Treasurer Scott Morrison says voters should tell senators to back personal tax cuts

FEDERAL Treasurer Scott Morrison says voters should demand senators step out of the way and allow the Parliament to pass the Government’s $140 billion personal tax cut package.

• REACTION: Stop grinning, your Budget is ‘ripping off SA’
• MAIN STORY: Morrison unveils tax relief for ‘Howard battlers’
• THE STATE: Extra $500m in GST cash — but it may not last
• FIVE-MINUTE GUIDE: The Federal Budget ... fast.
• CALCULATOR: What does the Federal Budget mean for you?
• INFRASTRUCTURE: The big ticket items explained

FEDERAL Treasurer Scott Morrison says voters should demand senators step out of the way and allow the Parliament to pass the Government’s $140 billion personal tax cut package.

Mr Morrison is facing a fight to get the ambitious tax reform plan through Parliament after non-government senators expressed scepticism about the planned abolition of the 37 per cent tax threshold in seven years.

The package includes tax relief from next financial year of between $200 and $530 for Australians who earn a maximum of $90,000.

From 2024, people who earn between $40,000 and $200,000 per year would be taxed 32.5 cents in the dollar in tax.

Mr Morrison urged the Senate to support the tax reforms so Australian workers could keep more of their own money.

“I think people sitting all around Australia need to ask their senators a question: ‘Why are you standing in the way of tax relief for me and my family?’,” he said.

“I mean, they deserve the certainty of what taxes they’re going to pay now. It’s a pretty fair ask, it’s their money, after all.”

The Government has refused to split the tax package so that low and middle-income earners receive immediate tax relief.

Opposition Leader Bill Shorten accused the Government of holding voters hostage.

“Don’t stand in the way of low-income people getting a tax cut merely because you want to take them hostage so you can pass on mythical tax cuts in seven years’ time — that’s rubbish,’’ Mr Shorten said.

Centre Alliance senators Stirling Griff and Rex Patrick said the tax cuts for low and middle-income earners seemed reasonable but were undecided about the package as a whole.

Australian Conservatives Senator Cory Bernardi said he hoped the Senate would approve the tax relief package in its entirety.

“I hope the Government digs in and says ‘No’, because this is important,’’ Senator Bernardi said,

“You’ve got to signal people that we have a plan for how we are going to make the tax system fair and more equitable.’’

Treasurer Scott Morrison shaking hands with Finance Minister Mathias Cormann before giving a National Press Club in the Great Hall at Parliament House in Canberra. Picture Kym Smith

Independent SA Senator Tim Storer backed tax relief for low and middle-income earners but said he was sceptical about the planned abolition of the 37 per cent tax bracket.

“I have serious doubts about the last round of tax cuts due to come in six budgets and two elections from now,’’ Senator Storer said.

“They would be regressive. There are questions about their affordability.”

One Nation Leader Pauline Hanson also expressed scepticism about the tax package and said the Government should be doing more to pay down debt.

The Greens are opposed to the creation of the new 32.5 per cent mega tax bracket but the government can count on Liberal Democrat Senator David Leyonhjelm’s support.

Prime Minister Malcolm Turnbull said the elimination of the 37 per cent tax bracket would save millions of Australians from being stung by the tax office if they received a pay rise of moved to a better job.

“It also means that those Australians who are earning more than $200,000 will actually pay a higher percentage of total income tax receipts than they do today,’’ Mr Turnbull said.

Business SA executive director Antony Penney backed the tax cuts.

“More money in people’s pockets means more money going into the local economy, whether it be buying the odd extra coffee or that much-needed new washing machine,’’ Mr Penney said.