Labor fails to change tax cuts timetable

Scott Morrison’s $158 billion package is on track to pass the Senate after Labor attempts to fast-track stage two failed in the lower house.

Treasurer Josh Frydenberg yesterday. Picture: AAP

Scott Morrison’s $158 billion ­income tax cuts legislation is on track to pass the Senate after Labor attempts to speed up infrastructure spending and fast-track stage two of the government’s package failed in the lower house last night.

Negotiations with key crossbenchers Jacqui Lambie and Centre Alliance senators Rex Patrick and Stirling Griff will continue today, with the government confident of securing four of the six upper house votes it needs to win support for its full tax package.

Speaking in parliament after tabling the tax cuts legislation, Josh Frydenberg said the government plan would “lower taxes for hardworking Australians”.

“It puts more money in their pockets, it strengthens the economy, it rewards aspiration and it should be supported by this parliament,” the Treasurer said.

“Our tax plan was carefully developed and it was detailed comprehensively in this year’s budget before being put to the Australian people at the election just six weeks ago.

“Our tax cuts provide both short-term relief and long-term reform. Australians earning up to $126,000 a year will receive up to $1080 with more than 10 million Australians better off.”

The Treasurer was yesterday confident the government would win the required crossbench support to pass its full package by Friday, with the Prime Minister prepared to amend sitting hours to ensure its passage.

If passed through the parliament, the legislation would allow the Australian Taxation Office to pass on $1080 in immediate tax relief for lower and middle-income earners from next week.

Labor last night failed in its push to bring forward tax cuts scheduled for 2022-23, speed up infrastructure and carve out stage three, which from 2024-25 lowers the tax rate from 32.5 per cent to 30 per cent for Australians earning between $45,000 and $200,000.

Opposition Treasury spokesman Jim Chalmers said it was imperative to “get more money into workers’ hands sooner”, tying Labor’s argument on tax cuts with the Reserve Bank decision to slash interest rates.

Dr Chalmers said the rate cut “bolstered” Labor’s push for “more stimulus into the economy”, and flagged the need to fast-track infrastructure projects across the nation.

“The problem we have in this country is that Australians are worried about their mortgages, they’re worried about their wages, they’re worried about the slowing economy and Scott Morrison and Josh Frydenberg, they just want to pretend that nothing’s wrong,” Dr Chalmers said. “They just want to promise more of the same. More of the same tax cuts on the never never; more of the same infrastructure spending on the never never; more of the same same anti-union rhetoric.”

Anthony Albanese said the RBA rate cut showed the economy was “softening” and that Labor’s amendments were “putting the national interest before politics”.

The Prime Minister told government MPs yesterday that passage of the income tax cuts was “what the Australian people expect us to do this week”.

Senator Lambie said her constituents — “especially those lower-income ones” — would “like their tax cuts now”.