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Budget fallout: Turnbull defends tax plan as Shorten prepares response – politics live Coalition defends tax plan while attacking Labor on dual citizenship – politics live
(35 minutes later)
Barnaby Joyce is very much enjoying Labor’s dual-citizenship misfortunes: I’ll come back to both Mathias Cormann and Pauline Hanson in just a moment, but I was just working my way through Barnaby Joyce’s Sky interview, where he became the prime example for how anglos RUIN food.
“Then they would move that the member be no-longer heard, then they would have a vote, then they would make a baaa-ing (sheep) noise,s and they thought it was a great joke, they were absolutely ridiculing me,” Joyce told Sky, speaking of his time waiting for the high court decision which ultimately found he was ineligible to sit in parliament as a dual-citizen. The man who once posed with a tea towel draped behind his neck like a prizefighter mulling over the meaning of life, now says he does “all the cooking, I do the washing, hang things out,” when he is at home.
“It was purile, but it showed the hypocrisy of the Labor party, because as we were going through this, we were saying, ‘surely there are people on your own side in the same position’, but oh no, he came out and said ‘oh no, we are as pure as the driven snow, nothing to see here’ - they must feel like complete and utter hypocrites.” And his specialty? RUINING food.
“...The regular roast that becomes curries that become risotto”
And then he just works his way down. To what? Roast curry rice pudding?
(Yes, I too use leftovers. But curries to risotto?)
The home affairs minister, Peter Dutton, has got stuck into Bill Shorten about his interpretation of high court decisions on the “reasonable steps” test. Dutton told 2GB radio:
He lied to the Australian people yesterday. I watched that press conference with Bill Shorten and I saw him look down the barrel of a camera and he blatantly lied, there’s no question about it. I think Mr Shorten has a credibility problem
... Yesterday I think people really saw Bill Shorten exposed and he essentially said absolutely something that wasn’t true, and he knew it not to be true. The high court only confirmed what they’d found in the Canavan case in the Gallagher case yesterday.
For Mr Shorten to pretend otherwise, I was really quite shocked by it.
Pauline Hanson will (maybe) support the government’s tax plan (maybe) if the government cuts migration.
She wants the migration rate cut from the 190,000 ceiling to 75,000. She says it’s because cities can’t cope with population growth, and the states don’t have the money to build the necessary infrastructure.
Hanson also mentions that people who don’t support her call are not the ones who are having to “line up to see the doctor”.
She fails to mention that one of the reasons we line up to see doctors, particularly in regional and rural areas, is because we, as a country, don’t have enough doctors coming out of our medical schools, WHICH IS ONE OF THE REASONS WE HAVE A MIGRATION PROGRAM.
I told you he was out and about - Mike Bowers spotted in his natural habitat:
Spotting a wild @MathiasCormann moving through the forest of the Senate courtyard, @mpbowers takes a shot pic.twitter.com/Rfuyu16cyz
Candidates are being announced:
Greens have just announced their Perth byelection candidate is Caroline Perks #auspol https://t.co/KiTuQWpdlJ
While Mathias Cormann is still talking, his office has released a statement doubling down on his main points:
Tonight, Bill Shorten needs to get serious about building a stronger economy.
Bill Shorten does not have a single policy to strengthen our economy and create jobs. Labor only has a series of tax grabs.
Labor needs to drop their over $200bn of higher taxes – on electricity, small and family business, incomes, housing, investment and retirees. Because Labor’s $200bn of tax grabs will hurt our economy, hurt families and cost jobs.
Labor needs to reverse their plan to increase tax for small and medium businesses. They need to back our entire plan for income tax relief to encourage and reward working Australians.
Bracket creep reduces the rewards for effort, undermines the returns to quality education, and blunts the incentive to work hard, take risks and succeed. Our plan also delivers a tax system that encourages aspirational Australians to get ahead, to take on additional work and keep more of their extra income.
