PoliticsNow: Labor’s ‘kick in the guts’ to businesses
PoliticsNow: Business groups have hit back at Bill Shorten’s call to roll back most tax cuts for small and medium-sized firms.
- Inside the Coalition party room
- More from the party room meeting
- Butler loses electorate
- Shorten’s captain’s call on tax
- Abbott: I’ll cross floor on NEG
- Labor plans to repeal company tax cuts
Hello and welcome to PoliticsNow, The Australian’s blog on the happenings at Parliament House in Canberra.
There was plenty happening during a Coalition party room meeting earlier today, where Malcolm Turnbull and Tony Abbott clashed on energy.
This is where we will leave our live coverage, join us again tomorrow for rolling political coverage.
5.11pm: Businesses up in arms over Labor’s tax move
Business groups have responded angrily to Opposition Leader Bill Shorten’s decision to roll back most of the legislated tax cuts for small and medium-sized firms, with one calling it a “big kick in the guts”.
After months of deliberation, Mr Shorten promised to rescind tax cuts for businesses with turnovers of between $10 million and $50 million if Labor wins government, a decision the Turnbull government is calling a “captain’s call” and a $20 billion tax hike.
Mr Shorten did not discuss the tax decision with Labor’s party room. Business Council of Australia head Jennifer Westacott said it was a hit to confidence and questioned how business was supposed to do its planning. “It’s a real blow to competitiveness, it’s a blow frankly to common sense,” she told reporters in Canberra on Tuesday.
“We’re not a cottage industry economy.” Australian Industry Group chief executive Innes Willox said the “continually changing and unpredictable policy landscape” just adds to the risks businesses and their workforces have to navigate.
Adding to the uncertainty, Labor is still considering what it will do about tax cuts already in place for businesses with turnovers between $2 million and $10 million.
“We said that we will support any Australian business with an under-$2 million turnover to get a tax reduction,” Mr Shorten told reporters after delivering a speech in Canberra.
“We think that small business can do with all of the assistance they can get.” Peter Strong, the chief executive of the Council of Small Business Australia said if the tax cuts are pared to just firms with a turnover of up to $2 million it will be a ” declaration of war on business”.
Australian Chamber of Commerce and Industry boss James Pearson said it was a “big kick in the guts” by the Labor Party.
“This is precisely the wrong signal to send to the Australian business community ... these are not big businesses,” he told Sky News.
AAP
Greg Brown 3.18pm: No cuts to schools, hospitals
Labor MP Susan Templeman asks if the government’s tax cuts will mean funding will need to be cut to schools and hospitals if there is an economic downturn.
Malcolm Turnbull says Templeman should “take to task” the person who wrote the question for her.
“It was very unfair to have her asking a question that is so misleading and so inaccurate,” he says.
“We are able to keep funding for those essential services increasing because we have the budget under control.
“And at the same time, we could bring it back into balance a year earlier, and at the same time, we are able to provide tax relief hardworking Australian families and indeed for small and medium family businesses.”
Rachel Baxendale 3.16pm: The clash on energy
In addition to Malcolm Turnbull and Energy Minister Josh Frydenberg, 16 Coalition MPs addressed the issue of the National Energy Guarantee during today’s party room meeting.
Two members raised specific issues wanting more detail about what will be put to the states and territories at the forthcoming COAG meeting, while another two urged for a greater focus around energy prices within the NEG.
According to a Coalition spokesman, the remaining members were all strongly supportive of the government’s approach to the NEG, and in particular Mr Frydenberg having the autonomy to “take the policy authority that’s already been granted by the party room” and negotiate with the states and territories.
Mr Frydenberg noted people had been critical of his threats to ban gas exports, but that the measure had worked, and that when the “rubber hits the road”, it’s all about price and reliability, which is what the NEG is focused on.
“We know that if you get lower prices and higher competition, reliability is basically dispatchability and the requirements within the NEG are designed to drive additional investment and therefore competition,” Mr Frydenberg said.
He said any recommendations which came back from COAG would come back to the party room for full consideration.
Minister Frydenberg also highlighted the reliability obligations of the NEG, and said they were greater than those recommended by Chief Scientist Alan Finkel.
He also said we had “turned a corne” in lowering energy prices.
Mr Turnbull said Mr Frydenberg had the confidence of the party room, that all recommendations would come back to the party room for discussion, and that the government’s policies were focused on lowering prices.
There was discussion of the backbench committee meeting that took place with industry representatives this morning, which was attended by more than 30 MPs who were urged by industry to support the NEG.
