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Coalition threatens to raise taxes if savings are not passed – politics live Coalition threatens to raise taxes if savings are not passed – politics live
(35 minutes later)
11.49pm GMT
23:49
In the senate, Derryn Hinch, who backflipped on the start date for the building code in the Australian Building Construction Commission (ABCC) laws which passed late last year. After insisting on a later date, Hinch wanted to bring forward the date.
Hinch says:
I changed my mind...I got some new facts...I contacted the PM....I did not horse trade...I did not hold out for any favour in return...If you are involved in something that is hurting people, then man up.
Labor are opposing the amendment. Xenophon are expected to support the Hinch change which would see the building code start in nine months instead of two years.
The government are attempting to push it through and move onto the parliamentary entitlements bill, assuming it passes the lower house.
Once that entitlements bill comes into the senate, we are expecting to see some amendments from Cory Bernardi, LNP senator Ian Macdonald and the Greens.
11.31pm GMT
23:31
Ok in the lower house, the parliamentary debate continues on parliamentary entitlements. This dumps the lifetime free travel gold pass for longer serving MPs, senators and prime ministers. LNP MP Warren Entsch, who opposed the retrospective nature of the bill, spoke against it. He said it is not a matter of snouts in the trough, it is that it is retrospective. He reminds the parliament that he also opposed retrospective changes to superannuation under the government’s reforms.
11.26pm GMT
23:26
The social services minister, Christian Porter, has rejected Shorten’s claim that Labor ever fully costed the NDIS. He says, we all know about the Medicare levy but the other savings were nebulous. He says the document Labor uses to prove they fully costed the NDIS when in government was not a budget document but a “glossy” (which are the marketing documents which explain the budget).
The problem has always been that these mysterious “other savings” of about $2.4bn in 2019-20 (the first full year of operation of the NDIS) were never identified in any meaningful way nor identified in any budget paper that linked them in any way to the NDIS.
When that issue was raised in Senate estimates in June 2013, Treasury’s response, when asked whether these “other savings” measures could be listed in detail; was, “the short answer is no”.
Labor at the time also variously claimed that savings made from superannuation and private health insurance changes (which was supposed to part-pay for the NDIS) would be used for budget repair or to fund dental health measures.
Updated
at 11.33pm GMT
11.09pm GMT11.09pm GMT
23:0923:09
Chris Bowen came out a moment ago, referencing Michelle Grattan’s story in the Conversation. Grattan reported that the prime minister’s office were unhappy with the treasurer linking the omnibus bill to the NDIS.Chris Bowen came out a moment ago, referencing Michelle Grattan’s story in the Conversation. Grattan reported that the prime minister’s office were unhappy with the treasurer linking the omnibus bill to the NDIS.
Grattan reports:Grattan reports:
[The linking] was soon portrayed as a reprehensible use of the disabled as a bargaining chip. As the NXT said in its Tuesday statement, it was considered to be “‘robbing Peter to pay Paul’ and viewed in the same way as holding childcare reforms hostage to family tax benefit cuts”.[The linking] was soon portrayed as a reprehensible use of the disabled as a bargaining chip. As the NXT said in its Tuesday statement, it was considered to be “‘robbing Peter to pay Paul’ and viewed in the same way as holding childcare reforms hostage to family tax benefit cuts”.
“As a negotiating tactic, this is as subtle as a sledgehammer,” Nick Xenophon said.“As a negotiating tactic, this is as subtle as a sledgehammer,” Nick Xenophon said.
[Christian] Porter wore much of the public odium. But the hypothecation idea had come from Morrison.[Christian] Porter wore much of the public odium. But the hypothecation idea had come from Morrison.
Interestingly, there had been some resistance from the Prime Minister’s Office (PMO) to the timing of announcing it.Interestingly, there had been some resistance from the Prime Minister’s Office (PMO) to the timing of announcing it.