Labor needs to own up to the fact that when Bill Shorten and Chris Bowen were last in government they left behind a weakening economy, rising unemployment and a rapidly deteriorating budget position.
Their anti-growth and anti-jobs agenda now would take Australia back to where Labor left off in 2013.
Labor has not delivered a surplus since 1989. They need to show how they will keep spending under control, because Australia can’t afford Labor’s economic mismanagement.
We are turning the corner on Labor’s debt and deficit disaster. We have a plan to return the budget to a modest balance by 2019-20, increasing to projected surpluses in 2020-21 and 2021-22. We are no longer borrowing to fund recurrent expenditure.
Sigh. We are in for months and months and months of this. From all sides. And then the byelections will end, but we’ll be very much in general election campaign mode by then, so we’ll be bombarded with even more. Essentially – electioneering is coming.
Mathias Cormann has just given a “rolled gold guarantee” that the Coalition has no more problems with dual citizens.
That’s because questions over Jason Falinski in particular won’t go away. He has updated his register with the advice saying he is not and never was a Polish citizen, but Labor is still pursuing for him to be referred to the high court and for the full bench to work it out. (Polish citizenship law is one of those complicated ones.)
Cormann and others within the government have seized on Bill Shorten’s “rolled gold guarantee” that Labor had no problems with citizenship, because of its vetting processes, which was made during a Today interview last year, when he was asked if he could give a “rolled gold guarantee” and he answered “yes”.
Just your reminder that rolled gold is actually very cheap – it’s when silver or other medals are rolled in gold to increase their value. But as anyone who has bought a gold-plated or gold-filled piece of jewellery knows, it rubs off.
Greg Jericho has had a look at the government’s tax plan - you’ll find his whole analysis here, but here’s a short take:
In 2015-16 the roughly 400,000 people who had incomes between $156,500 and $241,000 paid an average 32.6% tax on their income for a total of $24.7bn. Dropping that average tax rate to 29.5% would see a drop of $2.4bn in tax revenue – that’s around a quarter of the cost of Newstart each year. Add in cuts from the other two million or so people earning over $90,000 and you are talking big money – every year.
And it’s why the prime minister and treasurer have refused to say how much it will cost, and are sticking with the “$140bn over 10 years” line – but refusing to explain what is included in that figure, let alone breaking it down to individual items.
Barnaby Joyce is very much enjoying Labor’s dual citizenship misfortunes. Here’s Joyce telling Sky of his time waiting for the high court decision that ultimately found he was ineligible to sit in parliament as a dual citizen.
Then they [Labor] would move that the member be no longer heard, then they would have a vote, then they would make a baaa-ing [sheep] noises and they thought it was a great joke, they were absolutely ridiculing me.
It was puerile, but it showed the hypocrisy of the Labor party, because as we were going through this, we were saying, ‘surely there are people on your own side in the same position’. But oh no, he [Bill Shorten] came out and said, ‘oh no, we are as pure as the driven snow, nothing to see here’. They must feel like complete and utter hypocrites.
Lyle Shelton, Cory Bernardi’s Australian Conservatives spokesman in Queensland, has started today with an attack on Pauline Hanson and One Nation. Here’s Shelton’s press release:Lyle Shelton, Cory Bernardi’s Australian Conservatives spokesman in Queensland, has started today with an attack on Pauline Hanson and One Nation. Here’s Shelton’s press release:
One Nation’s decision to side with Labor and popularist Senate cross-benchers to block the government’s plan to reward effort through the tax system is disappointing for conservative Queenslanders.One Nation’s decision to side with Labor and popularist Senate cross-benchers to block the government’s plan to reward effort through the tax system is disappointing for conservative Queenslanders.
Australian Conservatives spokesman Lyle Shelton said today’s move by Pauline Hanson to block Scott Morrison’s legislation to flatten the tax system brings into focus the choice conservative alternative party voters have at the next federal election.Australian Conservatives spokesman Lyle Shelton said today’s move by Pauline Hanson to block Scott Morrison’s legislation to flatten the tax system brings into focus the choice conservative alternative party voters have at the next federal election.
