Pauline Hanson leaves Malcolm Turnbull hanging on tax plan

Hanson has hinted at supporting the government’s income tax plan, but said she’s reserving her final position until the vote.

Pauline Hanson has hinted at supporting the government’s income tax package, but warns stage three of the plan may be unaffordable.

The One Nation leader wants the government to force multinational companies to pay more tax and politicians to refuse wage rises to pay for tax relief.

Federal Labor says Pauline Hanson will be labelled a “fraud” if she backs the Turnbull government’s personal income tax plan.

Senator Hanson hinted at supporting the government’s seven-year, three-stage income tax package, but warned stage three of the plan may be unaffordable.

“Hardworking Australians need a helping hand - they need to know they are going to get something back,” she told parliament.

However, she is reserving her final position until the bill is voted on. One Nation’s two Senate votes would be enough to get the plan over the line after Labor refused to back the legislation, unless it is split and would repeal the bulk of the cuts in government.

“If Pauline Hanson votes with Malcolm Turnbull to give bigger tax cuts to the wealthiest Australians it will expose as a fiction and a fraud this ridiculous notion that One Nation is in this parliament to look after the interests of people who work and struggle in this country,” Labor’s finance spokesman Jim Chalmers told reporters in Canberra.

Labor Senate leader Penny Wong said the government could deliver tax cuts from July 1 for low- and middle-income earners by breaking up the plan. “This is a political stunt designed to blackmail the Senate into signing up to a tax package that is both fiscally irresponsible and unfair,” she told the upper house on Tuesday night.

Under the package’s first stage, a new low- and middle-income tax offset worth up to $530 for individuals would come into effect next month. The top threshold of the 32.5 per cent tax bracket will increase from $87,000 to $90,000.

Labor supports those measures but is against further reductions due in 2022 and 2024.

But Treasurer Scott Morrison is adamant the government would not be splitting the package.

“We are committed to pursuing the full tax package. Why? Because it’s the right plan,” he told reporters.

“This is a fair plan that seeks to benefit all working Australians.”

AAP