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Rod Culleton says he will vote against One Nation on Brandis inquiry – politics live Labor uses Mike Baird to attack Coalition over negative gearing – question time live
(35 minutes later)
3.40am GMT
03:40
Shorten to Turnbull: in question time the PM was asked whether the attorney general had given the solicitor general a verbal instruction to run a particular argument in the high court. A question that the PM and the attorney general repeatedly refused to answer. So I ask again: Did the attorney give this instruction, yes or no?
Turnbull says George Brandis dealt with the matter in his statement on Monday.
Updated
at 3.42am GMT
3.39am GMT
03:39
George Brandis: two people can have a different understanding from same meeting
Paul Karp
Labor is asking the attorney general, George Brandis, if there was a deal between the federal government and the Western Australian government to let the state leapfrog the ATO in the list of Bell Group creditors.
No there was not – not in my opinion and not to my knowledge.
Brandis re-explains that the letters between the then federal treasurer, Joe Hockey, and the WA treasurer, Mike Nahan, don’t evidence a deal, in his opinion.
The Labor senator Glenn Sterle asks whether Nahan misled the WA parliament by saying there was a deal.
Brandis replies that two people can come away from the same meeting with a different understanding. He said he believes Nahan is honest and told the parliament that there was a deal in good faith.
I do not have any knowledge of those discussions and the only evidence I have seen does not support that conclusion [that there was a deal].
Updated
at 3.40am GMT
3.36am GMT
03:36
Labor’s Kate Ellis to Barnaby Joyce: Can the deputy PM assure the House that there are no documents which confirm that the government considered cutting funding to the Murray-Darling Basin plan?
Joyce says any changes would need legislation so it would be brought into parliament.
Updated
at 3.40am GMT
3.34am GMT
03:34
Tony Burke asks Barnaby Joyce: As a result of water entitlement prices doubling in some major catchments of the Murray-Darling Basin, has the deputy PM been trying to secure additional funds to secure 450 gigalitres can be delivered or has the deputy PM been trying to cut government funding to the Murray-Darling Basin?
Joyce said there will a review in 2019, which Burke would know full well as he wrote the act.
Updated
at 3.39am GMT
3.31am GMT
03:31
The Greens MP Adam Bandt to the energy and environment minister, Josh Frydenberg: In a Senate committee report tabled yesterday, AGL, which runs coal-fired generators like Loy Yang in Victoria and Bayswater in NSW, called for a clear national plan for the orderly retirement of coal-fired generators. For the first time ever, the companies running coal-fired power stations are joining with affected communities, unions and environment groups in calling for a government-led orderly and just transition to a clean economy. Minister, will you do what the Senate committee report recommended and take a plan to the December meeting of the Coag Energy Council, or for this government is plan still just another four-letter word?
Frydenberg says there is a transition, with eight out of the 12 most emission intensive power stations close. It will be nine when Hazelwood closes next year.
InAustralia, 60% of our power is being generated by coal and we have a transition plan which involves putting energy security at number one ... We will not sacrifice blue-collar jobs in the regions in order to win green votes in the city, which is not just the position of the Greens but unfortunately has been now joined by the Labor party who are in partnership with the Greens – a bit like they were during Julia Gillard and Bob Brown’s time.
Updated
at 3.35am GMT
3.24am GMT
03:24
Labor to Joyce: Last week in question time, the deputy PM said the current funding for the promised 450 gigalitres was insufficient, saying, and I quote: “You have not got a hope in Hades of delivering 450 gigs. Not a hope.” One week later, is that still the deputy PM’s position?
Joyce basically confirms this is still the case – not in so many words. He says the problems were caused by the former Labor water minister Tony Burke, who asked the question.
Updated
at 3.31am GMT
3.21am GMT
03:21
Joel Fitzgibbon to Barnaby Joyce: Was the president of the National Farmers Federation accurate this morning when she said, “We were absolutely blindsided by an item in the budget that came in, that we weren’t consulted about, that said that they were going to put the backpacker tax up to 32% from 0%”?
Barnaby Joyce again suggests the backpacker tax was a result of Labor’s actions.
This is not correct.
I will keep fact checking this until he stops saying it.