‘Voters are right to retain their scepticism of the major parties, but in choosing third-party insurance in the Senate they should consider the principles their minor party of choice stands for.‘Voters are right to retain their scepticism of the major parties, but in choosing third-party insurance in the Senate they should consider the principles their minor party of choice stands for.
‘Australian Conservatives exists to make conservative politics better after years of failure. We do this by taking a principled stand and rewarding conservative policy when it is offered,’ Mr Shelton said.‘Australian Conservatives exists to make conservative politics better after years of failure. We do this by taking a principled stand and rewarding conservative policy when it is offered,’ Mr Shelton said.
‘One Nation’s position on tax has flipped and flopped all year. First they opposed the company tax cuts and now they support them.‘One Nation’s position on tax has flipped and flopped all year. First they opposed the company tax cuts and now they support them.
‘Today they are working with Labor and the Greens to block reform that would reward aspiration. What will their policy be tomorrow?’‘Today they are working with Labor and the Greens to block reform that would reward aspiration. What will their policy be tomorrow?’
Mr Shelton said Australian Conservatives would pitch to voters looking for candidates who would stand for conservative principles, rather than simply articulating grievance.Mr Shelton said Australian Conservatives would pitch to voters looking for candidates who would stand for conservative principles, rather than simply articulating grievance.
It’s so sad when you used to have mad love, but then you have bad blood.It’s so sad when you used to have mad love, but then you have bad blood.
Looks like Mathias Cormann is being sent out on the theory that the best defence is a good offence, ahead of Labor’s budget-in-reply. He is holding a press conference in the next 10 minutes.Looks like Mathias Cormann is being sent out on the theory that the best defence is a good offence, ahead of Labor’s budget-in-reply. He is holding a press conference in the next 10 minutes.
The government’s insistence on putting its tax plan together as one whole package has emerged as the biggest budget disagreement so far.The government’s insistence on putting its tax plan together as one whole package has emerged as the biggest budget disagreement so far.
Labor has ruled out supporting parts two and three. Penny Wong:Labor has ruled out supporting parts two and three. Penny Wong:
The government has put up a bill as a political tactic. Malcolm is saying you have got to vote on a bill now that is predicated on me winning an election twice. So, he wants people to vote on a bill that assumes he’s going to be here in six years’ time.The government has put up a bill as a political tactic. Malcolm is saying you have got to vote on a bill now that is predicated on me winning an election twice. So, he wants people to vote on a bill that assumes he’s going to be here in six years’ time.
The crossbench – I saw Senator Martin, Senator Storer, Senator Hinch rightly say, ‘what’s the rush?’ and ‘tell us what it costs’. Because let’s remember, Malcolm Turnbull still hasn’t told people what his big tranche of tax cuts down the track costs and I think Australians, and the Senate, are entitled to know that.The crossbench – I saw Senator Martin, Senator Storer, Senator Hinch rightly say, ‘what’s the rush?’ and ‘tell us what it costs’. Because let’s remember, Malcolm Turnbull still hasn’t told people what his big tranche of tax cuts down the track costs and I think Australians, and the Senate, are entitled to know that.
Anyone would think there were two byelections about to occur in Western Australia with the way Labor’s Matt Keogh was talking this morning:Anyone would think there were two byelections about to occur in Western Australia with the way Labor’s Matt Keogh was talking this morning:
Malcolm Turnbull came over to WA only a couple of weeks ago showering WA with largess. ‘Billions of dollars,’ he said, but what did we discover on Tuesday night? Really all of that money was already hiding in the federal budget. Scott Morrison did some budget fudgery moved some dollars around and presto there it is, but actually very few new dollars for Western Australia at all.Malcolm Turnbull came over to WA only a couple of weeks ago showering WA with largess. ‘Billions of dollars,’ he said, but what did we discover on Tuesday night? Really all of that money was already hiding in the federal budget. Scott Morrison did some budget fudgery moved some dollars around and presto there it is, but actually very few new dollars for Western Australia at all.
