PoliticsNow: Labor launches $80bn budget attack
PoliticsNow: Bill Shorten and Labor have hounded the government in Question Time for details of their tax plan.
Welcome to a post-budget PoliticsNow, The Australian’s live blog on the happenings in federal politics.
Four MPs — Susan Lamb, Josh Wilson, Justine Keay and crossbencher Rebekha Sharkie — have resigned after Labor senator Katy Gallagher was deemed ineligible to sit in federal parliament by the High Court.
Bill Shorten and Labor have hounded the government for details of their tax plan in a fiery post-budget Question time.
And that’s where we will end our live coverage, join us again tomorrow for all the latest news, including the Opposition Leader’s budget reply speech.
5pm: Greens push to axe ’tampon tax’
The Greens have introduced a bill to parliament which would axe the GST on tampons, AAP reports.
Greens senator Janet Rice’s motion to introduce the legislation was on Wednesday backed by independents David Leyonhjelm and Derryn Hinch, and Centre Alliance’s Stirling Griff.
While the states have to agree to changes to GST, the Greens argued federal parliament has the power to exempt items such as women’s sanitary products.
Greg Brown 3.17pm: Labor MPs yet to formally resign
Leader of the House Christopher Pyne asks Speaker Tony Smith if the four MPs who announced they would quit parliament had handed in their resignations.
It came after question time, where there was no mention of Bill Shorten’s citizenship woes.
Smith says there had been no resignation documents given to him and reminded them they needed to do that.
He says they can continue to use their entitlements as MPs until they formally resign.
Greg Brown 3.10pm: Labor not backing down
Labor’s Chris Bowen again asks Scott Morrison why the parliament should vote in favour of the government’s income tax cuts when they don’t know the details of the costings.
The Treasurer says it will cost $140 billion over a decade and $13.4bn over the forward estimates.
“We have been very clear today and we have provided than those opposite ever provided in opposition,” he says.
Morrison accuses Labor of trying to invent a failing in the policy as an excuse to not support it because it needs the funds to pay for its high spending plans.
Greg Brown 3.03pm: Single-year estimates ‘too difficult’ a decade out
Bill Shorten asks if the government is refusing to provide answers about the specific cost of each part of the tax plan and the year-by-year cost.
Scott Morrison says single year estimates a decade out are too difficult to predict.
“The Leader of the Opposition may be very used to changing the rules to suit himself in the union movement and the opposition,” he says.
Greg Brown 2.52pm: Bowen heckles Morrison over year-by-year breakdown
Labor’s Chris Bowen heckles Scott Morrison for not providing a year-by-year cost of the income tax cuts because the numbers would be unreliable.
“If the Treasurer won’t say what the year by year cost of the scheme is, and he also says the costing is unreliable, how could the Treasurer of the parliament vote for it?”
Morrison says Bowen was trying to be as “tricky” as Bill Shorten.
“If the opposition wants to deny Australians lower taxes, then they should just be honest about it. They should not come in here looking for excuses,” he says.
Greg Brown 2.42pm: Bowen’s ‘lack of understanding’
Labor’s Chris Bowen asks why Scott Morrison will not release the cost of the government’s tax plan will be each year over the next decade.
The Treasurer says the question shows a lack of understanding on how budgets are put together.
“He was once a treasurer, not for very long, and we will work very hard on this side of the House to ensure he doesn’t get that opportunity again, because of a lack of understanding that he has demonstrated in this place about how budgets are put together,” Morrison says.
“I have made it very clear that the cost of that measure over the medium term is $140 billion.”
Greg Brown 2.38pm: Costs won’t be released for each stage of tax cuts
Labor’s Chris Bowen asks if the government will release the costs of each step of its income tax cuts.
Malcolm Turnbull fobs it, using the $140 billion for the entire plan.
“The question that the member for McMahon and his leader can’t answer is what is going to happen to the Australian economy and thousands of jobs if they were able to manage their tax plan, which is putting up taxes on businesses, on families,” the Prime Minister says.
Greg Brown 2.32pm: Long-term estimates out of the queston: PM
Bill Shorten asks if the real cost of the company tax cuts over the next decade is more than $100 billion.
Malcolm Turnbull says he can’t predict corporate profitability.