Tony Abbott spoke of the importance of pricing, and requested Mr Frydenberg bring the NEG to the party room with details of what is being taken to the states and territories.
Mr Turnbull said that would not be happening, saying the policy details around the intent, targets and structure of the NEG had already been discussed by the party room and backbench committee and Mr Frydenberg had already been given sufficient authority to take the policy to the states.
Only one contribution from one of the pro-NEG MPs was described as “extremely passionate”.
A marginal seat MP, believed to have been NSW South Coast MP Ann Sudmalis, said the NEG had been discussed at length and asked the party room to come to consensus to give business certainty to invest.
“The more people stuff around with this issue, the greater the risk that I won’t be here,” Ms Sudmalis said.
Despite subsequent threats to cross the floor from Mr Abbott and SA MP Tony Pasin, neither made the threats in the party room, according to the government spokesman.
Greg Brown 3.07pm: Snowdon ejected as QT heats up
Bill Shorten asks Malcolm Turnbull if the big banks deserve a tax cut.
The Prime Minister dodges it.
“(Shorten) is, despite the protest from the member for Grayndler, is running his campaign against business. It is not just the big banks he is against, it is businesses right down to $2 million turnover.”
Labor protests the answer was not relevant, but this was rejected by Speaker Tony Smith.
Labor MP Warren Snowdon was forced to withdraw a comment made towards Smith before being booted from the chamber.
Greg Brown 3.00pm: ‘Where is the money coming from?’
Opposition health spokeswoman Catherine King says stage three of the government’s income tax cuts and its proposed big business tax cuts will cost $25 billion a year.
She asks Malcolm Turnbull: “Where is the money coming from?”
The Prime Minister says the money to pay for essential services comes from the taxes of “hardworking Australians”.
“It comes from Australian businesses making profits and paying tax,” Turnbull says.
“It is their energy, their enterprise, there are aspiration, which drives the Australian economy.
“Nothing more clearly distinguishes the unreality, the disconnectedness, the out of touch nature of modern Labor, that they do not recognise that everything that we do here, every dollar we spend, comes from the efforts of hardworking Australian families.”
Greg Brown 2.54pm: King’s first QT up front
Labor MP Madeleine King is on the front bench for the first time this QT.
The West Australian MP was yesterday promoted to replace outgoing frontbencher Tim Hammond, beating Kristina Keneally snd Nick Champion.
Greg Brown 2.45pm: ‘War on small and family business’
Small Business Minister Craig Laundy says Bill Shorten today declared war on small and family businesses.
Laundy says the Opposition Leader has no idea what it takes to be a business owner because he has never done it.
“He wants to take an axe to people prepared to put their home on the line to get their family ahead,” Laundy says.
“The Leader of the Opposition has never done it in his life and he wants to present himself to the Australian people as an alternate.
“Today, Labor declared war on small and family business.”
Greg Brown 2.36pm: ‘Arrogant, out of touch’
Bill Shorten asks about reports that Malcolm Turnbull and Pauline Hanson are in negotiations to make an agreement on big business tax cuts after the “Super Saturday” by-elections.
“Don’t voters deserve to know the truth about this government is teaming up with One Nation to give the bank $17 billion?”
The Prime Minister goes after the Opposition Leader for making “false” claims about funding for hospitals in the Longman electorate.
He accuses Shorten of being “arrogant and out of touch”, a phrase Labor usually uses on him.
“The fact is the Leader of the Opposition is misleading the people in Longman as he is misleading the people right around the country,” Turnbull says.
Greg Brown 2.34pm: Labor goes again on coal
Opposition energy spokesman Mark Butler asks how Malcolm Turnbull can say coal will have a future in the energy market, given that prospect has been rejected by energy bureaucrats and companies such as AGL.
“How on earth can the Prime Minister suggest twice today that coal-fired power might be around forever?”
Energy Minister Josh Frydenberg takes the question, saying coal was an important part of the energy mix.
“And now it is up to the Labor Party to tell the blue-collar workers in the mines and the power stations across the country that their policies will close them down,” Frydenberg says.
Rachel Baxendale 2.30pm: Coalition agrees on legislation
The Coalition party room agreed to pass all legislation currently before it.
Discussion ensued on the family law amendment (family violence and other measures) bill, intended to reduce red tape and paperwork, with six MPs raising concerns about ensuring all parties in family law cases have access to legal representation.
There was no disagreement on the main principle of the bill.
Attorney-General Christian Porter highlighted the importance of the national security laws, describing the current espionage laws they will replace as “Goldfinger-type laws for a Skyfall-type world” which are in urgent need of an upgrade.