In fact less than $200m in GST top up. Meanwhile, the Shorten Labor team have committed to Western Australia a $1.6bn GST fair share fund for WA. If Malcolm Turnbull really believed in this budget, if he really thought that it was in the best interests of not just Australians but Western Australians, he would be putting candidates up in these byelections.In fact less than $200m in GST top up. Meanwhile, the Shorten Labor team have committed to Western Australia a $1.6bn GST fair share fund for WA. If Malcolm Turnbull really believed in this budget, if he really thought that it was in the best interests of not just Australians but Western Australians, he would be putting candidates up in these byelections.
The national redress scheme for institutional child sexual abuse legislation has officially been introduced into the parliament by Dan Tehan.
Legislation introduced for National Redress Scheme for survivors of institutional child sexual abuse @DanTehanWannon #auspol pic.twitter.com/z5GIVPtbi3
Labor frontbencher Mark Dreyfus was on ABC radio, speaking all things byelections and preselection processes, after the high court tightened the reasonable steps responsibilities yesterday:
Well certainly all the constitutional experts have made clear over the last 24 hours, it’s going to change preselection processes. They’re going to have to be dragged right back because people will have to put in train getting rid of any dual citizenship issues much earlier and for some countries that can take a very very long time.
Even [in] Britain, the average time is around four months. There are countries in the world which take years to do this. The concern that’s been expressed by a lot of experts is that this disadvantages millions of Australians who are dual citizens or may be dual citizens and that’s why there is talk about a referendum.
Basically, anyone thinking of ever entering politics, who holds dual citizenship, should probably divest themselves of their foreign citizenship now.
Speaking of Sky, independent senator Tim Storer just had a chat to Samantha Maiden, and said that while he supports phase one of the government’s tax plan – the $530 tax offset – he is not overly comfortable with the other steps: the abolition of the 37% tax bracket and the flat rate for earners between $41,000 and $200,000.
“If all of the package is together, it is not appropriate and I will not support it,” he said.
Given Storer’s examination of the company tax cuts, I really can’t see him voting for something that doesn’t have numbers attached to it, which the $140bn plan doesn’t. While it is set in the never-never, it doesn’t lay out how much the year-on-year cost would be. So we don’t know how much of that $140bn is going to come out of revenue in year five, six, seven, etc. That’s a problem for a lot of people.
Tanya Plibersek has also apologised, telling Sky “it’s not good, we are very sorry that people have to go through these byelections”.
Deputy Opposition Leader @tanya_plibersek: I think the new citizenship interpretation means politicians will need to reassess the judgement they've made in the past. MORE: https://t.co/jeOwW3rMHC #FirstEdition pic.twitter.com/bbBpk9aXti
Tony Burke also had a chat to the ABC this morning. After Bill Shorten was criticised for not apologising yesterday for the cost and inconvenience of the additional high court case and byelections, Burke was the first to say sorry:
Oh, I do have to say, obviously we’re really sorry it has turned out this way. We didn’t want there to be the inconvenience to the public or the costs that’s involved in byelections and if we had any way of knowing that what had been thought to be a settled approach was wrong, then we, you know, we would have had different systems in place before the election and we’ll have different systems in place now.
In terms of the byelections themselves, though, you know, we are there absolutely for a fight, focusing on a government that keeps wanting to deliver for the top end of town. And, you know, yesterday in question time, I think said it all.
They won’t even tell us how many the big business tax cut now costs. They won’t tell us how much the income tax cut beyond the first part of the announcement – which is the bit everybody supports – they won’t tell us how much the rest of it costs, but want to, year-by-year they want us to vote for it anyway.