“Asking what company tax receipts will be 10 years from now is effectively asking what will be the profitability of the corporate sector 10 years from now. Medium-term estimate has been provided,” the Prime Minister says.
Greg Brown 2.30pm: Government dodging ‘the big question’
Bill Shorten goes yet again on the full cost of the government’s company tax cuts.
He says Malcolm Turnbull, Scott Morrison and Finance Minister Mathias Cormann have all refused to answer the question.
“What is the total cost of corporate tax cuts over 10 years from July 1, 2018, both legislated and proposed to be legislated by the government?”
The Prime Minister won’t name the big figure.
“I refer him to the earlier answer. The medium term cost of the unlegislated component of the enterprise tax plan currently before the Senate is $35.6 billion over the period from 2016/17 to 2027/28. And in 2027/28 the projected cost of that is around $9.8bn,” he says.
Greg Brown 2.28pm: ‘Extra effort, extra reward’
Scott Morrison uses are Dixer to sell the income tax cuts unveiled in last night’s election.
The Treasurer says the seven year tax plan was affordable but takes the cost of living pressures off families.
He says, under the tax proposal, workers will know that if they put in extra effort they will get extra reward.
“On top of that, we are acting to remove the impact of bracket creep and simplify the tax system in this country,” Morrison says.
“That means that 94 per cent of working Australians paying taxes in this country will face a marginal tax rate of no higher than 32.5 cents in the dollar.”
Greg Brown 2.19pm: ‘I know maths is not your strong suit’
Scott Morrison gets another question about the 10 year cost of the government’s proposed company tax cuts.
The Treasurer does not want to say the full figure.
“Add $9.8 billion to the cost. It is that simple. I know maths is not your strong suit and no one on that side can help you. Just add $9.8bn. It is simple,” he says.
Greg Brown 2.14pm: Labor relentless on tax cuts
Opposition treasury spokesman Chris Bowen goes again on the total cost of the government’s tax plan in the decade from 2108.
Scott Morrison says the total cost of the unlegislated tax cuts is $35 billion until 2018, and nearly $10bn the following year.
“I will let the shadow treasurer add up if he can,” the Treasurer said.
He accused Labor of wanting to wind back tax cuts for companies with a revenue of up to $50 million per year.
Greg Brown 2.05pm: Question Time begins
Bill Shorten opens question time asking the total cost of the corporate tax cut over 10 years from July.
Malcolm Turnbull says Labor has been falsely been using an $80 billion figure to describe the budget hit from the full company tax plan.
“What the Labor Party is demonstrating in its questions, and a reference to an $80 billion figure, to which they have simply added $15bn to $65bn, has no financial basis,” the Prime Minister said.
“What they want to do is not simply oppose the unlegislated tax cuts for larger businesses, but (also) repeal the tax cuts for Australian owned, family-owned businesses up to $50 million turnover, which employed 6.8 million Australians.”
Greg Brown 1.52pm: Labor’s 20-year-old legal advice
Bill Shorten has claimed the High Court made a “new” and “stricter” test on judging the eligibility of MPs under section 44 of the Constitution as he labelled the coming by-elections as a referendum on company tax cuts.
In an embarrassing day for the Opposition Leader who had repeatedly claimed no Labor MPs would be implicated in the citizenship fiasco, Mr Shorten claimed he had always acted in good faith.
“In good faith, our candidates and the Labor Party and I have relied on advice that’s been the same advice for over 20 years,” Mr Shorten said.
“But the High Court has looked at the facts in Senator Gallagher’s matter, they have developed a new test, a stricter test, and we have accepted that.
“At these by-elections which weren’t sought, it’s an early opportunity for Australians to cast their view on Mr Turnbull’s proposal to give $17 billion to the big banks.”
Mr Shorten said Labor would not release its legal advice telling the party that Katy Gallagher, Susan Lamb, Josh Wilson and Justine Keay were eligible because they had taken all reasonable steps to rescind their foreign citizenships.
“At all times, the Labor Party has act in good faith. I have relied upon the legal advice provided to me by the Labor Party, the same advice provided to Labor leaders since the mid-90s,” he said.
Mr Shorten said he is “confident” Ms Lamb would be eligible to run for the next election despite being a current British citizen.
“I’m not aware of each piece of paper she has but I am more than confident that as we read this new decision she will be eligible to nominate,” he said.
“The British High Commission will realise they need to process these matters for candidates a lot more quickly.”
