The Abbott Government was just forced to accept tax cut intended to cover expenses from a scheme which won’t exist
YOU actually did nothing to deserve this but thanks to the wacky new Senate you’re going to get some sweet, sweet cash. Here it comes!
HOUSEHOLDS were today assured of a $1.5 billion tax cut from next July thanks to a Liberal Democrat senator using the balance of power to challenge the Government.
Liberal Democrat David Leyonhjelm, who has dedicated his Senate term to cutting taxes, effectively forced the Government to abandon legislation which would have blocked the tax reduction.
He was backed by Labor and the Greens.
CROSSBENCHER GOES ROGUE ON CARBON TAX
The tax legislation was among a package of bills moved by the Government as part of its dismantling of Labor’s carbon pricing scheme.
The tax reduction originally was intended to be a second round of compensation for families to cover rises in household expenses from carbon pricing.
But now it seems the Government will have to proceed with the tax cut next July — worth $1.5 billion over four years — even though it is highly likely the carbon price it is meant to compensate for will not exist.
The Government lost a vote on the tax 40-33.
And that means it has an even harder task getting its Budget repair measures through.
‘TONY, YOU LOOK A BIT WORSE FOR WEAR’
The day began with the Government expecting it would be able to demolish carbon pricing with the help of three Palmer United Party senators and other crossbench members.
But it failed to get support for a motion ending debate and calling for a final vote.
Late today Labor will move amendments to effectively end the fixed carbon price and transit to a floating price.
The final vote now is expected tomorrow.
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