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Politics now: Coalition’s tax cuts package passes parliament

Scott Morrison’s $158bn tax cut package has passed parliament after Labor backflipped and voted in favour of the entire plan.

Politics Now: Live news from Canberra.
Politics Now: Live news from Canberra.

Hello and welcome to PoliticsNow, The Australian’s live blog on the happenings at Parliament House in Canberra.

Greg Brown 7.22pm: Tax cuts pass parliament

Scott Morrison’s $158 billion tax cut package has passed parliament after Labor backflipped and voted in favour of the entire plan.

The Senate passed the package with the support of 56 senators compared to nine Greens who voted against the proposal.

One Nation senators Pauline Hanson and Malcolm Roberts abstained.

Scott Morrison declared more than 10 million Australians would receive immediate tax relief.

“Starting from next week, low and middle income earners with an income up to $126,000 will receive up to $1080, or $2160 for dual income couples, with the increased tax relief to apply from the 2018-19 income year,” the Prime Minister said in a joint statement with Treasurer Josh Frydenberg and Finance Minister Mathias Cormann.

“The bill has also locked in the benefits of low and middle income tax relief by increasing the top threshold of the 19 cents in the dollar tax bracket from $41,000 to $45,000 and by increasing the low income tax offset from $645 to $700 in 2022-23.

“In combination with the legislated removal of the 37 per cent tax bracket in 2024-25, the government is delivering structural reform to the tax system by reducing the 32.5 cents in the dollar tax rate to 30 cents in the dollar.

“Together, these tax relief measures will create a flatter and better tax system that will improve incentives for hard-working Australians and ensure that 94 per cent of Australians will face a marginal tax rate no higher than 30 cents in the dollar in 2024-25.

“Once our plan is fully implemented, around 13.3 million taxpayers will pay lower taxes.”

Richard Ferguson 4.40pm: Tax cuts vote tonight

Labor will vote for Scott Morrison’s full tax cuts package tonight but Anthony Albanese has left the door open to repealing tax cuts to higher income earners.

Anthony Albanese said today that the opposition will continue to fight for its amendments in the senate, but he will not stand in the way of tax cuts for low and middle income earners due to the current state of the economy.

“We do not want the circumstances where, in an economy struggles, that people do not get a tax benefit … the economy needs that (stimulus).

“Our first priority is that money gets into the hands of workers.”

The government no longer needs Labor’s vote in the senate as it has the support of two Centre Alliance senators and independent senator Jacqui Lambie.

Opposition treasury spokesman Jim Chalmers confirmed it will review the legislated stage three of the tax cuts closer to the next election.

“We still think it’s irresponsible,” Dr Chalmers said this evening.

“We’ll take in all the fiscal conditions … and come up with the right solution for the country.”

Richard Ferguson 4.30pm: Labor caves in on tax cuts

Labor will back Scott Morrison’s full tax cuts package if their amendments to split the government’s bill fail, as they are expected to.

Anthony Albanese said today that the opposition will continue to fight for its amendments, but he will not stand in the way of tax cuts due to the current state of the economy.

“If our amendments are not successful … then will not oppose the package,” he said in Canberra today.

“We do not want the circumstances where, in an economy struggles, that people do not get a tax benefit … the economy needs that (stimulus).

The government no longer needs Labor’s vote in the senate as it has the support of two Centre Alliance senators and independent senator Jacqui Lambie.

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.

Richard Ferguson 3.20pm: PM — Labor a team of one

Scott Morrison speaks during Question Time. Picture: AAP.
Scott Morrison speaks during Question Time. Picture: AAP.

Anthony Albanese asks Scott Morrison about slowing economic growth. The Prime Minister defends the government’s economic record over the past six years.

“Mr Speaker, GDP growth, the growth of the economy today is stronger than every G7 economy except the United States. We are in the 28th year of uninterrupted growth,” Mr Morrison says.

“Our economy, when I was recently at the G20, is the economy that other world leaders want to know more about because of its success, and one of the reasons they want to know that is because 1.4 million jobs have been created on the watch of this government since we were first elected in 2013.”

Mr Morrison notices that the Opposition Leader is the only Labor MP asking questions today.

