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Business lobby suggest Dutton's GST plan would 'distort' tax system – politics live Business lobby suggest Dutton's GST plan would 'distort' tax system – politics live
(35 minutes later)
I’m going to regret saying this. But parliament is a little... quiet. Calm before the storm? Probably. There were a couple of News Corp reports this morning that there’d be a challenge before question time. Clearly that did not pan out. But the conventional wisdom is that Dutton will need to challenge tonight or tomorrow, or wait until the next parliamentary sitting period and risk losing momentum. Tony Abbott has just been on his favourite radio station, 2GB, to talk up the “encouraging” policy proposals from Peter Dutton and clear up some of the scuttlebutt about his role in the coup.
He says he has not been given an assurance he would return to cabinet if Dutton becomes PM.
I don’t do deals, Ben [Fordham]. I don’t do deals. I ask for nothing, I expect nothing.
Asked whether the government should switch to Dutton as soon as possible, Abbott says:
I suspect Ben that the average person looking at this says, ‘the politicians, there they go again, it’s another circus’. Sometimes some difficult things have got to be done in order to resume getting the important things done.
But in the end, I’m just one member of the party room, I can’t resolve it.
He also suggests the referral of Dutton to the solicitor-general was “dirty tricks”, either by Labor, or “one last throw from a despairing incumbent, I just don’t know”.
Given that this question of section 44 eligibility of Peter Dutton was raised in the Senate, 12 months or so back, and given there is QC’s advice that he is absolutely in the clear, I just thought it was very strange that today the prime minister didn’t simply say that this matter has been considered, there’s QC advice that Peter Dutton’s advice is that he is absolutely in the clear.
Respected constitutional expert Professor Anne Twomey has just been on Sky News to explain the nuances of the Peter Dutton case.
The basic facts are this:
Dutton is a beneficiary of a trust that owns a childcare company
That company received millions in childcare subsidies from the government
Section 44 of the constitution prohibits MPs from holding a financial interest in the commonwealth through an agreement with the public service.
The case is not cut and dry, Twomey explains. It’s unclear, for example, what the nature of the agreement is between the childcare company and the government. Was it a contract that Dutton had a role in negotiating? Or is it just a standard agreement between childcare operators and the commonwealth, which Dutton had zero influence over?
That agreement might be, for example, an agreement that provides say for the accreditation of the childcare centre to be able to provide certain services at a particular level which then qualifies it to receive the relevant subsidies.
There are other nuances, too.
One question might be, for example, would those childcare centres be able to function without the commonwealth subsidy? Would that have an impact on the financial interest of the relevant trust? So you can have an indirect pecuniary interest in an agreement with the public service, even though that agreement might itself not be an agreement directly about the money.
It’s actually a lot more difficult than the cut and dry answer people are trying to give here.
Twomey said the issues faced by Dutton were most recently faced by senator Bob Day, who was disqualified by the high court.
There are similarities and there are differences. the similarities are in senator Day’s case that he was the beneficiary of a family trust and the high court said that that was enough to give you the relevant pecuniary interest. The significant difference however is that this case does not involve any level of influence. It’s not a one-off agreement or something in which Mr Dutton has had any personal interest in negotiating. It’s a standard thing that applies to all childcare centres. That might be enough to say that it’s not the sort of contract to which s44(5) applies.
Twomey said the first step is to fully understand the facts. She welcomed the matter being referred to the solicitor general.
I’m going to regret saying this. But parliament is a little ... quiet. Calm before the storm? Probably. There were a couple of News Corp reports this morning that there’d be a challenge before question time. Clearly that did not pan out. But the conventional wisdom is that Dutton will need to challenge tonight or tomorrow, or wait until the next parliamentary sitting period and risk losing momentum.
Anyway, the lull gives me the chance to share some of the best cartoons from this week. Enjoy!Anyway, the lull gives me the chance to share some of the best cartoons from this week. Enjoy!
