Coalition poised for senate win over $158 billion personal income tax package

Australians are set to receive tax cuts worth a combined $302 billion as the government becomes “increasingly confident” of Senate support.

Australians are set to receive tax cuts worth a combined $302 billion over the next decade, with the Morrison Government on the cusp of securing the support for its package through parliament.

Senior figures in the Coalition are increasingly confident new independent senator Jacqui Lambie will back the entire tax package, handing it the four crossbench votes required despite Labor’s bid to split the Bill.

The tax cut plan passed the House of Representatives tonight after Labor supported the Bill, intending to try to put up its amendments again in the Senate.

New data reveals the Victorian electorates with the most battlers who would benefit from the proposed $1080 tax offset are held by Labor, including Bruce, Holt and Fraser.

These workers would be robbed of $15,348 in tax relief over the next 10 years if the Coalition failed to pass its tax package, according to government figures.

Labor leader Anthony ­Albanese has refused to back the entire Bill, calling for the government to remove the third stage of the tax cuts.

The first stage would ­immediately give low and middle-income Australians the $1080 tax refund.

Australian Federal Treasurer Josh Frydenberg said Labor was continuing to stand in the way of tax cuts. Picture: AAP Image/Lukas Coch

The battle over tax cuts comes as the Reserve Bank yesterday cut interest rates to a fresh record low in a sign that the Australian economy is continuing to flatline.

Treasurer Josh Frydenberg said Labor was continuing to stand in the way of tax cuts that would benefit millions of Australian workers. It means someone with an average ­taxable income of around $60,000 would be more than $15,000 worse off over the ­decade,” Mr Frydenberg said.

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Labor is calling for stage two of the cuts, which would give extra relief for those earning between $90,000 and $120,000, to be brought forward. Mr Albanese said a new round of interest rates cuts “can’t do all the heavy lifting” and the government should also bring forward big infrastructure spends to kickstart the economy.

The Opposition Leader said the shadow Cabinet would make the decision on what happened in the Senate when the amendments failed.

The Labor-held electorate of Bruce has the lowest average taxable income in the state, with the typical worker earning $60,901.

Other Labor-held electorates with the lowest incomes include Holt in Melbourne’s southeast and Fraser in the city’s northwest, as well as the Nationals-held seats of Mallee and Nicholls in the state’s north.

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