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Politics Live: Labor to oppose stages two and three of government's income tax package

Question Time

First question is from Bill Shorten to Malcolm Turnbull.

Shorten says anyone earning under $125,000 will be get better tax cuts under Labor's plan. He asks why the PM won't back the proposal.

Turnbull says the Coalition believes in Australians' enterprise and aspiration. 

"Aspiration is at the very heart of everything we are doing. Seeking to support Australians to realise their dreams," he says.

He then Tanya Plibersek for saying (in an interview this morning) that the Liberals' use of the term aspiration "mystifies" her. 

Turnbull accuses the Labor Party of being populated by elitist, privileged, university-educated apparatchiks.

Plibersek then gets ejected under 94a because she tries to table a document, isn't granted permission to do so, and complains. Speaker Tony Smith says he is sick of telling people the rules over and over again.

Liberal MP calls for Huawei to be banned from 5G networks

The chair of Federal Parliament’s top foreign affairs committee has urged colleagues to ban Chinese communications giant Huawei from building Australia’s next 5G networks in a sign of growing unease about the company.

Liberal MP David Fawcett made the call to colleagues, including Prime Minister Malcolm Turnbull and cabinet ministers, during the Coalition party room meeting on Tuesday morning.

The call puts a public voice to concerns about the company within the Liberal Party ahead of crucial decisions about its right to bid for contracts with Telstra, Optus and Vodafone to build the next generation of mobile networks.

Fairfax Media has revealed deep concerns about the company within Australia’s top security agencies but the company has fought back this week by mailing every federal MP to assure them it poses no threat.

Fawcett is a senior Liberal senator from South Australia and a former member of the House of Representatives who also chairs the joint standing committee on foreign affairs, defence and trade.

Read more here

Michelle Guthrie hits back at the Liberal Party

ABC boss Michelle Guthrie has dramatically hit back at the Liberal Party over its call to privatise the public broadcaster, vowing the ABC will not be a "punching bag" for political and vested interests, and labelling the attacks as cynical, misplaced and ignorant.

In a provocative speech intended to "call out" the ABC's critics, Guthrie also presented new data showing the broadcaster generates as much annual economic activity as it receives from taxpayers.

And she declared the public views the ABC as a "priceless asset" that should not be sold, no matter how much a commercial buyer might be prepared to fork out.

"[Australians] regard the ABC as one of the great national institutions [and] deeply resent it being used as a punching bag by narrow political, commercial or ideological interests", Guthrie said.

"Inherent in the drive against the independent public broadcaster is a belief that it can be pushed and prodded into different shapes to suit the prevailing climate. It can't. Nor should it be."

Guthrie said she wanted to respond specifically to the motion passed by the Liberal Party federal council at the weekend calling for the ABC to be sold off, "even if others are keen to downplay it".

The rationale for privatisation "completely ignores the public value of the ABC, both in direct dollar terms but also as far as the wider public good remit", she told the Melbourne Press Club on Tuesday.

Read more here

Shorten calls for 'a lot more aid' to Pacific

Bill Shorten also made some interesting comments on China influence in the Pacific:

  • "In terms of the Pacific, politics is like nature – it hates a vacuum. And Australian government policy in the last five years has created a vacuum. Do I blame Pacific islands and China for reaching out to each other when Australia has vacated the field? No. The answer here is not to reignite Cold War rhetoric."
  • "The government's budget numbers depend on China's success, let's be honest. The government's budget numbers are built on China. What I think we need to do in the Pacific is just treat the Pacific and the nations there not as big brother but as certainly family. And we need to extend a lot more aid, interest and support into the Pacific. And I think that's how we can actually see the proverbial win-win all round."

The government would argue that, while overall aid has been slashed and frozen since 2014, the money going to Pacific nations has been prioritised and largely protected.

Notable, though, that Shorten says "a lot more aid" should flow into the region. Earlier this year, Penny Wong promised that a Labor government would "to the fullest extent that financial circumstances allow, rebuild and grow the Australian aid program in a timely manner". 

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China says Pacific debt claims 'ridiculous' after Bishop raises concerns

China’s ambassador has branded “ridiculous” the idea that Beijing is threatening the sovereignty of small Pacific nations by building infrastructure that saddles them with unsustainable debt.

His comments followed remarks by Foreign Minister Julie Bishop that the Australian government was concerned some Chinese financing arrangements in Pacific would damage the island nations' sovereignty and that Australia would offer alternatives to Chinese infrastructure development.

Speaking in Canberra, ambassador Cheng Jingye indicated he was not aware of Ms Bishop’s remarks but said the proposition China was creating so-called debt-traps for small nations was “ridiculous”.

“We have a growing economic co-operation with some of the island countries. They are on [an] equal footing and I think it’s mutually beneficial, as has been said by the local people - both the local people and both the government," he said.

“The fact is there. I hope any comment will be made based on fact, rather than speculation.”

Read more here

A Labor government would repeal stages two and three

Labor will work to have the bill amended in the Senate. If it is passed and Labor wins the next election, they will seek to repeal stages two and three.

More Bowen:

"We're prepared to do what we think is responsible. We're prepared to – as shown time and time again in the economic debate in the last five years – to lead and take risks and be the responsible parties when it comes to the budget. We're providing better and fairer tax relief for Australians but also providing a more responsible budget repair approach.

You can find a rundown of the income tax cuts stages here

Labor will only support stage one of the income tax package

Opposition Leader Bill Shorten and shadow treasurer Chris Bowen are holding a press conference after the Labor caucus voted to oppose the government's full, three-stage, seven-year income tax package. 

Labor will support stage one, which provides immediate relief for low and middle-income earners, but oppose stages two and three. 

Shorten says the government's position is "radical". He says the Coalition should take the long-term plans to the next election. 

"It is an irresponsible plan from an irresponsible government and no responsible opposition would vote for it," he says.

Bowen makes clear: "If the Labor party is asked to vote yes or no on the total package including stages two and three, we will vote no," he says.

With Labor opposed, the government will need One Nation's two votes to get the full package across the line.

The ambassador's visit to Parliament

Here's some more Alex Ellinghausen from the Chinese ambassador's appearance at Parliament. 

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Opinion: Why you should keep paying the 'tampon tax'

From John Howard to Tony Abbott, generations of conservative male politicians have stifled a deep desire to simply scream “Dear lord, please stop them saying tampon!”, to argue in favour of subjecting feminine hygiene products to the goods and services tax.

Only one – former treasurer Joe Hockey – lacked the intestinal fortitude when, in 2015, he caved in to support calls for the axing of the so-called “tampon tax”.

Despite young feminists now strapping red-stained sanitary napkins to their heads in protest, Coalition lower house MPs are expected to hold the conservative line and vote down a Greens-initiated bill to exclude sanitary items from the GST, which passed the Senate on Monday.

But you don’t have to be an aging white conservative man to think purchasers of tampons should continue to pay GST.

Miranda Stewart is a professor at the Melbourne University Law School and a fellow of the Australian National University’s Tax and Transfer Policy Institute.

She says women, as a group, stand to gain the most from a properly funded tax and transfer system.

“The debate about GST on tampons is a distraction. Women benefit from a well-funded tax system that can support public goods and services – that is what is under threat,” she says.

“We would be better off building the strength of our GST – by broadening the base – and also strengthening our income tax base, to ensure that we pay for services such as childcare and public education, rather than cutting the tax base further.”

Read the full piece here

Hinch backs income tax cuts 'no strings attached'

Crossbencher Derryn Hinch is backing all three stages of the government's income tax package:

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