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Federal election 2019: Scott Morrison's government on track for majority with 78 seats – as it happened Morrison government on track for majority with 78 seats – as it happened
(about 20 hours later)
We’ll find out tomorrow if there are any additional entries into the Labor leadership contest.We’ll find out tomorrow if there are any additional entries into the Labor leadership contest.
The party’s national executive will open official proceedings tomorrow evening.The party’s national executive will open official proceedings tomorrow evening.
Plus, there will be more coming out on the Morrison ministry shuffling.Plus, there will be more coming out on the Morrison ministry shuffling.
And we should know where those final seats finally land. Right now, it is a question of a 77- or 78-seat Morrison government.And we should know where those final seats finally land. Right now, it is a question of a 77- or 78-seat Morrison government.
Cowan and Lilley should remain with Labor. Macquarie is the one to watch right now.Cowan and Lilley should remain with Labor. Macquarie is the one to watch right now.
The Queensland Senate count is also looking interesting, so we’ll check back with that tomorrow.The Queensland Senate count is also looking interesting, so we’ll check back with that tomorrow.
A massive thank you to everyone who followed along with us today. We will be back tomorrow to cover the continuing wash-up of the 2019 election, because at this stage my fingers are fused to the keyboard and I don’t know who I am away from this desk.A massive thank you to everyone who followed along with us today. We will be back tomorrow to cover the continuing wash-up of the 2019 election, because at this stage my fingers are fused to the keyboard and I don’t know who I am away from this desk.
Go take a break – and take care of you.Go take a break – and take care of you.
There are still 50 votes in the Macquarie count, going the Liberals’ way.There are still 50 votes in the Macquarie count, going the Liberals’ way.
There are about 13% or so of the votes left to count.There are about 13% or so of the votes left to count.
Josh Frydenberg confirms that the government will be taking its tax rebates policy to the parliament as a whole package.Josh Frydenberg confirms that the government will be taking its tax rebates policy to the parliament as a whole package.
Which includes reducing the 32.5% tax bracket to 30%, lowering the thresholds and the higher income tax rebates that members of the crossbench have said they are against.Which includes reducing the 32.5% tax bracket to 30%, lowering the thresholds and the higher income tax rebates that members of the crossbench have said they are against.
So, at this stage, it’s an all or nothing deal.So, at this stage, it’s an all or nothing deal.
Question: Was it a misrepresentation during the campaign to say you could [put through the tax rebate before 30 June]?Question: Was it a misrepresentation during the campaign to say you could [put through the tax rebate before 30 June]?
Frydenberg: The reports in the paper today of a year are wrong. The tax relief will be delivered as set out in the budget. There is bipartisan support but we need to pass the legislation and that can only pass when the parliament resumes. And the parliament can only resume when the writs are returned.Frydenberg: The reports in the paper today of a year are wrong. The tax relief will be delivered as set out in the budget. There is bipartisan support but we need to pass the legislation and that can only pass when the parliament resumes. And the parliament can only resume when the writs are returned.
Question: Was the prime minister wrong when he said this could be done administratively? When did you know that you could not get this through without legislation?Question: Was the prime minister wrong when he said this could be done administratively? When did you know that you could not get this through without legislation?
Frydenberg: Well, as you know, the ATO have put on their website that they can move very quickly, as soon as the legislation is passed. That is the key point. And we want to pass the legislation as our first priority, as our first order of business.Frydenberg: Well, as you know, the ATO have put on their website that they can move very quickly, as soon as the legislation is passed. That is the key point. And we want to pass the legislation as our first priority, as our first order of business.
Question: The government has committed to repealing the medivac bill. If the Senate says no, will keeping Christmas Island open put a hole in the budget?Question: The government has committed to repealing the medivac bill. If the Senate says no, will keeping Christmas Island open put a hole in the budget?
Frydenberg: We have made allocations in the budget for the maintenance of Christmas Island. But let me just make it very clear, it is our policy to reverse that legislation. We can only reverse the legislation if it passes both houses of parliament. So let’s work that through when the parliament resumes.Frydenberg: We have made allocations in the budget for the maintenance of Christmas Island. But let me just make it very clear, it is our policy to reverse that legislation. We can only reverse the legislation if it passes both houses of parliament. So let’s work that through when the parliament resumes.
