What the Senate debated on 23 June 2026: tax reform, question time fireworks and cost-of-living pressures

The short answer

the Senate debated on 23 June 2026: tax reform, question time fireworks and cost-of-living pressures

The centrepiece of the day's business was the second reading debate on the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 and the Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026. The package proposes replacing the longstanding 50 per cent capital gains tax discount with an inflation indexation model, alongside income tax cuts for workers. Senator Pauline Hanson, Leader of One Nation, opened the debate with a blistering attack, describing the legislation as a 'blatant tax grab worth $77 billion' and 'a litany of broken promises'. She accused Labor of breaking more than 50 assurances that negative gearing and capital gains would not be touched. Senator Hanson told the chamber that 337,000 Australian households can no longer afford their energy bills, 50,000 small businesses hav

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Evidence review

Tax reform bills dominate the chamber

The centrepiece of the day's business was the second reading debate on the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 and the Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026. The package proposes replacing the longstanding 50 per cent capital gains tax discount with an inflation indexation model, alongside income tax cuts for workers.

Senator Pauline Hanson, Leader of One Nation, opened the debate with a blistering attack, describing the legislation as a 'blatant tax grab worth $77 billion' and 'a litany of broken promises'. She accused Labor of breaking more than 50 assurances that negative gearing and capital gains would not be touched. Senator Hanson told the chamber that 337,000 Australian households can no longer afford their energy bills, 50,000 small businesses have become insolvent since Labor took office, and public service numbers had ballooned from 176,000 to 216,000 under the government. 'This budget intentionally kills aspiration,' she said. 'It's classic Marxism.'

Senator Dean Smith, speaking for the Coalition, argued the bill was 'nothing of the sort' of genuine tax reform. He warned that auction clearance rates had collapsed below 50 per cent across capital cities and that the changes would discourage productive investment, particularly harming Western Australia's resources sector. Senator Smith revealed that WA Premier Roger Cook and Treasurer Rita Saffioti had travelled to Canberra the previous day to warn the Prime Minister and Treasurer against undermining investment that drives the state's resources industry. He foreshadowed a second reading amendment on mineral exploration matters, noting Labor had already abolished the Junior Minerals Exploration Incentive 18 months earlier, despite independent analysis showing every dollar of tax credits generated about $2 of private investment.

Senator Nick McKim, the Greens Whip, committed his party to supporting the package with amendments but labelled Labor's effort an 'abject failure of courage and ambition'. He said 60 per cent of the current capital gains tax discount benefit goes to the wealthiest one per cent of Australians, and 75 per cent of the benefit flows to people over 50, while only 4 per cent goes to those under 35. Senator McKim criticised the government for 'grandfathering' existing investment properties, meaning tax concessions would be locked in for as long as investors hold their properties — on average nine years according to Treasury evidence. 'This is now Labor's housing crisis,' he declared. 'Young Australians are just going to have to cop it and wait.'

Evidence review

Question time: heated exchanges on tax and energy

Question time featured sharp clashes over the tax reform package. Senator James Paterson pressed Minister Penny Wong on how the government would distinguish between 'small businesses' and 'innovative businesses' under proposed startup concessions. Senator Wong accused the opposition of not having read the consultation paper, and the exchange became so heated that President Lines had to repeatedly call for order. At one point, Senator Wong told an interjecting Coalition senator: 'Why don't you just go join Pauline Hanson's party? That's where you actually want to be, mate.'

Senator Helen Polley asked a dorothy dixer on the tax package, allowing Senator Wong to outline its benefits: tax cuts for more than 13 million workers, support for 75,000 more homeowners to enter the market, $3.8 billion in new measures for businesses and startups, and $540 million in reduced compliance costs. Senator Wong challenged the opposition: 'The question now is whether the three right-wing parties — the Liberals, the Nationals and One Nation — will again try to block these reforms.'

Senator Claire Chandler pursued the government on international comparisons, asking whether Labor's new capital gains taxes could reach up to 47 per cent — more than double the international average. Senator Katy Gallagher, Minister for Finance, countered that on a reasonable assumption of a 5.1 per cent rate of return for an S&P/ASX 200 investment, the effective tax rate would be around 21.4 per cent. She said this was lower than the United Kingdom at 24 per cent, Germany at 26 to 28 per cent, France at 34 to 35 per cent, Ireland at 33 per cent and the Netherlands at 36 per cent.

Senator Steph Hodgins-May of the Greens challenged the government on gas industry taxation, linking energy price rises to the fallout from Donald Trump and Israel's war on Iran and calling for a minimum 25 per cent tax on gas exports. Senator Wong responded that gas companies 'should pay their fair share of tax' but defended the government's domestic gas reservation scheme as the current priority. Senator Hodgins-May pressed further, accusing Labor of 'adopting whatever arguments the gas industry puts forward' rather than taxing gas exports.

Evidence review

Two-minute statements: from science to footy sponsors

During the two-minute statements period, senators raised a broad range of issues. Senator Tim Ayres, Minister for Science, celebrated the CSIRO's centenary, reflecting on a century of Australian scientific and industrial innovation from plastic banknotes to wireless connectivity. Senator Larissa Waters of the Greens read into Hansard a series of confronting social media comments about the cost-of-living crisis, including: 'I've cut down to one meal a day, but unfortunately the money I save by this will probably be eaten up by my next rent increase.'

