Pauline Hanson lists demands as she holds tax cuts plan to ransom

The One Nation leader lists what she wants while threatening to block the PM’s tax cuts agenda.

One Nation leader Pauline Hanson says she won’t support the government’s tax reform plan. Picture: AAP

One Nation leader Pauline Hanson has demanded a new coal-fired power station, a water diversion scheme and a royal commission into family law as she holds the Morrison government’s personal income tax cuts package to ransom, saying she was “not likely” to support the entire proposal.

Senator Hanson has a history of taking multiple different positions on Coalition bills, before ultimately supporting them, but said this morning she was not ready to back the tax cuts.

“At this stage, no I’m not,” she told the Nine Network this morning. “We’re talking about $158 billion over the next few years. I think there are more important issues out there that are of concern to the Australian people.

“I want to see a coal-fired power station built in Australia to reduce electricity prices and I want to see the Bradfield Scheme to ensure water security in Australia. Those two alone will cost $20bn to $25bn.

“Tax cuts? No. It’s important to get these other things on the agenda first and foremost.”

If, as expected, the Coalition wins 35 Senate seats, it will need the support of four out of six crossbenchers to push legislation through the upper house.

If the Greens, Labor and One Nation oppose the full tax cuts plan, the government could still legislate the package with the support of the two Centre Alliance senators, Rex Patrick and Stirling Griff, plus Australian Conservatives senator Cory Bernardi and incoming senator Jacqui Lambie.

Senator Hanson, who is set to control two Senate votes in the new parliament after her West Australian colleague Peter Georgiou lost his seat but Malcolm Roberts picked up a seat in Queensland, outlined the three “priorities” she wants the government to tick off on before the personal income tax cuts.

Prime Minister Scott Morrison. Picture: AFP

The $158 billion personal income tax cuts will be one of the first orders of business for the government when the 46th parliament convenes on July 2.

Senator Hanson has been a vocal opponent of Mr Morrison ever since the Prime Minister declared the Liberals would put One Nation below Labor on their election how-to-vote cards.

The Liberals’ decision followed revelations in April that members of One Nation had sought donations from the US gun lobby.

“What modest tax cuts middle to high-income earners will receive over the short-term will only be chewed up by the increased cost of living expenses like power and water,” Senator Hanson said.

“If this government is serious about reducing the cost of living and building visionary infrastructure for all Australians, I’m suggesting they use up to $25bn of the $144bn set aside for proposed tax cuts and build the hybrid Bradfield Scheme and at least one new HELE coal-fired power station.

“The government can use delaying tactics like calling for feasibility studies all they like, but I’ll ask them, how feasible is a nation without adequate power and water?”

Scott Morrison agreed to fund a feasibility study into a new coal-fired power station in central Queensland when he unveiled a shortlist of 12 baseload power projects the government is considering underwriting.

Senator Hanson said she had also long called for a royal commission into family law after lobbying Malcolm Turnbull for a comprehensive review into the sector.

The Australian revealed in April the Morrison government’s signature reforms to restructure the family law courts, designed to improve the efficiency of the family law system, appeared dead in the water after it failed to secure enough crossbench support to bring on a vote.

“We have a very real problem that most politicians are choosing to ignore when it comes to family law,” Senator Hanson said.

“I find it outrageous to think this government and previous have allowed the suicide rate of men and the murder of women to continue to grow because of a broken family law system. If there are three things I want to achieve before leaving parliament, the government now know what they are.”

Stage one of the personal income tax cuts plan, which has bipartisan support, will see Australians earning between $37,000 and $90,000 receive a tax cut of up to $1080 when they lodge their tax return for 2018-19 once the tax cuts are legislated.

Under stage two the top threshold of the 19 per cent tax bracket will increase from $41,000 to $45,000 from 2022 and the top threshold of the 32.5 per cent tax bracket will lift from $87,000 to $90,000 – providing a tax cut of up to $135 per year to about 3 million people.

The third and final stage of the plan would have the 37 per cent tax bracket abolished from July 2024-25 and the 32.5 per cent bracket replaced with 30 per cent, covering 94 per cent of taxpayers.