Federal budget 2018: crossbench still not convinced
Key crossbenchers are now less likely to support the corporate tax package.
Key crossbenchers say they are less likely to support the corporate tax package following the delivery of Scott Morrison’s third budget, with Centre Alliance senator Stirling Griff saying “it’s had a bit of a reverse effect on us”.
The Centre Alliance grouping, formerly known as the Nick Xenophon Team, said earlier this week that the budget would help shed light on whether there was a more compelling case for the government’s plan to reduce the corporate rate to 25 per cent for all companies by 2026-27.
Senator Griff said yesterday he was not convinced, arguing that the budget had provided a further incentive for the Centre Alliance — which holds two upper-house seats — to block the second phase of the government’s tax cuts estimated to cost $35.6 billion.
The government is two votes short of passing its corporate tax cut package through the parliament and has the support of One Nation, which controls three upper house seats, in addition to the crossbench votes of David Leyonhjelm, Cory Bernardi, Fraser Anning and Steve Martin.
It has yet to win over the two Centre Alliance senators, independent South Australian senator Tim Storer or Victorian senator Derryn Hinch.
The government also confirmed yesterday that the loss of Labor senator Katy Gallagher, a victim to the dual citizenship crisis engulfing both houses of parliament, would not change the balance in the upper house because she would be paired.
This was the approach when Coalition senators were found to be in breach of section 44 of the Constitution, which prohibits dual citizens from sitting in parliament, including former Nationals deputy leader Fiona Nash.
Senator Griff said he was concerned the budget papers did not provide sufficient government revenues in future years to accommodate the $65bn cost of the corporate tax cuts, arguing the numbers show the “government’s not going to be flushed with significant funds”.
He also cast doubt over the “validity of the additional dollars that are suggested to be coming in the next two years”.
“They are not going to be awash with money and the concern would still be that if the economy does end up going a little pear-shaped, the funds are going to have to come from somewhere.
“We don’t want to see a reduction in core community services. I thought it was going to be far more positive than what it is.
“It’s kind of had a bit of a reverse effect.’’
Senator Storer, who opposes the government’s corporate tax package, said the budget had not changed his mind. “The personal and company tax cuts proposed by the government do not amount to comprehensive tax reform. They do not encourage me to alter my opposition to any further cuts to company tax,” he said.
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