Greens reject cuts as bribe

The Greens have ruled out supporting proposed personal income tax cuts, even for low income earners.

Senator Peter Whish-Wilson

The Greens have ruled out supporting proposed personal income tax cuts, even for low income earners, saying the money should be spent on improving essential services.

Greens treasury spokesman Peter Whish-Wilson said the government’s $140 billion tax cut package was “heavily weighted towards the big end of town”.

But he also ruled out supporting Labor’s bid for a $530 a year saving for those on incomes of up to $90,000.

“Both parties’ plans will worsen inequality, and see us lose vital revenue for the essential services people rely upon,” Senator Whish-Wilson said.

Labor will use the Greens decision to intensify pressure on the government to split its tax bill to deliver relief to low and middle income earners.

But the government has so far resisted, keeping relief for low and middle income earners from July tied to a flattening of the tax rate at 32.5 per cent by 2024-25 for those on incomes of $41,000 to $200,000.

Treasurer Scott Morrison said yesterday the tax plan would provide tax relief for all working Australians and reduce cost of living pressure for households.

“We call on the parliament to back this plan,” he said.

But Senator Whish-Wilson said the tax cuts were a “bribe” to get the government’s company tax cuts across the line.

Two key Senate crossbench voting blocs, One Nation and Centre Alliance, have called on Prime Minister Malcolm Turnbull to split his seven-year tax package so they can support the payments for low to middle-income earners from next year.