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Chris Bowen grilled on Labor's renewables policy – as it happened Chris Bowen grilled on Labor's renewables policy – as it happened
(35 minutes later)
6.47am GMT6.47am GMT
06:4706:47
Night time politics Night-time politics
Today the government raised the possibility of tax rises if the Coalition’s budget omnibus savings bill is not supported in the senate. Reports (by Michelle Grattan) surfaced that the prime minister’s office had urged the treasurer to be cautious about tying the omnibus bill to the National Disability Insurance Scheme. The treasurer did not respond to those reports but not good to have the PM and the treasurer at odds - if that is the case. It is clear that the link to the NDIS put the senate crossbench off the bill. So still, the family benefit and welfare cuts from Tony Abbott’s 2014 budget hang around like a bad smell. But without enough votes in the senate, the cuts remain unloved. Today the government raised the possibility of tax rises if the Coalition’s budget omnibus savings bill is not supported in the Senate. Reports (by Michelle Grattan) surfaced that the prime minister’s office had urged the treasurer to be cautious about tying the omnibus bill to the National Disability Insurance Scheme. The treasurer did not respond to those reports but not good to have the PM and the treasurer at odds – if that is the case. It is clear that the link to the NDIS put the Senate crossbench off the bill. So, still, the family benefit and welfare cuts from Tony Abbott’s 2014 budget hang around like a bad smell. But without enough votes in the Senate, the cuts remain unloved.
Plans for tougher penalties for politicians who misuse their travel allowances, proposed by the independents and Greens in the lower house, were soundly rejected by the Coalition and Labor. But the majors supported reforms which have a penalty Plans for tougher penalties for politicians who misuse their travel allowances, proposed by the independents and Greens in the lower house, were soundly rejected by the Coalition and Labor. But the majors supported reforms that have a penalty
But Australian Conservative senator Cory Bernardi proposes to amend the bill to dump the gold pass travel entitlements to make it tougher in the senate. He wants to restrict the pension scheme to prime ministers who have been in the job for a qualifying time. Bernardi also wants to stop previous politicians from accessing their pensions until 60. That would effect all politicians who retired prior to 2004 who are under 60 now. But Australian Conservative senator Cory Bernardi proposes to amend the bill to dump the gold pass travel entitlements to make it tougher in the Senate. He wants to restrict the pension scheme to prime ministers who have been in the job for a qualifying time. Bernardi also wants to stop previous politicians from accessing their pensions until 60. That would affect all politicians who retired prior to 2004 who are under 60 now.
Federal director of the Liberal party Tony Nutt is all for a ban on foreign political donations if in includes associated enitities like Get Up. The federal director of the Liberal party, Tony Nutt, is all for a ban on foreign political donations if it includes associated entities such as Get Up.
The Coalition continued to hammer Labor’s renewables policy, which is the existing target of 23.5% by 2020 and a “goal” of 50% by 2030.The Coalition continued to hammer Labor’s renewables policy, which is the existing target of 23.5% by 2020 and a “goal” of 50% by 2030.
The government has succeeded in forcing the senate to sit up until midnight to pass the ABCC bill, in the parliament again after Derryn Hinch changed his mind over Christmas. If the bill does not pass, the government have threatened to sit until might tomorrow. Take your medicine, children. The government has succeeded in forcing the Senate to sit up until midnight to pass the ABCC bill, in the parliament again after Derryn Hinch changed his mind over Christmas. If the bill does not pass, the government have threatened to sit until might tomorrow. Take your medicine, children.
Thanks for your time and to my brains trust, Paul Karp, Gareth Hutchens and Katharine Murphy.Thanks for your time and to my brains trust, Paul Karp, Gareth Hutchens and Katharine Murphy.
Mike Bowers take a bow.Mike Bowers take a bow.
I will leave you with Matt Hatter with a visual representation of the climate policy debate.I will leave you with Matt Hatter with a visual representation of the climate policy debate.
@gabriellechan 💃..and so the Dance of the ETS begins again, to the meh of the many & the frothing horror of the powerful, well funded few.💃 pic.twitter.com/6aOAP5HsrO@gabriellechan 💃..and so the Dance of the ETS begins again, to the meh of the many & the frothing horror of the powerful, well funded few.💃 pic.twitter.com/6aOAP5HsrO
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Gareth HutchensGareth Hutchens
The Turnbull government’s senior economics team has been stealing the spotlight this week with its warnings about possible tax increases.The Turnbull government’s senior economics team has been stealing the spotlight this week with its warnings about possible tax increases.
