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Version 7 Version 8
Tax legislation passes in Senate in its entirety – politics live Tax legislation passes in Senate in its entirety – politics live
(35 minutes later)
Chris Bowen says if the government is so pleased with its tax cuts – it should just call the election.
We all just got a taste of what those party room meetings Tony Abbott was complaining about are like:
The next election is going to be a very clear choice. You will have the Labor party wanting higher taxes. We will be standing for lower taxes. Labor will be standing for fewer jobs. We will be standing for more jobs. We will be standing for a stronger economy, Labor will be standing for a weaker economy. And you know what that means? A weaker economy under Labor means you cannot afford to pay for the infrastructure, the hospitals, the schools, the defence capability.
“All of those things Australians expect government to deliver need a strong economy to provide the revenues we need. And our plan for a stronger economy is working. Record jobs growth last year. Highest in our nation‘s history. 3.1 per cent GDP growth. And now we have been able to achieve through the parliament the biggest reform of personal income tax in a generation, so that 94 per cent of Australians will not pay more than 32.5 cents in the dollar as a marginal tax rate, and that is saying to Australians that we believe in you.
“We are believing in and backing your aspirations to get ahead. That is the values, the values. Those are the values we stand for. We are inspired by the aspiration of hard-working Australians.
“The Labor party of today, as the Australian Financial Review said very well in the editorial today, the modern Labor party is mystified by aspiration. It denies it, it holds the aspirations and the dreams of hard-working Australians in contempt, and that is why they have voted against our personal income tax reform.”
The Nationals would also like you to know they are happy with the tax bill passing.
From Michael McCormack’s office::
The Liberals and Nationals’ government has today achieved another significant outcome in further delivering on our plans to provide economic growth and job creation on which we were elected.
Passing our $144bn personal tax cut package represents a clear point of difference between our government and the poor Labor alternative.
At each stage of the negotiations, Labor has stood for nothing but higher taxes, with Bill Shorten pushing a plan to increase financial pressures on all Australians by stripping money out of their pockets through lower incomes.
This includes those people living and working in regional Australia.
This tax relief means regional Australians will have more money to spend at their local store. Small businesses will keep more of their hard-earned profits to allow them to invest, grow and create more jobs.
The Nationals represent people who need this tax relief the most. Allowing hard- working people to keep more of their own money in their own pockets is a real win for rural Australians.
Under Labor’s proposal, average wage earners would have been forced to pay up to $2000 a year more in taxes by 2024.
By failing to support steps two and three of the government’s personal income tax plan, Labor also proposed to rip $70bn in extra income tax from working Australians’ pay packets over the next 10 years.
But thanks to the negotiations with the Senate crossbench led by finance minister Mathias Cormann, the Liberal and Nationals’ government has continued on a pathway of sound economic management.
Tax cuts lead to higher wages, economic growth and more jobs while fulfilling the government’s commitment to helping families, small businesses and farmers.
Neither Malcolm Turnbull or Mathias Cormann will say where their discussions with One Nation, on the corporate tax cuts, are at. Pauline Hanson indicated she would be willing to return to the government’s side, if they addressed multinational tax avoidance.
Scott Morrison says the government has already done that:
You are aware of the changes we have already made into things like stable structures and have been going through that process of multinational tax avoidance for many years. There is no jurisdiction in the world which has taken a stronger position on multinational tax avoidance than the Turnbull government. There is some $7 billion of revenue that has been caught up in Australia’s tax net as a result of the reforms we have put in place.
“In a few weeks’ time we will release a further discussion paper as I outlined in the budget in the whole area of digital taxation and the new economy. That will be there for consultation and discussion. When it comes to multinational tax, the Turnbull government is leading the way.”
Scott Morrison, having failed to make unbelieva-Bill stick, is now fighting to have the Karate Kid part of the vernacular:
It will be tax on under Labor and it will be tax off continued under the Turnbull government.”
Malcolm Turnbull is up next:
It rewards and encourages enterprise, it encourages and enables aspiration. That is what this is all about. That is what is delivering a stronger economy. Our economic plan for a stronger economy depends on the hard work of Australians. It depends on them having the courage and the incentive and initiative to have a go and get ahead, to aspire, to earn more.
To aspire to realise their dreams. We do not deny that, we are not mystified by it, we want to enable it, and this tax reform plan does just that. It is fair, it is comprehensive, it is well thought out, it is a long-term plan. It is consistent with higher government revenues, to enable us to guarantee essential services.
“It is consistent with enabling us to bring the budget back into balance a year early, so that we live within our means. It enables us to do all the things government needs to do to support Australians, whether it is in health or education or national security or infrastructure.
“But above all, it says to Australian families, we believe in you. We believe in your aspirations. We want you to realise your dreams. We want you to keep more of the money you have earned. It is not the government’s. It is yours. And we want you to be able to realise your dreams and get ahead. This personal income tax plan is for you.
