously want to go further. You know, they want to know why the government is grandfathering so much of this. I don't think that that's a big drama really for the Labor Party.
Waleed Ali 3:32
You mentioned that the detail we still don't have. So at the moment, what they're doing is passing kind of like the shell of the budget, and then they'll put the stuff in the shell a bit later.

What philosophical objections does Pauline Hanson raise about tax concessions?

Waleed Ali 3:41
That suggests, though, that the negotiations that the government's currently having with the startup sector, small business, possibly you could even say business generally, they seem to be consulting reasonably widely, that that's still up in the air, that that's all to play for, particularly around the way capital gains tax concessions work. Do you have any idea what concessions or carve-outs or amendments they have in mind here?
Sam Maiden 4:06
Yeah, well, I mean, I know what the Labor MPs that are on those backbench committees that are talking to the Treasurer are talking about.

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