Joe Hockey’s 2015 budget speech signalled the change in that budget. Hockey said:
And anyone on a working holiday in Australia will have to pay tax from their first dollar earned, rather than enjoying a tax-free threshold of nearly $20,000. This will save the budget $540m.
Joyce says:
The dilemma that we were placed in, was we made the promise that we would resolve this issue by the time the rate went back to 32.5%, which was 1st January next year.
IT WAS A PROBLEM CREATED BY THE COALITION GOVERNMENT. IT WAS THEIR DEADLINE. IT WAS THEIR RATE AFTER THEY CHANGED THE RULES.
*argghhh, live blogger runs screaming from the office*
Updated
at 3.30am GMT
3.10am GMT
03:10
Shorten to Turnbull: An hour ago the premier of NSW confirmed it is the position of his [government that] negative gearing reform should be considered. Given the premier of the state of the heart of Australia’s housing affordability crisis has put negative gearing on the table, why does the PM continue to rule it out and is getting rich parents still his only policy on housing affordability?
Turnbull suggests Shorten might misrepresent Baird.
Shorten reads the transcript.
I would just like to table the transcript. It was a question from the Financial Review: “Do you and your government have negative gearing, is it a problem?” I think I have an answer to this. ... “My answer is yes, it should be considered.” Here in black and white.
Turnbull starts an attack on Shorten regarding his allies Cesar Melhem and new senator Kimberley Kitching.
It’s so touching to see the way he wants to be the ferocious class warrior. Oh, yes, Bill Shorten, defender of the poor and ...
(various points of order)
Did he ever call up Cesar and say, “Cesar, that was disgraceful.” No, absolutely not.
This was the Cesar Melhem story from the Oz this morning:
The Fair Work Commission has begun an investigation into Cesar Melhem, a key ally of Labor leader Bill Shorten, over Royal Commission into Trade Union Governance and Corruption findings that he orchestrated deals where ­employers paid employees’ dues.
News of the investigation has broken just as the Turnbull government scrambles to secure the last few votes to pass laws reinstating the construction industry watchdog, the Australian Building and Construction Commission.
Updated
at 3.28am GMT
2.59am GMT2.59am GMT
02:5902:59
Question time in 3, 2, 1... Question time in 3, 2, 1 ...
Updated
at 3.14am GMT
2.59am GMT2.59am GMT
02:5902:59
Apropos my earlier post, the New South Wales premier, Mike Baird, was asked whether he agreed with his planning minister, Rob Stokes, who suggested that supply issues alone could not solve Sydney’s housing affordability issues. He was also asked what he thought of the pushback from the federal government against the suggestion that tax deductibility (negative gearing) could be part of the problem.Apropos my earlier post, the New South Wales premier, Mike Baird, was asked whether he agreed with his planning minister, Rob Stokes, who suggested that supply issues alone could not solve Sydney’s housing affordability issues. He was also asked what he thought of the pushback from the federal government against the suggestion that tax deductibility (negative gearing) could be part of the problem.
It was a long and winding answer but Baird says Stokes is the most qualified planning minister. (He is a lawyer and academic specialising in environment and planning.)It was a long and winding answer but Baird says Stokes is the most qualified planning minister. (He is a lawyer and academic specialising in environment and planning.)
Baird says:Baird says:
Why doesn’t everyone come back a minute and say we have a credentialed planning minister making a credible contribution to one of the most complex challenges that we have. Why don’t we take a back seat and say, in terms of what is being presented, is that something we should consider further? That is really my position on it.Why doesn’t everyone come back a minute and say we have a credentialed planning minister making a credible contribution to one of the most complex challenges that we have. Why don’t we take a back seat and say, in terms of what is being presented, is that something we should consider further? That is really my position on it.
He says housing approvals have gone from 25,000 to over 75,000 – a record (supply is not the only problem).He says housing approvals have gone from 25,000 to over 75,000 – a record (supply is not the only problem).
Baird says he knows there will be political push back (from his own side) but he would rather they focus on the issue.Baird says he knows there will be political push back (from his own side) but he would rather they focus on the issue.
UpdatedUpdated
at 3.10am GMTat 3.10am GMT
2.34am GMT
02:34
And congrats to Cathy Wilcox, cartoonist of the year for Behind the Lines 2016.
