Row over Stage 3 tax cut changes dominates first Question Time of the year

A frustrated Lidia Thorpe has shouted at a Labor frontbencher over the stage 3 tax cuts, declaring she didn’t believe she should be getting a handout.

A frustrated Lidia Thorpe has shouted at a Labor frontbencher over the stage 3 tax cuts, declaring she didn’t believe she should be getting a handout.

The government will this week attempt to pass its reworked stage 3 tax plan through parliament after the Coalition resolved to not stand in the way of the plan.

However, not everyone is a fan of the changes, which would slash Morrison-era tax cuts for people earning over $150,000 and redistribute it to those on lower incomes.

But everyone is still in line to get a cut as the lowest tax bracket will be reduced from 19 per cent to 16 per cent for earnings under $45,000.

The 37 per cent tax rate would be retained for those earning between $135,000 and $190,000.

Senator Thorpe questioned why she would be getting any money back at all.

“How is it fair giving politicians a tax cut?” she interjected as the Finance Minister Katy Gallagher was taking a question on the proposal.

“I don’t need a tax cut. People in this place don’t need a tax cut.”

Senator Thorpe interjected about tax cuts and Gaza. Picture: NCA NewsWire / Martin Ollman

Earlier, the outspoken senator yelled at Foreign Minister Penny Wong for the government’s response to the Israel-Hamas conflict in Gaza.

“This is a genocide,” she said.

Senator Wong had been asked about Australia’s decision to pause funding to the United Nations agency for Palestinian refugees (UNRWA) while an investigation is underway after employers were accused of taking part in the October 7 attack.

The Foreign Minister said the allegation must be looked into as she criticised Greens senator Mehreen Faruqi, who asked the question.

“The Opposition Leader, Mr Dutton, and the Greens are on a unity ticket, which is all about dividing the Australian community and weaponising this horrific conflict,” she said.

“It is of deep regret whilst the government is seeking to use our voice to advocate for the release of hostages, for the protection of civilian lives, for humanitarian access and for a pathway out of this conflict, we do not have partners in this effort in either the Opposition or the Greens.

“The reality is that we are seeking to play a constructive role. There are two parties in this place who are playing politics with this conflict. One of them has just asked me a question.”

Standing to ask supplementary question, Senator Farqui responded: “Minister, I did not need a lesson in gaslighting”.

Prime Minister Anthony Albanese led the chorus of a ruckus during Question Time at Parliament House in Canberra. Picture: NCA NewsWire / Martin Ollman

‘Shining’: Albo’s brutal attack over tax cuts

Question Time for the year began in a rowdy fashion on Tuesday, with Anthony Albanese responding to a question on tax by comparing Peter Dutton to “Jack Nicholson in the Shining”.

Asked by Mr Dutton whether he would rule out changing the current tax treatment of the family home, Mr Albanese led the chorus of ruckus which speaker Milton Dick struggled to keep under control.

Mr Dutton sought to get Mr Albanese to answer the question “in a straight fashion”, which the prime minister said he had - before moving on to give “a bit of colour and movement”.

“Because last night, I was there watching Nemesis,” he said, referring to the ABC’s three-part series on the nine years of Coalition rule spanning three prime ministers.

“Watching the Coalition of hatred… and I was reminded that the Leader of the Opposition, his big commitment that he’d smile more.

“He was gonna be like Little Miss Sunshine. Instead, he gave us Jack Nicholson in The Shining, smashing through the walls.”

PM leads tributes to ‘trailblazer’

Mr began Question Time by paying tribute to Lowitja O’Donoghue, who passed away on the weekend at the age of 91.

Invoking Indigenous leader Noel Pearson, Mr Albanese described her as “a leader’s leader”, and described meeting her as “one of the great honours of my life”.

“As we mourn her passing, we give thanks for the better Australia she helped make possible,” Mr Albanese said.

“Dr O’Donoghue was at the heart of some of the moments that carried Australia closer to the better future that she knew was possible for us. Among them, the extraordinary moment of catharsis that was the Apology to the Stolen Generations.

“Dr O’Donoghue knew that our best future was a shared one, built on the strong, broad foundations of reconciliation.”

Mr Dutton spoke of Dr O’Donoghue’s early years of being taken to a mission home at the age of two, subsequently “losing her name, her family, language and identity”.

“Yet it was that tragic loss that would imbue her with a resilience, a resolve, and a responsibility with which she would see herself rise to the pinnacle of Indigenous leadership in our country,” he said.

“She showed all of us that the past is no prison where there is courage, character and conviction.”

Indigenous Australians Minister Linda Burney, who had known Dr O’Donoghue for 30 years, described her as “courageous and fearless, a true trailblazer, our Grand Lady”.

“Lowitja’s story is the truth of this country,” she said .

“Lowitja O’Donoghue’s legacy is one that is impossible to quantify. History will be a witness to that legacy and to (her) greatness.

“We love you, Lowitja. Thank you for your life and what you stood for.”