Manager of Opposition Business Tony Burke said there was still a cloud over the eligibility of Liberal MP Jason Falinski and he should be referred to the High Court.
Jaren Owens 1.50pm: Roy won’t seek preselection
Former Liberal assistant minister Wyatt Roy, who held Longman between 2010 and 2016, told The Australian he would not seek preselection for his former seat vacated by Susan Lamb.
Mr Roy, now general manager of tech firm Afiniti, said he’d been encouraged to run by his colleagues but was happy in private enterprise.
Michael Owen 1.25pm: Downer ‘sure starter’ for Mayo
Georgina Downer, daughter of former federal Liberal leader Alexander Downer, is a “certain starter” for preselection in the one-time blue ribbon Adelaide Hills seat of Mayo.
A senior Liberal said Mr Downer told party figures at a social event on the weekend that his daughter was a definite starter for the Mayo preselection, either at a by-election if Ms Sharkie was referred to the High Court over her citizenship or at the next general election.
Greg Brown 1.22pm: ‘I’m not done yet’
Ms Lamb also said today’s High Court ruling changed the way section 44 of the Constitution was interpreted.
“In light of this judgement, I’ll be resigning as the member for Longman and I will recontest my seat in a by-election,” Ms Lamb said.
“I am not done yet. I put up my hand to represent people who were just like me. To represent the workers who rely upon a job, a good job, a secure job, a safe job, with fair pay.
“I put my hand up to be a voice for parents in Morayfield with families who need schools to deliver an education that their children need.”
Resignations of @SusanLambMP, @JoshWilsonMP, @justinekeay and @MakeMayoMatter will lead to 4 by-elections. pic.twitter.com/fnKNAA2gcs
— Sky News Australia (@SkyNewsAust) May 9, 2018
Greg Brown 1.20pm: ‘Don’t underestimate law’s impact’
Mr Wilson said he rescinded his British citizenship shortly after he realised he would be Labor’s candidate for the 2016 election, after Labor’s former Fremantle candidate quit.
He claimed the High Court decision “changed the way the law is understood and interpreted” under section 44 of the Constitution.
Mr Wilson warned the draconian citizenship laws would prevent too many people from joining parliament.
“We shouldn’t underestimate the impact of the interpretation that’s been provided today that will change the way the electoral system works in this country,” Mr Wilson said.
“It will mean for up to one fifth of all Australian citizens who are, or who may be entitled to citizenship of another country, that their ability to participate in federal elections will be significantly constrained.
“Any current dual British citizen who might think of contesting the by-elections which are about to occur, would find that they are prevented from doing so under the current interpretation.”
Greg Brown 1.15pm: ‘We will keep fighting’
Justine Keay said the people of Braddon needed a Labor government that would “invest in them and put them first”.
“We will keep fighting, this is bigger than us, it is about giving a voice to those who feel they don’t have one, this is about helping people, that is why I am here,” she told the House of Representatives.
“It is about making our region as wonderful as it is better and better.”
Ms Keay claimed she always believed she was eligible but the High Court’s decision today set a “new precedent”.
“Today the High Court has set a new precedent, this is a new rule and I respect this rule without qualification,” she said.
Rachel Baxendale 1.12pm: ‘Keay knew she was in strife’
Tasmanian Liberal powerbroker Eric Abetz said Justine Keay’s predicament had been clear for months, and she should have resigned in October, rather than claiming more than $100,000 in salary in the interim.
“At every step along the way Ms Keay knew she was in strife,” Senator Abetz said.
“In October, following the High Court’s earlier decisions I called on her to resign. Instead of doing the honourable thing, she went on to claim more than $100,000 in taxpayer-funded salary despite constantly failing to deliver for her electorate.”
Senator Abetz accused Ms Keay of deceiving her electorate of Braddon.
“While I am pleased she has finally done the right thing, it is disappointing that she, backed by Bill Shorten and (Tasmanian Labor leader) Rebecca White, engaged in a long-running deception against the people of Braddon despite ‘rolled-gold’ assurances,” he said.
“In this by-election the choice couldn’t be clearer: a strong and stable Liberal Government that delivers for the North West or a dysfunctional Labor candidate solely focused on holding onto the trappings of office.”