Maybe that’s why junior minister Michael Sukkar has decided to pick a fight with his counterpart, the shadow assistant treasurer, Andrew Leigh?Maybe that’s why junior minister Michael Sukkar has decided to pick a fight with his counterpart, the shadow assistant treasurer, Andrew Leigh?
He must want some of that spotlight, too.He must want some of that spotlight, too.
But he’s accusing Leigh of misunderstanding Australia’s dividend imputation system, which may not end well.But he’s accusing Leigh of misunderstanding Australia’s dividend imputation system, which may not end well.
Leigh has many personal qualities, one of which is an obsessive need to understand the tax system, another of which is pedantry.Leigh has many personal qualities, one of which is an obsessive need to understand the tax system, another of which is pedantry.
Let’s see how it ends.Let’s see how it ends.
Sukkar’s press release:Sukkar’s press release:
In an interview on Sky News Australia, Andrew Leigh said the following to justify Labor’s anti-competitive policies on tax:In an interview on Sky News Australia, Andrew Leigh said the following to justify Labor’s anti-competitive policies on tax:
What Australians have to recognise is that our corporate rate has dividend imputation. That means we take a third of the company tax revenue and we give it back. So a corporate tax rate of 30% with imputation raises as much as a rate of 20% without imputation.What Australians have to recognise is that our corporate rate has dividend imputation. That means we take a third of the company tax revenue and we give it back. So a corporate tax rate of 30% with imputation raises as much as a rate of 20% without imputation.
This statement is plainly false.This statement is plainly false.
Dividend imputation does not – in any way – alter the amount of tax paid by companies. Dividends are paid to shareholders in after tax proceeds.Dividend imputation does not – in any way – alter the amount of tax paid by companies. Dividends are paid to shareholders in after tax proceeds.
Dividend imputation does not reduce the corporate tax rate.Dividend imputation does not reduce the corporate tax rate.
Dividend imputation does not reduce the tax paid by corporate entities.Dividend imputation does not reduce the tax paid by corporate entities.
And for foreign companies investing in Australia – for whom Australia is competing with many lower taxing first-world economies – dividend imputation provides no benefit.And for foreign companies investing in Australia – for whom Australia is competing with many lower taxing first-world economies – dividend imputation provides no benefit.
So either Andrew Leigh is hopelessly incompetent and doesn’t understand our tax system, or is deliberately misleading Australians.So either Andrew Leigh is hopelessly incompetent and doesn’t understand our tax system, or is deliberately misleading Australians.
Leigh’s press release [he apparently couldn’t help himself]:Leigh’s press release [he apparently couldn’t help himself]:
In a confused media release today, assistant Treasury minister Michael Sukkar suggests that we should ignore dividend imputation when discussing Australia’s company tax rate.In a confused media release today, assistant Treasury minister Michael Sukkar suggests that we should ignore dividend imputation when discussing Australia’s company tax rate.
Dividend imputation reduces the revenue available to government. Most of the countries that the government likes to compare Australia’s company tax rate with do not have dividend imputation.Dividend imputation reduces the revenue available to government. Most of the countries that the government likes to compare Australia’s company tax rate with do not have dividend imputation.
Research by Macquarie University Professor Geoffrey Kingston estimates that dividend imputation returns about one-third of the corporate tax revenue to taxpayers.Research by Macquarie University Professor Geoffrey Kingston estimates that dividend imputation returns about one-third of the corporate tax revenue to taxpayers.
So a corporate tax rate of 30% with imputation raises as much as a rate of 20% without imputation.So a corporate tax rate of 30% with imputation raises as much as a rate of 20% without imputation.
Worryingly, Mr Sukkar seems not to understand this basic fact.Worryingly, Mr Sukkar seems not to understand this basic fact.
This latest gaffe comes just weeks after Mr Sukkar refused to rule out making all mortgage interest payments tax deductible, which the Grattan Institute estimates would cost the budget $19bn a year.This latest gaffe comes just weeks after Mr Sukkar refused to rule out making all mortgage interest payments tax deductible, which the Grattan Institute estimates would cost the budget $19bn a year.
With an economic team like this, it’s little wonder that Australia’s net debt will soon be twice as large as it was when the Abbott-Turnbull government took office in 2013.With an economic team like this, it’s little wonder that Australia’s net debt will soon be twice as large as it was when the Abbott-Turnbull government took office in 2013.
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6.30am GMT6.30am GMT
06:3006:30
Senate committee on marriage equality rejects right to conscientiously objectSenate committee on marriage equality rejects right to conscientiously object
Paul KarpPaul Karp
A Senate inquiry into marriage equality has rejected creating a right to “conscientiously object” to same-sex weddings, removing one of the main impediments to legislating the social change.A Senate inquiry into marriage equality has rejected creating a right to “conscientiously object” to same-sex weddings, removing one of the main impediments to legislating the social change.
