Australian news and politics: Chalmers defends tax changes in Budget amid small business backlash

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Chamber of Minerals and Energy WA chief executive Aaron Morey put to Dr Chalmers that “the environment in the Pilbara has definitely shifted, and so for the first time in a long time, companies are facing the prospect of industrial action”.

Mr Morey asked if Dr Chalmers was concerned about whether there might be risks to future revenue and if he had a message for the parties involved in the disputes:

“Everyone’s got an interest in those disputes being resolved in a way that all sides can live with,” Dr Chalmers said.

“Industrial relations changes, I acknowledge, are not universally supported in this room, but our objective there is better agreements that all sides can move with, and so obviously we don’t want to see the opportunities in WA interrupted by industrial action.

“We want to see people come to a speedy resolution, but we want that resolution to recognise that the prosperity that is generated in WA is a really important end in itself, but what really matters there is that it creates good, secure, well-paid jobs as well, and so those are our considerations.

“I’m not going to lecture either side in this dispute. There is a level of concern about it, but we want to make sure that people get decent pay, decent conditions in great jobs in a really important sector of our economy.”

One Nation leader Pauline Hanson has shared her “vision” for Australia to increase taxes on gas giants while speaking at a conference in Adelaide.

Her plan included making the government an equity share holder in any future project.

The minor party leader told attendees of the ​​

​​ forum she wants “more gas extracted” but insisted the industry needed help the nation build sovereign wealth.

“I have a vision for this country. And I think it’s reflected in my gas policy. So, let me share it with you,” she said.

“One nation’s policy will drive. More exploration, more development.

“Without pushing out smaller Australian producers, One Nation is proposing a genuine partnership with the gas industry from exploration through to production and decommissioning.

“We will provide a 30 per cent rebate on genuine oil and gas exploration in Commonwealth Waters.

“In exchange, the Commonwealth may take up to 30 equity in issued production licences.

“The Commonwealth would be responsible for its costs as an equity owner and in-tern being entitled to a proportionate share of the production.”

Treasurer Jim Chalmers has labelled actions taken by Israeli Minister Itamar Ben-Gvir were “disgraceful” and “shocking”.

In footage which has circulated overnight the security minister in Israel appeared to be taunting detained flotilla activists, some of which were Australians.

Dr Chalmers said regardless of the Australian Government trying to “discourage people from going down that path,” he insisted they should be “treated humanely”.

“I thought that was disgraceful. I thought that was shocking, and you know, I agree with the comments that Penny Wong has made about it,” Dr Chalmers told reporters in Perth.

“I can only imagine what it’s like to be a parent or a loved one of the people involved in that trip, and to see them being treated that way, I think, is deeply disappointing.

“There’s absolutely no need or no place for it.”

Treasurer Jim Chalmers has given the firmest commitment yet to WA’s fair share of the GST, while speaking in Perth on Thursday on his post-Budget trip around the nation.

Asked: “Is the current arrangement... WA’s ‘fair share’?” the Labor frontbencher responded “Yes it is”.

It comes after Prime Minister Anthony Albanese was peppered with questions about the GST arrangement after breaking other election promises during a visit to Perth on Tuesday.

“The Prime Minister and I are huge supporters of WA getting its fair share. We’ve made that very clear. WA makes a massive contribution to the national economy,” Dr Chalmers said.

“And at every turn, my job has been to make sure that that contribution is recognised, including when it comes to making sure that WA gets a fair share of the GST.”

Treasurer Jim Chalmers has been forced to defend his government’s changes to the Capital Gains Tax and negative gearing in last Tuesday’s Budget for another day.

Speaking in Perth on Thursday, the Labor frontbencher told journalists the party had “anticipated” “scare campaigns built on lies”.

It comes after Labor have faced backlash online from waves of small business owners who have criticised the government online by sharing AI-generated memes.

“We understand that some of these changes (are) contentious,” he said.