Ben Packham 1.10pm: ‘Sorry for inconvenience’
In her resignation speech, Ms Sharkie said: “I was disappointed to learn of the High Court decision regarding former Senator Katy Gallagher but obviously respect the decision of the Court and understand the implications for me.
“Consequently I will resign from the Australian parliament today and seek re-election at the forthcoming by-election.
“I apologise to the people of Mayo for this turn of events and for the inconvenience a by-election will cause them.”
She said she would remain with the Centre Alliance team, which also has two representatives in the Senate.
Greg Brown 12.57pm: Susan Lamb goes
The citizenship drama will lead to at least four further by-elections as three Labor MPs and crossbench senator Rebekha Sharkie have resigned from parliament after the High Court ruled senator Katy Gallagher was ineligible.
Labor MP Susan Lamb will recontest the Queensland seat of Longman, whole Justine Keay will fight in the Tasmanian seat of Braddon and Josh Wilson will attempt to hold onto the West Australian seat of Fremantle.
Crossbench MP Rebekha Sharkie will request for a by-election in the South Australian seat of Mayo to be held on June 16.
Greg Brown 12.55pm: Josh Wilson resigns
Labor MP Josh Wilson has told the House of Representatives he will resign from parliament and contest a by-election in the West Australian seat of Fremantle.
“I cannot imagine a more meaningful kind of work than to serve your community,” Mr Wilson said.
Greg Brown 12.45pm: Sharkie, Keay resign
Crossbench MP Rebekha Sharkie and Tasmanian Labor MP Justine Keay have resigned from parliament and will contest by-elections.
Ms Sharkie, the first MP to enter the lower house under the Nick Xenophon team, will ask for a by-election to be held in the South Australian seat of Mayo at June 16. Ms Keay will fight to hold onto the seat of Braddon.
12.10pm: More Labor MPs next to go?
The Turnbull government wants four MPs to resign on Wednesday after the High Court disqualified Labor senator Katy Gallagher over her dual citizenship
Attorney-General Christian Porter says therefore it’s time for Labor MPs Susan Lamb, Justine Keay and Josh Wilson, as well as independent Rebekha Sharkie to stand down, given their British ancestry.
“Bill Shorten must require the resignation of those three Labor members today, and that must occur before close of business today,” he told reporters in Canberra on Wednesday.
AAP
Jared Owens 11.50am: ‘Dud for Queensland’
Queensland Treasurer Jackie Trad has labelled the federal budget a “dud” for Queensland, criticising the government for refusing to support Brisbane’s Cross-River Rail project.
Ms Trad’s complaint comes despite her government pledging to fully fund the railway upgrade regardless of whether the commonwealth comes through with the money.
“Queensland gets the crumbs and other jurisdictions get the lion’s share of a range of programs and infrastructure projects,” she said.
Ms Trad said the $5.2 billion pledged for Queensland infrastructure included many projects already announced, and the state would need to wait five years for much of the money.
Asked if she supported cutting personal income taxes, Ms Trad welcomed tax relief for low and middle-income earners but noted many of those earners would lose income through reductions in penalty rates, ordered by the Fair Work Commission, that the federal Coalition was refusing to veto.
“For the full effect of these tax cuts people have to wait around for seven years - for seven years! It is a promise on the never-never,” she said.
Jared Owens 11.45am: ‘Don’t ignore open data regime’
Australian Banking Association chief executive Anna Bligh says one of the most important aspects of the budget has barely rated a mention in post-budget analysis.
The budget continues moves towards an “open data regime” which gives customers control over their personal data that was previously considered the property of companies, such as their banking and bill-paying histories.
“The open data regime will completely flip that on its head and essentially mean that … you will be entitled to walk into your bank and ask them, literally with the flick of a switch, to send all of your data – if you want – to one of the bank’s competitors in order to negotiate a better rate for example on a mortgage or a credit card,” she told PwC’s post-budget breakfast in Brisbane via video-link from Canberra.
Ms Bligh, a former Queensland Labor premier and treasurer, said the move would start with the banks and was expected to move to telcos and utilities firms.
“Long after people have stopped diving in about these tax cuts or infrastructure funding in this year’s budget, it’s this sort of regime that will be changing the way we interact with big corporates.”
Ms Bligh said the budget was designed to be a “crowd pleaser” and was built on some “robust” projections.