Prime Minister Anthony Albanese during Question Time at Parliament House in Canberra. Picture: NCA NewsWire / Martin Ollman

Wong defends Labor’s tax backflip

Foreign Minister Penny Wong has accused the opposition of whipping up “another scare campaign” as she launched a fiery defence of Labor’s tax backflip.

Senators returned to the upper house on Tuesday for the first question time of the year.

Tensions quickly boiled over after Senator Wong was asked if she would categorically rule out changes to negative gearing or franking credits.

“Or do weasel words apply there too?,” Coalition senate leader Simon Birmingham said.

“We are not proposing any changes,” Senator Wong responded.

“Another day, another Dutton … scare campaign.

“That’s what you can’t bear isn’t it. After all that huffing and puffing, you’ve released actually, Anthong Albanese was right”

“If it is so good, why didn’t you do it earlier,” Senator Birmingham interjected.

Senator Wong challenged the Coaltion to vote against the cuts and go to the next election with the policy of rolling back the changes.

“They are agreeing that Prime Minister Albanese did the right thing by Australian workers,” she said.

Tony Burke will seek to pass major workplace laws this week. Picture: Martin Ollman/NCA NewsWire.

Bosses could be fined for calling workers

Aussie workers could be one step closer to not having to answer their bosses outside of work hours as Labor edges closer to a deal on its contentious industrial relations laws.

It would allow workers to tell their bosses to stop making unreasonable contact outside of work hours – but that wouldn’t include messaging people for shifts and other “completely reasonable” issues.

Workplace Relations Minister Tony Burke explained one option being considered would open the door to employers being fined if they continued to contact workers outside of hours after being ordered to stop by the workplace umpire.

But he was also open to a compromise to ensure workers would not be penalised if they ignored communication outside of work hours.

“One of the ways, instead of the fines, of doing it is simply having an absolute ban on there being a penalty on the worker for disengaging,” Mr Burke said.

“So if a worker disconnects, if they decide they are not going to have their phone with them, if they decide they’re not going to be checking their emails, then absolutely no penalty can be brought against them.

“And that sort of protection would give you way of doing it without fines on the employer.”

It’s understood the compromise has the support of the Greens.

The second tranche of the legislation include changes to make it easier for casual workers to convert to permanent roles, create tougher standards for pay and conditions in the gig economy .

Mr Burke said he was hopeful it would pass this week but was coy on if he had yet to win over the crossbench.

“Nothing’s resolved until everything is resolved, so at the moment, we don’t have a majority in the Senate,” he said.

“I’m hopeful, the conversations have been really constructive, but you know, there’s no negotiation with David Pocock and Jacqui Lambie, that’s an easy one.”

Big threat to Albo’s tax cuts

Anthony Albanese’s self imposed Easter deadline for the stage 3 tax cuts could be in doubt after the Greens signalled it would be willing to delay the final vote.

No decision was made at the Greens party room meeting on Tuesday morning as to whether it would back in the changes but left open the door to sending the tax cuts to an inquiry.

Under the changes, tax cuts to high-income earners will be redistributed to workers earning under $150,000.

Anthony Albanese challenged the Liberals on stage 3 cuts. Picture: NCA NewsWire / Martin Ollman

The lowest tax bracket would be reduced from 19 per cent to 16 per cent for earnings under $45,000 and retain the 37 per cent tax rate for those earning between $135,000 and $190,000.

But the Greens remain unimpressed with the proposal and think more needs to be done to make stage 3 fair.

The Coalition agreed at its own party room meeting to not stand in the way of the tax cuts. It will put up it’s own amendments to the Bill, but will wave the changes through when they inevitably fail.

Speaking after the meeting, Peter Dutton said given so many Australians were “worse off” under the Albanese government, the Coalition was supporting the change to help those who needed assistance now. 

“The Prime Minister’s made this change for his own political survival,” the Opposition Leader said. 

“We’re supporting this change not to support the Prime Ministers lie, but to support those families who need help now. 

“Because Labor has made decision that have made it much harder for those families. That’s the position we have adopted as a party room.”

Opposition treasury spokesman Angus Taylor confirmed the Coalition would be taking “strong tax reform in line with the stage 3 tax cuts” to the next election.

Speaking outside St Andrew’s Presbyterian Church in Canberra on the first sitting day of the year, Mr Albanese simply dared the Coalition to vote against the Bill and pledge to repeal it if they were returned to power.

“The Liberal Party has changed its position on stage 3 tax cuts. If this is carved in stone how is it that they have changed their position?” he said.

“If they are fair dinkum then their response must be to not only oppose what we are putting forward with our legislation we’ll introduce today but to promise to roll it back.

“Unless they do that, it’s just wind.”

Peter Dutton is expected to announce his position on the cuts later on Tuesday. Picture: NCA NewsWire / Martin Ollman

It all means there could be some late nights and bleary eyes ahead, Mr Burke said.

“I wouldn’t be surprised if we have some late nights a little bit later this week and next week to be able to try to make sure we get everyone to speak,” he said.

