Pass now, repeal later: Crossbench talks on tax cuts that could hinge on tanking economy

Key Senate crossbenchers say they would consider passing the final stage of the Coalition’s tax cut plan and ­repealing it later if the economy takes a nosedive.

KEY Senate crossbenchers say they would consider passing the final stage of the Coalition’s tax cut plan and ­repealing it later if the economy takes a nosedive.

The Government has been playing hardball on negotiations, with the crossbench revealing they have not been approached for talks by Finance Minister Mathias Cormann.

This is despite a push for the tax cuts to be passed when parliament returns in two weeks.

Labor wants the tax plan to be split, saying that the final stages don’t come in until 2024 and the economy could worsen by then.

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But Centre Alliance Senator Stirling Griff, while not committing to passing or blocking the plan, said that if the package was passed in full it could be repealed later if the economy takes a turn for the worse.

Centre Alliance Senator Stirling Griff says the final stage of tax cuts could be passed now, and repealed later of the economy takes a turn for the worse. Picture: Emma Brasier

“Any government worth its salt, if the economy goes pear shaped, would make changes,” he said.

“We are talking many years down the track, it’s only a minor change, there’s plenty of time to have a good look at it.”

The third stage of the tax plan would cut the 32.5-cent tax bracket, for people earning $45,000 to $200,000, to 30 cents, while the first stage would see tax cuts of up to $1080 delivered this year.

While Labor is willing to pass the first stage, Senator Cormann is pressuring it to support the full package, bypassing the need for crossbench approval.

“The best thing Labor can do is let go of that class warfare, let go of that politics of envy and back in working people around Australia by helping deliver more money in their pockets,” he said.

“If Labor down the track wants to revisit the third stage of our income tax plan and wants to go to the next election arguing it should be rolled back, they can do that.”

Finance Minister Mathias Cormann says Labor should pass the tax cuts package in full. Picture: AAP Image/James Ross

Opposition Leader Anthony Albanese said the Government was expecting parliament to rubber-stamp tax cuts, some of which would not begin until 2024.

“That’s not only after the next election, it’s after the election after the next election,” he said.