Power price action key in securing tax cuts

Tax cuts of up to $1080 are close to being locked in, but its electricity prices and power plants which could stand in the way.

Tax cuts of up to $1080 are close to being locked in, despite Senator Pauline Hanson saying she will not support the full $158 billion package as it stands.

The Morrison Government is stepping up its talks with crossbench Senators ahead of putting the full tax plan to the parliament in its first week back next month.

One Nation leader Senator Pauline Hanson says she will not support the final stage of the government’s tax cuts without commitment to “at least one” coal-fired power station. Picture: AAP Image/Joel Carrett

Centre Alliance Senator Stirling Griff said a plan to bring down power and gas prices would be “mandatory” to securing their key votes in the Senate for the third stage of the tax cuts.

“We need the government to properly take action on the fact that energy companies are fleecing consumers and business,” he said.

Senator Griff said they were not yet calling for the bill to be split, which would allow the immediate offset of up to $1080 to be passed, saying they were considering the later stages of the plan to raise tax thresholds in 2022 and 2024.

If an agreement could be reached with Centre Alliance, only the vote of returned Senator Jacqui Lambie would be needed to get the tax relief through.

Senator Hanson has warned she will not support the full package without a commitment to build at least one new coal-fired power station, while she has also said she wants a Royal Commission into family law and more water security.

Senator Stirling Griff and Senator Rex Patrick during the vote on Income Tax Plan 2018 passes the senate, in the Senate Chamber at Parliament House in Canberra. Picture Kym Smith

“The government can use delaying tactics like calling for feasibility studies all they like, but I’ll ask them, how feasible is a nation without adequate power and water?” she said.

But only four out of six crossbench votes are needed in the new Senate, meaning One Nation’s support may not be needed.

Finance Minister Mathias Cormann said Australians voted for the tax relief at the election.

“It is incumbent on all parties in the Senate to respect the verdict of the Australian people at the last election,” he said.

Opposition leader Anthony Albanese will only commit to supporting the $1080 tax offset this year, remaining sceptical on later stages of the plan to tackle bracket creep in 2022 and 2024.