Pauline Hanson won’t back Scott Morrison’s tax cuts ‘at this stage’

Hip pocket relief for ten million Australians of up to $1080 is in doubt after Pauline Hanson signalled she was not yet convinced about the government’s tax package.

Tax cuts for ten million Australians of up to $1080 are in doubt after Pauline Hanson said she won’t back them “at this stage”.

The One Nation leader this morning left the door open to supporting the hip pocket relief for workers earning up to $126,000 a year but signalled she was not yet convinced.

She also issued a list of three priorities she said the government should green light before the tax cuts, including a coal-fired power station, a water security project and a royal commission into family law.

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One Nation leader Senator Pauline Hansons says she won’t back Scott Morrison’s $158 billion tax package ‘at this stage’. Picture: AAP

Workers earning up to $90,000 are already due to get a tax cut of up to $530 from July 1 after they passed parliament last year.

But the bigger tax cuts are in doubt if Prime Minister Scott Morrison can’t secure crossbench support for them when parliament resumes next month.

Mr Morrison needs four out of six crossbench senators to pass the $158 billion tax cut package with Labor refusing to back the final stage of the plan.

Senator Cory Bernardi has already indicated he will support the package but Mr Morrison will also need newly returned crossbench senator Jacqui Lambie and two votes from either Centre Alliance or One Nation.

Prime Minister Scott Morrison’s tax cuts are on ice unless he can get four out of six crossbenchers to back the plan. Picture: Tracey Nearmy/Getty Images

Centre Alliance is still considering its position over concerns whether Australia can afford the tax cuts given the current economic climate.

Asked directly on the Nine Network’s The Today Show if she would support the plan this morning, Senator Hanson said: “At this stage, no, I’m not.”

“We are talking about over $158 billion over the next few years,” she told host Deborah Knight.

“You know, I think there is more important issues out there that are of concern to the Australian people.”

In a statement this afternoon, Senator Hanson added: “What modest tax cuts middle to high-income earners will receive over the short term will only be chewed up by the increased cost of living expenses like power and water.”

She called for the government to spend $25 billion on a coal-fired power plant and a water security scheme instead.

Finance Minister Mathias Cormann was confident today the government could still persuade crossbenchers to pass the income tax cuts.

Senator Cormann, who is leading negotiations with the crossbench, dismissed speculation that One Nation’s reluctance to back the package would torpedo the tax cuts entirely.

He told reporters in Perth the government managed to pass its $144 billion tax cuts in 2018 “after a lot of speculation and commentary that that would not happen”.

“We took a plan to the election. The Australian people voted for income tax relief for all hardworking Australians. It is incumbent on all parties in the Senate to respect the verdict of the Australian people at the last election,” Senator Cormann said.

Opposition leader Anthony Albanese has urged the government to split the bill to pass the tax cuts for middle income earners in the first week of the new parliament.

Labor will back the first stage of the plan, which includes the $1080 tax cut, but looks unlikely to back the next phase, which would provide tax relief for higher income earners from 2024.

Under that phase, the tax bracket for all taxpayers earning between $45,000 and $200,000 would be reduced from 32.5 per cent tax rate to 30 per cent.

The Australian Taxation Office cannot distribute the $1080 tax cuts unless they pass parliament, which is due to resume on July 2.

Senator Hanson also said she would support launching a Senate inquiry into the Australian Federal Police raids on the ABC and a News Corp journalist’s house in Canberra.

She backed calls for tougher laws to protect whistleblowers but indicated she wouldn’t push for new measures to protect journalists.