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| Mathias Cormann says government will defer the tax debate – politics live | |
| (35 minutes later) | |
| And not surprisingly, the IPA has the opposite view. From it’s statement: | |
| Bill Shorten this week announced he would reverse legislated company tax cuts for businesses between $10-$50 million turnover. | |
| The data finds that 1.57 million workers are employed in businesses, between $10-$50 million turnover. In addition, 3.68 million workers are employed in businesses with over $50 million turnover who would miss out because of Labor’s rejection of the Enterprise Tax Plan No. 2.IPA Research Fellow Matthew Lesh, said, “Bill Shorten’s corporate tax thought bubble will leave 5.25 million Australian workers worse off. Almost half of all Australians workers are employed by businesses with over $10 million turnover. | |
| “Australia already has one of the highest corporate tax rates in the world. The United States corporate tax rate is now 21%, Britain is at 19%, and, in our region, Singapore’s rate is 17%, and Hong Kong is 16.5%. It’s no coincidence that the Australian economy is stagnating while the rest of the world is growing. Higher corporate tax means less investment, lower wages, and fewer jobs. | |
| “Labor’s plan would punish companies for becoming successful, selling more products and services, and employing more Australians,” said Mr Lesh. The IPA released research earlier this week which found that the top 0.33% of all companies paid 63% of all net company tax over the period 2011-16. Proving false the Labor claim that big business does not pay its ‘fair’ share of corporate tax. | |
| “It’s time for the Senate to pass the full enterprise tax plan which treats all businesses fairly and equally,” said Mr Lesh. | |
| The Australia Institute is happy with the company tax cut delay – and wants it to become permanent. | |
| From the thinktank’s statement: | |
| Company tax cuts will not lead to greater economic prosperity. In fact modelling from the Centre of Policy Studies (CoPS) shows a fall in gross national income as a result of these cuts with the benefits largely flowing to foreign shareholders,” said Ben Oquist, the executive director of the institute. | |
| The cost to revenue of company tax cuts is enormous, putting future government spending on health, education or public infrastructure at risk. | |
| More than the politics, it is the economic case for the company tax cuts which has failed. | |
| The Senate has held firm and all Australians have them to thank for keeping a sensible economic stance.” | |
| After Huawei’s Australian chairman’s outing at the National Press Club on Wednesday to defend the security of the company and pitch for it to have a role in the 5G network build, it appears the government is unmoved. | |
| John Lord said the company would refuse to hand over data on Australian users to China because complying with such an order would be “completely illegal”, but he struggled to explain the requirements of Chinese law and to account for security assessments against the company’s involvement. | |
| At a doorstop on Thursday, the attorney general, Christian Porter, seemed unconvinced: “I watched it. It didn’t make matters much clearer for me I must say.” | |
| The defence minister, Marise Payne, was a little more diplomatic: | |
| ”I’m not going to comment on specific businesses. But what I will say is the government’s first priority is to ensure that in any advances in our telecommunications structure we’re protecting Australia’s interest. That will be at the forefront of our consideration.” | |
| Anyone watching the Mathias Cormann press conference may have noticed he mentioned Longman and Braddon as being a litmus test on the company tax cut package – but not Mayo. | |
| Labor certainly noticed, judging by the messages I received. | Labor certainly noticed, judging by the messages I received. |
| But I think it is more that Mayo is not a Labor-Liberal contest like the other two. It is a Centre Alliance-Liberal contest, and Cormann still needs CA’s support to pass these laws, if/when One Nation comes on board. | |
| Tim Storer has said a very firm no. Derryn Hinch wants the banks cut out, which the government has given a very firm no to. So it is down to Centre Alliance and One Nation for these to get across the line. | Tim Storer has said a very firm no. Derryn Hinch wants the banks cut out, which the government has given a very firm no to. So it is down to Centre Alliance and One Nation for these to get across the line. |
| Mark Dreyfus spoke on the foreign interference laws this morning. Labor has given its support, so they will pass. But there is one part he says has been held up: | Mark Dreyfus spoke on the foreign interference laws this morning. Labor has given its support, so they will pass. But there is one part he says has been held up: |
| Today two significant laws that will curb foreign influence on our politics are expected to pass the parliament. | |
| But the government has only finished half the job. Another part of the package – the ban on foreign donations – is still gathering dust. Why? You have to ask why. | |
| It’s because the government apparently wants to go on raking in foreign donations into the Liberal party’s coffers, completely different to the Labor party because we’ve said 18 months ago now that we are going to stop taking foreign donations. | |