The PMO urged caution. It was felt that the government’s selling of the childcare package was going well – so why introduce this new element now? But Morrison, for whatever reason, was insistent.The PMO urged caution. It was felt that the government’s selling of the childcare package was going well – so why introduce this new element now? But Morrison, for whatever reason, was insistent.
Chris Bowen calls the omnibus bill a slow-motion train wreck.Chris Bowen calls the omnibus bill a slow-motion train wreck.
It is an extraordinary thing. Does the prime minister have confidence in Scott Morrison? I wouldn’t blame him if he has lost confidence, but if he has lost confidence, he should say so. His office, Malcolm Turnbull’s office, briefing backgrounding, undermining the treasurer, says it all about this government.It is an extraordinary thing. Does the prime minister have confidence in Scott Morrison? I wouldn’t blame him if he has lost confidence, but if he has lost confidence, he should say so. His office, Malcolm Turnbull’s office, briefing backgrounding, undermining the treasurer, says it all about this government.
UpdatedUpdated
at 11.14pm GMTat 11.14pm GMT
10.58pm GMT10.58pm GMT
22:5822:58
This morning, with Sabra Lane, Bill Shorten was repeatedly pressed over how much the renewable energy targets would cost. He mentioned a market trading scheme, an emissions trading scheme, looking at the rate of land clearing and further investment in in solar power. But he did not answer the question on cost.This morning, with Sabra Lane, Bill Shorten was repeatedly pressed over how much the renewable energy targets would cost. He mentioned a market trading scheme, an emissions trading scheme, looking at the rate of land clearing and further investment in in solar power. But he did not answer the question on cost.
For me the answer to the question about cost is that there is a cost in not acting.For me the answer to the question about cost is that there is a cost in not acting.
Sabra Lane: Consumers are entitled to know how much it will cost them.Sabra Lane: Consumers are entitled to know how much it will cost them.
Well, consumers are already voting with their feet with the expansion of solar panels.Well, consumers are already voting with their feet with the expansion of solar panels.
Lane: And they’re entitled to know how much a 50%, you know, a 50% target will cost them?Lane: And they’re entitled to know how much a 50%, you know, a 50% target will cost them?
Our answer is very, very straightforward. We think the cost of not acting is far greater. We don’t think we could sustain the cost as the Liberals are saying, of building new coal-fired power generation on the scale which Mr Turnbull is saying and we don’t think that from insurance to drought to extreme weather events, that we can simply go business as usual.Our answer is very, very straightforward. We think the cost of not acting is far greater. We don’t think we could sustain the cost as the Liberals are saying, of building new coal-fired power generation on the scale which Mr Turnbull is saying and we don’t think that from insurance to drought to extreme weather events, that we can simply go business as usual.
Turnbull used the press conference with the Sri Lankan prime minister to attack Shorten.Turnbull used the press conference with the Sri Lankan prime minister to attack Shorten.
You saw Mr Shorten this morning in what must have been a real – a triple train wreck of an interview. He was unable to say how the NDIS would be paid for – this is our big national disability insurance scheme – and he acknowledged he had no way of paying for that.You saw Mr Shorten this morning in what must have been a real – a triple train wreck of an interview. He was unable to say how the NDIS would be paid for – this is our big national disability insurance scheme – and he acknowledged he had no way of paying for that.
He acknowledged he had no idea what his reckless renewable energy target would cost, or what its consequences would be, so he confirmed precisely the criticism that we’ve made about Mr Shorten, that he is literally clueless on this subject, mindless, just like South Australia has been.He acknowledged he had no idea what his reckless renewable energy target would cost, or what its consequences would be, so he confirmed precisely the criticism that we’ve made about Mr Shorten, that he is literally clueless on this subject, mindless, just like South Australia has been.
UpdatedUpdated
at 11.02pm GMTat 11.02pm GMT
10.46pm GMT10.46pm GMT
22:4622:46
Apologies readers. Having terrible tech difficulties this morning. More content coming shortly, including remainder of PM’s press conference and Labor’s Chris Bowen.Apologies readers. Having terrible tech difficulties this morning. More content coming shortly, including remainder of PM’s press conference and Labor’s Chris Bowen.