“I am pleased to see the Leader of the Opposition is being very inclusive with his new team today, very inclusive,” Mr Morrison says.

“Apparently they are a team of one on that side. A team of one. I suspect that speaks volumes about the support that the Leader of the Opposition.”

Richard Ferguson 3.10pm: ‘Support drought fund’

Anthony Albanese asks Scott Morrison what he is doing to tackle international regulators putting up the price of water for farmers during the drought.

The Prime Minister calls on Labor to support his proposed national drought fund.

“The national drought fund was brought into this parliament before the election, it was the product of the national drought summit that was intended to provide ongoing permanent support to build drought resilience in this country,” Mr Morrison says.

“I hope the opposition now on the other side of the election will change their position and support this initiative.

“The Leader of the Opposition was part of the same shadow cabinet before the last election which voted against the national drought fund. They said they would oppose it, they were not supportive. And they sent an appalling message.”

Richard Ferguson 2.56pm: Albo: Somebody has to answer questions

Anthony Albanese during question time. Picture: Getty Images.
Anthony Albanese during question time. Picture: Getty Images.

Anthony Albanese asks Scott Morrison if he has committed gas prices of “$7 per gigajoule or less for Australian households” by providing a written guarantee to Centre Alliance on a raft of gas reforms.

Energy Minister Angus Taylor keeps being told to sit down by the Speaker for not directly answering the question.

“Honourable members would be aware that my colleague in the other place, who has been speaking with his fellow senators about a range of policy issues including issues relating to energy,” Mr Taylor says.

“As a government, we are always prepared to listen to good ideas on how to reduce the cost of living, to reduce the cost of living for Australian families and the cost of doing business for Australian businesses but as we know on this side of the house, we are absolutely committed to a fairer deal on energy for all Australians, and that means a fair deal on gas.

“We will continue to work for more affordable gas prices for Australians.”

The Speaker then tells off the Opposition Leader for answering questions to ministers.

Mr Albanese responds: “Well, somebody has to.”

Richard Ferguson 2.54pm: Payne — Sigley family ‘relieved'

Foreign Minister Marise Payne has passed on the thanks of Mr Sigley’s family to the Australian people.

“I can say his father has been advised. He is enormously relieved and grateful and has asked me to convey, the family has asked that we convey the thanks to everyone who has expressed support to them for the last few,” she told the senate.

“May I express our deepest gratitude to Swedish authorities for their prompt action to secure Alex’s release. It does demonstrate the value of careful, behind-the-scenes work by officials in resolves cases like this in close partnership with other governments.

“I won’t be making further comment out of respect for Alek’s privacy.”

Opposition foreign affairs spokeswoman Penny Wong also thanked the Foreign Minister and the Swedes for their roles in securing Mr Sigley’s release.

“Can I welcome this announcement and share in the Foreign Minister’s thanks to the Swedish authorities for their valuable work to secure Mr Sigley’s release and also acknowledge all officers for their work. I thank the minister for her co-operation,” Senator Wong said.

Richard Ferguson 2.50pm: ‘More in common with Corbyn than Keating’

Scott Morrison returns fire to Anthony Albanese. Picture: AAP.
Scott Morrison returns fire to Anthony Albanese. Picture: AAP.

Anthony Albanese asks Scott Morrison about readings from NAB suggesting the economy is as bad as “the bottom of the Global Financial Crisis.”

The Prime Minister points out that NAB has also recorded a seven point rise in business confidence since he won the election.

“Business confidence has been restored as a result of the re-election of this government and the reason it was under threat was because of the prospect of a Labour government,” he says.

“As I looked down the front bench of the Labor Party, I see the same old faces. The same old faces in the same old arrogance in the same old class envy in the same old smugness which says we don’t think Australians should keep more of what they earn.

Mr Morrison goes on to link the new Opposition Leader’s economic policies to far-left UK Labour leader Jeremy Corbyn.

“This is a Labor Party which has more in common with Jeremy Corbyn than Paul Keating,” Mr Morrison says.

Because we’ve seen the Snapchat and Instagram posts, they (Mr Albanese and Mr Corbyn) are buddies in arms, all part of the new Labor agenda which would take this country back decades and decades and decades.”