11.36am: Hawke ‘had a fall’
Former prime minister Bob Hawke is still in hospital and had minor tests after he had a fall and hit his head.
He is keen to get home to his “cigar and crosswords” after being admitted to Royal North Shore hospital on Monday evening.
Greg Brown 10.55am: ‘Not just about budget win’
Australian leaders should stop focusing on getting a political “win” out of budget debates and focus on crafting a “coherent story” about the nation’s economy, New Zealand’s former prime minister John Key has warned.
Mr Key, whose eight-year centre-right government overhauled his nation’s economy, said Australia needed to continue opening itself up to global markets rather than kowtowing to populists.
“Politicians who get up and say ‘be afraid of migration’, ‘don’t allow foreign investment’ all of these things that close the economy; ‘don’t do trade deals’, and they’re bloody dreamers and they’re selling you a false myth,” Mr Key told PwC’s post-budget breakfast in Brisbane.
Mr Key called out One Nation leader Pauline Hanson and NZ deputy prime minister Winston Peters, leader of the New Zealand First Party, by name.
Mr Key said the individual reforms of his government – including raising the GST, privatizing government assets, loosening labour laws and reforming welfare entitlements – were individually unpopular.
“But collectively they liked the prescription, and eventually they just said ‘you know, it’s like medicine; I don’t like taking the individual medicine but I want to be well at the end of it’,” he said.
“I think that’s what’s got to get back into the Australian psyche of politics, that it’s not just about ‘do I win the budget on this?’; it’s about selling a coherent story like the chief executive would of a company, what does it take ultimately to make Australia continually successful.”
Greg Brown 10.20am: Gallagher out over citizenship
Labor senator Katy Gallagher has been thrown out of politics after the High Court found she was ineligible to sit in parliament.
The full bench of the High Court has ruled the ACT senator breached section 44 of the Constitution for failing to rescind her British citizenship before the 2016 election.
Bill Shorten will now face pressure over three other Labor MPs who may be in breach of section 44: Susan Lamb, Josh Wilson and Justine Keay.
Greg Brown 9.50am: Labor ‘ready for new court precedent’
Bill Shorten says Labor would deal with a “new precedent” if the High Court today deems senator Katy Gallagher is ineligible over her citizenship.
The Opposition Leader would not say what would happen to three other Labor MPs whose citizenship also means they have questions regarding their eligibility if Senator Gallagher is struck out of parliament but vowed to respond to the ruling.
“What I’ve learned to do is, I’m not going to predict what is going to happen in five hours. But let me say this; if the High Court sets a new precedent, the Labor Party will deal with it,” Mr Shorten.
“If there’s a new precedent set, we’ll deal with that but in the meantime, I just want to reassure Australians who are wondering can they trust this government to give a tax rise in seven years, probably not.”
There are also questions surrounding the eligibility of Labor MPs Susan Lamb, Josh Wilson and Justine Keay.
Greg Brown 9.40am: Morrison tables tax reform bill
Scott Morrison is tabling the government’s tax reform bill in the House of Representatives.
The bill is expected to easily pass the lower house but its fate in the Senate is less certain.
“Our plan will deliver a personal income tax system that is lower, that is fair, that is simpler,” the Treasurer said.
Greg Brown 9.20am: PM cautious on Iran deal
Malcolm Turnbull says he is disappointed Donald Trump has pulled out of the Iran nuclear deal but believes a version of the agreement can stay alive without the support of the US.
The Prime Minister said he was “reasonably optimistic” that all sides would show restraint and the US’ withdrawal would not have serious consequences for global politics.
“I wouldn’t foreshadow a complete unravelling of the deal there is a commitment certainly from the other parties to the deal,” Mr Turnbull told ABC radio
“Iran has certainly indicated they will heed restraint so far but time will tell, you have to be very cautious in your forecasts here but I wouldn’t be rushing off to dire scenarios.”
Foreign Minister Julie Bishop said the Joint Comprehensive Plan of Action should remain until there is a better alternative.
“Australia is disappointed that the United States has announced its withdrawal from the Joint Comprehensive Plan of Action that places restrictions and limits on Iran’s nuclear program,” Ms Bishop said in a statement.
“The Australian Government has consistently said that the JCPOA should remain in force until such time that an alternative agreement can be negotiated.
“While the US decision creates uncertainty for the future of the JCPOA, we strongly encourage Iran to continue to abide by its provisions.
