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Citizenship saga sets byelection traps for Labor and Coalition in budget fight Citizenship saga sets byelection traps for Labor and Coalition in budget fight
(7 months later)
Labor has demanded the Turnbull government provide detailed costings of its budget tax plans as both sides muscle up for critical byelection contests in July triggered by the final chapter of the dual citizenship imbroglio.Labor has demanded the Turnbull government provide detailed costings of its budget tax plans as both sides muscle up for critical byelection contests in July triggered by the final chapter of the dual citizenship imbroglio.
The Turnbull government on Wednesday introduced legislation giving effect to the personal income tax cuts promised in Tuesday night’s budget, but stonewalled when asked to produced a detailed year-by-year costing of the measure beyond the forward estimates, and an update on the costs of the company tax cut.The Turnbull government on Wednesday introduced legislation giving effect to the personal income tax cuts promised in Tuesday night’s budget, but stonewalled when asked to produced a detailed year-by-year costing of the measure beyond the forward estimates, and an update on the costs of the company tax cut.
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The budget says the cost of the personal income tax cuts is $13.4bn over the four year budget cycle, and $140bn over 10 years – with the price tag of the measure escalating as income tax relief for high income earners kicks in as a consequence of a proposal to flatten the income tax scales.The budget says the cost of the personal income tax cuts is $13.4bn over the four year budget cycle, and $140bn over 10 years – with the price tag of the measure escalating as income tax relief for high income earners kicks in as a consequence of a proposal to flatten the income tax scales.
The government’s proposal would see people earning between $41,001 and $200,000 paying the same marginal rate of tax in the final phase of the plan, from 1 July 2024.The government’s proposal would see people earning between $41,001 and $200,000 paying the same marginal rate of tax in the final phase of the plan, from 1 July 2024.
The government is coy about itemising the costs of the latter stages of the plan as the major parties gear up for byelections in Queensland, Tasmania, South Australia and Western Australia triggered by the high court’s long-anticipated decision in the Katy Gallagher case.The government is coy about itemising the costs of the latter stages of the plan as the major parties gear up for byelections in Queensland, Tasmania, South Australia and Western Australia triggered by the high court’s long-anticipated decision in the Katy Gallagher case.
While the high court result is an embarrassing blow for Labor and Bill Shorten – the ALP leader had given repeated assurances that his party’s vetting processes were water tight – the government fears the byelection season triggered by the Gallagher decision will allow the ALP to launch a “class war” offensive on the ground, amplified by progressive activist groups and trade unions.While the high court result is an embarrassing blow for Labor and Bill Shorten – the ALP leader had given repeated assurances that his party’s vetting processes were water tight – the government fears the byelection season triggered by the Gallagher decision will allow the ALP to launch a “class war” offensive on the ground, amplified by progressive activist groups and trade unions.
 • Tax cuts for middle low and middle income earners with most saving between $200 and $530 a year on their tax bill through a tax offset • Tax cuts for middle low and middle income earners with most saving between $200 and $530 a year on their tax bill through a tax offset
 • Ambition for a flat tax rate by 2024 of 32.5% for everyone earning between $41,000 and $200,000 • Ambition for a flat tax rate by 2024 of 32.5% for everyone earning between $41,000 and $200,000
 • $4.5bn earmarked for roads, but major public transport projects will have to wait years for the lion's share of funding announced in the budget. $24.5 billion has been directed to new commitments, but only $4bn of that is being spent in the next four years • $4.5bn earmarked for roads, but major public transport projects will have to wait years for the lion's share of funding announced in the budget. $24.5 billion has been directed to new commitments, but only $4bn of that is being spent in the next four years
• The controversial robodebt electronic debt recovery is to continue• The controversial robodebt electronic debt recovery is to continue
 • Newly arrived migrants will have to wait another year to receive welfare assistance, while refugees will see their wait for Newstart doubled to 26 weeks • Newly arrived migrants will have to wait another year to receive welfare assistance, while refugees will see their wait for Newstart doubled to 26 weeks
• Superannuation funds to be banned from charging exit fees and fees for accounts under $3,000 will be limited to 3%• Superannuation funds to be banned from charging exit fees and fees for accounts under $3,000 will be limited to 3%
• ABC to have its funding cut by $83.7 million over three years. Meanwhile a Captain Cook statue in Scott Morrison’s electorate is to be built at a cost of $25m• ABC to have its funding cut by $83.7 million over three years. Meanwhile a Captain Cook statue in Scott Morrison’s electorate is to be built at a cost of $25m
• ‘Black’ economy is under the spotlight with government planning to claw back revenue it is losing to illegal tobacco. Home Affairs estimates it can earn $3.6 billion from a crackdown• ‘Black’ economy is under the spotlight with government planning to claw back revenue it is losing to illegal tobacco. Home Affairs estimates it can earn $3.6 billion from a crackdown
• Pensioners will be able to earn an additional $25 a week without reducing their pension. The pension loan scheme is also being expanded, which allows pensioners to use their homes as equity to boost their retirement incomes• Pensioners will be able to earn an additional $25 a week without reducing their pension. The pension loan scheme is also being expanded, which allows pensioners to use their homes as equity to boost their retirement incomes
• $1.6bn is being spent to support an additional 14,000 additional high-level home care packages.  A further $82.5m is being spent on mental health services for older Australians, including a $20m “loneliness” package, to help people “remain connected to their communities”.• $1.6bn is being spent to support an additional 14,000 additional high-level home care packages.  A further $82.5m is being spent on mental health services for older Australians, including a $20m “loneliness” package, to help people “remain connected to their communities”.