| I’m calling on the government very directly to finish the job, to complete the package of laws that were introduced with great fanfare last December. Labor has worked constructively and hard to get the two other laws – the foreign interference and espionage law, and the foreign influence transparency scheme bill – into the parliament, passed through the House of Representatives. They will pass the Senate today. But the other part of the package is not done. The government has not finished the job. They need to get on with it. | |
| And when parliament returns in August, we expect to see that ban on foreign donations brought back to the parliament for passage.” | |
| We have now entered un-Australian territory. Mathias Cormann: | We have now entered un-Australian territory. Mathias Cormann: |
| I said our intention was to deal with this this week. I said our intention was to secure the passage of this legislation this week. That was absolutely our intention. But we believe it is critically important to ensure that these business tax cuts, for all businesses across Australia, can be legislated because we want to protect our economic security into the future. | I said our intention was to deal with this this week. I said our intention was to secure the passage of this legislation this week. That was absolutely our intention. But we believe it is critically important to ensure that these business tax cuts, for all businesses across Australia, can be legislated because we want to protect our economic security into the future. |
| We want to secure our economic prosperity into the future and making sure that businesses in Australia can be competitive with businesses in other parts of the world is a very important part of that. Let me make one more point in relation to Bill Shorten. | We want to secure our economic prosperity into the future and making sure that businesses in Australia can be competitive with businesses in other parts of the world is a very important part of that. Let me make one more point in relation to Bill Shorten. |
| Bill Shorten says he’s against the big end of town. Bill Shorten is helping the big end of town in just about every country overseas take investment and jobs away from Australia. Bill Shorten is locking in a competitive advantage for businesses in other parts of the world by forcing business taxes here in Australia to remain high. He is making a decision, an un-Australian decision, Bill Shorten is making an un-Australian decision to put businesses in Australia at an ongoing disadvantage with businesses in other parts of the world by locking in on an ongoing basis. That is his position, higher taxes here in Australia and he should stand condemned for that.” | Bill Shorten says he’s against the big end of town. Bill Shorten is helping the big end of town in just about every country overseas take investment and jobs away from Australia. Bill Shorten is locking in a competitive advantage for businesses in other parts of the world by forcing business taxes here in Australia to remain high. He is making a decision, an un-Australian decision, Bill Shorten is making an un-Australian decision to put businesses in Australia at an ongoing disadvantage with businesses in other parts of the world by locking in on an ongoing basis. That is his position, higher taxes here in Australia and he should stand condemned for that.” |
| Does Mathias Cormann think he’ll have better luck after the byelections? | Does Mathias Cormann think he’ll have better luck after the byelections? |
| The byelections will be a referendum on who has the better plan for a stronger economy and more jobs. Mr Shorten, who is pushing higher taxes, which lead to less investment, lower growth, higher unemployment and, hence, lower wages over time, or our plan for a stronger economy and more jobs, which will attract more investment so businesses can be more successful, hire more people and, as there is more competition for workers, drive up wages. | The byelections will be a referendum on who has the better plan for a stronger economy and more jobs. Mr Shorten, who is pushing higher taxes, which lead to less investment, lower growth, higher unemployment and, hence, lower wages over time, or our plan for a stronger economy and more jobs, which will attract more investment so businesses can be more successful, hire more people and, as there is more competition for workers, drive up wages. |
| After the byelections, who knows? We might have a more business-friendly Labor leader. All sorts of things could be different on the other side of the byelections. | After the byelections, who knows? We might have a more business-friendly Labor leader. All sorts of things could be different on the other side of the byelections. |
| Bill Shorten is all over the place and he cannot be trusted with the Australian economy. He’s all over the place but one thing is clear: his instinct and his commitment always is to inflict higher taxes on everyone. Higher taxes on business. Higher taxes on hardworking Australians. Higher taxes on retirees. Higher taxes on home owners. | Bill Shorten is all over the place and he cannot be trusted with the Australian economy. He’s all over the place but one thing is clear: his instinct and his commitment always is to inflict higher taxes on everyone. Higher taxes on business. Higher taxes on hardworking Australians. Higher taxes on retirees. Higher taxes on home owners. |