The Senate committee on the government’s same-sex marriage bill exposure draft released its consensus report on Wednesday, raising hopes of cross-party cooperation to legislate it in this term of parliament.The Senate committee on the government’s same-sex marriage bill exposure draft released its consensus report on Wednesday, raising hopes of cross-party cooperation to legislate it in this term of parliament.
The report recommends creating a new category of independent religious celebrants to cater for people with religious beliefs who want to be able to refuse same-sex couples, as ministers of religion are able to do.The report recommends creating a new category of independent religious celebrants to cater for people with religious beliefs who want to be able to refuse same-sex couples, as ministers of religion are able to do.
But the committee recommended removing the ability to reject same-sex weddings on the basis of “conscientious objection”, meaning only religious belief will be able to ground the rejection.But the committee recommended removing the ability to reject same-sex weddings on the basis of “conscientious objection”, meaning only religious belief will be able to ground the rejection.
It also recommended that anti-discrimination laws should be reviewed to better balance equality and freedom of religion.It also recommended that anti-discrimination laws should be reviewed to better balance equality and freedom of religion.
A cross-party group of Liberal moderates, Labor, the Greens and Nick Xenophon Team intend the report to help modify the exposure draft and produce a marriage equality bill to pass the Senate and put pressure on the Liberal party room for a free vote.A cross-party group of Liberal moderates, Labor, the Greens and Nick Xenophon Team intend the report to help modify the exposure draft and produce a marriage equality bill to pass the Senate and put pressure on the Liberal party room for a free vote.
6.08am GMT6.08am GMT
06:0806:08
Paul KarpPaul Karp
The Senate committee examining the government’s same-sex marriage bill exposure draft is due to release its report after 5pm.The Senate committee examining the government’s same-sex marriage bill exposure draft is due to release its report after 5pm.
Guardian Australia understands the committee – which includes marriage equality opponent David Fawcett, pro-marriage equality Liberals Dean Smith and James Paterson, Labor, the Greens and Nick Xenophon Team’s Skye Kakoschke-Moore – has produced a consensus report.Guardian Australia understands the committee – which includes marriage equality opponent David Fawcett, pro-marriage equality Liberals Dean Smith and James Paterson, Labor, the Greens and Nick Xenophon Team’s Skye Kakoschke-Moore – has produced a consensus report.
The fact the committee was able to reach a consensus will raise hopes of a cross-party marriage equality bill and possibly force reconsideration of a free vote in the Liberal party room.The fact the committee was able to reach a consensus will raise hopes of a cross-party marriage equality bill and possibly force reconsideration of a free vote in the Liberal party room.
Smith, who has described the plebiscite policy as “dead”, and a group of moderates including Trent Zimmerman and Tim Wilson believe the government position must default to a free vote, as Tony Abbott said the 44th parliament would be the last to be bound on same-sex marriage.Smith, who has described the plebiscite policy as “dead”, and a group of moderates including Trent Zimmerman and Tim Wilson believe the government position must default to a free vote, as Tony Abbott said the 44th parliament would be the last to be bound on same-sex marriage.
Conservative figures Tony Abbott, George Christensen and Josh Frydenberg have moved to shut the call down, while others including the leader of the House, Christopher Pyne, seem open to it if and when a bill is produced.Conservative figures Tony Abbott, George Christensen and Josh Frydenberg have moved to shut the call down, while others including the leader of the House, Christopher Pyne, seem open to it if and when a bill is produced.
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at 6.16am GMTat 6.16am GMT
5.54am GMT5.54am GMT
05:5405:54
The other point Peter Whish-Wilson made was that Pauline Hanson voted for a tax cut – the one for those over $80,000 to address bracket creep – so she had effectively delivered a boost to Fahour’s executive salary by $315 per year.The other point Peter Whish-Wilson made was that Pauline Hanson voted for a tax cut – the one for those over $80,000 to address bracket creep – so she had effectively delivered a boost to Fahour’s executive salary by $315 per year.
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at 6.16am GMTat 6.16am GMT
5.46am GMT5.46am GMT
05:4605:46
Pauline Hanson has won the matter of public importance around the salary of the Australia Post chief executive, Ahmed Fahour.Pauline Hanson has won the matter of public importance around the salary of the Australia Post chief executive, Ahmed Fahour.