Mr Prime Minister Head pic.twitter.com/pDv5rCHH7qMr Prime Minister Head pic.twitter.com/pDv5rCHH7q
My toon in today's @theheraldsun #libspill #auspol #PeterDutton pic.twitter.com/nWuSb4FfJGMy toon in today's @theheraldsun #libspill #auspol #PeterDutton pic.twitter.com/nWuSb4FfJG
Best of luck.My @smh and @theage cartoon. pic.twitter.com/yO6ovVw8vHBest of luck.My @smh and @theage cartoon. pic.twitter.com/yO6ovVw8vH
Peter Dutton! omg he will be the worst prime minister in history we are all doomed even though we already were anyway! help help https://t.co/3xBe34fPysPeter Dutton! omg he will be the worst prime minister in history we are all doomed even though we already were anyway! help help https://t.co/3xBe34fPys
'And the band played on... and on... and on...' @roweafr's take on today's #leadershipspill. For more: https://t.co/eCXdPFuacb #auspol pic.twitter.com/MrvxD5GSXh'And the band played on... and on... and on...' @roweafr's take on today's #leadershipspill. For more: https://t.co/eCXdPFuacb #auspol pic.twitter.com/MrvxD5GSXh
The business lobby has poured cold water on Peter Dutton’s policy of scrapping GST from energy bills. The Australian chamber of commerce and industry’s chief executive, James Pearson, suggests it will simply “distort the tax system” and suggests it’s a piecemeal workaround, when a fundamental rethink of the tax system is needed.The business lobby has poured cold water on Peter Dutton’s policy of scrapping GST from energy bills. The Australian chamber of commerce and industry’s chief executive, James Pearson, suggests it will simply “distort the tax system” and suggests it’s a piecemeal workaround, when a fundamental rethink of the tax system is needed.
“I think the risk is that you’re trying to cherry pick and you’re starting to distort the tax system, which is already very complex,” he told Sky News.“I think the risk is that you’re trying to cherry pick and you’re starting to distort the tax system, which is already very complex,” he told Sky News.
The business lobby is as despairing as the rest of us about the current state of politics. Pearson says business just wants politicians to act in the national interest and give positive policy certainty. He said similar things earlier this week.The business lobby is as despairing as the rest of us about the current state of politics. Pearson says business just wants politicians to act in the national interest and give positive policy certainty. He said similar things earlier this week.
Pearson also slams the Senate for voting down the company tax cut bill.Pearson also slams the Senate for voting down the company tax cut bill.
Mike Bowers was in the chamber for what proved a fascinating question time.Mike Bowers was in the chamber for what proved a fascinating question time.
Two key themes in question time. Firstly, Labor seems keen to take the fight to the Coalition on Peter Dutton’s eligibility, as we’ve just discussed. That’s a vexed issue for Turnbull. The cloud over Dutton does not help the challenger’s leadership aspirations. But Turnbull also cannot afford to lose Dutton, given his slender one-seat majority.Two key themes in question time. Firstly, Labor seems keen to take the fight to the Coalition on Peter Dutton’s eligibility, as we’ve just discussed. That’s a vexed issue for Turnbull. The cloud over Dutton does not help the challenger’s leadership aspirations. But Turnbull also cannot afford to lose Dutton, given his slender one-seat majority.
We also saw a raft of frontbenchers stand up and pledge their loyalty to Turnbull, in full public view. The list of those newly loyal ministers is:We also saw a raft of frontbenchers stand up and pledge their loyalty to Turnbull, in full public view. The list of those newly loyal ministers is:
Greg Hunt, the health ministerGreg Hunt, the health minister
Angus Taylor, law enforcement ministerAngus Taylor, law enforcement minister
Alan Tudge, the citizenship and multicultural affairs ministerAlan Tudge, the citizenship and multicultural affairs minister
Scott Morrison, the treasurerScott Morrison, the treasurer
Steve Ciobo, the trade ministerSteve Ciobo, the trade minister
Fairfax and Sky News are reporting that the constitutional question hovering over Peter Dutton will be referred to the solicitor general. So, that means the solicitor general, who gives legal advice to government, will provide an opinion on whether Dutton is eligible for parliament, given his ownership of a childcare centre that received millions in government subsidies.Fairfax and Sky News are reporting that the constitutional question hovering over Peter Dutton will be referred to the solicitor general. So, that means the solicitor general, who gives legal advice to government, will provide an opinion on whether Dutton is eligible for parliament, given his ownership of a childcare centre that received millions in government subsidies.