• New measures to help crack down on multinationals avoiding tax commitments. The government is also moving to add to previously announced measures to make sure income earned in Australia, can be taxed by Australia. • New measures to help crack down on multinationals avoiding tax commitments. The government is also moving to add to previously announced measures to make sure income earned in Australia, can be taxed by Australia. 
Three Labor MPs and the Centre Alliance MP Rebekha Sharkie will quit parliament and re-contest their seats. The Liberal Jason Falinski, who has also faced questions about his eligibility, produced an assurance from the Polish embassy that he had never been a citizen in the wake of the high court ruling.Three Labor MPs and the Centre Alliance MP Rebekha Sharkie will quit parliament and re-contest their seats. The Liberal Jason Falinski, who has also faced questions about his eligibility, produced an assurance from the Polish embassy that he had never been a citizen in the wake of the high court ruling.
The government has attempted to engineer instant political momentum behind the budget’s income tax package, introducing it straight away and demanding parliamentary consideration by July 1. It is unclear whether the Senate will support the entire package.The government has attempted to engineer instant political momentum behind the budget’s income tax package, introducing it straight away and demanding parliamentary consideration by July 1. It is unclear whether the Senate will support the entire package.
Labor will back the tax cuts for low- and middle-income earners outlined by the government on Tuesday night, but is reserving its position on the rest, and will have more to say on tax during Bill Shorten’s budget-in-reply speech on Thursday night.Labor will back the tax cuts for low- and middle-income earners outlined by the government on Tuesday night, but is reserving its position on the rest, and will have more to say on tax during Bill Shorten’s budget-in-reply speech on Thursday night.
Some crossbenchers, including South Australian senator Tim Storer and the Victorian Derryn Hinch, have rejected Scott Morrison’s demand the tax package be considered quickly. Storer has also expressed concerns about flattening the income tax scales, saying the proposal is “regressive” and may be unaffordable.Some crossbenchers, including South Australian senator Tim Storer and the Victorian Derryn Hinch, have rejected Scott Morrison’s demand the tax package be considered quickly. Storer has also expressed concerns about flattening the income tax scales, saying the proposal is “regressive” and may be unaffordable.
Malcolm Turnbull on Wednesday insisted the tax package needed to be considered as a whole, not in increments, because “one stage flows into the other”.Malcolm Turnbull on Wednesday insisted the tax package needed to be considered as a whole, not in increments, because “one stage flows into the other”.
Despite the ominous noises from the Senate, the prime minister expressed confidence the government would emerge with the package intact, saying: “I’m confident it will pass the Senate.”Despite the ominous noises from the Senate, the prime minister expressed confidence the government would emerge with the package intact, saying: “I’m confident it will pass the Senate.”
Having unveiled the budget on Tuesday night, the Turnbull government went into hard-sell mode, but faced immediate pressure over the long-term fiscal impact of the tax package.Having unveiled the budget on Tuesday night, the Turnbull government went into hard-sell mode, but faced immediate pressure over the long-term fiscal impact of the tax package.
The 2018 budget ignores the two major issues facing young people | Brendan Churchill
Morrison was twice asked at the traditional National Press Club lunch for a year-by-year breakdown on the tax package, given he was asking the parliament to commit to a seven-year package, but the treasurer dug in.Morrison was twice asked at the traditional National Press Club lunch for a year-by-year breakdown on the tax package, given he was asking the parliament to commit to a seven-year package, but the treasurer dug in.
“It is not the practice of any government to provide itemised year-by-year costs over the medium term, because they’re not reliable,” the treasurer said.“It is not the practice of any government to provide itemised year-by-year costs over the medium term, because they’re not reliable,” the treasurer said.
When pressed a second time about the lack of detailed costings, and the regressive impacts of flattening the tax scales, Morrison said in percentage terms, lower-income earners got a bigger tax cut than higher-income earners.When pressed a second time about the lack of detailed costings, and the regressive impacts of flattening the tax scales, Morrison said in percentage terms, lower-income earners got a bigger tax cut than higher-income earners.
He insisted Australia’s tax system would remain progressive once the changes took effect. “You know, if less than 25% of the people in this country who pay tax pay 65% of the total tax on personal income in this country, I’d call that a progressive system”.He insisted Australia’s tax system would remain progressive once the changes took effect. “You know, if less than 25% of the people in this country who pay tax pay 65% of the total tax on personal income in this country, I’d call that a progressive system”.
“It is a progressive system,” Morrison said. “It remains a progressive system.”“It is a progressive system,” Morrison said. “It remains a progressive system.”
Labor pressed Morrison again in parliamentary question time. The shadow treasurer, Chris Bowen, said: “If the treasurer won’t say what the year-by-year cost of the scheme is, and he also says the costing is unreliable, how could the treasurer ask the parliament to vote for it?”Labor pressed Morrison again in parliamentary question time. The shadow treasurer, Chris Bowen, said: “If the treasurer won’t say what the year-by-year cost of the scheme is, and he also says the costing is unreliable, how could the treasurer ask the parliament to vote for it?”
Morrison declared Bowen was being “tricky”.Morrison declared Bowen was being “tricky”.
“If the opposition wants to deny Australians lower taxes, then they should just be honest about it. They should not come in here looking for excuses,” Morrison said. “Our progressive system is not at risk [in] this. Our progressive system is maintained in this.”“If the opposition wants to deny Australians lower taxes, then they should just be honest about it. They should not come in here looking for excuses,” Morrison said. “Our progressive system is not at risk [in] this. Our progressive system is maintained in this.”
Australian politicsAustralian politics
CoalitionCoalition
Australian budget 2018Australian budget 2018
Australian citizenshipAustralian citizenship
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