Centre Alliance delay support for income tax cuts after gas price talks fall through
Two SA Senators have again held back support for the Coalition’s tax cuts after discussions over lowering gas prices in the state ended without a decision.
Centre Alliance has again delayed a decision to support the Coalition’s income tax plan after discussions with Finance Minister Mathias Cormann on Monday over lowering gas prices in exchange for its party vote ended in a stalemate.
Parliament resumes Tuesday for the first time since the election with the swearing in of three new South Australian MPs before the Government pitches its $158 billion personal income tax package.
Labor has repeatedly refused to rule out supporting the three-stage reforms in full if its list of amendments fail to pass the Senate.
South Australian Senator Cory Bernardi will back the Coalition plan, while Centre Alliance Senators Rex Patrick and Stirling Griff hold two of the four crossbench votes the Government needs to pass the bill in the Upper House on Thursday.
The minor party met Senator Cormann on Monday, where it hoped to approve a package designed to reduce gas prices before announcing support for the tax cuts.
It expects to meet with the Government again on Tuesday for further discussions.
“They are basically putting together a policy that they say they were working on anyway,” Senator Patrick said. “We have perhaps turbocharged it a little bit and we’ve made some suggestions.
“When we reach a point where we are comfortable … at that point we will be in a position to support the tax cuts.”
Senator Patrick said he expected the policy to reduce gas prices would then be announced by the Government in the “next month or so”.
Opposition Leader Anthony Albanese said Labor would pass stage one of the plan.
“Stage two we support but we think it should be brought forward because the economy needs it,” Mr Albanese said.
Labor has also proposed to defer a decision on stage three — which flattens the tax rate from 32.5 per cent to 30 per cent for workers earning between $45,000 and $200,000 from 2024-25 — until late July.
If the amendments fail, Opposition treasury spokesman, Jim Chalmers said the frontbench would consider “all of the alternatives”, including supporting the package in full before finalising a position.
Treasurer Josh Frydenbeg slammed Labor’s indecision saying Australians “voted in favour” of the tax cuts.
If it passes, Australians who submit their tax return will receive the offer in up to a week.
Among politicians being sworn in to Parliament on Tuesday is Liberal MP James Stevens for the seat of Sturt, Liberal Senator Alex Antic, and Labor Senator Marielle Smith.
The parliament will this week honour the late PM Bob Hawke.