10.40pm GMT10.40pm GMT
22:4022:40
Malcolm Turnbull says the treasurer’s suggestion of tax increases if the savings measures fail was a statement of the obvious.Malcolm Turnbull says the treasurer’s suggestion of tax increases if the savings measures fail was a statement of the obvious.
The point that the treasurer is making is what my father-in-law would describe as a penetrating glimpse of the obvious, is that those who oppose savings measures by definition are supporting tax increases – if you assume that they want to bring the budget back into balance.The point that the treasurer is making is what my father-in-law would describe as a penetrating glimpse of the obvious, is that those who oppose savings measures by definition are supporting tax increases – if you assume that they want to bring the budget back into balance.
UpdatedUpdated
at 10.44pm GMTat 10.44pm GMT
10.37pm GMT10.37pm GMT
22:3722:37
Wickremesinghe says it is quite safe for Sri Lankan asylum seekers to return.Wickremesinghe says it is quite safe for Sri Lankan asylum seekers to return.
It is quite safe in Sri Lanka. We just started a missing persons office. It is quite safe for them to come back. Some of them have left from places where conflict didn’t even take place. All of them are not even Tamils and even we want all the Tamils to come back. We should not make a mess of ourselves like they’ve gone and done in Europe and the Middle East.It is quite safe in Sri Lanka. We just started a missing persons office. It is quite safe for them to come back. Some of them have left from places where conflict didn’t even take place. All of them are not even Tamils and even we want all the Tamils to come back. We should not make a mess of ourselves like they’ve gone and done in Europe and the Middle East.
UpdatedUpdated
at 10.39pm GMTat 10.39pm GMT
10.33pm GMT10.33pm GMT
22:3322:33
Sri Lankan prime minister: asylum seekers can come back but they broke the lawSri Lankan prime minister: asylum seekers can come back but they broke the law
Q: What about people who have already gone and have been turned away and have been sent to these island camps and there have been certain human rights allegations as well?Q: What about people who have already gone and have been turned away and have been sent to these island camps and there have been certain human rights allegations as well?
Wickremesinghe:Wickremesinghe:
Well, they left Sri Lanka illegally. They are welcome to return to Sri Lanka and we won’t prosecute them, so they can come back to Sri Lanka, and we will have them, but remember, they broke the law in coming to Australia, attempting to come to Australia.Well, they left Sri Lanka illegally. They are welcome to return to Sri Lanka and we won’t prosecute them, so they can come back to Sri Lanka, and we will have them, but remember, they broke the law in coming to Australia, attempting to come to Australia.
10.31pm GMT10.31pm GMT
22:3122:31
First off the bat, Wickremesinghe is asked whether there have been talks on asylum seekers, given many refugees have come from Sri Lanka.First off the bat, Wickremesinghe is asked whether there have been talks on asylum seekers, given many refugees have come from Sri Lanka.
We are looking at investment to further develop Sri Lanka. There are no need for people to be coming in here.We are looking at investment to further develop Sri Lanka. There are no need for people to be coming in here.
10.27pm GMT10.27pm GMT
22:2722:27
The prime minister is speaking now with the prime minister of Sri Lanka, Ranil Wickremesinghe.The prime minister is speaking now with the prime minister of Sri Lanka, Ranil Wickremesinghe.
Turnbull mentions the links in education, sport and other areas.Turnbull mentions the links in education, sport and other areas.
Wickremesinghe says Australia and Sri Lanka have signed two agreements.Wickremesinghe says Australia and Sri Lanka have signed two agreements.
We signed two important agreements today, one on economic development, but that was not complete without the one on sports. So, Sri Lanka and Australia have shared a common past. There are many values we inherited from the British empire to which we added our own values, and Australia today is one of the leading members of the Asia-Pacific region.We signed two important agreements today, one on economic development, but that was not complete without the one on sports. So, Sri Lanka and Australia have shared a common past. There are many values we inherited from the British empire to which we added our own values, and Australia today is one of the leading members of the Asia-Pacific region.