Updated
at 2.37am GMT
2.32am GMT
02:32
Congrats Annika Smethurst and Primrose Riordan. Love your work.
Updated
at 2.33am GMT
2.26am GMT
02:26
Lunchtime politics
In a delicious irony, Brandis' appointment to the High Court, James Edelman, worked on the Bell litigation #auspol
Updated
at 2.32am GMT
2.01am GMT
02:01
Rod Culleton splits from One Nation on Brandis inquiry
Paul Karp
It’s become clear that Labor and the Greens are very close to having the numbers they need to set up a Senate inquiry into George Brandis and the Bell litigation matter.
A spokesman for Pauline Hanson said One Nation is against the inquiry, but a spokeswoman for Rodney Culleton has confirmed he will vote for the inquiry.
Culleton is no fan of Brandis, who he believes breathed new life into an unviable challenge against his eligibility to sit in the Senate.
That’s not quite right as Brandis had advice from Justin Gleeson that Culleton’s eligibility was questionable - it’s just the form that the original challenge was pleaded in was defective, which is now irrelevant because the Senate referred the case to the court.
In any event, Labor, the Greens, Derryn Hinch and Culleton make 37 votes, leaving them just one short to set up an inquiry the Greens say could take weeks with appearances from Brandis, Mathias Cormann, a whole host of other ministers and even ambassador to the US Joe Hockey.
1.58am GMT
01:58
Arggghhhh.
Liberal MPs say it was the administrative appeals tribunal (AAT) that changed the tax. There were decisions by the AAT relating to residency but this policy stemmed from a Coalition government decision in the 2015 budget.
If you don’t believe Hockey’s budget speech, here is more evidence of the backpacker tax origins from the first few pars of a research paper from the parliamentary library.
Changed rules for working holiday makers
Budget Review 2015–16 Index
Les Nielson
In the 2015–16 budget the government proposes to change the tax status of temporary working holiday makers from that of resident, to that of non-resident, from 1 July 2016.[1]
Updated
at 2.09am GMT
1.44am GMT
01:44
Labor agriculture shadow Joel Fitzgibbon reminds the house of treasurer Joe Hockey’s speech in the 2015 budget relating to the backpacker tax because Barnaby Joyce and others have claimed it was not the Coalition’s idea.
Joe Hockey’s budget speech in May 2015 when the change was announced:
And anyone on a working holiday in Australia will have to pay tax from their first dollar earned, rather than enjoying a tax‑free threshold of nearly $20,000. This will save the budget $540m.
Fitzgibbon said he rang the National Farmers Federation on 2015 budget night to ask if they were concerned.
‘No’ was response … no problem there … Initially we didn’t criticise the backpacker tax, we assumed they had been consulted and agreed with the proposition.
Then like the government when things got hot, [the NFF] had came up with 19%, he says.
He says the Labor party has dragged the Coalition to a lower rate.
Updated
at 1.56am GMT
1.35am GMT
01:35
Gareth Hutchens
The Greens held their partyroom meeting this morning.
Topics of discussion:
George Brandis:
They say Brandis has still not addressed the fundamental accusation levelled at him: that he instructed Justice Gleeson not to run a particular argument in the High Court.
They have already tabled a motion, co-sponsored with Labor, to establish an inquiry to get to the bottom of the Brandis affair.
If the inquiry is established, they will be moving for invitations to be sent to Joe Hockey, Mike Nahan, and Michael Mischin, to appear - despite preliminary advice that the senate will not have the power to compel them to appear.
The motion that’s before the senate would compel the attendance of George Brandis and Mathias Cormann.
They will also be inviting members of the House of Representatives to appear: Kelly O’Dwyer and Christian Porter. They will not be compelled to appear.
On the ABCC:
They say they’re concerned about the deal the Turnbull government cut with David Leyonjhelm with respect to the ABC, which forces the ABC and SBS to hold regular meetings in regional Australia.
They think legislation will be needed to amend the ABC Act to put Leyonjhelm’s deal into practice. They won’t be supporting any legislation that amends the ABC Act. Today they’ll be calling on Labor and every other crossbencher to commit to opposing it.
On the ABCC generally, the senate will be debating amendments to the bill from 12.30 today for a couple of hours, and from about 6.30pm to midnight.
