Coalition’s $158 billion tax package to pass after Centre Alliance senators, Jacqui Lambie agree to support it

The Coalition’s tax cuts — which mean an extra $1080 for thousands of South Australians — will go through after Centre Alliance senators teamed with Jacqui Lambie to back it. HOW YOU WILL BENEFIT

• Lambie wanted debt wiped for tax cuts vote
• Centre Alliance senators delay tax cut support over gas prices
• Tax cuts for low and middle-income workers closer
• How two SA Senators became the most powerful pollies in Canberra

More than 700,000 South Australians will pocket up to $1080 from as early as next week, with key crossbenchers last night telling The Advertiser they will back the Coalition’s full $158 billion tax package.

Centre Alliance senators Rex Patrick and Stirling Griff have teamed up with independent senator Jacqui Lambie who, with SA senator Cory Bernardi, will vote to support the deal. The decision was made a day after a record interest rate cut.

The Government needed four of six crossbench votes in the Upper House to get it over the line. It now has them.

Confirming his support last night, Senator Patrick said it would reward taxpayers and provide a stimulus to the economy that almost all economists have called for, including the Reserve Bank Governor.

It came as the Reserve Bank on Tuesday cut the cash rate by 0.25 per cent to a record low of 1 per cent.

The sticking point had been Senator Lambie, who was quoted yesterday as saying she was yet to make her mind up.

Centre Alliance senators Rex Patrick and Stirling Griff with Senator Jacqui Lambie in the Senate on Tuesday. Picture: AAP / Sam Mooy

Asked last night if she would support the Bill, Senator Lambie told The Advertiser: “Yes, I will”.

The Advertiser understands the Federal Government, in return, is likely to waive Tasmania’s $157 million social housing debt

“I have basically said if the Government wants to help higher income earners they need to help us,” Senator Lambie said from Canberra.

Treasurer Josh Frydenberg has promised the tax refunds, worth $1080 a year, will flow to eligible South Australians from next week as they lodge their tax returns.

Senator Patrick said after lengthy negotiations with the Government to address concerns about rising energy costs, and particularly the high electricity costs in SA, the party had agreed to support the Government’s personal tax cuts.

Last month the Alliance senators moved to strengthen their influence in the new look Upper House by courting Senator Lambie, the independent Tasmanian, who made a return to parliament following the May 18 election.

The two crossbench senators visited Senator Lambie to discuss how they could work together.

Senator Griff said Centre Alliance had worked with the Government on both short and long term reforms to deal with gas market concerns.

He said the full package of reforms, to be announced in coming weeks, would include changes to the Australian Domestic Gas Security Mechanism (ADGSM) to deal with pricing, transparency measures and supply.

The move is supported by Mayo MP, Centre Alliance’s Rebekha Sharkie, who said the party would not support the splitting off of stage three of the tax package, as Labor had hoped.

The first stage of the plan will deliver up to $1080 to low and middle-income earners when they lodge their tax returns in coming months.

The second stage tops up a low-income tax offset, meaning people earning up to $45,000 — instead of $41,000 — will have a 19 per cent tax rate.

The final stage, strongly opposed by Labor, flattens the tax rate from 32.5 per cent to 30 per cent for people earning between $45,000 and $200,000 from mid-2024.

This will mean 94 per cent of tax payers will face a marginal tax rate of no more than 30 cents in the dollar.

— with Helen Kempton and Jade Gailberger