Senator David Pocock warned that Australia had lost its status as the only continent free of H5 bird flu, with multiple birds testing positive, and urged the government to act to safeguard biodiversity and poultry farmers. Senator Andrew Bragg spoke of his visit to the Sydney Jewish Museum, while Senator Lisa Darmanin paid tribute to Neale Daniher, the 2025 Australian of the Year who recently passed away from motor neurone disease, and to Victorian MP Emma Vulin, who delivered her valedictory speech after being diagnosed with the disease.

Senator Hanson returned to political themes, declaring 2026 a 'remarkable year in Australian politics' and revealing that One Nation's 'Fire the Prime Minister' campaign had attracted almost $4.8 million from more than 76,000 individual donors in less than two weeks. Senator Jordon Steele-John questioned why the Fremantle Dockers accepted sponsorship from Woodside, arguing the club's fans 'deserve better than a sponsor accused of greenwashing'. Acting Deputy President Sterle interjected: 'You don't speak for all West Aussies there, mate; I'm a cat.' Senator Jacinta Nampijinpa Price criticised Labor's broken promise to cut power bills by $275, noting the promise was meant to be delivered by 2025.

Evidence review

Matters of urgency: taxation and forestry

The Senate debated two urgency motions. Senator Richard Colbeck moved the first, declaring that Australians were 'being forced to pay the price for Labor's spending problem through a toxic tax agenda that punishes hard work, investment and ambition'. He argued the government had broken its promise — made 50 times — not to change capital gains tax, and that higher taxes were making it harder, not easier, for young Australians to save for housing.

Senator Corinne Mulholland opposed the motion, pointing out that the Liberals had gone to the last election proposing higher taxes. She detailed Labor's achievements: permanent reduction in the lowest marginal tax rate from 16 cents to 15 cents then 14 cents, 137 urgent care clinics opened across Australia including 26 in Queensland, and a 15 per cent pay rise for early childhood educators. 'Senator Colbeck's motion talks about who this government's budget empowers, and I will tell him proudly that this budget empowers working people,' she said.

Senator Steph Hodgins-May, speaking for the Greens, argued the real toxicity in the government's tax agenda was 'less about who this government chooses to tax and more about who this government refuses to tax'. She contrasted proposed NDIS changes affecting disabled Australians with the government's unwillingness to impose a windfall tax on multinational gas corporations. 'Political courage is not balancing the budget off the backs of disabled people,' she said.

Senator Andrew Bragg told the chamber he believed the political system was 'probably buggered', describing the tax policies as a 'shambles'. He said Treasurer Jim Chalmers 'would have been sacked if he were working somewhere else', having had two tax policies in four years. Senator Carol Brown defended the government, arguing the Coalition was 'defending the status quo' while preparing to vote against tax cuts for more than 13 million working Australians.

Evidence review

Committee business and procedural matters

Earlier in the day, the Senate dealt with committee matters including a contested motion to extend the reporting date for the Community Affairs Legislation Committee. The motion, moved by Senator Jordon Steele-John to extend the reporting date to 14 August 2026, was put to multiple divisions. Senator Penny Wong moved amendments to bring the date forward to 30 June. After several rounds of division and debate, the matter was resolved with the original extension date of 14 August being adopted.

Senator Wong also moved a rearrangement of business to prioritise the tax reform bills, which passed after multiple divisions. Documents were tabled including orders for the production of documents on Snowy 2.0, the carbon leakage review, the Cheaper Home Batteries Program, housing, and budget matters. Senator Wendy Askew moved several of these orders on behalf of the opposition.

The Senate also dealt with committee reports from the Economics Legislation Committee, the Human Rights Joint Committee, the Public Works Joint Committee, and the Community Affairs References Committee. Senator Lisa Darmanin tabled reports and government responses, while Senator Jess Walsh tabled additional information from the Economics References Committee and the Education and Employment References Committee.

Evidence review

Adjournment: tributes and local concerns

In the evening adjournment debate, Senator Carol Brown rose to recognise Global Motor Neurone Disease Awareness Day, marked on Sunday 21 June. She noted approximately 2,700 Australians are currently living with MND and paid tribute to the late Neale Daniher, who lived with the disease for 13 years and changed the way Australians understood it through FightMND and the Big Freeze campaign. Senator Brown serves as co-chair of the Parliamentary Friends of Motor Neurone Disease.

Other adjournment speakers covered a diverse range of topics. Senator Maria Kovacic spoke on the budget. Senator Steph Hodgins-May returned to the gas industry and its impact on Australian society. Senator Dean Smith paid tribute to Mr Robert John (Rob) Gillam AM. Senator Raff Ciccone discussed defence procurement and submarines. Senator David Shoebridge raised matters of personal information and privacy alongside the situation in the Middle East. Senator Paul Scarr covered the Special Broadcasting Service, Queensland infrastructure and community events. Senator Helen Polley addressed Tasmania's manufacturing industry and One Nation, and Senator Peter Whish-Wilson closed with remarks on national security and Australian society.

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