Question: The full tax cut to Australian voters this financial year, is that breaking an election promise? And also, that extra payment, will that be a one-off payment that people will receive? And after by the end of this year? When will they get the extra money?Question: The full tax cut to Australian voters this financial year, is that breaking an election promise? And also, that extra payment, will that be a one-off payment that people will receive? And after by the end of this year? When will they get the extra money?
Frydenberg: The reports in the paper today that there will be a delay of a year are wrong. That is wrong. Those media reports are wrong.Frydenberg: The reports in the paper today that there will be a delay of a year are wrong. That is wrong. Those media reports are wrong.
Q: How long will they be?Q: How long will they be?
Frydenberg: We have got to pass the legislation. I also point out that the legislation has bipartisan support. And that is really important to point out. So it shouldn’t be a question of getting the support through the house for this legislation. As I said, we have already legislated the $530. The extension to $580 will be done as quickly as the parliament resumes but there are processes and those are for the writs to return.Frydenberg: We have got to pass the legislation. I also point out that the legislation has bipartisan support. And that is really important to point out. So it shouldn’t be a question of getting the support through the house for this legislation. As I said, we have already legislated the $530. The extension to $580 will be done as quickly as the parliament resumes but there are processes and those are for the writs to return.
Question: Treasurer, how good can the Australian economy be when the Reserve Bank governor has signalled a rate cut in two weeks’ time and the government needs to spend more on infrastructure than what has been announced and adds structural reforms such as IR on the agenda?Question: Treasurer, how good can the Australian economy be when the Reserve Bank governor has signalled a rate cut in two weeks’ time and the government needs to spend more on infrastructure than what has been announced and adds structural reforms such as IR on the agenda?
Frydenberg:Frydenberg:
And the Reserve Bank governor also addressed the aspect of tax relief, saying it is very important, which underlines what we spelled out in the budget and providing more disposable income to more Australians will be on the overall economy.And the Reserve Bank governor also addressed the aspect of tax relief, saying it is very important, which underlines what we spelled out in the budget and providing more disposable income to more Australians will be on the overall economy.
But we are taking action on infrastructure – $100bn of infrastructure spending for nation-building projects like snowy 2.0, the fast rail between Melbourne and Geelong, the rail link in Melbourne. There is a host of road and rail projects that the federal government is supporting with infrastructure spending.But we are taking action on infrastructure – $100bn of infrastructure spending for nation-building projects like snowy 2.0, the fast rail between Melbourne and Geelong, the rail link in Melbourne. There is a host of road and rail projects that the federal government is supporting with infrastructure spending.
Let me be clear because you raised about industrial relations. We have put in place a cop on the beat with the construction commission. Labor’s policy was to abolish the ABCC but since we have come to government we have seen a 40% reduction in the days lost to industrial disputation as a result of our workplace relations policies. So we will take all the action that is needed to ensure the Australian economy remains strong.Let me be clear because you raised about industrial relations. We have put in place a cop on the beat with the construction commission. Labor’s policy was to abolish the ABCC but since we have come to government we have seen a 40% reduction in the days lost to industrial disputation as a result of our workplace relations policies. So we will take all the action that is needed to ensure the Australian economy remains strong.
But what has also been acknowledged by the Reserve Bank governor is the fact that the labour markets remains strong. We have created over 1.3 million new jobs, meeting our commitment to the Australian people, that we would create more than a million new jobs.But what has also been acknowledged by the Reserve Bank governor is the fact that the labour markets remains strong. We have created over 1.3 million new jobs, meeting our commitment to the Australian people, that we would create more than a million new jobs.
And we have created a new pledge that we will create over 1.25 million new jobs over the next five years.And we have created a new pledge that we will create over 1.25 million new jobs over the next five years.
And in the most recent employment data, we saw 28,000 new jobs were created and eight out of 10 new jobs have been created over the last year have been full time and female workforce participation is also at a record high.And in the most recent employment data, we saw 28,000 new jobs were created and eight out of 10 new jobs have been created over the last year have been full time and female workforce participation is also at a record high.
