Tasmanian Senator Jacqui Lambie reveals why she will support the Federal Government’s proposed tax cuts

UPDATED: The Federal Government’s proposed tax cuts bill is not perfect, but “it’s not a total shocker either”, says Jacqui Lambie as she reveals why she will vote for the legislation.

UPDATED: INDEPENDENT Tasmanian Senator Jacqui Lambie says she is backing the government tax cuts bill, despite being well aware of its imperfections, because low-paid Tasmanian workers need the money.

Ms Lambie told the Senate this afternoon that she would rather help some people than none at all.

“These tax cuts put money back into people’s pockets — that’s what it comes down to,” she said. “It’s not perfect, it’s not a total shocker either.

“It’s going to help, but it’s not going to help everyone.

“I’ve spoken to the government and I’ve told them my concerns about this bill, I’ve told them that tax cuts don’t help people who aren’t able to find a job in the first place and people who are sleeping in their cars or in their tents in Tasmania.”

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Ms Lambie made no reference to any deal she has struck with the government over Tasmania’s outstanding housing debt during her brief speech — but she said it must be forgiven.

“Tasmania has a high proportion of historical public housing debt than anywhere else,” she said.

“And we have thousands of people who need housing.

“The list is growing every year and every year we get a cheque to start to chip away at the list of people who need our help.

“Instead of putting that money to good use we split it and sent half of it straight back to Canberra: half our social housing budget is sent back to Canberra.

“We’ve got a housing crisis in Tasmania and we’re fighting it with one hand behind our backs. It’s not good enough. It’s so unfair. It’s time we called time on this debt.”

Senator Jacqui Lambie speaking on the tax bill on Thursday. Picture: KYM SMITH

The first stage of the Government tax plan will deliver up to $1080 to low and middle-income earners when they lodge their tax returns in coming months.

The second stage will top up a low income tax offset, which means more people — earning up to $45,000 instead of $41,000 — will have a 19 per cent tax rate. The final stage will flatten the tax rate from 32.5 per cent to 30 per cent for people earning between $45,000 and $200,000 from mid-2024.

Ms Lambie said it was better to deliver a tax cut for workers than nothing at all.

“I’m just saying that if you asked me to choose between helping someone and helping nobody then I know what I’m going to choose every single time just as sure as day follows night,” she said.

“The tax cuts we’re dealing with should be dealt with on their own merits not on the deals or sweeteners that come attached to them.

“I’m not going to vote away my integrity for anything because it’s all I’ve got in this place.”

EARLIER: TASMANIA could reap more benefits from having a powerbroker in Australia’s Senate with Jacqui Lambie saying other deals could be done once the state’s housing debt is waived.

On the ABC this morning, the Burnie-based Senator said she expected the Federal Government to forgive Tasmania’s $157 million housing debt within the next six weeks as a sweetener for her voting in favour of its tax cuts package.

Senator Jacqui Lambie at Parliament House in Canberra. Picture KYM SMITH

“There will be further discussions to lock this in so the money does not get wasted,” Senator Lambie said.

“As long as they play with a straight bat this will work.”

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.

Shelter Tasmania’s Pattie Chugg praised Senator Lambie for prioritising social housing as the State’s homeless crisis heats up over winter.

Shelter Tasmania Executive Officer Pattie Chugg speaking at today's launch. Picture: SAM ROSEWARNE

“This is good politics,” Ms Chugg said. “We now, as Senator Lambie said, need to ensure the money goes directly into social housing not general revenue.”

After the housing debt is waived, Senator Lambie says she needs to do more “wheeling and dealing” to secure commitments to improve health services In Tasmania.

“Slow and steady wins the race. Health is also important but right now social housing is my priority,” she said.

“I am not a health expert and need to meet with those who are. We cannot just say “here’s $50 million for health” we need to ensure it pays dividends.

“We need to get the housing money locked in and then I will get straight into health.”

Senator Lambie told the Mercury yesterday 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.

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.”