Parliament is back for the first time since Scott Morrison's shock election victory and the first item on the agenda is the generous tax cuts promised.
Follow news.com.au's live and rolling coverage of the first sitting day of the new parliament. We'll bring you the latest from Canberra throughout the day.
Updates
Press freedom inquiry moving forward
The prime minister's cabinet has signed off on a parliamentary inquiry into the impact of law enforcement and intelligence powers on press freedom.
This comes after the AFP raided the home of a journalist and the ABC's national headquarters last month.
The inquiry would look into the disclosure and public reporting of sensitive and classified information.
Scott Morrison will discuss how to move forward with the inquiry with Anthony Albanese at Parliament House tomorrow.
The inquiry would be conducted by the Parliamentary Joint Committee on Intelligence and Security and would report back its findings bu October 17.
Labor's Shadow Home Affairs Minister, Kristina Keneally, earlier called for the Mr Morrison to back the committee ahead of Thursday's Senate vote.
“There is a culture of secrecy and perverting the public’s right to know that has been making its way through this government for too long, and it’s time to call it out,” she said.
“Scott Morrison and his government have failed to take their responsibilities seriously, to show leadership, and to take swift action to address the concerns of the Australian community and media organisations."
Labor to back tax cuts... sort of
Labor will back the government’s tax cuts package in the House of Representatives tonight, Anthony Albanese has confirmed.
In an appearance on Sky News, the Opposition leader said an amendment bringing forward Stage Two and scrapping Stage Three will still be introduced.
But when it inevitably fails, Mr Albanese said Labor will “allow the package through so it can be dealt with in the Senate”.
What happens then is unclear, with Mr Albanese said Labor will continue to “argue its case”.
“We’ll wait and see what happens in the Senate. What we don’t do is a war game on national TV.” However, he said the decision today by the Reserve Bank to cut interest rates showed that legislating the Stage Three tax cuts now, to come into effect in 2024-25, is “a triumph of hope over economic experience and reality”.
When your tax cut cash could land
If Scott Morrison has his way, millions of Australians will get an extra $1080 in their bank accounts as early as next week.
The government will attempt to pass its tax cuts package over coming days, the first stage of which delivers an offset payment to low and middle-income workers.
Stage One will deliver a tax cut of $1080 to those earning up to $126,000 and Treasurer Josh Fryndenberg has pledged that eligible workers will get it as soon as possible.
“If the legislation passes this week… the ATO staff are all ready to move it through the system and people will get it next week,” Mr Frydenberg told Sky News.
Picture: AAP
That is, of course, once people have lodged their tax returns for the 2018-19 financial year.
“Once they put in their tax returns, if they put in their tax returns next week, they’ll get it just days after,” he said.
For those Australians who might have already done their tax since we ticked into a new financial year yesterday – and good on them for being so diligent – they won’t miss out.
“The ATO will itself automatically update and they won’t have to put in another tax return,” he said.
Either way, Mr Fryndenberg promised that “the benefits will flow quickly”.
But that could hinge on Labor’s support.
Picture: Kym Smith
The Coalition is putting all three parts of its package before parliament and the Opposition wants to split it up.
Here’s a summary of their beef.
Labor likes Stage One and will support it. It also likes Stage Two, which will expand the 32.5 per cent tax rate to those earning $120,000, up from the current threshold of $90,000.
But, Treasury spokesman Jim Chalmers will introduce an amendment bring forward that change, which the government wants to delay until 2022.
Stage Three, which would see a flat tax rate of 30 per cent for anyone earning between $45,000 and $200,000 in 2024-25, is the sticking point.
Labor thinks it’s too expensive and unfair, and thinks the state of the economy makes it impossible to forecast whether there would money in the Budget for it in several years’ time.
Picture: Getty Images
The simmering brawl over tax cuts is reaching boiling point, with Labor remaining unwilling to support in full the plan, instead calling for compromise.
“What we are going to do is to fight for making this package better for the economy and also fairer,” Opposition Leader Anthony Albanese told reporters this morning.
“We're prepared to facilitate debate, we're doing that tonight because we understand that the economy needs a stimulus and that's why we want Stage One of the tax cuts passed immediately. And Stage Two to be brought forward as well.”
Picture: Kym Smith
Prime Minister Scott Morrison said there will be no compromise with Labor and instead the government will work with the crossbench to pass the package he took to the election.
It could be successful there. A number of crossbench figures have hinted at their support and so Mr Morrison might not need Labor after all.
“We'll continue to work these issues through the parliament and as the week progresses I think people will see where (the crossbenchers) ultimately place their support,” Mr Morrison said.
Mr Frydenberg is expected to introduce the tax package bill tonight, which will pass the House of Representatives where the government has a majority.
It will then go to the Senate, where things are a little more interesting.
So, in summary, if it passes, a whole stack of Aussies will see that promised $1080 – when they do their tax returns – from next week onwards.
It's a bit like high school
An interesting observation from an ABC journo from inside the Senate while the Governor-General gives an opening address.
Coalition MPs forgoing a comfy leather seat next to Malcom Roberts to instead cram onto inferior seats along the wall of Senate chamber. He’s the only person without someone sitting next to him on that side of the chamber #auspol
Labor says the Reserve Bank’s historic rates cut is proof that the government should accept amendments to its tax plan.
Shadow Treasury spokesman Jim Chalmers has been quick off the mark, putting out a statement shortly after the RBA’s announcement.