“We anticipated that. We anticipated our political opponents engaging in the usual scare campaigns built on lies, and we’re seeing that too.

“But we’ve taken these difficult decisions for the right reasons.

“We didn’t expect there to be unanimous support for them, but they’re the right thing to do for our economy.

“They’re the right thing to do by first home buyers.

“They’re the right thing to do for millions of Australian workers who will get another tax cut from this government.”

Treasurer Jim Chalmers has defended his decision to remove a group of Chinese investors from one of the country’s most significant critical mineral deposits

Speaking at a press conference in Perth on Thursday, he said the government was prepared to protect Australia national and security interests.

It comes after on Monday six companies and individuals based in China, Hong Kong and the British Virgin Islands were issued orders by the Treasurer to divest millions of shares that they hold in Northern Minerals after previous formal directions were ignored.

“I’ll do whatever’s necessary to protect the national interest when it comes to foreign investment, he said.

“We are reforming foreign investments so that we can strengthen it quite considerably where investments are concerned.

“So, the steps that I’ve taken in relation to that investment are all about protecting the national economic interest.

“The decision I took was entirely consistent with the advice from the Foreign Investment Review Board and from Treasury.”

Resources Minister Madeleine King has told a press conference in Perth today and its Australian mining company Arafura Rare Earths and its Nolans Rare Earth Project in the Northern Territory has officially reached a Final Investment Decision.

The FID will allow the construction and development of the Nolans Rare Earth Project over the next three years.

Minister King said the government had stepped in, acting as a guaranteed buyer through Export Finance Australia, under the newly legislated Critical Minerals Strategic Reserve.

The project is located 135 kilometers north of Alice Springs, with Ms King saying it was “very important for the Alice and for the NT”.

“But really importantly, and very significantly, as a result of this commitment of the Australian government, Arafura has now taken a final investment decision to go forward with the Nolans rare earth project,” she said.

“And what that means for us nationally and our participation in the rare earths global supply chain is as it becomes operational, the Arafura Rare Earths project will provide around 4-5 per cent of global rare earths demand.

“That’s a really significant inroads into those global supply chains.

“As for the strategic reserve, this was legislated only quite recently and the government has stepped up and made a decision to use it and to use it productively in making sure we can secure a final investment decision on one of the most significant rare earth mines and processing facilities in the world, and that is what we’re announcing today.”

Opposition Leader Angus Taylor has labelled Paul Keating’s defence of the capital gains tax changes as “nonsense”.

The former Labor prime minister had overnight issued a statement in support of the Albanese Government’s contentious change to the capital gains discount to counter the growing backlash to its budget.

Mr Keating, who introduced CGT in the 80s, had blamed the Howard-era 50 per cent tax break for causing investors to flood the property market.

“More nonsense from Paul Keating. We’ve had a lot of nonsense,” Mr Taylor said at a press conference in Adelaide overnight.

“Every small business owner in this country is reconciling themselves to the fact that they have a new business partner in Anthony Albanese.

“He’s decided to become their business partner. I mean, seriously, these are small business people who are working harder than ever for less.

“And this government wants to whack them with their toxic taxes.

“Of course Paul Keating supports it. But you know, frankly, I’m not going to be lectured to by someone who thinks that putting Australian values at the centre of our immigration policy is racist.”

Australia’s unemployment rate has risen to a four-year high of level 4.5 per cent following successive Reserve Bank interest rate rises and is now much worse than feared just a fortnight ago.

The jobless level for April was the highest since November 2021 when Sydney and Melbourne were in COVID lockdown, which could see the RBA delay raising interest rates again to tackle runaway inflation.

The proportion of people without work rose from March’s 4.3 per cent level following the Reserve Bank of Australia’s February and March rate hikes, but before the latest May 5 increase that took the cash rate to a 15-month high of 4.35 per cent.

The latest jobless rate is worse than updated RBA forecasts, released a fortnight ago, predicting a 4.2 per cent unemployment rate by June this year and a 4.4 per cent level in June 2027.

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