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Tax legislation passes in Senate in its entirety – politics live
Tax legislation passes in Senate in its entirety – politics live
(35 minutes later)
One Nation is first off the press conference blocks - Pauline Hanson will hold one at 1.15
Pauline Hanson, asked if she is the ‘queen of the Senate’ after helping the government get the bill through says:
Look, I’m going to take credit for this as well because I was one of the senators that actually has supported this. The 76 senators in that chamber. So we all played our part with this. I’m pleased with the part that One Nation has played in this to get this passed.
“I am so angry with the Labor Party who are nothing but liars, that’s putting out robocalls to people now, especially in the electorate of Longman saying we just supported the passage of corporate tax cuts. That is not the case. They could not lie straight in bed and that this...Absolute lies. If Bill Shorten wants to be the Prime Minister of this country, then start being truthful with the people instead of lying to them over what One Nation’s role in this has been. This is about their workers.”
More Hanson on why Labor ‘doesn’t get it’
Definitely not. Under Bill Shorten’s plan, Bill Shorten and the Labor Party, they just don’t get it. You know, they’re talking about the higher income earners of this country - they are forgetting about the battlers. They only wanted to support the first tax plan which is $928 and that’s over a 4-year period only. That would have blown out the budget under the Government’s budget plan, the $16 billion, under the Labor you could almost double it.”
Pauline Hanson says she “has to say - this is a great day”
“I am so pleased to be able to support the government...to make this happen.
“I think Australians now who are struggling, those people on the lowest incomes, they can get some relief now and I am pleased to be part of this.”
She’s asked about Labor’s plan - which doubles the government’s low and middle income tax offset - and says “Labor just doesn’t get it”.
Hanson says she has not got anything from the government in exchange for her vote.
It is looking like the prime minister will also be speaking at 1.30.
Chris Bowen will speak at 1.30.
Michael Sukkar was on Sky News helping to lay out where the government is planning on taking its tax debate:
“The Labor party are fuelling their spending by hitting one group of tax base. Now Chris Bowen and Bill Shorten have run around for years now, saying we are going after the top end of town, and the billionaires and the big multinationals and the Apples and the Googles – but when it comes to the crunch, who are the Labor party going after? They are going after the retirees, low-income retirees.”
As we know, they are low-income retirees because they have minimised their income. It’s not necessarily pensioners – which is why the government has largely dropped the term, because it was too easy to disprove – but low-income retirees, who have low incomes because their tax has been reduced through franking credits and the like.
One Nation is first off the press conference blocks – Pauline Hanson will hold one at 1.15.
Well, someone is happy:
Well, someone is happy:
The Turnbull Gov has delivered income tax cuts for all Australian workers paying tax. In passing our Personal Income Tax Plan through the Parliament, the Gov has ensured Australians will be paying less tax, and be rewarded for their hard work both now and into the future. #auspol pic.twitter.com/GJKGCUEa6S
The Turnbull Gov has delivered income tax cuts for all Australian workers paying tax. In passing our Personal Income Tax Plan through the Parliament, the Gov has ensured Australians will be paying less tax, and be rewarded for their hard work both now and into the future. #auspol pic.twitter.com/GJKGCUEa6S
The IPA is not entirely happy with the tax plan passing – it doesn’t think it goes far enough. From its statement:
The IPA is not entirely happy with the tax plan passing – it doesn’t think it goes far enough. From its statement:
Free market think tank the Institute of Public Affairs says the government has a long way to go in providing tax relief to Australian workers despite the modest income tax cuts, which passed the Senate today.
Free market think tank the Institute of Public Affairs says the government has a long way to go in providing tax relief to Australian workers despite the modest income tax cuts, which passed the Senate today.
‘The modest reduction to the growth in taxes on Australian workers is preferable to the status quo,’ said IPA Research Fellow Daniel Wild.
‘The modest reduction to the growth in taxes on Australian workers is preferable to the status quo,’ said IPA Research Fellow Daniel Wild.
‘It is misleading to call tax cuts handouts, as Labor has done. Cutting taxes means Australians will be keeping more of their hard-earned money.
‘It is misleading to call tax cuts handouts, as Labor has done. Cutting taxes means Australians will be keeping more of their hard-earned money.
‘The true cause of high taxes is high spending. The government must now substantially reduce government spending to deliver deep and permanent tax cuts.
‘The true cause of high taxes is high spending. The government must now substantially reduce government spending to deliver deep and permanent tax cuts.
‘It is disappointing the government didn’t pursue a more ambitious tax reform program that would have included deep cuts and changes to the composition of the tax system.