In it, Mr Chalmers said the national economy is clearly in trouble and called on Prime Minister Scott Morrison to abandon the third part of his tax cuts proposal and bring forward the second.
“It’s time for the government to do its bit and support Labor’s amendments, which would see every Australian worker receive a tax cut in this term of parliament,” he said.
Stage One offers a $1080 tax offset to Australians earning up to $126,000, which Labor supports.
Stage Two lifts the 32.5 per cent tax income threshold to $126,000, from $90,000 currently, which Labor also backs but wants earlier.
Stage Three seeks to institute a flat 30 per cent tax rate for anyone earning between $45,000 and $200,000, and it’s this element that Labor wants scrapped.
It says that component is expensive, inequitable and risky, given the state of the economy.
“If the Liberals were doing such a good job (of) managing the economy, the Reserve Bank wouldn’t have had to cut the cash rate for two months in a row,” Mr Chalmers said.
Breaking: RBA cuts rates
The Reserve Bank has slashed interest rates by 25 basis points to an all-time low of one per cent. What does it all mean for you? Read Frank Chung's fascinating take.
Penny Wong’s sharp comeback
Labor Senator Penny Wong was stopped on her way into parliament this morning and peppered with questions about the tax cuts package brouhaha.
In summary, the Opposition is putting forward amendments to the government’s legislation, calling for Stage Two to be brought forward and Stage Three to be scrapped.
Check my earlier posts for an explanation of what all of that means.
But in a nutshell, Scott Morrison won’t negotiate, saying the election win gives the Coalition a mandate, and Labor also won’t budget.
“Look, there’s one party that is putting forward a proposition which will enable tax cuts for every Australian (in) this term (of parliament) and that is the Australian Labor Party,” Senator Wong said.
“There is only one party that is putting forward a tax plan that will give every Australian a tax cut this term, and it is the government which is holding those tax cuts hostage (for) cuts which they want to bring in next term after the next election. That remains our position.”
Picture: Getty Images
A journalist posed a question to Senator Wong that has been getting a lot today. If Stage Three does not come in until after the next election, why not deal with it then?
“If you’re not supporting Stage Three, why not just pass it and then repeal it if you’re elected?” she was asked.
“Thank you for running Labor strategy for us but we will run our own strategy,” Senator Wong replied.
Bishop's job also under fire
Julie Bishop’s new post-politics job is facing criticism from Labor, with Penny Wong declaring it “doesn’t pass the pub test”.
The former Foreign Minister has been appointed to the board of Palladium, a private consultancy firm that benefited from $500 million worth of lucrative government contracts under her watch.
Speaking to ABC News, Senator Wong said she believed it was a breach of the Ministerial Code of Conduct.
Picture: Tim Hunter
In addition to the issue of Palladium profiting from “decisions made while she was Foreign Minister”, Senator Wong said she had been hired thanks to her “extensive network of global contacts”.
“Now, the Ministerial Code says very clearly you can’t use information, knowledge… that you have attained as a minister that is not available to the general public,” Senator Wrong said.
“I think the statement by Palladium makes it clear Ms Bishop has been appointed because of her unique knowledge.”
Ms Bishop has said that she is confident her new role meets the standards and that she is receiving only a modest salary for her contribution.
But Labor is calling on Prime Minister Scott Morrison to intervene.
It comes as a motion is put to the Senate regarding former Defence Minister Christopher Pyne receiving a position with EY.
Abbott-slayer takes her seat
Zali Steggall has received a warm welcome to parliament from Labor leader Anthony Albanese.
Ms Steggall is the new member for Warringah after her sweeping defeat of veteran politician and former PM Tony Abbott at the election.
The independent was sworn in today, with her mum Sue, dad Jack and husband Tim watching on proudly from the public gallery.
Mr Abbott was elected to the Sydney seat in 1994. Ms Steggall received 43 per cent of the first preference vote on May 18.
Picture: AAP
Labor in a tricky spot on tax
Anthony Albanese is facing a major test of his leadership as parliament prepares to debate Scott Morrison’s tax cuts package.
The Labor leader is holding firm, saying he is happy to support the first two components of the plan but not the third.
Basically, Stage One is about giving low and middle-income earners a tax reprieve, and Stage Two is about extending the payment to others later.
But Stage Three is about overhauling the marginal tax rate, making the bracket it covers bigger, in several years’ time at a pretty enormous cost, and that is the bit Labor is not keen on.
Picture: Kym Smith
The problem is that the economy needs stimulus, which could be done by throwing money at spending Aussies as soon as possible. If Labor won’t budge, that risks being delayed. The other issue is that Labor lost the election and there is a pretty good argument that the Coalition has a mandate to pass its tax cuts plan in full.
Shadow Treasury spokesman Jim Chalmers says voters were not given enough information about Stage Three. Does that really matter if they voted for it anyway?
The government might not need Labor’s vote, with suggestions they’ll get enough crossbench support.
Picture: AAP
But either way, some commentators believe Mr Albanese’s staunch stance could leave a lingering stink.
Samantha Maiden over at The New Daily reckons some Labor frontbenchers are worried about the ramifications of blocking the tax cuts package.
There are figures who believe the Opposition needs to “regain the faith” with workers after its shock election defeat and should wave through the legislation.
Former prime minister John Howard has slammed Donald Trump, saying he is “not compatible” with democracy while also taking a shot at Democratic nominee Kamala Harris.
The vice-chancellor of one of the country’s biggest universities has issued an apology over what has been called “unacceptable” anti-Semitism expressed during an eight-week protest.