But he is really holding the press conference to address this:But he is really holding the press conference to address this:
I also just want to address a topic that has been in the media today about the timing of the tax relief outlined in the budget.I also just want to address a topic that has been in the media today about the timing of the tax relief outlined in the budget.
Let me be very clear: the tax relief promised in the budget will be delivered. As you know, in last year’s budget we announced a tax offset of $530. That will be available from 1 July, and that is already legislated.Let me be very clear: the tax relief promised in the budget will be delivered. As you know, in last year’s budget we announced a tax offset of $530. That will be available from 1 July, and that is already legislated.
In this year’s budget we extended the tax offset to $1,080 for those earning up to $126,000. The legislation needs to be passed and it will be the first priority of business once the parliament resumes.In this year’s budget we extended the tax offset to $1,080 for those earning up to $126,000. The legislation needs to be passed and it will be the first priority of business once the parliament resumes.
As the prime minister has said, it is not likely that the parliament will resume before the end of June because we have to wait for the writs to be returned.As the prime minister has said, it is not likely that the parliament will resume before the end of June because we have to wait for the writs to be returned.
But let me be very clear: The tax relief outlined in the budget will be delivered to millions of Australians.But let me be very clear: The tax relief outlined in the budget will be delivered to millions of Australians.
Again, that is going to depend on when it can get it through the senate.Again, that is going to depend on when it can get it through the senate.
Josh Frydenberg is standing in front of Treasury talking about the government’s “strong economic plan”:Josh Frydenberg is standing in front of Treasury talking about the government’s “strong economic plan”:
It is very clear that the Australian economy is facing some economic headwinds. Economic headwinds, globally, as trade tensions rise between China and the United States. China is our number one trading partner. The United Nations is our number one investment partner.It is very clear that the Australian economy is facing some economic headwinds. Economic headwinds, globally, as trade tensions rise between China and the United States. China is our number one trading partner. The United Nations is our number one investment partner.
Domestically, we are seeing the impacts of flood and drought as well as a slowdown in the housing market and the implications that that has.Domestically, we are seeing the impacts of flood and drought as well as a slowdown in the housing market and the implications that that has.
But the fundamentals of the Australian economy are sound. And it underlines the importance of our budget, released and delivered just a matter of weeks ago, with its emphasis on not only paying down Labor’s debt but providing tax relief to millions of Australians.But the fundamentals of the Australian economy are sound. And it underlines the importance of our budget, released and delivered just a matter of weeks ago, with its emphasis on not only paying down Labor’s debt but providing tax relief to millions of Australians.
The Queensland government has dropped court proceedings against Adani, after coming to an agreement about stormwater discharge. From the Australian Marine Conservation Society:The Queensland government has dropped court proceedings against Adani, after coming to an agreement about stormwater discharge. From the Australian Marine Conservation Society:
A Queensland Government order that Adani must install new stormwater discharge monitoring equipment at its Abbot Point coal port won’t change the port’s risk to the state’s precious Great Barrier Reef, says the Australian Marine Conservation Society.A Queensland Government order that Adani must install new stormwater discharge monitoring equipment at its Abbot Point coal port won’t change the port’s risk to the state’s precious Great Barrier Reef, says the Australian Marine Conservation Society.
The “enforceable undertaking” will also see the government drop its court proceedings against Adani for the March 2017 incident.The “enforceable undertaking” will also see the government drop its court proceedings against Adani for the March 2017 incident.
Imogen Zethoven, director of strategy at AMCS, said: “Some 64,000 Queenslanders rely on a healthy Reef for their jobs. Our Reef needs cleaner water and a cooler climate – this coal port is a huge risk on both those counts.Imogen Zethoven, director of strategy at AMCS, said: “Some 64,000 Queenslanders rely on a healthy Reef for their jobs. Our Reef needs cleaner water and a cooler climate – this coal port is a huge risk on both those counts.
“After Cyclone Debbie in 2017, a discharge point at the Adani coal port at Abbot Point saw water flowing into our Great Barrier Reef with concentrations of solids at 800 percent their allowable limits.“After Cyclone Debbie in 2017, a discharge point at the Adani coal port at Abbot Point saw water flowing into our Great Barrier Reef with concentrations of solids at 800 percent their allowable limits.