‘It is disappointing the government didn’t pursue a more ambitious tax reform program that would have included deep cuts and changes to the composition of the tax system.
‘Australians are being badly let down by the political class. At the next election they will have the choice of high taxes under the Coalition or higher taxes under Labor,” said Mr Wild.
‘Australians are being badly let down by the political class. At the next election they will have the choice of high taxes under the Coalition or higher taxes under Labor,” said Mr Wild.
What the government, Centre Alliance, One Nation, Cory Bernardi, David Leyonhjelm, Fraser Anning and Brian Burston just passed:
What the government, Centre Alliance, One Nation, Cory Bernardi, David Leyonhjelm, Fraser Anning and Brian Burston just passed:
From 2018-19:
From 2018-19:
Increasing the upper threshold for the 32.5% marginal tax rate from $87,000 to $90,000
Increasing the upper threshold for the 32.5% marginal tax rate from $87,000 to $90,000
– 3.6 million for the first year, 6.4 billion until 2028/29
– 3.6m for the first year, 6.4bn until 2028-29
From 2019-20:
From 2019-20:
Low and middle income tax offset of up to $530 for those earning up to $125,333
Low and middle income tax offset of up to $530 for those earning up to $125,333
– 3.7 billion in the first year, $15.9 billion until 2028-29
– 3.7bn in the first year, $15.9bn until 2028-29
Total cost for the first tranche $22.35 billion
Total cost for the first tranche $22.35bn
From 2022:
From 2022:
Increasing the upper threshold for the 32.5% marginal tax rate from $90,000 to $120,000
Increasing the upper threshold for the 32.5% marginal tax rate from $90,000 to $120,000
– $3.75 billion in the first year, $36.5 billion until 2028-29
– $3.75bn in the first year, $36.5bn until 2028-29
Increasing the upper threshold for the 19% marginal tax rate from $37,000 to $41,000
Increasing the upper threshold for the 19% marginal tax rate from $37,000 to $41,000
– $4.95 billion in the first year, $40.75 billion until 2028-29
– $4.95bn in the first year, $40.75bn until 2028-29
Increase the low income tax offset up to $645 for those earning under $66,668
Increase the low income tax offset up to $645 for those earning under $66,668
– $100 million in the first year, $2.75 billion up to 2028-29
– $100m in the first year, $2.75bn up to 2028-29
Total cost for the second tranche $80 billion
Total cost for the second tranche $80bn
From July 2024
From July 2024
Increasing the lower threshold for the 45% marginal tax rate from $180,001 to $200,001
Increasing the lower threshold for the 45% marginal tax rate from $180,001 to $200,001
– $1.35 billion in the first year, $9.05 billion until 2028-29
– $1.35bn in the first year, $9.05bn until 2028-29
Scrapping the 37% tax rate – giving a flat tax rate of 32.5% for earners between $41,001 and $200,000
Scrapping the 37% tax rate – giving a flat tax rate of 32.5% for earners between $41,001 and $200,000
– $4.9 billion in the first year, $32.550 billion until 2028-29
– $4.9bn in the first year, $32.550bn until 2028-29
Total cost to the budget $143.95 billion
Total cost to the budget $143.95bn
The $144 billion tax plan the governemnt put forward in its budget has just passed the Senate, in it’s entirety.
The $144bn tax plan the government put forward in its budget has just passed the Senate, in its entirety.
37 to 33
37 to 33
I wonder how Rebekha Sharkie, who is fighting to hold Mayo for Centre Alliance, feels about all of this?
I wonder how Rebekha Sharkie, who is fighting to hold Mayo for Centre Alliance, feels about all of this?
Not happy, from what I was hearing this morning. But I haven’t been able to get on to her first hand this morning as yet. Probably because she is out, trying to hold her seat
Not happy, from what I was hearing this morning. But I haven’t been able to get on to her first hand this morning as yet. Probably because she is out, trying to hold her seat
Just for the record, this is the biggest tax reform plan the parliament has ever passed.
Just for the record, this is the biggest tax reform plan the parliament has ever passed.
And it’s doing so after gagging the debate. Which the crossbenchers (except Tim Storer) voted to do.
And it’s doing so after gagging the debate. Which the crossbenchers (except Tim Storer) voted to do.
First we have another procedural vote.
First we have another procedural vote.
The Senate is doing this as slowly as these tax cuts will come into existence.
The Senate is doing this as slowly as these tax cuts will come into existence.
Penny Wong is now asking for party leaders be given five minutes to speak before the vote on the legislation is called on.
Penny Wong is now asking for party leaders be given five minutes to speak before the vote on the legislation is called on.
