Tax cuts could hinge on tanking economy
KEY Senate crossbenchers say they would consider passing the final stage of the Coalition’s tax cut plan and repealing it later if the economy takes a nose dive.
The Government has been playing hardball on negotiations, with the crossbench revealing they have not been approached for talks by Finance Minister Mathias Cormann.
It is despite a push for the tax cuts to be passed when Parliament returns in two weeks.
Labor wants the tax plan to be split, saying the final stages don’t come in until 2024 and the economy could worsen by then. But Centre Alliance Senator Stirling Griff, while not committing to passing or blocking the plan, said if the packaged was passed in full it could be repealed later if the economy takes a turn for the worse.
“Any government worth its salt, if the economy goes pear shaped, would make changes,” he said.
“We are talking many years down the track, it’s only a minor change, there’s plenty of time to have a good look at it.”
The third stage of the tax plan would cut the 32.5c tax bracket, for people earning $45,000 to $200,000, to 30c, while the first stage would see tax cuts of up to $1080 delivered this year.
While Labor will to pass the first stage, the Finance Minister Mathias Cormann is pressuring it to support the full package, bypassing the need for the crossbench.
“The best thing Labor can do is let go of that class warfare, let go of that politics of envy and back in working people around Australia by helping deliver more money in their pockets,” he said.
“If Labor down the track wants to revisit the third stage of our income tax plan and wants to go to the next election arguing it should be rolled back, they can do that.”
Opposition leader Anthony Albanese said the government was expecting Parliament to rubber stamp tax cuts, some of which would not begin until 2024.
“That’s not only after the next election, it’s after the election after the next election,” he aid. “What are the cuts that the Government intends to put in the Budget if they’re going to maintain a surplus which is what they say they will do into the future.”