One Nation responded to Labor’s robocall with one of their own:
“Hi, this is Pauline Hanson. The Labor party are at it again. Telling lies. In the Senate today, I voted for battlers. Low and middle income earners to receive a tax cut. I did this because ordinary, everyday workers, including tradesmen, nurses, school teachers, police, fire and emergency workers, every hard-working Australian deserves to pay less tax. Times are tough and I hope you understand why I voted to support workers receiving tax cuts. Let’s be clear, this is a tax cut for workers, not for companies.
“Don’t accept Labor’s lies. The truth can always be found on my Facebook page, Pauline Hanson’s please explain. Thanks Australia, and let’s keep the bastards honest.”
Pauline Hanson has accused a reporter of believing “Labor’s lies” about her voting record.
“You have been listening to Labor, haven’t you? You really do.”
Reporter: Tell me I’m wrong.
Hanson: You’re wrong. It’s about – about 75, 76%.
Georgiou: 68%. About 67%.
Hanson: So actually you have been listening to Labor. Labor’s lies again. I keep saying, Labor’ lies, do not go and listen to them.
Reporter: If we count it’s 75%.
Hanson: Whatever the percentage is, we take each legislation, we look at it closely, and we vote if it’s going to benefit the Australian people and vote ... based on its merit. If it’s right for the people and for the country.
“Now, let’s put this straight, right, it’s the government that puts up the legislation, not the opposition. So we are voting on government legislation. The opposition have not put up one bill in this parliament.
“So how can you? So where are you saying that we – because we voted with the government. Of course they’re putting up the legislation. And if there’s a change of government, next time around, I will be in the Senate. Then I’ll decide on the legislation that is put up by the Labor party and I will vote on that based on its merit. So, you know, this is sour grapes as far as I’m concerned.
“Because they tried to bully me in the parliament today and here we talk about kids being bullied in, you know, anyone that’s been bullied in the workforce, or at wherever, we don’t stand for it, but they think they can get away with it on the floor of parliament with me.
“I’ll stand my ground for what I truly believe. That’s what the people of this country want.”
A reader who just emailed Pauline Hanson’s office about multinational tax avoidance just received this response:
Thank you for your email regarding the tax cuts.
Senator Hanson has announced One Nation will NOT be supporting the corporate tax cuts which includes multinationals.
However, the debate this week centres around personal income tax cuts which is different legislation than the corporate tax cuts.
One Nation believes in providing tax relief to the low and middle income earners of this nation, that is why Senator Hanson and One Nation will support the personal income tax cuts as it will equate to at least a saving of $500 a year for low-income earners to help with the rising cost of living.
Pauline Hanson is unrepentant:
“I am not going to apologise to anyone for actually passing this”
As for whether she will get anything from the tax cuts:
Question: Why didn’t stand up and clarify your position today? You told the Senate yesterday that you weren’t going to benefit financially from these tax cuts?
Correct. Because who is to say I’mgoing to be in the Senate?”
Hanson also says she may end up voting for the corporate tax cuts:
I made it quite clear. I have stood my ground on this and I am not going to pass any further company tax cuts. If they come to me and say we’re going after the multinationals, we’re going to actually get - you know, heaven help us if we can get it, $100 billion out of it, then we’ll sit down and talk.”
Pauline Hanson, asked if she is the ‘queen of the Senate’ after helping the government get the bill through says: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.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.”“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’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.” 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 four-year period only. That would have blown out the budget under the government’s budget plan, the $16 billion, under Labor you could almost double it.”
Pauline Hanson says she “has to say - this is a great day” 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 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.”“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”. 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.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.It is looking like the prime minister will also be speaking at 1.30.
Chris Bowen will speak 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:
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:
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.
‘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.
‘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.
What the government, Centre Alliance, One Nation, Cory Bernardi, David Leyonhjelm, Fraser Anning and Brian Burston just passed:
From 2018-19:
Increasing the upper threshold for the 32.5% marginal tax rate from $87,000 to $90,000
– 3.6m for the first year, 6.4bn until 2028-29
From 2019-20:
Low and middle income tax offset of up to $530 for those earning up to $125,333
– 3.7bn in the first year, $15.9bn until 2028-29
Total cost for the first tranche $22.35bn
From 2022:
Increasing the upper threshold for the 32.5% marginal tax rate from $90,000 to $120,000
– $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
– $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
– $100m in the first year, $2.75bn up to 2028-29
Total cost for the second tranche $80bn
From July 2024
Increasing the lower threshold for the 45% marginal tax rate from $180,001 to $200,001
– $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
– $4.9bn in the first year, $32.550bn until 2028-29
Total cost to the budget $143.95bn
The $144bn tax plan the government put forward in its budget has just passed the Senate, in its entirety.
37 to 33
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
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.
First we have another procedural vote.
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.