The first motion has just passed – 37 to 33. Now the Senate is voting on whether or not it should try and stick with the amendments – which got rid of the third tier of tax cuts, and also, accidentally, got rid of the tax rate from 2024 onwards.
No prizes for guessing what this answer will be.
Pauline Hanson talks to senate leader Mathias Cormann as the tax bills return from the house this morning. @AmyRemeikis @murpharoo @GuardianAus #politicslive https://t.co/pIouYgYRZr pic.twitter.com/2PGhhCv59y
Mathias Cormann has moved to vote on the legislation.
First he is voting to gag the debate, and then once that happens, he can call the motion to bring on the vote.
Tim Storer:
The Senate is the house of review. Our job is to thoroughly scrutinise each and every bill brought before it. These motions moved by the government to limit debate on the personal income tax plan, the biggest tax cuts in Australia’s history, should not meet with majority support and it goes against the principles of accountability and transparency, which are of paramount importance. This was clearly the platform on which the Nick Xenophon Team ran at the last federal election.
It was the central part of their philosophy and I believe that Centre Alliance today should be abiding by that, by allowing the Senate – yesterday and today – to adequately discuss and debate these measures. They are very significant measures.
… They have significant implications for future debt, deficit considerations, services and they should not be taken lightly. That’s why I put forward to a revisal to the whole plan to pass stage 1 of the plan, which I saw as a reasonable and appropriate stage, providing tax relief to low and middle income-earners.
And to therefore look at further changes to tax relief when appropriate, given that the treasurer, the secretary of the Treasury himself noted that there are significant error bands in forward estimates beyond three or four more years further. So I did support yesterday the Senate to set aside stage 3 of the personal tax plan and that would have left $40 billion or so set aside against, you know, in the future, and should the economy and international economic circumstances make that round of tax cuts affordable, then we can do so, but that is in 2024, which is two elections away, six years away.
Then, with stage 2, that would cost $80 billion, twice as much as stage 3, and it is still two elections away until it is brought about. So some crossbenchers are suggesting that with economic circumstances these changes would be easily wound back, but that is not the lesson that we’ve learned from 2007 tax cuts, which proved unaffordable in the wake of the global financial crisis, but were locked in.
It’s made the task of returning the budget back to balance impossible for at least the last decade. The alternative that may come may be to slash services like health and education, and that was tried and it was proved unpalatable to the public and to ultimately the Liberal government.
The government presently is struggling to find the money to pay for the level of services the public has come to expect. It plays down the risks of enacting the entire package in one hit, even though Treasury itself acknowledges the error bands, as I’ve mentioned before.
The recent 24 hours has seen geopolitical trade tremors that may well pass, but there are – they’re a salutary reminder of just how quickly times can change and the Reserve Bank is clearly worried about the prospects of investment, financial markets are concerned a return to protectionism would mean less trade.
Either development would have a marked effect on the Australian economy and on revenue, making reducing debt and returning the budget back to balance even more difficult.
Cuts to education and health would be inevitable. Fewer teachers and nurses in South Australia and uncertainty about the infrastructure plans in terms of roads and bridges upon which the budget just passed. As the Greens have put forward that every dollar of tax cuts received by South Australia, the state would lose $1.40 for spending on essential services. That hardly sounds like a good deal.
As I’ve argued before, such an uncertain economic environment demands the Senate rethinks yesterday’s and today’s decisions regarding the pushing forward on the whole bill. And this is what Centre Alliance said they wanted yesterday in terms of removing stage 3. I do not believe we should vote for this bill.”
Labor have hit the ground running and have started a robocall to voters in Longman.
This is the transcript those voters are receiving right now:
Right now in Canberra Pauline Hanson plans to vote with Malcolm Turnbull to give another tax cut to the top end of town. She’s even giving herself a massive tax cut. But it’s not too late to stop her. Pauline is in Canberra right now, the final vote could happen at any minute. Press 1 to be connected directly to Pauline’s office to tell her yourself: stop selling Queenslanders out.
Richard Di Natale is not allowed any more time to speak:
Look, whatever you think about this piece of legislation, I mean yesterday we were denied the opportunity through the committee stage to ask substantive questions. Today we’ve seen debate being gagged. We’ve seen – it’s the first time I’ve seen it since I’ve been in this place. A gag on a suspension. A gag on a suspension. Just disgraceful. And now we’ve been given the opportunity to speak for five minutes.”
The crux of his speech comes down to this:
This is one of the most significant pieces of legislation to ever pass through the Australian parliament. This is worth $140 bn. It fundamentally rewrites the fabric of Australian society.
We cannot continue to afford to invest in all of the foundations of a decent society – decent healthcare and education, infrastructure, increasing Newstart, protecting our environment, if we strip $140 bn of revenue in a prescription to turbocharge inequality here in Australia.