Four MPs spoke in support of the modern slavery bill, saying it struck the right balance between preventing modern slavery and burdening business, and was consistent with international approaches.
Five MPs asked questions about the coastal trading amendment, colloquially known as the “superyachts” bill, expressing support for the economic boost they argue the removal of taxes will provide in by removing a deterrent to such vessels visiting Australia.
Greg Brown 2.22pm: Shorten a ‘boa constrictor’ on the economy
Scott Morrison uses a Dixer to attack Bill Shorten for using a “captian’s call” in announcing Labor would repeal the government’s legislated company tax cuts.
He says opposition treasury spokesman Chris Bowen was “nowhere to be seen” when the Opposition Leader revealed Labor would roll back tax cuts for businesses with a revenue of more than $10 million.
“Normally they are their side-by-side. Not today, he went out there and snuck it out there,” Morrison says.
He then says Shorten would be the “boa constrictor” on the Australian economy of he wins power.
“This Labor leader is all about the snake of envy,” Morrison says.
“Australians will slide down the totem pole under this Leader of the Opposition’s policies and the blood supply will be constricted by the boa constrictor over there.
“The boa constrictor suffocating the economy, cutting off the blood supply.
“That is what the Labor Party are all about.”
Greg Brown 2.15pm: Coalition policy ‘entirely technology agnostic’
Labor’s Mike Kelly goes again on new coal-fired stations.
He asks about comments from the Snowy Hydro chief executive Paul Broad, who said a new-coal fired power station would render Snowy 2.0 unviable.
“As the government is the sole shareholder, has advice being sought from Snowy Hydro about the impact of building new coal-fired power plants on the viability of Snowy 2.0?”
Malcolm Turnbull says Mr Broad was entitled to his opinion.
“He is entitled to his opinion, but we have a policy that is entirely technology agnostic,” Turnbull says.
“The national energy guarantee provides no disincentives for anyone to build a new coal-fired power station (or) refurbish an existing one any more than it provides a disincentive for people to build more gas or indeed to build more hydro,” he says.
“What it does is prioritise dispatchability, which had been sadly missing from all of the green-left energy policies of the Labor Party.”
Greg Brown 2.07pm: QT opens on coal
Bill Shorten opens question time on energy. He notes Energy Minister Josh Frydenberg’s statement this morning that he would like to see a new coal-fired power plant be built.
“Does the Prime Minister agree?”
Malcolm Turnbull fobs the question, merely saying coal will play an important role for many years to come.
“The coal has a very important role and I have no doubt it will have, for many years to come, possibly forever. Who can tell,” Turnbull says.
“The reality is we have a technology neutral approach to energy policy. The subsidies are coming to an end.”
He then goes after the Opposition Leader for announcing today Labor would repeal legislated tax cuts for businesses with a revenue of more than $10 million.
“They say to thousands of family-owned small and medium businesses that of the country, if he is elected Prime Minister, he will jack up their tax,” he says.
“He will put the at risk millions of Australians jobs, so not only easy going to repeal our personal income tax (package), he is going to put up the tax of the businesses that employ more than half of the Australian private sector.”
Rachel Baxendale 2.05pm: More from the party room
Deputy Prime Minister Michael McCormack highlighted government achievements such as fairer funding for schools, small business tax cuts, national security laws, childcare and media reforms, multinational tax avoidance measures, child sex abuse redress and workplace relations reforms, noting that other achievements such as Youth Allowance increases for rural and regional students had not got as much media attention.
Foreign Minister Julie Bishop reminded colleagues of how “vulnerable” Australians are to scare campaigns, saying Labor would no doubt continue to run “misleading” campaigns on issues such as penalty rates, hospital cuts and company tax.
Ms Bishop said the Coalition needed to call them out and highlight growing hospital funding.
Treasurer Scott Morrison told colleagues of Bill Shorten’s captain’s call on repealing company tax cuts for businesses with turnover of between $10m and $50m, which was announced during the party room meeting.
Mr Morrison highlighted Labor’s “high-taxing” approach and “economic recklessness”.
A Queensland MP encouraged friends of former Member for Herbert Ewan Jones to give him a call after he lost preselection for his seat, noting that the successful candidate, Phillip Thompson, is a former Young Queenslander of the Year and Iraq veteran who is “well-placed” in the Townsville seat.
Rachel Baxendale 1.48pm: Inside the Coalition party room
Before the showdown over energy, Malcolm Turnbull began the Coalition’s 131-minute joint party room meeting on a buoyant note, reflecting on the “extraordinary achievement” of passing the income tax cut package last week.