You’ll remember the constitution bars Dutton from holding a financial interest in government. Dutton says he has his own legal advice. It has not been released publicly and Malcolm Turnbull said he hadn’t seen it.You’ll remember the constitution bars Dutton from holding a financial interest in government. Dutton says he has his own legal advice. It has not been released publicly and Malcolm Turnbull said he hadn’t seen it.
Sky News understands Dutton’s potential constitutional problem will be referred to Solicitor General for advice.Sky News understands Dutton’s potential constitutional problem will be referred to Solicitor General for advice.
BREAKING - Attorney-General Christian Porter has asked the Solicitor-General to look at the issue of Mr Dutton, his wife's childcare centres and the constitution.BREAKING - Attorney-General Christian Porter has asked the Solicitor-General to look at the issue of Mr Dutton, his wife's childcare centres and the constitution.
Treasurer Scott Morrison is again expressing his confidence in the prime minister Malcolm Turnbull. You’ll remember there were patchy reports through earlier today that he was either doing the numbers for Dutton or himself.Treasurer Scott Morrison is again expressing his confidence in the prime minister Malcolm Turnbull. You’ll remember there were patchy reports through earlier today that he was either doing the numbers for Dutton or himself.
Does he still have confidence in Turnbull?Does he still have confidence in Turnbull?
Absolutely, Mr Speaker, the prime minister has always enjoyed my support, Mr Speaker, and I’ll tell you why. Together as a team, the prime minister and I have ensured that we have turned the corner on debt, we are bringing the budget back into balance, we have together been stewarding economic policies that have seen the single greatest increase in employment on economic record in this country for jobs.Absolutely, Mr Speaker, the prime minister has always enjoyed my support, Mr Speaker, and I’ll tell you why. Together as a team, the prime minister and I have ensured that we have turned the corner on debt, we are bringing the budget back into balance, we have together been stewarding economic policies that have seen the single greatest increase in employment on economic record in this country for jobs.
The proof is in the pic, guys. Look at that mateship.The proof is in the pic, guys. Look at that mateship.
In Senate question time the finance minister, Mathias Cormann, has clarified which resignations Malcolm Turnbull accepted.In Senate question time the finance minister, Mathias Cormann, has clarified which resignations Malcolm Turnbull accepted.
He notes that Senator Concetta Fierravanti-Wells tendered her resignation rather than offering it so there was no need to accept it – she’s gone. Others offered their resignation and are therefore subject to consideration of the prime minister.He notes that Senator Concetta Fierravanti-Wells tendered her resignation rather than offering it so there was no need to accept it – she’s gone. Others offered their resignation and are therefore subject to consideration of the prime minister.
Cormann said:Cormann said:
The PM has only accepted the resignation of former minister Dutton and all other matters will be announced by the prime minister in due course.The PM has only accepted the resignation of former minister Dutton and all other matters will be announced by the prime minister in due course.
Treasurer Scott Morrison is asked about Dutton’s policy to cut GST on power bills. Morrison earlier today described that idea as an “absolute budget blower”.Treasurer Scott Morrison is asked about Dutton’s policy to cut GST on power bills. Morrison earlier today described that idea as an “absolute budget blower”.