Richard Ferguson 2.47pm: PM ‘won’t raise Newstart’

Treasurer Josh Frydenberg, Attorney-General Christian Porter and Home Affairs Minister Peter Dutton during Question Time. Picture: AAP.
Treasurer Josh Frydenberg, Attorney-General Christian Porter and Home Affairs Minister Peter Dutton during Question Time. Picture: AAP.

Anthony Albanese asks Scott Morrison if an increase in the dole would stimulate the economy and result in jobs.

The Prime Minister says he will not raise Newstart and notes Labor never promised a rise in Newstart at the last election, just a review.

“In fact, they never set out any potential cost that that might impose on the budget. It was not our plan to do that. It was our plan to continue to go through the six monthly indexation of such payments, Mr Speaker,” Mr Morrison says,

“And that is the process we will continue to follow in relation to those Social Security payments.

“So we have no plans to increase social security payments for Newstart beyond what is the normal six monthly indexation using the measures that are always in place, which is the same policy that was taken to the election by the Labor Party.”

Richard Ferguson 2.37pm: ‘No services cut’ for stage 3

Anthony Albanese asks Scott Morrison what services will be cut to fund stage three of the government’s tax cuts.

The Prime Minister’s one-word response?: “None.”

Richard Ferguson 2.35pm: ‘$2.7bn of infrastructure in Queensland’

Anthony Albanese asks Scott Morrison about a road between the Queensland electorates of Petrie and Dickson that the budget states won’t be funded till 2026-27.

The Prime Minister says his government has a raft of funding for infrastructure projects in south-east Queensland.

“What I can tell people, especially in Brisbane. Our plan is going to deliver in Queensland this year alone, $2.7 billion worth of infrastructure investment in Queensland,” he says.

“It seems the smugness of the Opposition hasn’t changed. It seems the little stunts and the arrogance hasn’t tilted away despite having the lowest primary vote at the last election for the Labor Party in over 100 years, Mr Speaker.

“I was simply pointing out the volume of expenditure that has been undertaken in Queensland, in Brisbane by this government to ensure we are delivering on the congestion busting projects and all the other projects.”

Joe Kelly 2.28pm: Bernardi to return seat to Libs

South Australian independent Senator Cory Bernardi has confirmed to The Australian that he will leave the Senate before his term is up and return the seat to the Liberal Party in an electoral gift.

When Senator Bernardi leaves the parliament, the Coalition will only need to obtain three crossbench votes instead of four to pass its agenda when faced with opposition from Labor and the Greens.

Senator Bernardi announced the decision after winding up his Australian Conservatives political party following its disappointing performance at the 2019 election.

“I haven’t given a definitive timeline but will leave before (my) term is up,” he told The Australian. “When I do go, the seat will be filled by the Libs.”

Richard Ferguson 2.25pm: PM confirms Sigley released

Scott Morrison announces that Australian student Alek Sigley has been released from detention in North Korea and is now safely out of the totalitarian country.

“Swedish authorities advised they met with senior officials with the DPRK and raised the issue of Alek’s disappearance,” he tells the House of Representatives.

“We were advised that the DPRK have released him from detention and he has safely left the country and I can confirm that he has arrived safely.

“On behalf of the Australian Government I would like to extend my deepest gratitude to the Swedish authorities for their invaluable assistance in securing Alek’s prompt release, which demonstrates the value of discrete behind-the-scenes work by officials in solving sensitive consular cases in close partnership with other governments.

“I’m sure we all could not be more pleased. We know where he is now safe.”

Anthony Albanese says Mr Sigley’s release is “good news for our nation.”

“I join with the Prime Minister and welcoming this announcement and thank him for yesterday, the private discussion that we had again discreetly talking about this very issue,” he says.

Read the full story here

Richard Ferguson 2.15pm: ‘Same old class war’

Anthony Albanese asks Scott Morrison if his tax cuts would have more of an economic impact if the Fair Work Commission was not cutting people’s penalty rates at the same time.

The Prime Minister says the FWC is best placed to set wages, not government.

“We do not leave the politicians should set people’s wages, we believe that should be done through the fair and transparent process that provides the certainty for investment and engagement in the national economy,” Mr Morrison says.

