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Labor pursues government over company tax cut costings – question time live Labor pursues government over company tax cut costings – question time live
(35 minutes later)
7.07am BST
07:07
New governor for the Reserve Bank
Down in the House, Scott Morrison is announcing Phillip Lowe will replace Glenn Stevens as the governor of the Reserve Bank – Lowe is a deputy governor of the RBA – and Ian Harper, architect of the competition review, will go onto the Reserve Bank board.
That’s a pretty big appointment to make five seconds away from the caretaker period. The shadow treasurer Chris Bowen makes it clear Labor hasn’t been consulted on this appointment, but he supports it nonetheless.
7.03am BST
07:03
As flagged before, in the event you want some colour and movement from the suspension debate, Tony Burke had a very jolly time of it. Here’s a clip of his speech.
6.48am BST
06:48
Morrison says everytime people hear Bill Shorten announce something tonight in the budget in reply, they will be paying for it.
And that’s the debate.
Give me a minute and I’ll be back with the afternoon, evening and night.
6.43am BST
06:43
The treasurer Scott Morrison is currently working through the times when Labor people have sounded more positive about company tax cuts, including when Labor cut the company tax in government.
Tanya Plibersek:
We said how we’d pay for it!
Scott Morrison:
With the mining tax, and they think this is an excellent point Mr Speaker.
6.39am BST
06:39
That was a crisp speech by Burke, I’ll see if I can chase up some video of it in due course. Some sharp counterpoints in it.
6.29am BST6.29am BST
06:2906:29
Malcolm Turnbull, still looking relentlessly forward.Malcolm Turnbull, still looking relentlessly forward.
Mr Speaker, what they propose is a ban on negative gearing which will have the consequence that no Australian who lives by the sweat of his or her brow will be ability to offset an investment loss against their personal income. It might be a salary or wage or professional income.Mr Speaker, what they propose is a ban on negative gearing which will have the consequence that no Australian who lives by the sweat of his or her brow will be ability to offset an investment loss against their personal income. It might be a salary or wage or professional income.
So that will mean is that somebody who seeks, someone on average earnings or less as is the case with 70% of the people who lodge returns with negative gearing, those people in the future will not be able to purchase an investment property and offset a net rental loss against their income. This will take thousands of people out of the investment market. It will ensure that rents will go up.So that will mean is that somebody who seeks, someone on average earnings or less as is the case with 70% of the people who lodge returns with negative gearing, those people in the future will not be able to purchase an investment property and offset a net rental loss against their income. This will take thousands of people out of the investment market. It will ensure that rents will go up.
Every measure we have set out will drive growth and jobs.Every measure we have set out will drive growth and jobs.
Every single one - trade, innovation, investment, backing enterprise – everything Labor has proposed stands in the way of jobs, stands in the way of enterprise, stands in the way of growth.Every single one - trade, innovation, investment, backing enterprise – everything Labor has proposed stands in the way of jobs, stands in the way of enterprise, stands in the way of growth.
Labor’s Tony Burke is up now. He says he thought he’d ask for an extension of time, but he thought the backbench would kill him.Labor’s Tony Burke is up now. He says he thought he’d ask for an extension of time, but he thought the backbench would kill him.
6.25am BST6.25am BST
06:2506:25
It’s slightly bizarre, watching the Turnbull pitch down the barrel in the middle of a parliamentary debate. Not one glance back to the colleagues. Not one.It’s slightly bizarre, watching the Turnbull pitch down the barrel in the middle of a parliamentary debate. Not one glance back to the colleagues. Not one.
6.21am BST6.21am BST
06:2106:21
Malcolm Turnbull amends the motion so it would say the following: that this House welcomes and supports the government’s economic plan for jobs and growth.Malcolm Turnbull amends the motion so it would say the following: that this House welcomes and supports the government’s economic plan for jobs and growth.
Now he’s sailing forth, looking down the barrel of the camera for a pre-election pitch. No shouting, just a fireside chat, delivered in the parliament.Now he’s sailing forth, looking down the barrel of the camera for a pre-election pitch. No shouting, just a fireside chat, delivered in the parliament.
Malcolm Turnbull:Malcolm Turnbull:
We have to continue with this agenda for economic growth. We can’t afford to risk it by changing tack in the way the Labor party would propose.We have to continue with this agenda for economic growth. We can’t afford to risk it by changing tack in the way the Labor party would propose.
6.19am BST6.19am BST
06:1906:19
I think he has a stitch #auspolI think he has a stitch #auspol
Pay that.Pay that.
6.18am BST6.18am BST
06:1806:18
Bowen was completely hoarse by the end of that Castroesque soliloquy. He gets a round of applause from his own side.Bowen was completely hoarse by the end of that Castroesque soliloquy. He gets a round of applause from his own side.
