Hanson tax veto puts cut in peril

PAULINE Hanson has declared she will not support the Coalition Government’s tax cuts when Federal Parliament returns next month.

The One Nation leader, who carries two crucial Senate votes, said there were more important issues to be funded.

“At this stage, no I’m not,” she told Nine Network yesterday, when asked whether she would support the tax relief.

Senator Hanson (pictured) said building a coal-fired power station and getting on with a 1930s plan to divert water inland were higher priorities for her.

She also wants a royal commission into the family courts, in return for her support for the tax package.

“If there are three things I want to achieve before leaving Parliament, the Government now knows what they are,” she said.

Her opposition will make it tough for the Government to pass its full tax plan. Finance Minister Mathias Cormann indicated negotiations with the Senate crossbench were still afoot.

“We don’t ever provide a running commentary on our engagement with non-government senators,” he said.

“Our door is open to all non-government senators – Labor, the Greens, any party represented and elected by the Australian people.”

Labor supports the first stages, for low and middle income workers, but at this stage is uncomfortable with the later part, which would flatten the tax rates schedule by mid-2024 and overwhelmingly benefit higher earners.

The Government is adamant it will not split up the package.

If it can’t get Labor onside, it will need support from four of the six crossbenchers since the Greens also oppose the package.

But the other crossbench duo, Centre Alliance, holds a similar position to Labor.

One of its members, Senator Rex Patrick, said he and his colleague Stirling Griff were also comfortable with the first two stages of the plan but not the latter.

“We have concerns that if the economy softens, then we’ll end up in a situation where we have a lack of revenue to support essential services such as education, health, aged care and pensioner support,” Senator Patrick said.

He has asked the Government for protections that would ensure the long-term tax relief wouldn’t be chewed up by rising power prices.