Tasmanian MP who earns $233,643 says “people like us” don’t need a tax cut

Senator Jacqui Lambie, who earns $233,643, has dismissed the personal income tax cuts, saying “people like us” don’t need them.

Tasmanian Senator Jacqui Lambie has dismissed the $23 billion in personal income tax cuts that starts today insisting that it’s “mind-blowing” the wealthy are still getting relief when battlers face more interest rate rises.

Speaking on Channel 9, Senator Lambie said that even though the tax cuts have been slashed for those earning more than $200,000 including MPs, it was still too generous for the rich.

But she said it was not generous enough for low income families, calling it a “band aid fix” for battlers struggling with rising rents and interest rates.

“People like us didn’t need a tax cut. Okay?,’’ she said.

“And I find that absolutely mind blowing, considering the economic circumstances that we are in on the 1st of July, and it looks like there’s going to be a couple more interest rate (rises).”

Senator Jacqui Lambie said the tax cuts were a “band aid fix” for battlers struggling with rising rents and interest rates. Picture: NewsWire / Martin Ollman

After the latest 3.5 per cent increase to politicians’ pay a backbencher such as Senator Lambie earns a base salary of $233,643 a year – up from $225,742 the previous year – or about $4,493 a week before tax.

But before the changes spearheaded by Treasurer Jim Chamlers the original Liberal Party tax cuts were even more generous to the rich, delivering a $9,075 tax cut.

Under the changes that roll out from today, that figure has been slashed in half for the wealthy while tax cuts are more generous for low and middle income earners.

But Senator Lambie said it still wasn’t enough to improve the cost of living for battlers.

“Paying that forward and making sure those people who are really doing it tough, we could have actually given a lot more tax cuts,’’ Senator Lambie said.

“And they decided not to do that.

“You know, it’s just this is a quick bandaid fix. Nobody’s really going to get much out of it, for those people that are right down here on the bottom line, they’re just going to continue to do it tougher. So they need to know what? They need help and they need a lot of help.”

Speaking on Sunrise, Finance Minister Katy Gallagher dismissed any suggestion the tax cuts would fuel inflation, claiming the fight against inflation and the tax cuts are “in a sense two different things.”

“I think people will welcome these measures and it will make a difference to them as they get through their day-to-day cost- of-living,’’ she said.

Finance Minister Katy Gallagher has dismissed any suggestion the tax cuts would fuel inflation. Picture: NewsWire / Martin Ollman

“Whether it be groceries or petrol or mortgages as you say.

“But we’ve got to keep an eye on inflation. We’ve seen in other parts of the world it doesn’t necessarily come down in a straight line. We’ve seen welcome progress. It’s come down from, I think, the peak of over eight per cent now at four, but there’s more work to do there. There’s definitely more work to do. I’m not pretending otherwise.”

While some economists have raised concern about the impact of the tax cuts on inflation and in turn interest rates, other assistance such as energy bill relief was designed to put downward pressure on inflation.

“Particularly we’ve seen that with how the energy bill relief rolled out last year,’’ she said.

“The tax cuts, of course, are factored in and have been for some time. And inflation is moderating, Shirvo. It’s peak obviously we’ve got to keep our eye on it.”

Originally published as Tasmanian MP who earns $233,643 says “people like us” don’t need a tax cut