Jacqui Lambie will support the Federal Government’s tax cuts if it wipes the state’s historic $157 million social housing debt

Jacqui Lambie will support the Federal Government’s tax cut legislation but only if the Government tips in some cash to alleviate one of the state’s most pressing problems.

Jacqui Lambie will support the tax cuts, but only if the Government waived Tasmania’s historic $157 million social housing debt. Picture: KYM SMITH

TASMANIA’S crippling historic social housing debt looks set to be scrapped or renegotiated under a deal to win Senator Jacqui Lambie’s vote for the Federal Government’s $158 billion tax cut plan.

The Senate is set to consider the policy on Thursday and Senator Lambie’s vote is needed to get it over the line.

Negotiations over the precise details of the agreement were still continuing late last night but Mr Morrison had confirmed he had the voting support of independent Senators Jacqui Lambie, Cory Bernardi and two Centre Alliance members Rex Patrick and Stirling Griff.

WHAT IT MEANS FOR YOU: FULL TAX PACKAGE TO PASS

Senator Lambie told the Mercury she had decided to support the tax cuts, but only on the condition the Government work with her to see Tasmania’s historic $157 million social housing debt waived — a debt she said was stopping the Tasmanian Government from building enough affordable homes to meet demand.

The historic housing debt, racked up decades ago, costs $15 million each year in repayments, half of what Tasmania receives each year in housing grants from Canberra.

The Mercury has campaigned long and hard for solutions to be found to alleviate the state’s housing crisis, including a front page last month that urged Federal Housing Minister Michael Sukkar to help.

Unlike some other senators @JacquiLambie understands her job, by definition, is to stick up for Tassie #auspol #politas https://t.co/SjErNA5XxE

— Chris Jones (@ItsMeChrisJones) July 3, 2019

Senator Lambie said in an exclusive interview: “I have basically said if the Government wants to help higher income earners they need to help us.

“This is what I want done and I expect it to be ironed out within the next six to eight weeks.

“I expect that out of goodwill they will come through.

“I also expect the Tasmanian Government to continue to meet, or increase, its current funding for homeless crisis services and public housing.”

Federal Finance Minister Senator Mathias Cormann said: “We are always happy to engage with senators in relation to issues of concern to them and their consitutents.”

He called on Labor to support the tax cuts, a move that would mean the Government would not require Senator Lambie’s vote.

Federal Finance Minister Senator Mathias Cormann. Picture: KYM SMITH

But Senator Lambie said it was only by having the balance of power for Tasmania in the Senate that real debt relief was going to happen.

“There is no way in good conscience I can vote for substantial tax cuts without making sure that the people who so desperately need a roof over their heads aren’t left to go without,” she said.

Tasmanians know a thing or two about having to hand back half of every dollar to the Fed Govt to cover our $157 million...

Posted by Senator Jacqui Lambie on Tuesday, 2 July 2019

Senator Lambie said people in her home state were doing it tough.

“For them $1000 in their back pocket now will give them some immediate relief,” she said.

But there are also thousands of Tasmanians who are on the pension or Newstart or who don’t earn enough money to pay tax.

“So they won’t see any benefit from a tax cut,” Senator Lambie said.

“Tasmanian families are sleeping in cars, parks and tents — all in the dead of winter and there are 3000 Tasmanians are on the housing waiting list.

“The state of Tasmania owes the Federal Government $157 million in social housing debt. Tasmania is paying 50c in every dollar of our state housing budget back to the Federal Government in interest and debt repayments

“That means we are building half as many homes, helping half as many people. This at a time when the Tasmanian Treasurer is spruiking Tasmania’s ‘golden age’.

“This debt is holding Tasmania back and denying shelter to thousands of Tasmanian families. The Commonwealth coffers don’t need $15 million a year from the Tasmanian budget.”

“The State Liberal Government keeps talking a big game but they haven’t achieved anything in debt relief. At this rate we’ll be paying this debt for another 23 years.”

If the Government wants to help higher income earners they need to help us. This is what I want done and I expect it to be ironed out within the next six to eight weeks.

This time last year Tasmanian families were living in tents in the showground.

“It is a year later and the situation has only got worse. They need help now, not in 2042,” Senator Lambie said.

“This isn’t going to fix every problem in Tasmania, but it’s a start. It would free up enough money to find a home for 3000 people on the critical list through accommodation and casework.”

ABETZ: WHY WE CAN’T CANCEL SOCIAL HOUSING DEBT

EDITORIAL: TIME TO DITCH THE DEBT

The package — under which millions of Australian workers will receive an extra $1080 in tax relief when they lodge their returns — passed the Lower House on Monday night.

The second stage of the tax cuts will see the amount workers can earn and still pay 19 per cent tax rise from $41,000 to $45,000.

The more controversial third stage of the tax plan, which will flatten the tax rate from 32.5 per cent to 30 per cent for people earning between $45,000 and $200,000, will not come in until mid-2024. There will be another election before then.