Due to excessive remuneration paid to the CEO and their directors, the need to remove and replace the board of Australia Post.Due to excessive remuneration paid to the CEO and their directors, the need to remove and replace the board of Australia Post.
Hanson has spoken against the salary since the issue has been running. Here is an example:Hanson has spoken against the salary since the issue has been running. Here is an example:
I'm so angry to see Australia Post paid its CEO, Ahmed Fahour $5.6 million last year. I don't care what others say! THIS IS TAXPAYER MONEY! pic.twitter.com/GXHkWI852kI'm so angry to see Australia Post paid its CEO, Ahmed Fahour $5.6 million last year. I don't care what others say! THIS IS TAXPAYER MONEY! pic.twitter.com/GXHkWI852k
The Greens senator Peter Whish-Wilson, who has campaigned against excessive executive salaries, has just stood up in the debate and accused Hanson of pushing this issue because Fahour is a Muslim. He mentions a blog post on the One Nation website that stresses Fahour is “Lebanese-born”.The Greens senator Peter Whish-Wilson, who has campaigned against excessive executive salaries, has just stood up in the debate and accused Hanson of pushing this issue because Fahour is a Muslim. He mentions a blog post on the One Nation website that stresses Fahour is “Lebanese-born”.
Pauline Hanson is doing this because Ahmed Fahour is a Muslim. A high-profile, successful Muslim.Pauline Hanson is doing this because Ahmed Fahour is a Muslim. A high-profile, successful Muslim.
UpdatedUpdated
at 6.18am GMTat 6.18am GMT
5.36am GMT5.36am GMT
05:3605:36
So as we stumble down the weed-infested path to yet another soul-destroying carbon policy debate, this week former Abbott chief of staff Peta Credlin confirms the political nature of the campaign, nothing to do with the environment.So as we stumble down the weed-infested path to yet another soul-destroying carbon policy debate, this week former Abbott chief of staff Peta Credlin confirms the political nature of the campaign, nothing to do with the environment.
Peta Credlin says the carbon tax wasn't about environmentalism #pmlive #auspol pic.twitter.com/H3VyXvE4yIPeta Credlin says the carbon tax wasn't about environmentalism #pmlive #auspol pic.twitter.com/H3VyXvE4yI
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at 6.19am GMTat 6.19am GMT
5.25am GMT5.25am GMT
05:2505:25
Chris Bowen has spoken to David Speers on Sky with a confusing interview.Chris Bowen has spoken to David Speers on Sky with a confusing interview.
But working through the details, this is what I have gleaned re renewables.But working through the details, this is what I have gleaned re renewables.
1. Labor’s existing policy on the RET is the current level – 23.5% of Australia’s electricity generation in 2020 will be from renewable sources – which is a bipartisan position.1. Labor’s existing policy on the RET is the current level – 23.5% of Australia’s electricity generation in 2020 will be from renewable sources – which is a bipartisan position.
2. Then, Labor has an objective of getting to 50% renewables by 2030 which is beyond the RET. Bowen says this “goal” – his word – is supported by a range of policy initiatives, (including an emissions trading scheme and electricity emissions trading scheme). The policy says Labor will “ensure that 50% of the nation’s electricity is sourced from renewable energy by 2030”.2. Then, Labor has an objective of getting to 50% renewables by 2030 which is beyond the RET. Bowen says this “goal” – his word – is supported by a range of policy initiatives, (including an emissions trading scheme and electricity emissions trading scheme). The policy says Labor will “ensure that 50% of the nation’s electricity is sourced from renewable energy by 2030”.
Q: Objective sounds a lot softer than a RET?Q: Objective sounds a lot softer than a RET?
Well it’s further out isn’t it than the renewable energy target? ... Independent analysis has shown it will create 28,000 jobs (net) and create billions of dollars of investment. That is the cost ... what is (Coalition) policy to meet the Paris targets? What is their cost?Well it’s further out isn’t it than the renewable energy target? ... Independent analysis has shown it will create 28,000 jobs (net) and create billions of dollars of investment. That is the cost ... what is (Coalition) policy to meet the Paris targets? What is their cost?
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4.42am GMT4.42am GMT
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at 4.48am GMTat 4.48am GMT
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at 4.49am GMTat 4.49am GMT
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A rare Coalition ministerial turfing.A rare Coalition ministerial turfing.
Matched by a not-so-rare Labor eviction.Matched by a not-so-rare Labor eviction.
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at 4.50am GMTat 4.50am GMT
4.26am GMT4.26am GMT
04:2604:26
The Senate has voted to sit late to consider the ABCC bill.The Senate has voted to sit late to consider the ABCC bill.
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at 4.30am GMTat 4.30am GMT