UpdatedUpdated
at 10.38pm GMTat 10.38pm GMT
10.18pm GMT
22:18
Liberals have spent the last couple of days sticking it to WA Nationals leader Brendon Grylls, who runs a very different game than his federal National counterparts.
The guy that put the Liberal-One Nation preference deal together, West Australian and federal finance minister Mathias Cormann, was not backing down from the deal last night on Lateline.
The Nationals in WA have preferenced other parties ahead of Liberal party candidates in the upper house in WA even since Brendon Grylls has been the leader of the National party at the 2008 election.
So since 2008, the Nationals have preferenced One Nation, Family First, the Christian Democrats and the Shooters and Fishers and now the Greens ahead of Liberal party candidates.
That is just consistent with the approach for some time and that is because in Western Australia the National party is not in coalition with the Liberal party, not because we wouldn’t want to be, but because that is the choice that the National party has made.
(He started it.)
Updated
at 10.22pm GMT
10.14pm GMT
22:14
The following people are speaking at 10.30am to call on the government to end its automated debt program.
Linda Burney MP, ALP
Senator Richard Di Natale, Greens
Senator Rachel Siewert, Greens
Rebekah Sharkie MP, Nick Xenophon Team
Andrew Wilkie MP, Independent
Dr Andrej Panjkov, victim of false Centrelink debt
Cassandra Goldie, Acoss
Ged Kearney, ACTU
Nadine Flood, CPSU
Paul Oosting, GetUp
Updated
at 10.16pm GMT
10.00pm GMT
22:00
To be clear on the Cory Bernardi position, the senator made his position clear on 7.30 Report last night – sending the signal he will not be an automatic ticker of government legislation.
He told Andrew Probyn:
I was prepared to consider it on its merits, that there was going to be a net saving to the budget and that the $4bn or $5bn was going to be available to repay debt.
But yesterday, when I realised they would be robbing Peter to pay Paul, and put it into another big-spending government program, I’m reconsidering whether I can support this bill.
Updated
at 10.03pm GMT
9.57pm GMT
21:57
In parliament today, we have these bills:
Introduced:
Biosecurity Amendment (Ballast Water and Other Measures)
Native Title Amendment (Indigenous Land Use Agreements) - This is the bill seeks to amend law so that all Indigenous owners do not need to sign land use agreements. It resulted from a recent federal court decision and is worth watching.
Customs Tariff Proposal (No. 1) 2017
Resumption of debate:
Parliamentary Entitlements Legislation Amendment - this is the “Sussan Ley amendment”, committed to by the prime minister after the Christmas scandal that led to her resignation.
Treasury Laws Amendment (Bourke Street Fund) - related to the Melbourne tragedy.
Independent Parliamentary Expenses Authority
Independent Parliamentary Expenses Authority (Consequential Amendments)
National Disability Insurance Scheme Savings Fund Special Account
9.46pm GMT
21:46
The new independent Cory Bernardi is speaking to Kieran Gilbert on Sky.
He is not inclined to support the omnibus bill and he thinks any savings should be going towards paying off debt.
Updated
at 9.56pm GMT
9.41pm GMT
21:41
The joint standing committee on electoral matters is doing a short, sharp hearing this morning between 8am and midday. This is the hearing that investigates the last election and is also looking at the political donations system.
The Labor party is appearing now. The Liberal party’s federal director, Tony Nutt, will be on after 10am.
If you are tragic, like me, you can watch it over the interwebs here. Look for joint standing committee on electoral matters.
Updated
at 9.56pm GMT
9.27pm GMT
21:27
Paul Farrell has been looking at donations from the firearms lobby.
Australian political parties accepted more than $300,000 in donations over 12 months from the firearms lobby, gun suppliers and manufacturers, sparking concern among gun control groups.