“This is one where every member of parliament, I suspect, is going to want to have their say on whether or not every Australian should get a tax cut.”

Meanwhile, teal independent Allegra Spender has announced that following consultation with her electorate, she will support the cuts.

“Of the nearly 1700 people who responded to our community survey, more than two-thirds backed the decision to reshape the tax cuts, including many people who will be worse off as a result,” she said.

“So many people have spoken to me about how they’re struggling with cost-of-living pressures and these changes will give them support when they really need it.”

But she urged the government to do more.

“I’ll be advocating for specific support on energy and housing costs in the lead-up to the budget,” she said.

Pressure over tax changes

An Australian senator has pressured an elected MP to flatly rule out her support for changes to negative gearing, resulting in a tense exchange.

Nationals senator Bridget McKenzie on Tuesday demanded independent MP Monique Ryan rule out backing the investment scheme, which allows taxpayers to offset the costs associated with an investment property against their taxable income, after Dr Ryan signalled her support for wider tax reform.

“Would you support any changes to negative gearing?” Today show host Karl Stefanovic asked the crossbencher.

“Australians need certainty and they need to understand what their tax system looks like in the future,” Dr Ryan said.

“I think that, as I’ve said again, all things should be on the table in terms of tax reform in this country, but we shouldn’t be making these willy-nilly changes. We shouldn’t be tinkering around the edges of the tax system.”

Monique Ryan said Australia needed a coherent tax policy. Picture: Channel 9

Senator McKenzie said Dr Ryan raised “an interesting point” given the Albanese government’s backflip on its stage 3 tax cuts.

“When you appreciate and understand that over 2.2 million Australians are property investors as a way to actually deal with some of the debts, rental impacts of bracket creep, they’re the types of things that people like Monique need to flatly rule out any changes to,” she said.

“Australians rejected the Labor Party the last time they put that on the table. We’re concerned now, given you can’t trust a thing these guys and gals say that this could be on the table come May.”

Dr Ryan, who said she supported “measured” tax reforms, including Labor’s changes to its stage 3 tax cuts, issued a curt response to the senator’s probing.

“I think that this sort of wedging in is the sort of thing that Australians hate about politics. They want politicians to lead and to make decisions and not to try and trap each other in this sort of way.

“Sorry, Bridget.”

Simon Birmingham said the stage 3 tax cut changes were a ‘Band-Aid’. Picture: Martin Ollman/NCA NewsWire

Dutton’s response to ‘thug’ claim

Mr Dutton has responded, after Malcolm Turnbull called him a “thug” during the second part of the ABC’s Nemesis program, which aired on Monday night.

The fiery episode centred around Mr Turnbull’s downfall, and the ultimate decision to replace him as prime minister with Scott Morrison.

Mr Turnbull was adamant that Mr Dutton should not be prime minister.

Responding, Mr Dutton - who declined to participate in the three-part docuseries - said the narrative retrofitting didn’t serve a purpose.

“Maybe at some stage I’ll give an account of the true character of some individuals, but I of course champion every leader of my great party,” Mr Dutton said.

Aussie death sentence a ‘reality check’

Australian writer Yang Hengjun’s suspended death sentence is a “reality check” for Canberra’s relations with Beijing, Senator Simon Birmingham says.

The democracy activist was sentenced to death, which can be reduced down to life in prison if he does not commit any further crimes while in jail, by a Chinese court on Monday.

The opposition foreign affairs spokesman described the outcome as “harrowing”.

“Of course, (it is) a case that is something of a reality check for Australia in the relationship with China, and a case that must remain at the forefront of advocacy by the Albanese government and all Australian officials in their engagement with Beijing,” he told ABC TV.

China’s ambassador to Australia, Xiao Qian, was summoned to the Department of Foreign Affairs and Trade on Monday afternoon for a meeting with secretary Jan Adams to discuss the sentence.

Yang Hengjun was sentence to death by a Chinese court.

Speaking after a church service in Canberra, Mr Albanese said Australia had conveyed its “outrage” about the verdict.

“This is a very harsh sentence on Dr Yang, who is a man who’s not in good health,” he said.

“We will continue to make the strongest representations. We of course called in the ambassador yesterday – but we will make representations at all levels.”

Senator Birmingham said he hoped the government “clearly laid out” the “anguish and anger” felt by Australians.

“It is critical that we make sure Australia’s feelings are heard and that in no way in the days, weeks, months or, if need be, years ahead should this case be allowed to slip from mind or from advocacy,” he said.

Mr Albanese stressed Australia’s response would be “direct”.

Mr Albanese said Australia would be direct with China. Picture: NCA NewsWire / Martin Ollman

“We have said very clearly that we’ll co-operate with China where we can, but we’ll disagree where we must,” he said.

“We must disagree with this harsh action by China. We have done so. We will continue to do so.”

Dr Yang has been detained in China since he was arrested five years ago, accused of espionage.

He has always maintained his innocence.

Originally published as Row over Stage 3 tax cut changes dominates first Question Time of the year