| There is not a tax that Bill Shorten doesn’t like. If Bill Shorten does well in these byelections, he will see it as endorsement for his plan of higher taxes which we say would hurt the economy, hurt families and cost jobs. We say to the people in Braddon and Longman: you have the opportunity to send Bill Shorten a message. If you do not support his higher taxes, vote for the Liberal candidate in Braddon and Longman.” | There is not a tax that Bill Shorten doesn’t like. If Bill Shorten does well in these byelections, he will see it as endorsement for his plan of higher taxes which we say would hurt the economy, hurt families and cost jobs. We say to the people in Braddon and Longman: you have the opportunity to send Bill Shorten a message. If you do not support his higher taxes, vote for the Liberal candidate in Braddon and Longman.” |
| Mathias Cormann says there is no deal. Yet. | Mathias Cormann says there is no deal. Yet. |
| Our economic mission as a government is to deliver stronger growth and more jobs so that families around Australia have the best possible opportunity to get ahead. | Our economic mission as a government is to deliver stronger growth and more jobs so that families around Australia have the best possible opportunity to get ahead. |
| Stronger growth and more jobs leads to higher wages and it leads to more revenue for government, which helps us fund the essential services Australians rely on and expect their government to deliver on. | Stronger growth and more jobs leads to higher wages and it leads to more revenue for government, which helps us fund the essential services Australians rely on and expect their government to deliver on. |
| Our plan for a lower, globally more competitive business tax rate for all businesses across Australia is all about delivering stronger growth and more jobs so that Australian families have the best possible opportunity to get ahead. | Our plan for a lower, globally more competitive business tax rate for all businesses across Australia is all about delivering stronger growth and more jobs so that Australian families have the best possible opportunity to get ahead. |
| It is all about protecting our economic security and about securing our economic prosperity into the future by making sure our businesses here in Australia can be internationally competitive. And it is clear that more and more Australians are coming on board with our plan to strengthen growth, create more jobs, by lowering our business tax rate for all businesses across Australia to 25%. | It is all about protecting our economic security and about securing our economic prosperity into the future by making sure our businesses here in Australia can be internationally competitive. And it is clear that more and more Australians are coming on board with our plan to strengthen growth, create more jobs, by lowering our business tax rate for all businesses across Australia to 25%. |
| In fact, more and more One Nation voters are coming on board with that plan. However, despite our best efforts to secure majority support in the Senate for our proposed business tax cuts, we have not yet been able to secure the necessary support. | In fact, more and more One Nation voters are coming on board with that plan. However, despite our best efforts to secure majority support in the Senate for our proposed business tax cuts, we have not yet been able to secure the necessary support. |
| We need more time to make our argument to our colleagues on the Senate crossbench and we, of course, will continue to make our argument in the Australian community. | We need more time to make our argument to our colleagues on the Senate crossbench and we, of course, will continue to make our argument in the Australian community. |
| That is why we have decided to defer consideration of the legislation to implement our plan for a lower, globally more competitive business tax rate for all businesses here in Australia until after the break.” | That is why we have decided to defer consideration of the legislation to implement our plan for a lower, globally more competitive business tax rate for all businesses here in Australia until after the break.” |
| Just a reminder that the government doesn’t just need One Nation for its company tax cuts. It also needs either Centre Alliance, or Derryn Hinch and Tim Storer. | Just a reminder that the government doesn’t just need One Nation for its company tax cuts. It also needs either Centre Alliance, or Derryn Hinch and Tim Storer. |
| Who, for the record, have not budged from their positions as yet. | Who, for the record, have not budged from their positions as yet. |
| Anne Ruston will launch the annual National Fish and Chips awards today, which, despite eating fish and chips (grilled, vinegar on the chips, and a pineapple fritter to finish it off don’t @me) for most of my life, I had no idea was even a thing. | Anne Ruston will launch the annual National Fish and Chips awards today, which, despite eating fish and chips (grilled, vinegar on the chips, and a pineapple fritter to finish it off don’t @me) for most of my life, I had no idea was even a thing. |
| As we finished up yesterday, David Smith gave his first speech to the Senate. He spoke on the need to do more to address homelessness, protect the public service, the work of the labour movement, and his mentors, friends and family before finishing with this: | As we finished up yesterday, David Smith gave his first speech to the Senate. He spoke on the need to do more to address homelessness, protect the public service, the work of the labour movement, and his mentors, friends and family before finishing with this: |