An analysis of the latest Australian Electoral Commission donation disclosures by Gun Control Australia has revealed that firearms groups donated $353,000 to various federal political bodies around the country. The donations were made in the 2015-16 financial year, during a period when there was intense political focus on firearms regulation in Australia.
What has triggered the row that is splitting the Coalition? Plus four other questions about Australia’s gun control laws.
The federal government has been considering a review of the national firearms agreement after the Martin Place siege, which could bring sweeping changes to the regulation of firearms across the country.
9.24pm GMT
21:24
Malcolm Turnbull has done an early interview with local radio in Canberra. He is also meeting with Ranil Wickremesinghe, prime minister of the Democratic Socialist Republic of Sri Lanka.
Updated
at 9.54pm GMT
9.09pm GMT
21:09
The government says the $4bn in omnibus savings are necessary not only to pay for the childcare package but the National Disability Insurance Scheme because Labor had not funded it properly.
In 2013, Labor raised the Medicare levy by half a percentage point to part pay for the NDIS. This is its document at the time:
People with disability, their families and carers deserve certainty that DisabilityCare Australia will be funded over the longer term. For this reason, from 1 July 2014 the Medicare levy will increase by half a percentage point from 1.5 to 2% of taxable income. Between 2014-15 and 2018-19 approximately $20.4bn will be raised as a result of this increase.
Bill Shorten said this morning:
I was there when Jenny Macklin outlined we would increase the Medicare levy and we would make other savings.
In 2013, Labor estimated that between 2014-15 and 2018-19 approximately $20.4bn would be raised as a result of this increase.
The other savings measures from the 2013 report were:
To ensure that DisabilityCare Australia will be fully funded, the government has needed to make tough decisions. This important reform will be delivered through part of the savings from reforms to the government’s assistance for private health insurance, reforms to retirement incomes and the phase-out of the net medical expenses tax offset as DisabilityCare rolls out and other long-term savings decisions in the 2013-14 budget. Together with the increase to the Medicare levy and contributions from state and territory governments, these measures will make room in the budget for DisabilityCare Australia into the future.
I will try to bring you more detail on those savings measures and what became of them through the day.
Shorten said on radio this morning that there was an assumption that people with severe and profound disabilities live on the moon. They are paid for through a mishmash of services, he says.
We are already paying for it.
He says the simple answer to the budget problem is to dump the $50bn in corporate tax cuts that go to banks and multinationals.
Why are they saying [corporate tax cut] is sacred, that is off limits, that must happen, but you – the rest of Australia – can pay more or lose more?
Updated
at 9.53pm GMT
8.39pm GMT
20:39
Good morning taxpayers one and all,
Let’s update the story so far. Nick Xenophon hammered the final nail in the coffin of the omnibus bill that was going to cut from welfare, pensions and family tax benefits in return for increased subsidies for childcare. Together, NXT, Labor and the Greens, have enough votes to block the bill.
This morning, the Coalition has opened the door to a tax increase. Mathias Cormann told Lateline last night:
If the parliament were not to pass spending reductions, if the parliament were not to legislate savings and we need to ensure that we bring the budget back to balance and that we pay for the government’s spending, then of course tax increases become the only option.
Bill Shorten says meh. He has been talking to Sabra Lane this morning on AM.
We don’t think that is necessary, frankly.
A tax increase really is the last arrow in the quiver for the Coalition. They only pull it out when all else fails, given it scares the bejesus out of the voters. So methinks this element will dominate the day.
Let’s get cracking. Both chambers of the parliament sit at 9.30am. We have the the Senate committee report on the exposure draft of the same-sex marriage bill. This is the bill we would have had if the plebiscite had been held and if a majority of members were prepared to support it.
And I will have the parliamentary program to you shortly and chapter and verse on the Shorten interview. In the meantime, get among it on the thread, or on the Twits or Facebook. I am @gabriellechan and @mpbowers is haunting the building. Up, up and away.
Updated
at 9.51pm GMT