“This agreement between Adani and the Queensland Government asks the company to install real-time monitoring equipment to record any future coal-contaminated discharges into the Great Barrier Reef. Any investment that Adani is now making comes after the threat of court proceedings. But as our climate warms, this coastline is going to experience more extreme weather and increasing risk of further discharges.“This agreement between Adani and the Queensland Government asks the company to install real-time monitoring equipment to record any future coal-contaminated discharges into the Great Barrier Reef. Any investment that Adani is now making comes after the threat of court proceedings. But as our climate warms, this coastline is going to experience more extreme weather and increasing risk of further discharges.
“This coal port is risking the Reef from its role in helping the world to burn more coal at a time when our Great Barrier Reef is bearing the brunt of the climate emergency.“This coal port is risking the Reef from its role in helping the world to burn more coal at a time when our Great Barrier Reef is bearing the brunt of the climate emergency.
“Adani’s environmental record in India is terrible, including a major coal spill into the marine environment near Mumbai that it failed to clean up for more than five years. Adani cannot be trusted with our Reef.”“Adani’s environmental record in India is terrible, including a major coal spill into the marine environment near Mumbai that it failed to clean up for more than five years. Adani cannot be trusted with our Reef.”
Also worth looking at, in that Philip Lowe speech, is his response to a proposal the banking regulator, the Australian Prudential Regulation Authority, has released, which would see the rule that assesses potential mortgage customers on their ability to repay a loan at a 7.25% interest rate, scrapped.Also worth looking at, in that Philip Lowe speech, is his response to a proposal the banking regulator, the Australian Prudential Regulation Authority, has released, which would see the rule that assesses potential mortgage customers on their ability to repay a loan at a 7.25% interest rate, scrapped.
That was put in place during the property boom. Following the crackdown on the banks, lending got much tighter, which has created concerns home loan lending has gone too far in the other direction – that it is too difficult.That was put in place during the property boom. Following the crackdown on the banks, lending got much tighter, which has created concerns home loan lending has gone too far in the other direction – that it is too difficult.
Asked about what impact that would have on monetary policy, Lowe said:Asked about what impact that would have on monetary policy, Lowe said:
I don’t think it has direct implications to monetary policy at all. It would be complementary to a monetary easing if that takes place. Removing the floor serviceability requirement that APRA has had will allow some people to borrow more.I don’t think it has direct implications to monetary policy at all. It would be complementary to a monetary easing if that takes place. Removing the floor serviceability requirement that APRA has had will allow some people to borrow more.
But only a relatively small share of the population borrow the maximum amount banks offer them and that is good.But only a relatively small share of the population borrow the maximum amount banks offer them and that is good.
The data we have says between 10 and 15% of people borrow the maximum the bank will allow them but if APRA does remove the floor, some will borrow more and some will take advantage of that and that will help, but that is not a substitute for lower interest rates because they work through the exchange rate and affect the cash flow of every person who has a borrowing at the moment.The data we have says between 10 and 15% of people borrow the maximum the bank will allow them but if APRA does remove the floor, some will borrow more and some will take advantage of that and that will help, but that is not a substitute for lower interest rates because they work through the exchange rate and affect the cash flow of every person who has a borrowing at the moment.
It is complementary, but not a substitute.It is complementary, but not a substitute.
Q: That was interesting. You said lower interest rates work through the exchange rate.Q: That was interesting. You said lower interest rates work through the exchange rate.
Lowe: That is how it is supposed to work. That is how it works.Lowe: That is how it is supposed to work. That is how it works.
Q: Just quickly on that same topic, we had an announcement from APRA, the federal government is making it easier for first homebuyers to get a deposit even though they don’t have enough money, is that compatible with more responsible lending?Q: Just quickly on that same topic, we had an announcement from APRA, the federal government is making it easier for first homebuyers to get a deposit even though they don’t have enough money, is that compatible with more responsible lending?
Lowe: It is up to the banks to implement that responsibly, isn’t it? I think it certainly can be. I don’t see it as being inconsistent but the banks still need to make their decisions and give due regard to the responsible lending laws.Lowe: It is up to the banks to implement that responsibly, isn’t it? I think it certainly can be. I don’t see it as being inconsistent but the banks still need to make their decisions and give due regard to the responsible lending laws.