“It would seem that the Leader of the Opposition may have changed names but the same old class war he is seeking to perpetuate in this place is all just the same.”

Richard Ferguson 2.11pm: Albo’s first question — economics

Anthony Albanese kicks off on economics. Picture; Getty Images.
Anthony Albanese kicks off on economics. Picture; Getty Images.

Anthony Albanese’s first question as the new opposition leader is what economic indicator is doing the best. The inflection suggests he believes none of them are doing well.

“Which of his policies on wages, consumer demand, interest rates and productivity is working the best?” Mr Albanese asks.

The Prime Minister responds: “All of them are all working together, and all by the Australian people at the last election for the economic plan that we took to this country.”

“We took to this country, Mr Speaker, to address the serious economic challenges that the country faces, Mr Speaker, and I can tell you the biggest threat to the domestic economy in this country that presented itself this year was relegated at the last election with the defeat of the Labor Party.

“I am pleased that more than 60,000 people that live in the Opposition Leader’s electorate, they will be benefiting from our tax cuts, legislated today, that will benefit the members in his electorate, they will indeed benefit the member for all electorates in this place.”

Speaker Tony Smith chides the Prime Minister for moving on from economic indicators to the government’s tax cuts package.

“The Prime Minister is entitled to compare and contrast on policy briefly, but not to then move onto another topic,” the Speaker says.

Richard Ferguson 2.07pm: Surtees named as first woman Clerk

Clarissa Surtees has been announced the first woman to be become Clerk of the House of Representatives.

The Clerk of the House is the highest non-elected official in the House and is in charge of running the chamber and advising the Speaker and MPs on procedures and other matters.

“Following consultations with the Prime Minister, the Leader of the Opposition and Leader of the House and manager of opposition in business I have today signed the instrument appointing our next clerk,” Speaker Tony Smith says.

“The clerk lays a critical role of courts in maintaining our democracy and as I have said, I am sure members will welcome the announcement.

“It is also of course a historic appointment as Clarissa will become the first female clerk of the House of Representatives.”

Ms Surtees — the current deputy clerk — will take up her new role in August when current occupant David Elder retires.

Richard Ferguson 2.05pm: PM faces off with Albo

The first question time of the 46th parliament has begun.

It is the first time Scott Morrison has faced off with his new Opposition Leader, Anthony Albanese. Tax cuts are likely to dominate their first parliamentary bout.

Fun fact: Mr Albanese is the 14th Opposition Leader to conduct question time in New Parliament House.

Rosie Lewis 12.14pm: PM seeks advice on Pyne, Bishop

There are concerns Christopher Pyne has breached ministerial standards. Picture; AAP.
There are concerns Christopher Pyne has breached ministerial standards. Picture; AAP.

Scott Morrison has asked the head of his department for advice on whether Christopher Pyne and Julie Bishop have contravened ministerial standards by taking consultancy jobs in their former fields of expertise.

Finance Minister Mathias Cormann, who is the government’s Senate leader, told the chamber the Prime Minister had written to Martin Parkinson, the secretary of the Department of Prime Minister and Cabinet, “seeking his guidance on the application of the relevant statement of ministerial standards to former ministers in all previous governments”.

He specifically requested advice “on matters in relation to recent statements by two former ministers (Mr Pyne and Ms Bishop) in our government”, Senator Cormann said.

“The statement of ministerial standards is an important framework which provides transparency and ensures public trust in our system.

“As part of this he (the Prime Minister) has sought advice on actions that can be taken to ensure compliance with the code, additionally as part of this advice he’s asked the secretary of the application of the provisions of the Foreign Influence Transparency Scheme Act 2018 to the activities of former ministers and elected representatives.

“We’ll provide further advice to the Senate in due course.”

Shortly after his statement to the Senate, Centre Alliance senator Rex Patrick deferred his motion to establish an inquiry into Mr Pyne’s employment with Ernst and Young until the next sitting day on July 22.

Mr Pyne, a former defence minister who has taken a job as a defence consultant with EY, said last week he knew his responsibilities under the ministerial code of conduct and would abide by them.

Ms Bishop, a former foreign minister, has also been criticised by Labor and Senator Griff for her new job with development contractor Palladium, which is a big player in taxpayer-funded aid contracts, running education projects, justice interventions and business development programs for her former Department of Foreign Affairs and Trade.

