Thursday, 26 February 2026

Transcript – Interview with Sarah Ferguson, ABC 7.30

Topics: CGT, income tax

E&OE

Sarah Ferguson: Tim Wilson, welcome to 7.30.

Tim Wilson MP: Thank you, Sarah.

Sarah Ferguson: We've seen a lineup of experts over the last few days calling for an end to or a reduction in the discount for capital gains tax. The latest was Matt Comyn on 7.30 last night. Can you explain to Matt Comyn why you think he's wrong?

Tim Wilson MP: Well, I think Matt has done what the BCA has done, which is they've chosen to feed the crocodile in the hope that it will eat them last. The reality is that the proposed changes that the government is floating anyway around a new housing tax, the experts have come across very clear and said it's not going to do anything to increase supply. It will potentially increase revenue to the Commonwealth. And if you just think the answer is to feed the crocodile in the hopes that it'll eat you last, It is a wrong-headed approach to public policy. We should be designing tax policy focused on what we want to incentivise. We want people to work. We want money to work to build the future of the country and that's not what this tax is designed to do based on what's being floated.

Sarah Ferguson: I just need you to explain what on earth you mean by feeding the crocodiles. I've asked a number of experts today to try and figure out what that phrase might mean. What do you mean?

Tim Wilson MP: Well the Business Council has said you can take away the capital gains discount and impose new housing tax on Australians-

Sarah Ferguson: Mr Wilson, I did ask you to address Matt Comyn and not the Business Council.

Tim Wilson MP: Well, Matt Comyn is a board member of the Business Council. And the Business Council has taken exactly the same position. So I'm actually responding to both of them. And what they said was, so long as it doesn't impact us and it just impacts everybody else, then they're OK with it. The problem is, of course, that approach is feeding the crocodile in the hope that it won't be able to eat you last, rather than saying, what's good tax policy? Are we aligning tax policy to incentivise people to work and also capital to work for building the future of the country?

Sarah Ferguson: I'm sorry to stick with this. This may seem obtuse to you, but who exactly are the crocodiles in your metaphor?

Tim Wilson MP: Well, the government is clearly seeking to take or bite more revenue out of the Australian taxpayer. And the Business Council and the CBA CEO has turned around and said, you can take it from others, just leave us alone. And I don't think that's the basis of good tax policy or principal tax policy, particularly when the submissions to the review have made it clear it's not going to increase the supply of housing, It's not going to increase the volume or availability of housing for first home buyers or of course for renters, which is what we desperately need right now.

Sarah Ferguson: If the government exempted new constructions from this change, that is, investors involved in backing new construction of houses, if they were exempted from this, could you back it under those circumstances?

Tim Wilson MP: Well, I've yet to see any evidence that that will lead to an increase in the construction or flow of capital into the construction of new housing-

Sarah Ferguson: But if it doesn't interrupt the flow of capital into investment in new houses, could you back it under those circumstances?

Tim Wilson MP: Well, if that were the case, then the only objective then is to raise revenue. So, the objective for tax policy to me is how do we incentivise people to work and capital to work to build the future of this country and the hypothetical proposal you've outlined hasn't demonstrated to me that that's what would be achieved. The only thing it looks like is a revenue grab from the government because they can't manage the budget and they're desperately trying to find ways to increase taxes on Australians.

Sarah Ferguson: The Coalition government of the time defeated Bill Shorten in Opposition when he tried to bring in changes to capital gains and to negative gearing. Now since that time a lot of older voters have left the roles and they've been replaced and in fact there are many more younger voters now on the roles. Is this a very different political landscape that you face pushing back against this proposed change?

Tim Wilson MP: Well, in 2019, when Bill Shorten lost, yes, there were proposed changes to capital gains, negative gearing, but one of the biggest changes they put forward was around removing refundable franking credits. And very clearly, Australians rejected those proposals. Is the political environment different? Of course it is. Back then, we didn't have massive inflation as we have now, where we have a government that's actively pouring debt on the inflation fire. There's demographic changes. That's why I'm focused on how do we have a system that promotes opportunity, because the pathway to help young Australians get ahead is not redistribution, it's creating an open economy where there's opportunity and economic opportunity for them to get ahead based on their hard work and where hard work pays off.

Sarah Ferguson: To be clear, are you promising a tax cut policy ahead of the next election?

Tim Wilson MP: Until I see the state of the budget in the lead-up to the next election, it's impossible to make such a commitment. What we know is that in years past, Labor has cooked the books, they've offered subsidies to energy companies to try and hide the realities of inflation and the punishment that Australians are experiencing in their household bills.

Sarah Ferguson: All I'm hearing there, Tim Wilson is you not guaranteeing tax cuts at the next election. You're saying that you don't support any changes to capital gains, you're a party of lower taxes, but we're not hearing a commitment to lower taxes at the election. Why not?

Tim Wilson MP: Well, because I'm actually an economically responsible person that looks at the facts and figures based on the information available to me. I don't like to make commitments I can't honour. Trust is a central ingredient in public life and at making sure that people act with integrity. It's absolutely my aspiration to do everything I can to incentivise work and incentivise capital working for the future of Australians and I've absolutely made it clear that I am not a fan of the 47 per cent rate on income tax and I want to make sure Australians are paying as lower taxes as possible within a sustainable budgetary framework.

Sarah Ferguson: All right, I want to ask you this. You have been talking about issues of intergenerational fairness for a long time. Now we've got figures now that show that there is no capital city in Australia that is affordable for first home buyers. So what is your precise plan to address that problem?

Tim Wilson MP: You are right, Sarah. I have been talking about the importance of intergenerational opportunity for a long time and how important it is that the next generation is able to get ahead, to get a good education, to be in a position to be able to get a job, save for the future and buy a home. We will have policies around housing that will come out in the coming months. We've obviously just had an election and we're looking at how we can do it, but our focus will be how do we. Enhance the potential for the next generation of Australians to own their own home.

Sarah Ferguson: The election was some time ago now. We have an affordability crisis that is cooking and getting worse. Have you got nothing to offer other than motherhood statements?

Tim Wilson MP: Well Sarah, I utterly reject the proposal you're putting forward. The reality is we've just come into this role and it's very important to make sure that we have well thought out and considered policy proposals that will actually deliver housing stock and increase housing stock in Australia, in Australian capital cities and throughout the rest of the country. And we'll absolutely be putting that forward because we've seen here in Victoria what happens when you have a Victorian government that goes about proposing new housing stock in suburbs where they know it is not economically viable to do so and their sole objective is to run a political narrative which is punching down on those communities and making trying to create obstacles to new housing development rather than how we do in a sustainable way housing stock that promotes community and housing stock people can afford and that they want to live in in the communities they want to live.

Sarah Ferguson: We can't ignore the fact that the viewers there will have heard no actual answer to my question, but in the meantime, Tim Wilson, I am nonetheless grateful for your time. Thank you.

ENDS