6.12am BST6.12am BST
06:1206:12
Chris Bowen:Chris Bowen:
You thought you could get away with it!You thought you could get away with it!
The prime minister thought he was such a good explainer. The world’s greatest debater would get away, he thought, with a ten-year tax cut plan, without explaining what the cost is.The prime minister thought he was such a good explainer. The world’s greatest debater would get away, he thought, with a ten-year tax cut plan, without explaining what the cost is.
‘Of course. I will be able to do it. I am of course Malcolm Turnbull’, he thought, ‘self-evident that I will get away with it.’‘Of course. I will be able to do it. I am of course Malcolm Turnbull’, he thought, ‘self-evident that I will get away with it.’
He doesn’t get away with it!He doesn’t get away with it!
Pyne has just extended Bowen for another five minutes.Pyne has just extended Bowen for another five minutes.
6.08am BST6.08am BST
06:0806:08
Chris Bowen, continuing.Chris Bowen, continuing.
Weren’t they leaping in their seats in excitement about the coming election ... the members for Tasmania, for the Central Coast of NSW, looking forward so much to going ... of redefining small business as any business under $1bn, giving big business a tax cut – that’s their re-election pitch to the Australian people, almost $17,000 worth of tax cuts to someone on $1m – that’s their big pitch for re-election.Weren’t they leaping in their seats in excitement about the coming election ... the members for Tasmania, for the Central Coast of NSW, looking forward so much to going ... of redefining small business as any business under $1bn, giving big business a tax cut – that’s their re-election pitch to the Australian people, almost $17,000 worth of tax cuts to someone on $1m – that’s their big pitch for re-election.
Well, good luck. Good luck with that. But tell the truth about it as you go.Well, good luck. Good luck with that. But tell the truth about it as you go.
We funded our plans over ten years. The same tests apply to this prime minister. He thinks he’s above it. He thinks he’s the smartest person in Australia.We funded our plans over ten years. The same tests apply to this prime minister. He thinks he’s above it. He thinks he’s the smartest person in Australia.
You might be, I cast no judgment, but you’re still required to be honest with the Australian people. You’re still required to tell the truth.You might be, I cast no judgment, but you’re still required to be honest with the Australian people. You’re still required to tell the truth.
The prime minister is required to be honest with the Australian people. And if he can’t be, then he doesn’t deserve that trust. He doesn’t deserve that mandate.The prime minister is required to be honest with the Australian people. And if he can’t be, then he doesn’t deserve that trust. He doesn’t deserve that mandate.
The prime minister doesn’t deserve the term in his own right that he so desperately craves.The prime minister doesn’t deserve the term in his own right that he so desperately craves.
UpdatedUpdated
at 6.09am BSTat 6.09am BST
6.01am BST6.01am BST
06:0106:01
The government doesn’t move the gag. I suspect Bowen thought the government was going to gag him.The government doesn’t move the gag. I suspect Bowen thought the government was going to gag him.
Manager of government business, Christopher Pyne, is grinning like a Cheshire Cat. He thinks Bowen is unprepared for a twenty minute speech. I suspect from Bowen’s high adrenalin opening that he’s right. But Bowen ploughs on regardless.Manager of government business, Christopher Pyne, is grinning like a Cheshire Cat. He thinks Bowen is unprepared for a twenty minute speech. I suspect from Bowen’s high adrenalin opening that he’s right. But Bowen ploughs on regardless.
Bowen is nothing if not relentless.Bowen is nothing if not relentless.
Chris Bowen:Chris Bowen:
Well, Mr Speaker, what a budget. What a budget! What a launch of an election campaign. The prime minister is off to see the governor-general and launches his election campaign by not being honest with the Australian people and not being honest about the reasons he’s being dishonest with the Australian people.Well, Mr Speaker, what a budget. What a budget! What a launch of an election campaign. The prime minister is off to see the governor-general and launches his election campaign by not being honest with the Australian people and not being honest about the reasons he’s being dishonest with the Australian people.
He could come clean, stand up and reveal the costs.He could come clean, stand up and reveal the costs.
5.55am BST
05:55
Here it is. The shadow treasurer, Chris Bowen, is moving to suspend the standing orders.
Updated
at 5.57am BST
5.49am BST
05:49
Sounds like we are building up to a suspension here.
Q: Since the government came to office, schools, hospitals and pensions have been cut and the deficit tripled, and now the government is running scared of revealing the 10-year cost of its budget centrepiece. Why is the government delivering the exact opposite of what it promised Australians?
The prime minister is on to what state treasurers think of Bill Shorten. Not much is the short version.
Malcolm Turnbull:
What the leader of the opposition has done – he is presenting Gillard’s unfunded promises with a fresh coat of paint.
They call out “rubbish”, Mr Speaker.