“Australia shares, with members of the international community, concerns about elements of Iran’s behaviour in the Middle East and urges all parties in the region to refrain from conduct which contributes to instability or conflict.”
Samantha Huchinson 9.05am: ‘A very sensible job’
Personal income tax cuts were a sensible way to take advantage of a surprise revenue surge, despite a growing deficit, according to former Prime Minister John Howard, who has backed the Turnbull government’s budget as a “world class document.”
Addressing a PWC post-budget briefing in Melbourne, Mr Howard said Treasurer Scott Morrison had made the right decision in a pre-election budget to prioritise tax cuts alongside paying down debt.
“I think the government has done a very sensible job,” Mr Howard said.
“It’s not sensible to dedicate the full amount of the windfall to reducing the deficit.”
He endorsed the budget as a “world class document”, but said the government now needed to focus on industrial relations reform in order to drive competitiveness and ensure future employment prosperity.
While Opposition leader Bill Shorten has attacked the spending plan for favouring big business over low wage earners, Mr Howard said it struck a balance between offering tax relief, while also making tough decisions to pay down an $18.2 billion deficit.
Mr Howard also noted that Mr Morrison was grappling with unprecedented, peculiar economic conditions, with interest rates at record lows while wages were stagnating, but employment rates were stable.
“People have kept their jobs but the trade off has been lesser increases in wages,” he said.
He pitched industrial relations reform as a way that could lift competitiveness and wages, as well as guarantee more jobs going forward.
Other speakers at the briefing included former Victorian Premier John Brumby, who said big tax cuts for high income earners would be a “hard sell” for Malcolm Turnbull.
“This is going to be a hard sell for the government,” Mr Brumby said, noting that high income earners stood to receive a tax cut of 10 per cent compared to low income earners at 3 per cent.
He said voters would likely perceive it to be unfair, likening it to Tony Abbott’s budget of 2014-2015 which was perceived to cut to hard and too deep.
He also railed against the government’s reliance on personal income and company tax collections for revenue, saying that efforts to broaden the GST and revenues had failed.
Mr Brumby backed Treasury estimates which predict incomes will rise marginally in the coming years, as did Mr Howard who said that their assumptions are usually more than less conservative.
“I think the forecasts in the budget are fairly in the money, I don’t think they’re over exhuberant,” Mr Howard said.
He said Australia had benefited from growth in the US economy and a faster than expected recovery in Europe.
Remy Varga 8.55am: ‘Suicidal’ to block tax cuts
Senator Derryn Hinch said Labor would be “suicidal” to block tax cuts to lower and middle income earners.
The Coalition’s personal income tax cuts saving voters $10 a week would kick in from July 31 but Prime Minister Malcolm Turnbull has doubled down this morning saying the seven year tax plan will not be split to appease the Opposition.
“The government should be allowing most of the budget through in general… and I have said about these omnibus bills before... Labor would be suicidal to not let the first part through,” he told ABC Radio.
Mr Hinch said he has only spoken to Senator Tim Storer from the crossbench who strongly opposes company tax cuts and suggested Mathias Cormann cosy up to the left over Xenophon senators.
He said the Newstart rate would remain an issue with the Greens, Labour and himself continuing to push for an increase in the welfare payment. “These are not only pimply faced 20-year-olds who don’t want to work… these are 35, 55-year-old men and women who’ve been made redundant or just have been sacked and they need a job,” he said. “Newstart is there supposedly to help them out while they get there.”
Greg Brown 8.50am: All or nothing plan ‘crazy’
Bill Shorten says the government would be “crazy” to take an all or nothing approach to its tax plan and put at risk tax breaks for middle and lower income earners.
.@billshortenmp on tax cuts: We’ve already worked out we’ll support phase one. No problems. So why is the government holding millions of people hostage from getting $500?
— Sky News Australia (@SkyNewsAust) May 8, 2018
MORE: https://t.co/VwFo5sESkV#FirstEdition pic.twitter.com/3dzQemtIh3
The Opposition Leader said Labor would review the government’s entire package but was wary on tax breaks for higher income earners.
Malcolm Turnbull this morning said lower income earners would not get an immediate tax break unless the parliament supported its plan to phase out a tax bracket for people earning more than $87,000.