Richard Ferguson 11.50am: Joyce — protect Nationals on NSW ticket

Former Nationals leader Barnaby Joyce wants his party to be protected on the next Coalition NSW ticket after Liberal senator Arthur Sinodinos’ casual vacancy is filled.

Senator Sinodinos is set to take up his post as Australia’s Ambassador to Washington later this year and there are calls for his place to be taken by a National to make up for the balance in the NSW Coalition senate team.

Mr Joyce today argued that the Nationals should get position two on the senate ticket after former Liberal senators Jim Molan’s failed below-the-line campaign nearly threatened the NSW Nationals’ position.

“I tell you what, I think the National Party should absolutely have a position two and a position three,” Mr Joyce told Sky News this morning.

“If Sinodinos steps out to be US Ambassador — and good luck to him, seems like a good gig — then we’ve got to make sure that any change that happens next that is beyond dispute that position number two goes to the National Party.”

Niki Savva 11.10am: Libs’ homework ruled out 2016 repeat

Even if you take inspiration from the heavens, as Scott Morrison does, and with such great success, you still need earthly beings to ­deliver. The Prime Minister’s performance was obviously instrumental in May’s election victory; however, he couldn’t have done it without the meticulous preparation of the party organisation, led by the Liberals’ federal president Nick Greiner and federal director Andrew Hirst.

The result showed the party is in good shape structurally, much better shape than the fabled Labor machine, partly thanks to the personnel who are the unsung heroes of this year’s campaign, and partly because of a determination not to repeat the mistakes of 2016, forensically reviewed by former party director and cabinet minister Andrew Robb.

Read the story in full here

Richard Ferguson 10.15am: Tax deal sparks gas lobby showdown

Scott Morrison’s tax cuts deal with Centre Alliance has placed the government on a collision course with the gas industry.

The petroleum and gas lobby this morning slammed Centre Alliance’s raft of gas reforms, which it claims to have secured in exchange for supporting Scott Morrison’s full tax cuts bill.

The minor party today said it had secured changes to the gas pricing trigger, new transparency measures for the gas market and a long-term plan to boost domestic gas supply in order to pass the tax cuts package through the senate today.

Click here to read the full story.

Richard Ferguson 9.00am: Lambie ‘undecided’ on medivac bill

Senator Jacqui Lambie at Parliament House in Canberra. Picture Kym Smith
Senator Jacqui Lambie at Parliament House in Canberra. Picture Kym Smith

Independent senator Jacqui Lambie says she has not decided whether to support a scrapping of the medical transfers law for refugees in offshore detention.

“I’m led to believe in good faith that that bill is not coming to the senate today because my main focus was come up here about the public housing debt and a couple of other things,” she told ABC radio this morning.

“I’ve seen a few people about the medivacs bill. I still need a few weeks on that, I’ve got a couple of weeks between sittings.

“My whole concentration has been on these tax cuts … I would like a little more time on that.”

Richard Ferguson 8.30am: Cormann ‘talked gas reforms’ with CA

Finance Minister Mathias Cormann says the government has talked through a raft of gas reforms with Centre Alliance in recent weeks, as the minor party claims a gas price reduction package will be delivered in exchange for their support of tax cuts.

The Finance Minister today declined to say the government has “horse-traded” with crossbench senators for their support for the full tax cuts package and said Scott Morrison has a long-term commitment to boosting domestic gas supply and bringing energy prices down.

“We’ve been prepared to engage in good faith with those senators about public policy issues that are important to them and they will be decided on their own merits and will be announced when we’re in a position to do so,” Senator Cormann told ABC radio.

“The government has a longstanding policy commitment to bring energy prices down. We have a longstanding policy commitment to boost the domestic supply of gas, in particular in the east coast electricity market.

“We’ve sat down in recent weeks with Centre Alliance, we’ve sat down with Senator Lambie. We’ve talked through these policy issues, we’ve talked through the measures the government has already announced, we’ve talked through the measures the government is developing at present.

“That is just normal parliamentary process engaging in good faith with elected members of parliament.”

