Populist push to cut bills, migrants

Peter Dutton has laid out a populist manifesto, floating a $31bn plan to axe GST on electricity bills as well as cuts to migration.

Mr Dutton also fore­shadowed big spending on essential services. Picture: AAP

Peter Dutton has laid out a populist manifesto to win over colleagues, floating a $31 billion plan to axe GST on electricity bills and pledging a royal commission into energy and fuel companies.

Mr Dutton also fore­shadowed big spending on essential services, moves to free up environmental water for drought-affected farmers and action to curb population pressures in big cities.

Mr Dutton revealed his plan to strip the goods and service tax from household power bills in an interview on Melbourne’s Triple M radio, suggesting he as leader could put in the change rapidly.

“I think one of the things that we could do straight away, in this next billing cycle, is take the GST off electricity bills for families,” he said. “It would be an automatic reduction of 10 per cent for electricity bills, and people would feel an impact straight away.”

Malcolm Turnbull attacked the proposal, saying the states would expect to be reimbursed, “and that would have to come from other federal taxes”.

Scott Morrison said the policy would be “an absolute budget blower”, suggesting it would force the government to dump its GST top-up to Western Australia.

Labor also jumped on the GST plan, branding it a “crazy thought bubble” that would force cuts by the states to essential services, such as health funding.

Mr Dutton said a royal commission into the energy and fuel companies was needed because con­sumers had been paying too much and “something just isn’t right with these companies”.

“A royal commission has the ability to get to the bottom of what is fundamentally wrong with the system and what could potentially help ease the pressure on families and small business,” he said.

In a bid to lock in the support of rural MPs, Mr Dutton yesterday reiterated his suggestion that he would bring more water to drought-affected rural areas. “The drought that is taking place at the moment is the equivalent of a great depression for these farmers and it is devastating to watch the livestock perish,” he said.

On Monday, Mr Dutton suggested he would order a big increase in spending on essential services, declaring “we need to invest record amounts into health and education, aged care and other areas as well”.

The former home affairs minister also flagged action to ease population pressures, with plans to cut immigration numbers and ­direct migrants to rural areas.

“I think immigration is incredibly important to our country (but) I think it needs to be operating in our country’s best interests,” he said yesterday. “We have huge ­issues with congestion, and we need to allow our infrastructure to catch up. I think we do have to cut the numbers back; I haven’t got a number to give to you today.”

He ruled out cuts to immigrant numbers based on race or religion.

“We just want the best people to come to Australia,” he said.