The Greens will be moving two sets of amendments: a requirement for local steel to be used on projects covered by the building code, and a requirement for employers to first advertise jobs to Australians before trying to hire a foreign worker.
On oil and gas companies:
The Greens will be moving for a senate inquiry into the existing legislation to see what needs to be tidied up.
They want to know if the legislation actually needs to be changed, or if the problem is simply about inadequate monitoring of deductions.
Parliament House security measures:
They say they’re troubled by reports of a planned increase in security measures at Parliament House.
They’ll be giving notice of a motion today, which will be debated tomorrow, opposing the changes.
1.23am GMT
01:23
Chris Bowen is still speaking on backpackers tax.
The Liberal party are meant to understand business. The National party is supposed to understand regional Australia. This issue shows they don’t understand either.
Bowen suggests Labor supports the 10.5% rate, as if the party always supported this rate.
Labor will continue our consistent approach to this.
Labor has not been consistent on this issue.
For more than 12 months, Labor had no position on the backpacker tax - at least no rate. Labor opposed the backpacker tax in theory but would not nominate a rate from May 2015 until well after the July 2 election in 2016 - even though they booked the savings in their election financials. Then, at the 11th hour, they jumped on board the Jacqui Lambie express.
There is so much manure on both sides of this policy debate. *sniff*
1.07am GMT
01:07
The house has begun and the first bill is the backpacker tax.
Chris Bowen, Labor shadow treasurer, says the 15% bill is:
A humiliating backdown from an incompetent treasurer on the run. He announced it at a press conference which was immature and petulant even for him.
Updated
at 1.16am GMT
1.01am GMT
01:01
Sometimes you really have to wonder whether the government is concerned with housing affordability.
NSW planning minister Rob Stokes let the negative gearing genie out of the bottle last week when he said housing supply alone could not fix affordability issues. Perhaps we need to look at tax deductions, he said.
Earlier this year the NSW government was ready, willing and able to have a discussion about tax. Disappointingly our leadership on this issue fell victim to the Canberra culture that promotes opposition over consensus.
Surely the focus of the tax system should be directed towards the type of housing we need. Why should you get a tax deduction on the ownership of a multimillion-dollar holiday home that does nothing to improve supply where it’s needed?
Labor went to the federal election with a serious change to negative gearing. While Scott Morrison originally said negative gearing was a little excessive, the Coalition decided to rule it out on the grounds that it would allow them to beat Labor.
Last Saturday – yes Saturday in between two sitting weeks – Morrison released a change in the foreign buyer rules which had previously only allowed foreign buyers to on sell to Australians. I shall let him explain from his press release.
The Turnbull government will implement changes under the foreign investment framework to allow foreign buyers to purchase an off-the-plan dwelling when another foreign buyer has failed to reach settlement.
This change addresses industry concerns, and means property developers won’t be left in the lurch when a foreign buyer pulls out on an off-the-plan purchase.
This action will ensure that markets will not be impacted negatively by an increased amount of off-the-plan sales, particularly from foreign purchasers, not being completed.
It is common sense that an apartment or house that has just been built, or is still under construction and for which the title has never changed hands, is not considered an established dwelling.
On Monday, the ABC China correspondent Bill Birtles reported:
Thousands of Chinese property investors who bought apartments in Australia are still scrambling to save their investments, six months on from a bank clampdown on foreign lending.
Earlier this year, the big four banks cut off lending to offshore investors in a bid to reduce the amount of risk they took on.
They were spooked by some applications with fraudulent proof of income, and wanted to rein in lending to avoid being too reliant on Chinese borrowers.
And
Property developers in Australia have, in recent months, reported Chinese buyers rescinding their contracts as the squeeze takes hold.
What is one property developer’s negative impact is another (first home) buyer’s good deal.
As the Australia Institute’s Richard Denniss notes in the Fin today:
Just as market forces were about to push the price of housing down in Australia, the treasurer stepped in with some new regulation. Phew. Some first home buyers nearly snatched a good deal but luckily the treasurer was there to protect the property developers from the oversupply their building bonanza created.
Just a little background ahead of NSW premier Mike Baird’s address to the press club.
Updated
at 1.49am GMT