The PM thanked senate leader Mathias Cormann and his Senate colleagues, and hailed the legislation as the largest personal income tax reform in a generation.
Mr Turnbull told his colleagues the government was delivering on its promises and should “never tire” of explaining what they were doing and “refuting Labor’s lies”.
He declared Labor was in a “world of pain”, saying frontbencher Anthony Albanese’s speech on Friday was a “clear attack” on leader Bill Shorten, and noting the “Shakespearean performance” of Christopher Pyne in Question Time yesterday, when the Defence Industry Minister tabled Albo’s speech and described it as a “bloodied dagger”.
Mr Turnbull thanked and acknowledged WA MP Andrew Hastie and the members of the Joint Select Committee on Intelligence and Security for their work in relation to national security legislation, and encouraged his colleagues to campaign hard in the by-elections, be proud of their achievements, and sell what their doing for Australians.
Greg Brown 1.46pm: ‘Gambler chasing his losses’
Finance Minister Mathias Cormann has compared Bill Shorten to a “gambler chasing his losses” after announcing Labor would repeal legislated tax cuts for businesses with a turnover of more than $10 million.
“Bill Shorten is like a gambler chasing his losses,” Senator Cormann tweeted.
“He lost three seats because his rolled gold guarantee was worthless. Now under internal pressure, he is playing double or nothing with Australian jobs to try and save his job by attacking small businesses with higher taxes.”
Greg Brown 1.25pm: Captain’s call ‘consistent with policy’
Opposition legal affairs spokesman Mark Dreyfus says Bill Shorten’s captain’s call to repeal corporate tax cuts for businesses with a revenue of more than $10 million did not need to go to shadow cabinet.
Shadow Attorney-General @markdreyfusQCMP on company tax cuts: We have never supported the big company tax cuts.
— Sky News Australia (@SkyNewsAust) June 26, 2018
We are opposed to the government’s tax cuts, there has been no change in Labor’s position.
MORE: https://t.co/00rTfQ1yJ1 #newsday pic.twitter.com/poYdOwBJdL
Mr Dreyfus said the Opposition Leader’s pledge made this morning was consistent with Labor policy and did not need to be approved by the leadership team.
“We have been completely consistent at all times that we are opposed to the government’s company tax cuts,” Mr Dreyfus told Sky News.
“There is no change in Labor’s position, we have always been opposed to these company tax cuts and we remain opposed to them.”
Dennis Shanahan 1.15pm: Call crucial to survival
In his business tax decision, Bill Shorten is reacting to pressure internally on his leadership and electorally at Longman, Braddon by-elections.
Read the story in full here.
Greg Brown 1.10pm: Pasin may follow Abbott across floor
Liberal MP Tony Pasin has failed to rule out crossing the floor if the government does not adopt his proposal to put a price target in Malcolm Turnbull’s energy policy.
“That is a hypothetical and something we will have to deal with much later,” Mr Pasin told Sky News.
“My focus on day one has always been on affordable electricity for Australian consumers, we have got a long way to go, a lot more detail to work through.
“Josh Frydenberg is doing a fantastic job but the devil is always in the detail and I will be ensuring that whatever outcome we come to will be for one that will work in my estimation to put downward pressure on prices.”
Mr Pasin said there should be a separate policy that would put a target or cap on price rises in the energy sector.
“The NEG is about energy reliability, Paris is about the emissions target, what I would like to see is a price target, something in that range which sends a strong message from government to the sector about what we are seeking to achieve, because ultimately this is all about price so let’s say it,” he said.
“At the moment we have fixed emissions in Paris, we have fixed reliability, or we wish to through the national energy guarantee, my concern is that, at the moment, the only variable in all of this is price.
“I don’t want price to be that variable, I want price and an affordable outcome to be something that we think is pre-eminent.”
Joe Kelly 1.00pm: PM quashes Abbott energy push
Malcolm Turnbull has rejected a demand by Tony Abbott for a special Coalition party room meeting to thrash out the national energy guarantee.
Read the story in full here.
Rachel Baxendale 12.10pm: Greens claim no sight of bills
The Greens say they had not seen any amendments to the foreign interference transparency and espionage and foreign interference bills, despite them being listed at the top of the House of Representatives agenda yesterday.
The Joint Select Committee on Intelligence Services, whose members are all from the major parties, has made 110 recommendations for amendments to the bills.
Greens Senator Nick McKim yesterday tabled motions in the Senate to refer both pieces of legislation to the Senate’s Legal and Constitutional Affairs Committee to enable the crossbench to assess the legislation.
Attorney-General Christian Porter has previously indicated that he wants the legislation passed before the end of the week, so it is in place ahead of the Super Saturday by-elections on July 28.