| I did not expect to be provided with the opportunity to serve the people of the ACT in this chamber but it is an opportunity I take seriously for there is work to be done. | I did not expect to be provided with the opportunity to serve the people of the ACT in this chamber but it is an opportunity I take seriously for there is work to be done. |
| The fight against rising inequality is real but, as Springsteen sang, I believe in a promised land. | The fight against rising inequality is real but, as Springsteen sang, I believe in a promised land. |
| I would like to leave you with the final public words of another Smith, John Smith, the former leader of the UK Labour party, a man who would have been likely to be prime minister if it were not for his untimely death: | I would like to leave you with the final public words of another Smith, John Smith, the former leader of the UK Labour party, a man who would have been likely to be prime minister if it were not for his untimely death: |
| “The opportunity to serve – that is all we ask.” | “The opportunity to serve – that is all we ask.” |
| Mathias Cormann has called a press conference for 10am in the Blue Room, which is where the government goes when it has something important to say (outside of the prime minister’s courtyard, it is the most “serious” press conference space). | Mathias Cormann has called a press conference for 10am in the Blue Room, which is where the government goes when it has something important to say (outside of the prime minister’s courtyard, it is the most “serious” press conference space). |
| So, bets are on: deal on company tax or another ‘Labor needs to ....’? | So, bets are on: deal on company tax or another ‘Labor needs to ....’? |
| The family law changes announced this morning will mean that a victim of family violence will be protected from having to face the perpetrator in court. | The family law changes announced this morning will mean that a victim of family violence will be protected from having to face the perpetrator in court. |
| There is no question that directly facing a perpetrator or alleged perpetrator of family violence compounds the trauma of that violence and can also impact on the ability of a victim to give clear evidence in legal proceedings,” Christian Porter said in his statement. | There is no question that directly facing a perpetrator or alleged perpetrator of family violence compounds the trauma of that violence and can also impact on the ability of a victim to give clear evidence in legal proceedings,” Christian Porter said in his statement. |
| “The family law amendment (family violence and cross-examination of parties) bill 2018 will prohibit direct cross‑examination in specific and serious circumstances to protect victims from re-traumatisation. This includes where there are convictions, charges or final family violence orders in place between the parties. | “The family law amendment (family violence and cross-examination of parties) bill 2018 will prohibit direct cross‑examination in specific and serious circumstances to protect victims from re-traumatisation. This includes where there are convictions, charges or final family violence orders in place between the parties. |
| “Courts will also have discretion to prohibit direct cross-examination in cases where family violence is alleged and, if a court does not exercise that discretion, it will be mandatory for the court to apply other protections, such as the use of video links or screens in the court room. | “Courts will also have discretion to prohibit direct cross-examination in cases where family violence is alleged and, if a court does not exercise that discretion, it will be mandatory for the court to apply other protections, such as the use of video links or screens in the court room. |
| “In cases where direct cross-examination is prohibited under these amendments, cross-examination must be conducted by a legal representative. Naturally parties will be able to obtain their own legal representation in these proceedings. However, parties will also have access to representation through legal aid commissions when that is not possible, and the government is working closely with national legal aid regarding implementation of the bill. | “In cases where direct cross-examination is prohibited under these amendments, cross-examination must be conducted by a legal representative. Naturally parties will be able to obtain their own legal representation in these proceedings. However, parties will also have access to representation through legal aid commissions when that is not possible, and the government is working closely with national legal aid regarding implementation of the bill. |
| “Protection for victims of family violence in family law proceedings was identified as a key issue by the Council of Australian Governments’ national summit on reducing violence against women and their children.” | “Protection for victims of family violence in family law proceedings was identified as a key issue by the Council of Australian Governments’ national summit on reducing violence against women and their children.” |
| Andrew Leigh was also out early this morning on the tax cuts issue: | Andrew Leigh was also out early this morning on the tax cuts issue: |
