Budget 2018: Scott Morrison rules out tax bill carve-up in face of Labor call for split vote
Updated
Low and middle-income earners could miss out on tax cuts outlined in the federal budget, with a political fight already brewing over which Australians deserve to keep more money in their pockets.
Key points:
- Treasurer Scott Morrison says his plan to cut taxes will only happen if Parliament passes the bill in its entirety
- Shadow treasurer Chris Bowen wants the bill broken up so low and middle-income earners benefit sooner
- Mr Morrison says if the entire plan does not pass by July 1, then the cuts will be delayed another year
Treasurer Scott Morrison wants to cut taxes for 10 million people next financial year, but he says that will only happen if Parliament passes his entire $140 billion, seven-year tax plan.
"There only has to be one vote for this to happen, there doesn't have to be a vote at the next election, or the one after that for that matter," Mr Morrison told the National Press Club.
Under the first tranche of the plan, which has the support of Labor, low and middle-income earners will receive up to $530 back in their tax return next year.
But the second and third tranches — tweaks to tax brackets and a flattening of the revenue system — are more contentious and the Opposition and key crossbenchers are not sold.
Shadow treasurer Chris Bowen has urged the Government to break up the bill so low and middle-income earners benefit now.
"We want to see those tax cuts implemented and we put to you why don't you let us vote on those tax cuts? We want to see those tax cuts delivered to Australian people on the first of July," he told Parliament.
Mr Morrison says the Coalition will not break up the legislation and if the entire plan does not pass Parliament by July 1, then the tax cuts will be delayed another year.
"There's only one vote that has to take place to give Australians certainty about the lower taxes they can pay," he said.
"And it's going to happen in this place, in the House of Representatives, in the Senate. One vote, seven years of tax certainty, and a plan that will ensure that 94 per cent of Australians will pay no more than the marginal rate of 32.5 cents."
The Government will need the help of the crossbench if it pushes ahead with plans to try and pass the seven-year tax plan in full.
Senator Derryn Hinch is yet to make up his mind, but has urged the Government to be cautious.
"I know they're trying to wedge Labor by saying if you don't pass the whole lot then poor people won't get their immediate tax cut. But they've put omnibus bills before and they've split them in the end," he told the ABC.
He says the Government needs to look at all options.
"I can keep going back reminding the Government about what they told me when I first came here — 'Derryn 70 per cent of something is better than 100 per cent of nothing' — so I would let them consider that," he said.
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Topics: federal-government, budget, government-and-politics, tax, australia
First posted