Greg Brown 12.05pm: Shorten’s ‘snake of envy’
Scott Morrison has lashed Bill Shorten for vowing to repeal company tax cuts for businesses with a turnover of more than $10 million, declaring the Opposition Leader was turning the ladder of opportunity into the “snake of envy”.
My snakes have many qualities, but I don't think envy is one of them. pic.twitter.com/1YrNifXCvv
— James Jeffrey (@James_Jeffrey) June 26, 2018
The Treasurer said the Opposition Leader’s policy would lead to tax increases to about 20,000 businesses.
“There is an average 75 employees in those businesses, this is terrible news for 1.5 million Australians who work in those businesses that will have to face higher taxes under Labor if Labor is elected,” Mr Morrison said.
“How Labor thinks taxing those businesses with an average of 75 employees is going to help those businesses actually go out there and compete and make their way ahead is beyond me and I think it just demonstrates how Labor just don’t get it when it comes to having plans for a stronger economy.”
Mr Morrison said it appears today’s announcement by Mr Shorten was a “captain’s call” that was not discussed on caucus or shadow cabinet.
“Shadow Cabinet, to the best of my knowledge, hasn’t met to actually make this decision,” Mr Morrison said.
“He gets under a bit of pressure from Anthony Albanese and runs out after giving a speech and makes a unilateral call on what he is doing with tax policy.
“You can’t trust this guy with tax, you can’t trust this guy with anything. He has taken Mark Latham’s ladder of opportunity and turned it into a snake of envy and that tells you everything you know about how shifty Bill Shorten is.”
11.55am: Albo ‘better leader than Shorten’
Pauline Hanson says Anthony Albanese would make a better Labor leader than Bill Shorten.
The One Nation leader told radio 2SM she did not believe Mr Shorten understood “grassroots Australians”, and felt Labor would dump him.
“I don’t like him, I don’t trust him. I think he would be disastrous as prime minister of this country,” Senator Hanson said.
Asked to reflect on Mr Albanese, who was on a multi-party delegation to India with her last year, Senator Hanson described him as a “lovely guy”. “I think he would be better leader than what Bill Shorten is,” she said. “But do I trust the Labor Party for the economic management of this country? No, I don’t.” Senator Hanson said she had been able to talk constructively with Prime Minister Malcolm Turnbull.
“He does listen to my points,” she said.
Senator Hanson also revealed her former colleague Brian Burston, who quit One Nation, had described her as a “f … wit, a coward and an imbecile” and had been disgruntled for “months” before pulling the pin.
Rachel Baxendale 11.50am: Greens support Labor on tax
Unsurprisingly, the Greens say they will support any move by Labor to repeal tax cuts for businesses with turnover of $10 million to $50m.
The Greens also intend to oppose legislation currently at the top of the Senate notice paper which will see university graduates required to pay back their Higher Education Loan Program debts as soon as their taxable income reaches $44,999.
Currently, the threshold is $54,869, at a rate of 4.0 per cent.
Under the new legislation, the rate would initially be 1.0 per cent — or $450 a year for those earning $44,999.
One Nation has already announced its support for the bill.
The government has been negotiating with Centre Alliance senators Rex Patrick and Stirling Griff.
Greg Brown 11.35am: Butler loses electorate
Opposition energy spokesman Mark Butler has lost his electorate after the Australian Electoral Commission abolished the seat of Port Adelaide.
Port Adelaide will be abolished following boundary changes that will reduce the number of seats in South Australia from 11 to 10.
The AEC also announced the electorate of Wakefield would be renamed to Spence, in recognition of women’s rights advocate Catherine Spence (1825—1910).
“The final boundaries have resulted principally from the need to reduce the number of electoral divisions from 11 to 10,” said Australian Electoral Commissioner Tom Rogers.
“Abolishing an electoral division, together with the need to ensure that all of South Australia’s 10 electoral divisions then meet the numerical requirements of the Electoral Act, means that changes have been made to the boundaries of all electoral divisions in South Australia,” Mr Rogers said.
Joe Kelly 11.30am: MP confirms Shorten’s captain’s call
A Labor MP has today confirmed that no updated position on the government’s company tax package had been put to the caucus.
“In caucus what we vote on is how we will deal with legislation. And so our position when the company tax legislation has come before us in its different forms has been to oppose,” the MP said.
When asked whether the decision had ever been discussed by the caucus, the MP said: “I do not believe so”.
Bill Shorten also continued his personal attack on Malcolm Turnbull’s wealth following the passage of last weeks $144 billion personal income tax cuts and the government’s ambition this week to lower the corporate rate to 25 per cent for all businesses.