Centre Alliance says it has achieved changes to the Australian Domestic Gas Security Mechanism, new transparency measures for the gas market and long-term plans to ensure surplus domestic gas supply.

Richard Ferguson 8.17am: Albo blasts crossbenchers

Anthony Albanese. Picture: Kym Smith
Anthony Albanese. Picture: Kym Smith

Anthony Albanese has blasted crossbench senators for backing Scott Morrison’s full tax cuts package and vows still to fight the bill in the upper house.

“Labor will be pursuing our amendments before the Senate, because they represent good economic policy,” he said in Canberra this morning.

“The fact is that if a tax cut, by increasing the 37% threshold is good policy, from $90,000 to $120,000 in 2022, why isn’t it good policy in 2019? T

“The Government should be supporting that amendment.

“And might I say — the crossbenchers are doing themselves a disservice if they don’t support the separating out of stage 3 of the tax cuts. This has been a bluff by the Government.”

Centre Alliance and Jacqui Lambie’s support for the full tax cuts bill will leave Labor powerless to stop the package from passing parliament today, handing the Prime Minister the first big political win of his new term.

Labor’s shadow cabinet will meet later today to reach a final decision on the government’s package and The Australian understands growing numbers of Opposition MPs do not want to be in a position where they are made to vote against tax cuts.

Richard Ferguson 8.15am: Lambie voting ‘on good faith’

Independent senator Jacqui Lambie says she is voting for Scott Morrison’s full tax cuts package “on good faith” and has not finalised a deal to have Tasmania’s social housing debt relieved.

“I still need some more time so that we can iron it out properly,” she told ABC radio this morning.

“What I don’t want to be doing is rush out and saying, here’s the money and that’s it. I want to make sure that the money is targeted and I look forward to that in the next four to six weeks.

“With all due respect to the minister, they have their own Liberal Party down there in power and they need to do what they need to do and I have a few things and a few facts that I need to find out from.

“Certainly, the good will is there and they know that we’ve got housing problems down there.”

Senator Lambie said the government has given commitments to sort out the state government’s $157m social housing debt, which she said yesterday she wanted cleared in order to vote for the full tax cuts package “in good conscience.”

The Tasmanian independent also said today’s deal would allow her to get money into the pockets of small businesses and stimulate the economy, despite her continued scepticism of stage three of the tax cuts bill for higher income earners.

Richard Ferguson 7.25am: Labor amendments in limbo

Labor’s treasury spokesman Jim Chalmers says the Opposition will consider its options now the senate crossbench has decided to back Scott Morrison’s full tax cuts package.

“If it gets to the point that our amendments aren’t successful in the Senate, then we’ll consider our options at that point. We’ll have the appropriate discussions,” he said in Canberra this morning.

“We’ll have more to say about it later today … we intend to move our amendments.”

The Opposition’s amendments would split the bill by bringing forward lower-end tax relief while ­dumping longer-term tax relief for middle- and higher-income earners.

Anthony Albanese’s shadow cabinet will meet later today to decide a final position on the full bill.

The Australian understands a growing number of Labor MPs have told the leadership team they do not want to be put in a position in which they are forced to vote against tax cuts.

Back to the drawing board on tax cut package amendments? Shadow Treasurer Jim Chalmers (left) and Opposition Leader Anthony Albanese get together in Parliament House yesterday. Picture: Kym Smith
Back to the drawing board on tax cut package amendments? Shadow Treasurer Jim Chalmers (left) and Opposition Leader Anthony Albanese get together in Parliament House yesterday. Picture: Kym Smith

Richard Ferguson 7.15am: Patrick promises lower power prices

Centre Alliance senator Rex Patrick says the gas reforms he has negotiated with the government will “cause lower electricity prices” but won’t say if he has a signed commitment for the policies.

“We’re going to have a bunch of people, hardworking Australians, that get a tax cut,” Senator Patrick told ABC radio this morning.

“But we’re also going to see people on Newstart, pensioners, people on disability pensions, small businesses and large businesses, benefit from lower gas prices, which in turn will cause lower electricity prices.

“Well, what we’ve done with the Government is negotiated a range of policy measures that they will announce over the next couple of months. And we have a very clear understanding of what those policies are. And we anticipate that they will have a positive effect for consumers on pricing.