“I think they would be crazy to tell people on low incomes that because (Labor) does not immediately rush to sign up to fictitious tax cuts in seven years time that somehow they should miss out in six weeks time on $10 a week,” Mr Shorten told Sky News.
“I think this government needs to actually negotiate with Labor, the old Scott Morrison, foot stamping, sort of shouty negotiations, this budget was handed down last night. Mr Turnbull could not even say on radio today how much the cost of his, I think fairly mythical, tax cut plan is, (but) it is $140 billion as I understand it.
“Just putting a gun to our head and saying some people won’t get $10 a week unless we agree to sign over $140bn of taxpayer money, for us the detail does matter.”
Greg Brown 8.15am: ‘All or nothing’
Malcolm Turnbull says it is all or nothing for the government’s tax plan, with low and middle income earners to miss out on a tax break if Labor blocks relief for people earning more than $87,000 a year.
The Prime Minister said the government’s seven year tax plan would not be split to win partial support of the opposition, putting pressure on Bill Shorten to agree to a long term measure to eliminate the tax bracket for people earning more than $90,000.
Vowing there would be no early election on the back of the budget, Mr Turnbull attacked Labor for criticising the elimination of a tax bracket by 2024.
PM @TurnbullMalcolm: This is an income tax plan and we are asking the parliament to support it all. The budget is calibrated to ensure those on low and middle incomes are the first to get the benefit.
— Sky News Australia (@SkyNewsAust) May 8, 2018
MORE: https://t.co/VwFo5sESkV #Budget2018 #FirstEdition pic.twitter.com/RNUI1Xb2NK
“The important thing is to have a long term plan, it is one tax reform plan,” Mr Turnbull told ABC radio.
“This tells you all about the Labor Party: they do not plan for the long term.”
The government will today introduce a package to parliament that would give immediate relief to people earning less than $90,000 while also eliminating the 37 per cent tax bracket by 2024.
Mr Turnbull said it did not matter the tax changes for higher income earners were six years away because they should be legislated immediately. He said the Opposition Leader thought the government “owned the money”.
“We are asking parlimanent to legislate this tax relief right now,” he said.
“What this is about is ensuring that Australian families can keep more of the money they have earned. It is a big indicator of the attitude, the disrespect the Labor Party shows for hard working Australian families that they regard tax relief as a giveaway.”
He added the highest income earners would pay a larger percentage of tax under the government’s full tax plan.
Remy Varga 7.30am: ‘No rivers of gold’
Mathias Cormann says the government isn’t relying on “rivers of gold” in the form of ongoing high commodity prices to fund their newly unveiled budget.
The Finance Minister is out early spruiking the Coalition’s budget which he says is all about rewarding hard working Australians and responsible fiscal management.
“We believe this is a responsible, an affordable, fully funded plan which off course is reflected in our budget bottom line we return to surplus one year early.” he said on Sky News.
Mr Cormann said Scott Morrison’s personal income tax reforms would not herald the end of a progressive tax system in Australia but would offer much needed relief for low and middle income workers.
“There would still be a 45 per cent top marginal tax rate for those on incomes above 200,000… but for hard working Australians, low and middle income workers, the aspirational middle class of Australia to get ahead... would not face more than 32.5 per cent on their income,” he said.
VERDICT: Don’t hold your breath
Mr Cormann did not reveal whether the Coalition had received the support of the Senate crossbench, which the government will need to pass the new Budget measures instead saying they would “continue conversations.”
He defended the government’s decision not to increase Newstart payments which have been widely criticised in recent weeks for not being able to support rising living costs.
Mr Cormann said the Newstart allowance was intended as a transitional payment and most recipients receive additional forms of income support.
“Most people on Newstart allowance do not just receive Newstart allowance they receive welfare income support payments from a range of other sources.” he said. “Now in all of the circumstances we clearly made a decision that in this budget it wasn’t something we would be able to accomodate.”
.@MathiasCormann: The Newstart Allowance is not permanent, it is a transitional payment while you try and get work. Most people on this allowance receive welfare support payments from a range of other sources.
— Sky News Australia (@SkyNewsAust) May 8, 2018
MORE: https://t.co/YS9h1B3q11 #Budget2018 #FirstEdition pic.twitter.com/5A8yVdszq2
7.00am: Tax plan won’t be broken up
The federal government won’t break up its seven-year tax plan revealed in the budget in order to get it through parliament.