Speaking to the caucus, the Opposition Leader said: “Last week the Liberals voted to give themselves a $7,000 tax cut but they won’t vote to protect shop assistants from having up to $77 a week cut form their Sunday pay.
“Turnbull has no clue how people actually live and I do believe his wealth is connected to that”.
Mr Shorten also argued that the by-election contests would be tightly run contests, saying that Longman was “very close” and that Braddon was “very difficult”.
“We do have the better candidates, the better policies and the better values,” Mr Shorten said.
West Australian Labor MP Madeleine King was the only person who nominated for Labor’s frontbench vacancy and her promotion was swiftly carried by the caucus.
Greg Brown 11.20am: Westacott slams Shorten on tax
Business Council of Australia chief executive Jennifer Westacott has slammed Bill Shorten for “economy wrecking public policy” after he vowed to repeal legislated company tax cuts for businesses with a turnover of more than $10 million.
Ms Westacott said the Opposition Leader’s policy was a “tax increase” and would add uncertainty to the business sector.
“Another bit of economy wricking public policy, to say to businesses: ‘look we are going to leave you hamstrung with one of the highest company tax rates in the world and expect that you can compete and employ people and pay them more’,” Ms Westacott said in Canberra this morning.
“For the person that says ‘I stand for workers’ well I’m sorry if you stand for workers you have to stand for business because we employ 10 million of them.”
Joe Kelly 11.13am: Shorten’s captain’s call on tax
Bill Shorten has made a captain’s call in announcing that a future Labor government would repeal already legislated tax cuts for businesses with a turnover of between $10 million and $50 million.
The Opposition Leader has not yet made a decision on whether to repeal tax cuts for businesses with a turnover of between $2 million and $10 million — leaving them in limbo.
However, the Labor caucus did not discuss the position announced by Mr Shorten today and has not discussed it in the past.
Greg Brown 11.00am: ‘I will cross the floor’
Former PM Tony Abbott has refused to rule out crossing the floor and voting against the government’s energy policy.
Greg Brown 10.30am: ‘Good luck for your wealth’
Bill Shorten says he has no problem with Malcolm Turnbull being wealthy, despite Labor releasing an ad personally attacking the Prime Minister for benefiting from corporate tax cuts.
The Opposition Leader said he wishes Mr Turnbull “good luck” for being “very very wealthy” after he was asked about The Australian’s report today showing the Labor frontbench had substantial investments in property and shares.
“Let me state very clearly: good luck to Mr Turnbull for being a very, very wealthy man. It is not his wealth that worries me, it’s when he says really stupid things,” Mr Shorten said this morning.
“When he says to young couples trying to buy their first home, ‘just get rich parents’. When he says to 60 year old age care workers in Burnie ..’just get a better job’.
“I genuinely think that Mr Turnbull is so out of touch with how millions of Australians live their lives, that’s the problem.”
Greg Brown 10.20am: ‘Another giant job-destroying tax’
Treasurer Scott Morrison and Finance Minister Mathias Cormann have leapt on Bill Shorten’s admission Labor would repeal already legislated corporate tax cuts for businesses with a revenue of more than $10 million.
Bill Shorten has confirmed yet another giant, job-destroying tax on Aus biz & the economy. Not only has Labor committed to ripping our personal income tax cut away from 9m Aussies, they'll now hit tens of thousands of businesses that employ 1.5m Aussies with high taxes #auspol
— Scott Morrison (@ScottMorrisonMP) June 26, 2018
Mr Morrison said the Opposition Leader had “no plans to grow the economy”.
“Bill Shorten has confirmed yet another giant, job-destroying tax on (Australian business) and the economy,” Mr Morrison tweeted.
“Not only has Labor committed to ripping our personal income tax cut away from nine million Aussies, they’ll now hit tens of thousands of businesses that employ 1.5m Aussies with high taxes.”
Senator Cormann tweeted: “Our agenda is about attracting more investment, stronger growth, more jobs & higher wages on the back of stronger competition for workers. Bill Shorten again today pushing higher taxes on business, which would lead to less investment, lower growth, fewer jobs & lower wages.”
Our agenda is about attracting more investment, stronger growth, more jobs & higher wages on the back of stronger competition for workers.
— Mathias Cormann (@MathiasCormann) June 25, 2018
Bill Shorten again today pushing higher taxes on business, which would lead to less investment, lower growth, fewer jobs & lower wages.
Greg Brown 9.40am: Labor will repeal business tax cuts
Bill Shorten says a future Labor government will repeal corporate tax cuts for businesses earning above $10 million.