Let’s look at what the government’s, this is what the government’s already done. It’s taken $0.5 bn from [marine protection], over $300 m from the ABC, nearly $60 million in Legal Aid funding, freezing Medicare cost nearly $3 bn.
It’s cut family tax benefit supplements, 4,000 jobs from the ATO, jobs from Asic, jobs from the CSIRO, huge cuts to the environment department at a time when we’re losing biodiversity at a rate far greater than any other time on earth! R&D tax offsets, $600 m. Gone! Local grants, $900 m. Gone. Cuts to Aboriginal and Torres Strait Islander affairs. This government has presided over a litany of tax cuts. Can you imagine what happens if we strip another $140 bn of revenue from those essential services?
Can you imagine what we are going to be faced in the coming years when it comes to the cuts that we’ve already seen from this government?
... This is one of the most shameful, disgraceful days that I’ve seen in my time in this Senate. $140 bn ripped out of public revenue, taken out of our public hospitals, meaning people need to languish for longer on waiting lists, more upfront costs in public schools, infrastructure that desperately needs investment, isn’t going to get it and all because you want to ram this bill through without any scrutiny.
Penny Wong, and others within Labor ask for Di Natale to be given more time. They are denied.
Penny Wong has a point of order – because Ian Macdonald interjected all through her speech. She asks for him to calm it down for Di Natale’s, or says she’ll ask for him to be dealt with under the standing orders.
Richard Di Natale has now been given five minutes to speak. He complains – as did Penny Wong – because they had originally been promised 15 minutes.
Wong received an extension – Di Natale says he just wants his 15 minutes up front. He is denied:
What a disgraceful, shameful act. What a dark day for the Senate here in Australia. Look, regardless of what you think of this piece of legislation, we should be at least entitled to have an opportunity, firstly to interrogate it, to debate it.
Some Mike Bowers shots from this morning:
From Penny Wong’s speech:
“All of the debate and procedural – what do you call them? – straitjackets, that Senator Cormann has been engaging in has been because he doesn’t want to debate, he doesn’t want to debate what is unsustainable, and that is an argument that low and middle income-earners, low- and middle-income earners’ tax cuts, should be held hostage to tax cuts for high income-earners in 2024.
“Now, let’s be clear what Senator Hanson and others have done today. What she ought to know is that the tax cuts that she is now voting for by agreeing with this motion, agreeing with what’s before the chamber, will ensure that the people of Wentworth do very well and the people of Longman do very badly, do very badly.
“What you need to know is that in Longman, the number of people who are earning over $200,000 is 703.
“Guess how many in Wentworth? Over 10,000. Over 10,000. Well done, Senator Hanson. You’ve delivered to Point Piper. Well done, Senator Hanson, you’ve delivered to Malcolm Turnbull’s electorate.
“But bad luck, bad luck for the burghers of Longman, because you have ensured that tax cuts which benefit overwhelmingly high income-earners, people earning over $200,000 a year – well, I’ll take the interjection. He says ‘And Penny Wong’. I’m voting against it, mate. I’m voting against it. Why don’t you? Why don’t you? That’s a great interjection! That’s a great interjection!
“I want to make this point – I make this point. What we have seen over these last 24 hours is a government’s desperate strategy, a government desperate to try and hold low- and middle-income earners tax cuts, which they deserve, hostage to high income-earners tax cuts.
“Senator Patrick, more fool you that you copped it. You came in this morning and said you want stage 3 out and then voted for every single stage over a procedural straitjacket to ensure that that amendment could not be insisted on and furthermore could not even be debated? I mean what sort of senator does that? At least have the courage of your convictions. Stand up and debate it. Now, what you’ve done is ensure they don’t even have to debate an amendment that you supported 24 hours ago! What sort of senator does that, Senator Patrick?
“What is extraordinary about this, what is extraordinary about this is that if all that we would have needed to ensure that the tax cut for low income-earners proceeded and the tax cuts in stage 3, that overwhelmingly benefitted those above $200,000, would have been the same tied vote that we had yesterday.
“If Senator Patrick and Senator Griff had simply had the courage of their convictions, if Senator Hanson had decided to deliver to Longman rather than Wentworth, that’s all we would have needed to ensure that Mr Turnbull’s political strategy of holding tax cuts for low income and middle-income Australians hostage to high income-earners could not have been delivered.
“But instead this Senate, Centre Alliance and Senator Hanson have fallen over themselves to deliver to high-income Australia and to Malcolm Turnbull’s political strategy. That is all they have done. I urge the Senate not to support the motion from Senator Cormann.