Treasurer Scott Morrison today confirmed the coalition would present the three phases of its seven-year tax plan as one package to parliament, despite Labor signalling it would likely only support the first stage - a tax rebate to low and middle-income earners.
“I’m introducing the whole plan, and it’s a test for Labor - do they want taxes to be lower or do they want them to be higher,” Mr Morrison told Sky News. “If Bill Shorten doesn’t back the whole plan then Bill Shorten has told Australians he thinks taxes should be higher.” Crossbench senator Tim Storer has also signalled he’s unlikely to change his mind and back the company tax.
“I’m not convinced ... that it will be the right thing to do in terms of the stated aim of growing investment and employment and wages,” he said.
But he will support the first phase of cuts for lower and medium earners, which Mr Morrison is expected to introduce into parliament this morning. “I think that’s welcomed and will be directly stimulatory to our GDP,” he said.
Finance Minister Mathias Cormann told Sky News the government would “continue the conversation with Senate crossbenchers on all of our budget measures.” That would include convincing senators such as Senator Storer of the value of the company tax benefit to all Australians.
“Workers around Australia need us to ensure that the businesses that employ them are not put at a permanent disadvantage to businesses overseas.”
.@MathiasCormann: Our plan for stronger economic growth, more jobs and for the government to live within its means is working.
— Sky News Australia (@SkyNewsAust) May 8, 2018
MORE: https://t.co/VwFo5sESkV #Budget2018 #FirstEdition pic.twitter.com/vJdJm9oewg
6.50am: NSW ‘massively short-changed’
The NSW premier has been accused of failing to stand up for her state’s taxpayers after the federal budget allocated just $1.5 billion to NSW-based infrastructure projects.
The funding is part of almost $25 billion set aside for national projects, many of which were confirmed before the release of the budget.
Opposition treasury spokesman Ryan Park declared NSW was the highest-taxed state in Australia.
“NSW has been massively short-changed when it comes to important infrastructure,” he posted on Twitter.
“Gladys (Berejiklian) has failed to stand up for NSW taxpayers.”
NSW has been massively shortchanged when it comes to important infrastructure. Gladys has failed to stand up for NSW taxpayers. The highest taxed state in Australia. #budgetfail
— Ryan Park MP (@RyanPark_Keira) May 8, 2018
6.40am: ABC cuts ‘efficiency dividend’
The government has defended its cuts to Australia’s national broadcaster the morning after delivering a budget focused on tax.
A three-year funding freeze will cut $84 million from the ABC, alongside a decision to axe $43 million in funding for news and current affairs. But Finance Minister Mathias Cormann said the ABC would still receive $3.2 billion over those three years.
“This is effectively equivalent to the efficiency dividend that applies to nearly all other government taxpayer-funded organisations,” he told the ABC today.
“Nearly all other government-funded, taxpayer-funded organisations have to find productivity improvements and operation efficiencies.”
AAP
Rachel Baxendale 6.30am: Labor will back July 1 tax start
Bill Shorten will back the first stage of Scott Morrison’s personal income tax cuts for low and middle income earners, set to be debated in the House of Representatives tomorrow to apply from July 1.
But Labor has not indicated what it will do with the rest of the income tax cut package, which it has slammed as being “off in the never never” in a scathing assessment which treasury spokesman Chris Bowen said had “failed to fix five years of unfairness”.
Budget 2018: Biggest income tax cut since Howard’s day
What’s making news
Scott Morrison has pledged $140 billion in personal income tax relief over the next decade and deliver a top tax rate of 32.5 per cent for middle-class Australia.
Older Australians will be able to stay in their homes longer with the home-care program expanded by 14,000 places, but there’s a sting in the tail for those going into nursing homes.
Michelle Guthrie has vowed to oppose ABC cuts, in her most combative comments yet towards the government.
Paul Kelly writes that this budget does something unusual for this government; it brings down a popular tax package aspiring to change overall the atmospherics of the tax debate.
If you were a bookie taking bets on an early election, last night’s budget speech certainly shortened the odds, writes Peta Credlin.
Do punters care about national debt?
How many voters consider national debt important? The PM and his treasurer will soon find out.
All politics, no economics
Budgets are now four parts politics and one part economics. So expect upgraded infrastructure plans.