“We’ve seen their policy, we’ve agreed their policy.”

Centre Alliance says it has achieved changes to the Australian Domestic Gas Mechanism, new transparency measures for the gas market and long-term plans to ensure surplus domestic gas supply.

Senator Mathias Cormann talks with Centre Alliance Senator Rex Patrick before the swearing in of The Governor-General, General David Hurley, in Canberra earlier this week. Picture: Kym Smith
Senator Mathias Cormann talks with Centre Alliance Senator Rex Patrick before the swearing in of The Governor-General, General David Hurley, in Canberra earlier this week. Picture: Kym Smith

Richard Ferguson 7.15am: Tax cut package set to pass parliament

The Morrison government’s $158 billion tax cut package appears certain to pass parliament today with crossbench Senators publicly declaring they will vote to deliver financial relief for about 10 million workers.

Centre Alliance have committed to passing Scott Morrison’s full tax cuts package after securing a raft of reforms to Australia’s gas sector.

The powerful minor party bloc says the government will announce changes to the gas pricing trigger, new transparency measures for the gas market, and a longer-term commitment to surplus domestic gas supply after weeks-long negotiations.

This has secured the votes of Centre Alliance’s two senators — Rex Patrick and Stirling Griff.

Senator Jacqui Lambie (back, second from left) sits with Centre Alliance Senators Rex Patrick (left), Stirling Griff and Centre Alliance MP Rebekah Sharkie during the official opening of the 46th Federal Parliament. Picture: AAP
Senator Jacqui Lambie (back, second from left) sits with Centre Alliance Senators Rex Patrick (left), Stirling Griff and Centre Alliance MP Rebekah Sharkie during the official opening of the 46th Federal Parliament. Picture: AAP

Independent Jacqui Lambie will also vote for the tax cuts joining independent senator Cory Bernardi to clinch the four crossbench votes to ensure that the cornerstone of the Prime Minister’s election agenda will be passed today.

“Supporting the tax cuts will reward Australian taxpayers and provide a stimulus to the economy that almost all economists have called for, including the Reserve Bank Governor,” a Centre Alliance spokesman said today.

Centre Alliance has worked with the Government on both short and long term reforms to deal with gas market concerns.

“The full package of reforms will be announced by Government in the coming weeks but will include changes to the Australian Domestic Gas Security Mechanism (ADGSM) to deal with current pricing, market transparency measures, measures to deal with the monopoly nature of East Coast gas pipelines and longer term measures to ensure future gas projects deliver surplus supply to the Australian market.”

“Centre Alliance will not support the splitting off of stage three, noting that the Government have steadfastly refused to split the bill and that any split will be rejected in the lower house.”

Senator Cory Bernardi will support the government’s full tax cuts package. Picture: AAP
Senator Cory Bernardi will support the government’s full tax cuts package. Picture: AAP

Richard Ferguson 7am: What’s making news in Canberra today

The Morrison government has locked in the crossbench support it needs to have its $158 billion personal income tax package legislated today when the Senate votes on the plan to deliver further financial relief for about 10 million workers.

Scott Morrison is on track to announce a reduction to high deeming rates as soon as next week after an outcry from pensioners grappling with low or negative real returns on their secure investments.

Home Affairs Minister Peter Dutton will introduce up to six national security and immigration bills into parliament today, challenging Anthony Albanese’s resolve on border protection and counter-terrorism.

Media executives have received no assurances from the Morrison government that journalists targeted in police raids won’t be prosecuted amid growing concerns federal parliament’s powerful intelligence and security committee is the wrong forum to investigate press freedom.

State treasurers and infrastructure ministers have urged Scott Morrison to drag forward spending on major projects and fund a wishlist of new building in the wake of Reserve Bank governor Philip Lowe’s call for the government to unleash economic stimulus.

Treasurer Josh Frydenberg has criticised Labor MP Ed Husic for labelling the budget surplus a “vanity exercise”, saying the comments are a further sign of the opposition’s division on tax cuts.

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Original URL: https://www.theaustralian.com.au/nation/politics/politics-now-morrisons-tax-cut-package-set-to-pass-parliament/news-story/67e04900839c6b33399c6620d9fbd060