Tonight they will tell us where they will fill in the black hole.
Updated
at 5.52am BST
5.42am BST
05:42
The shadow treasurer, Chris Bowen.
Q: I refer to the prime minister’s repeated claims in previous answers that previous budgets have not outlined 10-year costings. Given the 2014 budget outlined $80bn worth of cuts to schools and hospitals over 10 years, why does not this budget reveal the 10-year cost of his budget centrepiece? And why is the prime minister not honestly explaining to the Australian people the reason why he won’t tell them?
Malcolm Turnbull:
Is that the best you can do? A good question addressed to the shadow treasurer.
The shadow treasurer knows full well ...
Updated
at 5.48am BST
5.32am BST
05:32
Labor persists with company tax cut costings. The prime minister persists with not giving them, for the reasons he’s previously invoked.
5.30am BST
05:30
The Tasmanian independent, Andrew Wilkie, wants to know about public service jobs in Hobart, given the great big efficiency dividend in this year’s budget.
Malcolm Turnbull starts out with a statement that Tasmania’s economic future is not served by hiring more public servants but by the economic activity that will come with the government’s jobs and growth plan. I’m not so sure this is the strongest offering Turnbull could be making in sight of an election – don’t you worry about those public servants – given Tasmania (a bit like Canberra) is chock full of them.
Someone else evidently thinks a correction is in order too, because a brief arrives about the CSIRO and the new ice breaker and 40 full-time jobs. Turnbull changes course.
Updated
at 5.40am BST
5.25am BST
05:25
Bill Shorten again.
Q: Does the prime minister know the Treasury 10-year costing and is simply refusing to say or does he just not know how much the cost of his budget centrepiece will be over 10 years?
That question gets flicked to Scott Morrison. Morrison says the government is sticking with conventional budget practice, just like Labor, which had a policy of not releasing 10-year costings.
Updated
at 5.38am BST
5.21am BST
05:21
A former colleague of mine when we both worked at the Age, Tim Colebatch, has had a stab at the cost in a piece published by Inside Story. As with all his work, it’s very much worth your time.
Tim says he thinks the cost is $11.5bn a year, rising to $15bn in 2019-20.
Tim Colebatch:
We can get an idea of the ultimate cost by applying the 25% tax rate to the expected 2016–17 company tax take. It would cost us (other taxpayers) $11.5bn a year, rising to $15bn by 2019–20. That’s more than the entire budget support for universities and TAFEs combined.
It’s almost four times the amount we give in official development aid (which, net of administration costs, will be just $2.9bn in 2016–17). It’s more than the government will be spending on all transport infrastructure combined.
It’s a big amount to gamble on the hope of a long-term payback.
Updated
at 5.36am BST
5.17am BST
05:17
Labor is back to the company tax cuts. Turnbull is asked whether the economist Chris Richardson is correct when he says the tax cut will cost $55bn.
Turnbull says it depends on what his assumptions are. He might be right, he might not be right – only time will tell.
The prime minister says Labor is entitled to ask for these costings but the government will stick with conventional practice.
Malcolm Turnbull:
The medium-term projections, also set out in the budget papers, don’t identify the individual line items and they have not and have not been historically provided in the budget papers.
What we have done is set out in the budget papers detailed four-year estimates, as has always been the case, and then a medium-term outlook that sets out what the overall outcome of the budget is likely to be over that 10-year period, recognising the many uncertainties that attend such a long projection.
That has always been the case and what honorable members opposite are asking the government to do is to provide a detailed element in the Treasury’s calculation, which it has never been the practice of the Treasury to provide before.
Updated
at 5.30am BST
5.13am BST
05:13
The first Dorothy Dixer is on Neil Prakash.
Malcolm Turnbull:
Mr Speaker, the first duty of every government is the safety and security of the Australian public. No government can guarantee the absolute absence of terrorism but we must not let terror groups like Daesh change us.
We will remain secure and free. We will keep our borders secure and maintain the shared values of freedom and mutual respect for all cultures and faiths that have made ours the most successful multicultural society in the world.
Updated
at 5.27am BST
5.11am BST
05:11
The manager of government business, Christopher Pyne, has objected to interjections from the former Labor treasurer Wayne Swan. He says Swan has been swearing profusely. Swan rejects this characterisation. Pyne rises to his feet.
Christopher Pyne:
Mr Speaker, I do not want to repeat the word he was using because that’s exactly what he wants me to do. But he knows ... He knows he just told a gross untruth to the House. The word that he used could not possibly be parliamentary.
I’m happy to write the word down for you and hand it to you, Mr Speaker. But I will not put it on the Hansard and give him the respect that he’s looking for to have that remark repeated.
The Speaker, Tony Smith, decides to caution Swan, who remains in the House.
Updated
at 5.26am BST