Paul Keating has stepped into the fray to staunchly support the federal government’s recent tax reform, issuing a blistering statement that the opposition quickly dismissed as “nonsense”.
Keating highlighted the importance of addressing disparities in the tax system, emphasizing, “When Jim Chalmers introduces a policy aimed at restoring equity in taxing capital profits on a par with income taxation, we hear cries to maintain existing preferences.”
He continued, pointing out the issue at hand: “The simple fact is that income is taxed too heavily while capital is taxed too lightly.”
In response, Opposition Leader Angus Taylor brushed off Keating’s statements, calling them “more nonsense from Paul Keating”.
Expressing his disagreement, Taylor remarked to reporters, “Of course, Paul Keating supports it, but frankly, I’m not going to take lectures from someone who labels putting Australian values at the core of our immigration policy as racist.”
Nationals Senator Bridget McKenzie told Today “you know something’s wrong when you have to wheel out Paul Keating to stick up for your budget”.
Keating’s support comes as the government faces an onslaught more than a week after handing down the federal budget.
Chalmers told reporters yesterday there has been “misinformation” about the budget.
“The four existing concessions and carve-outs for small business in the CGT system will remain, and people like our political opponents who want to make up things about our changes don’t acknowledge that, but they should,” he said. 
The treasurer has also been reiterating that there is a one-year grace period before the CGT changes come into effect, consultation with the start-up sector and support for businesses who want to restructure their discretionary trust to a fixed trust.
The last time the capital gains tax was altered was when the Howard government introduced the 50 per cent discount.
Keating, in his statement, said Howard and his treasurer, Peter Costello, made a significant mistake by introducing the discount.
“Housing prices took off dramatically from the moment Howard and Costello introduced the 50 per cent discount in 1999,” he said.
“Yet wealthy people are out there now arguing against the government’s change notwithstanding the stark evidence of the price shock Howard and Costello induced.”
Keating concluded his statement by saying the current government is seeking to arrest the distortion that has made housing unaffordable for an entire generation. 
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