He says:He says:
It is not the government’s policy, and a policy that you know, for the GST, that affects the rate or the rebate, requires the agreements of all states and territories. The parliamentary budget office has costed a similar proposal. It is about $7.5 billion over four years. That $7.5 billion would either not then go to the states or the commonwealth would have to pay that additional money to the states. So that answers the member’s question on the issue of tax. Let me also say on the issue of tax that today the Labor party voted to keep the big banks, which we offered to take out of the Enterprise Tax Plan, they voted to keep them in.It is not the government’s policy, and a policy that you know, for the GST, that affects the rate or the rebate, requires the agreements of all states and territories. The parliamentary budget office has costed a similar proposal. It is about $7.5 billion over four years. That $7.5 billion would either not then go to the states or the commonwealth would have to pay that additional money to the states. So that answers the member’s question on the issue of tax. Let me also say on the issue of tax that today the Labor party voted to keep the big banks, which we offered to take out of the Enterprise Tax Plan, they voted to keep them in.
Now it’s trade minister Steve Ciobo’s turn. His shadow, Jason Clare, asks whether he maintains confidence in Malcolm Turnbull. Ciobo replies:
It has been 916 days since I was sworn in as trade minister and, for the first time, the shadow trade minister has taken some interest in trade. Well, congratulations, 916 days later, you’ve finally found your voice on trade.
Labor’s Tony Burke gets up on a point of order, arguing Ciobo is not answering the question. The Speaker rules Ciobo in order, and the trade minister continues:
Let me make it very clear again because obviously the Labor party can’t keep up. The answer is yes. Let me make it very, very clear, yes, of course there’s confidence. Yes, of course. How much clearer can I make it?
To be fair, it’s not just the Labor party struggling to keep up. My brain is frazzled. Someone bring me a coffee. Actually, just bring a bag of coffee beans and a soup spoon.
Before and after, Peter Dutton takes his softer side out for a trial during #qt @knausc @murpharoo @GuardianAus #politicslive pic.twitter.com/tnwledaKwR
Alan Tudge, the multicultural affairs minister, is the latest to be asked whether he maintains confidence in Malcolm Turnbull.
He says, “I have given the prime minister an assurance that he has my support.”
Tudge, you’ll remember, was another frontbencher who offered his resignation overnight.
Meanwhile, New Zealand is pleading with us to sort ourselves out.
"The sooner there is stability in the Australian political system the better" declares New Zealand's visiting Deputy PM @winstonpeters at @PressClubAust pic.twitter.com/cen8THjZ8z
Lots of interesting dynamics in the lower house right now.
Angus Taylor, the minister for law enforcement, is asked whether he retains confidence in Malcolm Turnbull. Taylor is thought to have voted for Dutton and offered his resignation to Turnbull.
But he says:
The answer is yes, I do. The first priority of this government and this prime minister is to keep all Australians safe and secure. I strongly support that priority. I strongly support that priority.
Bill Shorten asks whether Turnbull has seen Dutton’s legal advice. Shorten also asks why the government has not sought the advice of the solicitor-general.
Turnbull says:
I have not seen the advice that the member of Dickson, but he’s confirmed to me that he’s got legal advice, but I’ve not seen it.
As far as the Solicitor-General is concerned, the matter has only arisen in very recent times, we’re not in possession of all of the facts in relation to the childcare centre and the member for Dickson’s trust.
Bill Shorten asks Malcolm Turnbull to refer Dutton to the high court. Nothing partisan in that, he promises, drawing a grin from Turnbull. Shorten asks:
In December, the prime minister said, ‘We can’t in good conscience fail to refer anyone, whether on our side or Labor or the crossbench to the high court, if it is clear there are substantial grounds for believing they are ineligible to sit in the parliament.’ I say this without any partisanship at all and I would say the same thing about one of our members.” Will the prime minister be true to his word and refer the member for Dickson to the high court?
Turnbull says that Dutton has his own legal advice that he is eligible to sit in parliament.
The member for Dickson has advised me he has legal advice he is not in breach of section 44 and I have no reason, therefore, to believe that he is.
Foreign minister Julie Bishop is on the attack, slamming Labor for voting against the Coalition’s company tax cuts. The government says it will leave Australia with the second highest corporate tax rate in the OECD, behind Portugal. Bishop says:
This means that there is now a unity ticket, the socialist coalition with the Communist party in Portugal and the Australian Labor Party. So the Australian Labor party and the socialist/communist coalition of Portugal believe in having the highest corporate tax rates in the world.