Jacqui Lambie demands Tasmania debt relief for tax cuts support

Jacqui Lambie says she wants to see Tasmania’s debt from the government relieved if she’s to pass Morrison’s full tax cuts agenda.

Jacqui Lambie (centre) sits with Centre Alliance Senator Rex Patrick (left) and Stirling Griff during the official opening of the 46th Federal Parliament yesterday. Picture: AAP.

Independent senator Jacqui Lambie says she wants to see Tasmania’s debt from the federal government relieved if she is to pass Scott Morrison’s full tax cuts agenda.

Senator Lambie, in a statement to her supporters today, writes that she cannot “in good conscience” support tax cuts while the Tasmanian state government owes $157m to the Commonwealth in social housing debt.

The Tasmanian independent is the key vote the Prime Minister needs to pass through the cornerstone of his economic policy and election agenda.

“I am yet to arrive at a final position on the Coalition’s tax cuts,” Senator Lambie writes.

“People in Tassie are doing it tough and for them $1k in their back pocket now will give them some immediate relief. But there are thousands of Tasmanians who are on the pension, Newstart and don’t earn enough money to pay tax, and they don’t see any benefit from a tax cut.

“The State of Tasmania owes the Federal Government $157m in social housing debt. Tasmania is paying 50c in every dollar of our state housing budget back to the Federal Government in interest and debt repayments. That means we are building half as many homes, helping half as many people.

“This debt is holding Tasmania back and denying shelter to thousands of Tasmanian families. The Commonwealth coffers don’t need $15m a year from the Tasmanian budget. We’ve got families living in cars who need a roof and a meal, and they’re the ones I’m thinking about.

“There is no way in good conscience I can vote for substantial tax cuts without making sure that the people who so desperately need a roof over their heads aren’t left to go without.”

In the face of Ms Lambie’s demand the federal government relieves Tasmania of its debts, Finance minister Mathias Cormann said he is “always willing” to engage with crossbench.

“We are always happy to engage with Senators in relation to issues of concern to them and their constituents,” Senator Cormann said.

“We will be putting our plan for lower income taxes to the Senate tomorrow.

“We call on Labor and all other non-Government Senators to act in the national interest by supporting our income tax reforms in full.

“Our income tax plan is economically necessary and fiscally responsible and it was endorsed by the Australian people at an election.”

This morning. Mr Cormann said that the record low interest rate signals the need to swiftly pass Scott Morrison’s full tax cuts bill, and that it is delivering the growth push for which the Reserve Bank is calling.

“We are pursuing a pro-growth agenda which is, of course, enshrined in our budget,” he told Sky News this morning.

“Our budget was put together in the context of all the economic information that the Reserve Bank is acting on as well … the income tax plan, the whole point of it, is that it does provide both short-term cost of living pressure relief and short-term stimulus focusing on low and middle income earners.

“But also provides structural reform by taking the bracket creep monkey off people’s backs.”

Labor has also argued its calls for part of the second stage of tax cuts to brought forward will also deliver the stimulus necessary to bolster the economy.