| Nine out of 10 companies are getting the same tax cut under Labor. The majority of voters are getting a bigger personal income tax cut under Labor. And all voters will see debt paid down faster, and their schools and hospitals better funded under Labor. We hit the trifecta in terms of investing in services, delivering affordable personal income tax cuts, and paying debt down faster.” | Nine out of 10 companies are getting the same tax cut under Labor. The majority of voters are getting a bigger personal income tax cut under Labor. And all voters will see debt paid down faster, and their schools and hospitals better funded under Labor. We hit the trifecta in terms of investing in services, delivering affordable personal income tax cuts, and paying debt down faster.” |
| Tanya Plibersek spoke to the media this morning after her ABC appearance. | Tanya Plibersek spoke to the media this morning after her ABC appearance. |
| In her ABC interview she said that the leadership team had “many discussions” about winding back the legislated company tax cuts for businesses with a turnover between $10m and $50m. | In her ABC interview she said that the leadership team had “many discussions” about winding back the legislated company tax cuts for businesses with a turnover between $10m and $50m. |
| “I’ve had so many discussions with Bill, Chris Bowen and others about how we best direct tax support to Australian businesses and families. I mean, we’ve got our Australian guarantee that would allow businesses to immediately write off investments up to $20,000. | “I’ve had so many discussions with Bill, Chris Bowen and others about how we best direct tax support to Australian businesses and families. I mean, we’ve got our Australian guarantee that would allow businesses to immediately write off investments up to $20,000. |
| “That’s real tax relief for Australian businesses that drives extra investment in Australia. It actually creates jobs in Australia, doesn’t just flow to overseas shareholders. We’ve got bigger, more generous tax cuts for the bulk of Australians through our personal income tax proposals as well. In fact, most Australians would get almost twice as much under Labor’s tax cut proposal, so we know where we want to see tax relief directed. We want to see it for small businesses, for families on low and middle incomes. We’re not interested in giving tax cuts at the top end.” | “That’s real tax relief for Australian businesses that drives extra investment in Australia. It actually creates jobs in Australia, doesn’t just flow to overseas shareholders. We’ve got bigger, more generous tax cuts for the bulk of Australians through our personal income tax proposals as well. In fact, most Australians would get almost twice as much under Labor’s tax cut proposal, so we know where we want to see tax relief directed. We want to see it for small businesses, for families on low and middle incomes. We’re not interested in giving tax cuts at the top end.” |
| At her doorstop after that interview, Plibersek said she didn’t believe the process stories interested anyone other than the press gallery. | At her doorstop after that interview, Plibersek said she didn’t believe the process stories interested anyone other than the press gallery. |
| “And as for the questions about who talked to who when, honestly, Canberra journalists might be interested in these process stories - what ordinary Australians are interested in is what you are for and against,” she said. | “And as for the questions about who talked to who when, honestly, Canberra journalists might be interested in these process stories - what ordinary Australians are interested in is what you are for and against,” she said. |
| “ ... That’s what Australians care about, what their government will do to make their lives better, make their lives easier. We have announced personal income tax cuts which are almost double for people on low and medium incomes – everybody up to $125,000 a year income is better off under Labor. That is what matters to people’s lives. Having their penalty rates protected; that is what matters to people’s lives.” | “ ... That’s what Australians care about, what their government will do to make their lives better, make their lives easier. We have announced personal income tax cuts which are almost double for people on low and medium incomes – everybody up to $125,000 a year income is better off under Labor. That is what matters to people’s lives. Having their penalty rates protected; that is what matters to people’s lives.” |
| Paul Karp will bring you more on this soon, but the government is making it easier to call in the troops for domestic based terrorist incidents. | Paul Karp will bring you more on this soon, but the government is making it easier to call in the troops for domestic based terrorist incidents. |
| Christian Porter cited “long siege situations” in announcing the new powers, which is a call back to the Lindt cafe siege. It’s the biggest change to “call-out” powers since those put in place for the Sydney Olympics. | Christian Porter cited “long siege situations” in announcing the new powers, which is a call back to the Lindt cafe siege. It’s the biggest change to “call-out” powers since those put in place for the Sydney Olympics. |
| As the laws stand, a state would have to declare a situation as being out of control before the military could be called in. Under the changes, defence forces have pre-approval to respond to requests for assistance. | As the laws stand, a state would have to declare a situation as being out of control before the military could be called in. Under the changes, defence forces have pre-approval to respond to requests for assistance. |