The budget papers put $11m on the cost of the high court cases in the last financial year.
Malcolm Turnbull and Scott Morrison, just having a casual cuppa with seniors in Queanbeyan this morning.
And here is where the battle lines will be drawn – what the government wants to happen in seven years’ time. Malcolm Turnbull:
Well, we have a very progressive tax system and people on higher incomes pay more tax than people on lower incomes, in fact a lot more tax. Let me give you an example: so after our reforms are fully in place, you know, someone earning $200,000 will pay 12.5 times more income tax than someone on $41,000.
Someone earning $200,000 will have an average tax rate of more than 30%. So average all of their income, someone on $31,000 will have an average tax rate of 11%.The personal income tax total collections are paid by the few, not the many and that will remain the same.
So, if you regard the high income earners as the people in the top tax, which is 45c in the dollar plus the 2c for the Medicare levy – 47c, that’s a high marginal rate.
... We are saying in seven years’ time, that should be increased to $200,000 to take into account, inflation and otherwise. You’re going to have school principals and police superintendents, many people you would not regard as being multimillionaires or billionaires coming into the top marginal rate.
And now everything tax, tax, tax is also all things byelection. Malcolm Turnbull:
Well, byelections are always tough for the government, for an incumbent government whatever political stripe, but we will see.
Obviously this is going to be a very big test for Bill Shorten. He asserted that his party’s vetting processes were rolled gold, even after the high court made it very clear in the Canavan decision last year that the position of the labor MPs in the House of Representatives was untenable.
They made it very clear, he insisted that they were OK. They did not resign. He took no responsibility for their position. Of clear ineligibility and then the high court simply reconfirmed in the Gallagher case yesterday what they said in the Canavan case in October.
Malcolm Turnbull was on ABC radio earlier this morning, and it was all about tax, tax, tax.
This is Australians’ money. You see this is the big difference between our approach and Bill Shorten’s approach. Bill Shorten regards a reduction in tax as a giveaway by the government. He thinks that the money that Australians earn belongs to the government and that it is the government that allows them to keep whatever is not grabbed in tax. He wants to go after pensioners savings, he wants to go after, he wants to increase tax on small businesses, he wants to go after trusts, he wants to go after one target after another – $200bn of additional taxes.
What we’re saying is that hardworking Australian families, particularly middle income Australian families deserve to keep more of the money they earn. It is their money. That’s why they are getting, they’re getting support in the first stage. They’re getting the support in the first stage and then as the tax reform rolls out, we’re going to to get to the point, what a huge reform, 94% of Australians will know that if they go out and earn an extra dollar, they won’t pay more than 32.5c in the dollar. That’s a huge reform.
After yesterday became all about the high court ruling, and then the resulting resignations, and then the byelections, the budget was shoved to the side and forgotten.
But not today. Today it is back, front and centre, with both the Coalition and Labor using it to spearhead their campaigns ahead of the coming super Saturday. The five byelections – in Longman, Braddon, Fremantle, Perth and Mayo – are being billed as a test of leadership for both Bill Shorten and Malcolm Turnbull.
So suddenly the lines drawn over the budget have become all important – and the government’s not-totally-explained $140bn tax reform plan is at the centre of it.
The government has given its four-year figure - $13.4bn. And a 10-year figure - $140bn. But it won’t give a year-by-year figure. Probably because as the higher income tax cuts come in, the foregone revenue figure will shoot through the roof. And no one in the government wants those numbers in the public arena.
We’ll be covering the budget-in-reply speech later tonight – and all the day’s events in between.
Mike Bowers is, as usual, out and about with his camera. You can follow his day at @mikepbowers and @mpbowers. You’ll find me in the comment section, but also @amyremeikis and @pyjamapolitics, where you’ll find some behind-the-scenes shenanigans.
It is going to be a loooooooong day, so I hope you have had your morning pick-me-up.
Ready to go?