Andrew McKellar doorstop interview at Parliament House regarding CGT changes in the Senate
Transcript: 22 June 2026
Andrew McKellar:
Thanks very much everyone. Look, we're here today to talk about the changes to capital gains tax. That legislation is going to be debated in the Senate this week. I'm joined by colleagues from a number of different industry groups and associations. Of course, we've got Greg Harford from the Canberra Business Chamber. I've got Peter Jones from the Victorian Automobile Chamber of Commerce and we've also got Jay Moran from the Australian Dental Association. Just a few of the groups that are expressing real concern about the impact of the proposed changes to capital gains tax. So today we are writing to every Member of Parliament and every Senator. We're doing that along with each and every chamber of commerce in the states and territories and another 26 major business organisations. That's the tip of the iceberg, but we're very pleased to have those groups joining with us to express concerns.
We would say a reminder to the Senate, it's not too late. You have the opportunity to do the right thing. You have the opportunity to push back against these proposed changes which will damage business investment. They will damage the Australian economy. They will do nothing for productivity. The chances are it is not too late. You can oppose this bill. You can decline to give it passage. At the very least, you can make significant amendments to ensure that it does not cause damage to the Australian economy in the years ahead. We are urging the Senate to go through that process. We are still very concerned that the changes that the government has foreshadowed last week don't go far enough. They only ameliorate some of the impact. There are still very significant issues there. So whether it is in areas like biotech and med tech, which the government has already acknowledged, they will need to do more to address the challenges there, whether it's for medium sized business, for larger businesses, any growing business, whether it's in the areas of the resources sector in particular for junior miners, critical minerals, the energy transition, all of these areas, major question marks about how the proposed changes to capital gains tax will impact business investment, the ability to really harness future growth and entrepreneurship in the Australian economy.
We'll go to questions. Thank you.
Journalist:
Andrew, the government says that the Treasury's modelling says that it won't have much of an impact on productivity overall the budget. In aggregate, some businesses might be better off, some might be worse off. Is there any modelling that shows that productivity will be negatively impacted by these challenges?
Andrew McKellar:
Well, I think obviously that's something that we do want to have a look at, but our concern here is that we know, and this is something that was covered if you go back to the economic reform round table last year, two major issues that were addressed in relation to tax reform, but more broadly on the topic of what are the things that are going to drive productivity growth in the years ahead? We know that one of the critical things is capital deepening. We need to have stronger business investment. We need to be able to lift the capital to labour ratio. We can't do that. If we don't have a competitive tax system, that's one of the key aspects. And that was acknowledged at the end of the process of the economic reform round table. Now, nobody within the business community that attended that round table would have contemplated that one of the options that would then come forward would be a measure which would in fact increase the level of taxation on business investment.
So we would say that there are a range of things, if this was going to be a comprehensive approach to tax reform, a range of things that can be done to enhance productivity, to encourage stronger business investment. And unfortunately, sadly, the changes that are proposed on capital gains tax work in the opposite direction.
Journalist:
Do you feel like you are ambushed again by that productivity round table, by promises of more measures that would help business, but in the end, just other revenue raising measures?
Andrew McKellar:
Well, I think I'm not sure I'd say we're ambushed. I think it was a good discussion. Everyone came to the table I think with a genuine contribution and I think it was that it was a general discussion. We're disappointed that at the end of that process and in this first major opportunity, a very important opportunity in the budget this year to really push the reform agenda forward, that the way that that's been done is to have a very significant revenue hit across the board on business. $40 billion in additional revenue in the next 10 years or so on capital gains tax and negative gearing and another 40 billion on trusts. Now discretionary trusts, family trusts, that's a major issue. We've yet to see the detail of that, but there's huge concern right across many sectors in the economy. So whether it be automotive businesses, dealerships, whether it be home builders, pharmacies, retailers, almost any family small business in the country, many of them are using that family or discretionary trust structure.
So when it comes to that, that's also going to be a major issue.
Journalist:
The government's approaching a deal with the Greens on this legislation.That's a political reality. That could be done as soon as the next couple days. Are you and your colleagues, allies in discussions with the Greens trying to reach out to them, trying to change their mind?
Andrew McKellar:
Well, absolutely. And we're reaching out across the Senate to the cross benches to the minor parties. We're urging everybody in the Senate to do the right thing, take the time. You don't have to conform to the government's timetable on this. Take the time, get it right and certainly on issues for the Greens, the impact here, particularly in critical minerals, that's something that's been highlighted and we would urge them to take account of that.
Journalist:
Realistically passage of the bill will depend on the Greens and from what we see so far, it seems like they are supporting the bill. Do you have anything that would suggest that it's not already a done deal?
Andrew McKellar:
Look, I mean, who can say? I mean, we're urging the Senate to do the right thing. Let's not be cynical about it. Let's take this issue on its merits. The Greens have the opportunity to do that. The rest of the crossbench and the other minor parties in the Senate, they have the opportunity to do the right thing. We're urging them to look at this carefully. Don't rush this through. There hasn't been proper scrutiny of this legislation. Everybody knows. The Senate inquiry process was a whitewash. It hasn't been handled in the manner that you would expect. And I think now the chance is there to do the right thing, take the time to review this. Don't just pass it on the first blush.
Journalist:
Andrew, it's not discretionary trust. You mentioned as you would well know that a lot of small businesses use the planning and as it stands, they're not to come in until July one, 2028. When would you like to see the legislation all passed off in order to give businesses (inaudible), how far in good advance should the rules be?
Andrew McKellar:
Well, I think at this stage we would say we're not supporting that legislation, so it's not a matter of getting past and ticked off. But let's go through the detail. Let's see the legislation that the government is proposing, which they've said they'll introduce later this year. They've said that there'll be another consultation paper that's essential. Let's have a real process of review and consultation. We haven't had that on capital gains tax. We need to have it on the next step, which is those discretionary trusts.
Journalist:
Just on capital gains tax, assuming the legislation is passed in the next sitting fortnight through the Senate, what is the next step for you then in terms of opposition going forward?
Andrew McKellar:
Well, I think this is the last chance to get it right, and that's why we're urging the Senate. The bill is in the Senate this week. They have the opportunity to look at it. Don't simply wave it through. Really ask the hard questions, make sure that the Senate is doing its job. This is their last chance to do that. Don't waste the opportunity. Thanks everyone. Thanks for your time.