| Attorney-General @cporterwa: The Lindt Café siege prompted the states and territories to rethink of the existing threshold for responding to such circumstances.MORE: https://t.co/zjyBkhyYkM #amagenda pic.twitter.com/K7TfnAdrBW | Attorney-General @cporterwa: The Lindt Café siege prompted the states and territories to rethink of the existing threshold for responding to such circumstances.MORE: https://t.co/zjyBkhyYkM #amagenda pic.twitter.com/K7TfnAdrBW |
| ... before the six-week winter recess. | ... before the six-week winter recess. |
| The government has a bit to get through before parliament rises, with the foreign interference laws being top of the list. | The government has a bit to get through before parliament rises, with the foreign interference laws being top of the list. |
| No one wants to be back here tomorrow though, so I expect the chambers will get down to business. | No one wants to be back here tomorrow though, so I expect the chambers will get down to business. |
| Tax continues to be the topic du jour, with Labor urging One Nation not to blink on company tax laws. That is sitting about fourth on the Senate agenda so far, and it’s not just One Nation – the government also needs another crossbencher or so to get it across the line. | Tax continues to be the topic du jour, with Labor urging One Nation not to blink on company tax laws. That is sitting about fourth on the Senate agenda so far, and it’s not just One Nation – the government also needs another crossbencher or so to get it across the line. |
| No one expects any movement on that until after the byelections though, on 28 July. | No one expects any movement on that until after the byelections though, on 28 July. |
| A Reachtel poll first published in the Courier-Mail shows the LNP ahead of Labor in Longman, 51 to 49. As we know from the most recent WA state byelection, where Labor was well ahead, polling individual seats is notoriously fraught. But that doesn’t mean everything that has been happening in Canberra isn’t having an impact on Longman, and Braddon. That poll also showed about 67% of One Nation voters support the company tax cuts, more so even than Liberal voters. | A Reachtel poll first published in the Courier-Mail shows the LNP ahead of Labor in Longman, 51 to 49. As we know from the most recent WA state byelection, where Labor was well ahead, polling individual seats is notoriously fraught. But that doesn’t mean everything that has been happening in Canberra isn’t having an impact on Longman, and Braddon. That poll also showed about 67% of One Nation voters support the company tax cuts, more so even than Liberal voters. |
| Labor’s leadership team is expected to meet today to sort out its position on company tax – signing off on Bill Shorten’s decision to scrap the legislated tax cuts for businesses with a turnover of between $10m and $50m while working out what to do with those with a turnover between $2m and $10m. From what I am hearing, those smaller business tax cuts look like staying in place. About 2% of Australian businesses have the higher turnover, while thousands more sit in that smaller bracket. | Labor’s leadership team is expected to meet today to sort out its position on company tax – signing off on Bill Shorten’s decision to scrap the legislated tax cuts for businesses with a turnover of between $10m and $50m while working out what to do with those with a turnover between $2m and $10m. From what I am hearing, those smaller business tax cuts look like staying in place. About 2% of Australian businesses have the higher turnover, while thousands more sit in that smaller bracket. |
| With caucus not being shy in reporting back what they are hearing from their electorates, the leadership is not expected to make any further changes. | With caucus not being shy in reporting back what they are hearing from their electorates, the leadership is not expected to make any further changes. |
| Meanwhile, the attorney general, Christian Porter, has announced changes which will make it easier for state authorities to call in the military for domestic terrorist incidents, as well as addressing victims of family violence being cross-examined by their attackers in court. | Meanwhile, the attorney general, Christian Porter, has announced changes which will make it easier for state authorities to call in the military for domestic terrorist incidents, as well as addressing victims of family violence being cross-examined by their attackers in court. |
| So we have a lot to get through already! | So we have a lot to get through already! |
| Mike Bowers is already walking the hallways. You’ll find him on Instagram at @mikepbowers and twitter at @mpbowers. You can find me at @amyremeikis and giving updates which continue, outside sitting days, in the instagram story of @pyjamapolitics. | Mike Bowers is already walking the hallways. You’ll find him on Instagram at @mikepbowers and twitter at @mpbowers. You can find me at @amyremeikis and giving updates which continue, outside sitting days, in the instagram story of @pyjamapolitics. |
| I am on coffee number two, which is already a better position than yesterday, so let’s get started! | I am on coffee number two, which is already a better position than yesterday, so let’s get started! |