Anthony Albanese leaves open Labor's stance on high-income tax cuts

https://www.theguardian.com/australia-news/2019/may/23/anthony-albanese-leaves-open-labors-stance-on-high-income-tax-cuts

Version 0 of 1.

Anthony Albanese says Scott Morrison should split the income tax cuts package when parliament resumes after the election, signalling Labor is still on the fence about whether to support tax cuts for Australians on high incomes.

After Queensland rightwinger Jim Chalmers quit the Labor leadership field on Thursday, leaving Albanese with a clear path to replace Bill Shorten as Labor leader, the high-profile New South Wales leftwinger told reporters it wasn’t sensible for the Coalition to bake in tax relief for the top end several years in advance.

Albanese said Labor would support the tax relief proposed for low- and middle-income earners, but urged the prime minister not to “play politics” by bowling up the measures in total as a take-it-or-leave-it proposition.

“The idea that you make a decision in 2019 about what happens in the middle of the next decade is, quite frankly, a triumph of hope over experience and reality,” he said. “The truth is that our international global economic circumstance is very vulnerable”.

He said trade disputes between China and the Unites States, and the softening of the domestic economy, meant it would be prudent to hold fire on the package the Coalition outlined in the April budget.

It’s absurd to suggest that rate cuts are good news for the government | Greg Jericho

Albanese appears set to take the Labor leadership uncontested having locked in the support of senior figures on the left and the right. There will be a contest for the deputy leadership, with Victorian rightwinger Richard Marles putting up his hand, fellow Victorian Clare O’Neil mulling her options and Chalmers a likely starter.

In the Senate, Penny Wong is likely to remain leader, with Kristina Keneally in the deputy’s role. It is possible that South Australian rightwinger Don Farrell will seek to continue as Wong’s deputy.

The post-election recalibration within Labor, which includes a new direction on climate policy, came as Morrison went to Canberra for meetings with senior public servants, and the Nationals, also meeting in Canberra, rubber-stamped their leadership team of Michael McCormack and Bridget McKenzie.

Morrison – who faced criticism throughout the campaign for failing to point to a comprehensive third-term agenda – put his senior bureaucrats on notice that they would be expected to perform.

“A big part of the way I intend to direct over the next three years is there will be very clear targets about performance levels we expect from the delivery of the public service,” Morrison told the bureaucrats on Thursday.

He said voters expected results quickly, and investors looking to put their money into projects were frustrated with “blockages”.

“Congestion-busting just doesn’t need to happen on our roads and around the country,” Morrison said. “I want to see some congestion-busting in the bureaucracy, ensuring that we get things done.”

The prime minister flew to Cloncurry on Thursday night and is expected to unveil his new ministry on Sunday or Monday, before holding a party-room meeting in Canberra in the first half of next week.

Speculation around the government points to possible promotions for Queensland MPs John McVeigh, Andrew Wallace and Trevor Evans. Victorians Tim Wilson and Jane Hume could also score positions in the outer ministry.

Sussan Ley, the Liberal who held Farrer after a tough campaign, is being mentioned for a possible return to cabinet. If Victorian Mitch Fifield is dumped, which colleagues speculate is likely, his replacement in communications is tipped to be Paul Fletcher.

The South Australian senator David Fawcett, who was a key vote for Morrison in the leadership ballot after switching from Peter Dutton, is tipped to take on the cabinet role of defence industry minister.

On the looming tax debate, the treasurer, Josh Frydenberg, has rejected suggestions low- and middle-income tax rebates will be delayed by a year as a consequence of not being able to bring the parliament back before July, but the government has refused to split the tax package to deliver faster tax relief, setting up a likely battle with Labor in the Senate.

While Albanese has indicated Labor won’t play ball, the Centre Alliance senator Rex Patrick has offered the Coalition a lifeline, suggesting the minor party “would love to give hard-working Australians a tax cut” if it could be assured income tax rebates would not cause cuts to services down the line.