The Opposition Leader said Labor would repeal the already legislated tax cuts of between $10m and $50m.
The party is unsure about what position it will take on tax cuts legislated for companies with a turnover of between $2m and $10m.
He said the companies would still benefit from a Labor government.
“We will make sure when your workers are sick they can get to see the doctor quickly so they can return to work more effectively. I am saying to Australian businesses of any size, we will give you a better broadband network,” Mr Shorten said.
“What we offer Australian businesses is the following: a trained workforce, we will make sure when you need to invest in productivity and new technology we will give you an extra 20 per cent depreciation.”
9.30am: Keneally misses out on frontbench spot
Former NSW premier Kristina Keneally has missed out on a federal Labor frontbench position.
A factional deal by ALP powerbrokers has cleared the way for West Australian MP Madeleine King to replace Tim Hammond who has quit parliament for personal reasons.
Senator Keneally entered federal Parliament early in 2018, replacing Sam Dastyari, and after failing to win a lower seat in the Bennelong by-election in late 2017.
AAP
Greg Brown 9.15am: ‘Devasatating’ if Hanson breaks vow on business tax
Deputy Labor leader Tanya Plibersek has heaped pressure on Pauline Hanson to stick to her word and help block the government’s big business tax cuts.
Ms Plibersek said One Nation had voted with the government “100 per cent” of the time so far this year.
“It would be devastating if they agreed to this big business tax give away, remembering that the Business Council of Australia’s own members have been up front with what they will do with the tax cuts: they will plough it back into their companies, they will give it to shareholders as profit,” Ms Plibersek said in Canberra this morning.
“What they won’t do, is create more jobs, invest in Australia, reduce our offshoring and pay their taxes.
“We know that because they were asked to sign a letter to that effect by the Business Council and they refused to do so. They weren’t prepared to put pen to paper to guarantee that they would pay their workers more, pay their taxes, invest in Australia and reduce offshoring.”
Greg Brown 9.00am: New coal-fired power stations ‘uninvestable’
Opposition energy spokesman Mark Butler has attacked the Coalition’s energy committee for demanding extra incentives for investment in new coal-fired power plants.
“When Malcolm Turnbull first floated this idea last year he was given a resounding message from business that new coal-fired power stations are simply uninvestable in this country,” Mr Butler said in Canberra this morning.
“Indeed, the only businessman that indicated any interest in partnering with Malcolm Turnbull in such a venture was Clive Palmer, whose last great idea was building Titanic II.
“The government was also given a message from the Energy Security Board that no investor is going to go near a new coal-fired power station.
“And Malcolm Turnbull’s own pet project, Snowy 2.0, it has been made very clear, it will only be viable with a high renewable energy future and not with new coal-fired power stations.”
The Australian revealed this morning that Coalition MPs have been told a plan to bring on extra base-load power through either new coal or gas is being drafted by Energy Minister Josh Frydenberg as an “add-on” energy policy to the national energy guarantee.
Greg Brown 8.45am: How will NEG reliability guarantee work?
As industry leaders — including Business Council of Australia chief executive Jennifer Westacott — address the Coalition backbench this morning on the benefits on the national energy guarantee, Liberal MP Craig Kelly is still unconvinced about the government’s energy policy.
Mr Kelly, the chair of the Coalition’s backbench energy committee, told the ABC before the meeting he did not understand how the policy would guarantee reliability.
“Of course we will listen to these business leaders, and the minister has done well, I will give Josh (Frydenberg) full credit for organising these business leaders to come to Canberra today,” he said.
“One of the concerns I and many of my colleagues have had about the NEG is the reliability guarantee …(which means) our 100 largest electricity users would have the reliability obligations placed upon them.
“Now I am very interested to hear from these business leaders how they think that reliability guarantee will affect them.
“Because one of the concerns that I have, and I share this with many of my colleagues, that this will put industry in Australia at a comparative disadvantage.”
Other industry leaders in Canberra this morning are Minerals Council of Australia chairwoman Vanessa Guthrie, BlueScope chief executive Mark Vassella, and BHP executive Arnoud Balhuizen.
Greg Brown 8.25am: Labor ‘bunch of hypocrites’
Defence industry Minister Christopher Pyne has called the Labor frontbench “a bunch of hypocrites” and “pathetic” for criticising Malcolm Turnbull’s wealth despite being asset-rich themselves, with substantial property and shareholdings.
.@cpyne on Labor's criticism of tax cuts: Every Australian wants to earn more money and move up the ranks...we're like salmons swimming upstream, that's what we do best. Labor politicians are hypocrites...they're property tycoons.
— Sky News Australia (@SkyNewsAust) June 25, 2018
MORE: https://t.co/5WizPEfB6e #FirstEdition pic.twitter.com/TS07eIYfo5
Mr Pyne this morning leapt on The Australian’s analysis of the investments of Bill Shorten’s team, which showed the party’s 45 frontbenchers owned 105 properties between them, many of which would continue to be negatively geared if Labor wins power and scraps the policy.
He said the Opposition Leader was out of touch with the public for campaigning against a key Australian value of aspiration.
“I think the Labor Party has completely missed the boat on this issue, every Australian wants to do better, everyone wants to earn more money, get new jobs, move up through the ladder of opportunity as Labor used to talk about, that’s the Australian way, and Malcolm Turnbull embodies it,” Mr Pyne told Sky News.
“And Labor are a bunch of hypocrites here, as we’ve seen today they are property tycoons, these people have got five, six, seven properties each, and they are criticising Malcolm Turnbull.
“It is pathetic, it is hypocritical, I think the Australian people are laughing today at the Australian Labor Party trying to get away with this smear, this grubby campaign, and exposing themselves as not being in touch with the Australian aspiration, which is always to keep moving up, like the salmon swimming upstream, that is what Australians do and we are very good at it.”
Greg Brown 7.50am: Nats ‘strongly support’ energy policy
Energy Minister Josh Frydenberg says there is “strong support” in the Nationals party room for the government’s signature energy policy, despite the smaller Coalition party pushing for additional measures to drive investment in coal-fired power stations.
With business leaders in Canberra this morning to lobby MPs to back the government’s national energy guarantee, Mr Frydenberg played down discordance within government ranks about the policy.
“I’ve spoken to Michael McCormack and he told me there was strong support in his party room for the national energy guarantee, I’ve spoken to a lot of Nationals about the national energy guarantee and how important it is for our country,” Mr Frydneberg told Sky News.
.@JoshFrydenberg on the National Energy Guarantee: The states recognise how important it is to keep coal in the system.
— Sky News Australia (@SkyNewsAust) June 25, 2018
MORE: https://t.co/DNraLjRDOY #FirstEdition pic.twitter.com/VRRhm6Kgo0
Mr Frydenberg told the ABC the NEG would provide a framework for investment in coal-fired power stations. But he said the government had no plans to subsidise coal.
“We have seen the market operator say how important our existing baseload capacity is, and if you look over the last summer (the) 17 most significant generators in terms of output out of the top 20 were coal, two were gas and one was hydro, so coal is absolutely critical,” he said.
He also rejected a request from pro-coal MPs to back-end the emissions reductions under the policy until the latter part of next decade, rather than the current method of reducing emissions from 2020.
“I’ve made it very clear that we do have a carbon budget approach, that was what was signed up to under Tony Abbott, and the most cost-effective way of meeting that goal is through having a trajectory which is consistent through that period from 2020,” he said.
What’s making news:
The nation’s biggest miners and manufacturers have warned crossbench parties One Nation and Centre Alliance that their home states of Queensland and South Australia stand to lose investment and jobs if they block the government’s cuts to company tax rates.
Bill Shorten’s asset-rich frontbenchers, who have led attacks on the personal wealth of Malcolm Turnbull, will continue to have access to the benefits of negative gearing on dozens of investment properties under Labor’s plans to axe the lucrative tax break for new investors.
Tax breaks for business during the global financial crisis saved the economy from recession, the Reserve Bank has found, in a landmark analysis that highlights their potency in generating new business investment.
Coalition MPs have been told a plan to bring on extra base-load power through either new coal or gas is being drafted by Energy Minister Josh Frydenberg as an “add-on” energy policy to the national energy guarantee, in a move that will lock in future supply and head off a potential internal government rebellion.
The Australian National University has for the first time detailed its reasons for walking away from negotiations with the Ramsay Centre for Western Civilisation, painting the would be benefactor as a micromanager that sought to veto curriculum decisions and check on lecturers hired to deliver a proposed course.
A former West Australian Rural Woman of the Year who accused Barnaby Joyce of sexual harassment says she thought twice about appearing at a conference in Canberra yesterday because she feared being confronted by media about the investigation into the former Nationals leader.
New laws forcing those acting on behalf of foreign powers to publicly register have special conditions for private companies that operate out of authoritarian countries, including China.
Labor has vowed to transform any success Malcolm Turnbull has on company tax reform into a poisoned chalice at the Longman by-election, positioning itself as the only force opposing the Prime Minister’s signature election policy.
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