Government set to call Senate's bluff on income tax bill

  • Written by Michelle Grattan, Professorial Fellow, University of Canberra

The Senate on Thursday is set to pass intact the government’s A$144 billion three-stage income tax package - but whether the plan is fully delivered will depend on who wins the election.

On Wednesday the Senate voted 36-32 for an amended package that removed the third stage of the plan. This stage, implemented in 2024, gives tax cuts to higher income earners, flattening the tax scale so the same marginal rate would apply through incomes from $41,000 to $200,000.

But the government has declared the legislation must be passed as a whole, and the House of Representatives on Thursday will reject the amended package.

After intense lobbying of the crossbench, the government is considered to have the required backing to carry the original bill when it is re-presented to the Senate.

Senate leader Mathias Cormann on Wednesday won Senate support for a motion for the bill when it is returned on Thursday to be voted on without further debate. All the crossbenchers except South Australian independent Tim Storer voted for this. Debate on the legislation was also cut short on Wednesday.

Centre Alliance senators Stirling Griff and Rex Patrick voted to strip out stage three, but are now set to vote with the government.

Griff said what while “we are going to make our final decision on the floor”, “we are not going to say no to low and middle income earners getting tax cuts.”

He said stage three was two elections away, and so there was plenty of time to try to knock it out.

Storer lashed out at the Centre Alliance senators. Centre Alliance is the renamed former Nick Xenophon Team - Storer was on its ticket at the election.

“They supported an amendment to remove Stage 3 of the bill … but say they will vote with the government to approve the bill in its entirety when it returns to the Senate,” he said. “We can only conclude Centre Alliance’s initial opposition to Stage 3 was all for show”.

Labor this week committed a Shorten government to repealing the last two stages of the plan if it had been legislated. Instead, Labor would maintain and enhance the first stage, directed to middle and lower income earners.

The first stage starts this year and gives a tax offset to a maximum of $530 for taxpayers earning up to $90,000. Labor would then build this to a maximum offset of $928. The ALP alternative would cost $73 billion over a decade.

An analysis by the progressive think tank The Australia Institute said that almost 95% of the benefits of stage three “go exclusively to top 20%, while 75% of taxpayers get no benefit at all”.

“We’re not splitting the bill,” Treasurer Scott Morrison said. “Our personal tax plan is not about creating winners and losers, setting winners against losers. It is about ensuring that all Australians win.”

Malcolm Turnbull said the government would reject any amendment “because we want all Australians to get the benefit of a comprehensive tax reform. We want to ensure that 94% of Australians don’t have to pay any more than 32.5% for every extra dollar they earn. We want to reward and encourage aspiration”.

“Aspiration is what is driving the Australian economy,” he said.

Bill Shorten said: “Labor is going to support tax reductions for lower paid workers, 10 million of them. …We have a better plan. We’re going to provide a tax refund, a tax cut, of $928 a year … for most people. That means over three years, that’s nearly $3,000.”

Authors: Michelle Grattan, Professorial Fellow, University of Canberra

Read more http://theconversation.com/government-set-to-call-senates-bluff-on-income-tax-bill-98652

Australia Today

Capturing the shadow of Saturn's moon Titan from right here on Earth

David Coward, Associate professor, University of Western Australia

NASA's Cassini spacecraft captures Saturn's largest moon, Titan, passes in front of the planet and its rings.NASA/JPL-Caltech/Space Science InstituteTitan is Saturn’s largest moon, and it is more like a planet than a moon in many respects.It has a thick atmosphere as well as wind, rivers, lake...

Read more

Battle scars reveal the life of 'Mephisto', a WW1 German tank from a century ago

Michael Westaway, Senior Research Fellow, Australian Research Centre for Human Evolution, Griffith University

Mephisto after its capture in France by the Australian 26th Battalion.Queensland Museum, Author providedWhat can we possibly learn from the archaeological study of a World War I battle tank? Quite a lot, it turns out, when the attention is devoted to a rare German-built A7V Sturmpanzerwagen tank kno...

Read more

are phone-obsessed teens at greater risk of ADHD?

Hannah Kirk, Research Fellow in Psychology, Monash University

Hyperactivity and inattentiveness doesn't mean you have ADHD.Ant RozetskyThis week, news outlets across the world reported a study from the Journal of the American Medical Association (JAMA) linking digital media exposure to reduced attention spans and attention deficit/hyperactivity disorder (ADHD)...

Read more

Is the 'Zero Hour' youth climate march a turning point, or more of the same?

Marc Hudson, PhD Candidate, Sustainable Consumption Institute, University of Manchester

This weekend, young climate activists will march through Washington DC’s National Mall. The rally, part of the Zero Hour movement, is another sign of the concern and dismay felt by young people after 30-plus years of prevarication and hesitation by their elders. Just as young Americans are rea...

Read more

Michelle Grattan on the Mayo byelection and crossbenchers in the parliament

Michelle Grattan, Professorial Fellow, University of Canberra

Centre Alliance candidate Rebekha Sharkie is polling strongly ahead of next weekend's byelection in the South Australian seat of Mayo.AAP/Roy VandervegtMichelle Grattan discusses the week in politics with Director of the University of Canberra’s Institute for Governance and Policy Analysis, Ma...

Read more

do neckties reduce blood supply to the brain?

Steve Kassem, Postdoctoral fellow, Neuroscience Research Australia

The fashion advice is generally to tighten ties so they're tight but not too tight.from www.shutterstock.comNews reports about a study from Germany may provide the ultimate excuse for men to dress more casually for work, finding neckties reduce blood supply to the brain.The study showed that wearing...

Read more

Holidays & Travel

Luxury Camping Adventures Around the World

Perhaps in direct response to the dominance of technology in the modern world, many travelers are feeling a strong draw towards nature. While some are able to fully embrace their...

Dredging works underway Plantation Island

Tourists and workers travelling to popular tourist destination Plantation Island, Fiji, are set to benefit from safer access when marine channel dredging is completed at the end of June 2018...

Top 5 Tips for Traveling With Dogs

Travelling with your dog can be thrilling, but sometimes it can turn into a real nuisance. Unless you know how to properly restrain the pooch, whether it’ll be able to...

Top Island Destinations for 2018

When we picture island destinations in our minds, we often imagine a tropical beach of white sand, a sun lounger laid out in the shade of a line of palm...

Why Car Rental Excess Insurance is a Smart Choice

Some car rental agencies include basic damage cover in the standard rental fee, with the option to add on liability reduction, or excess insurance. The addition of excess insurance normally...

More Than a Third of Australians Feel 'Too Busy' With Work to Take a Holiday

New research from InterContinental Hotel & Resorts has unveiled a large number of Australians (32 percent) are simply too busy with work to take some much-needed rest and relaxation. Almost...

Matakauri Lodge and Mahu Whenua Lodge

TRIED, TRUE AND SOMETHING NEW  A luxurious accommodation package at Matakauri Lodge + Mahu Whenua Lodge South Island, New Zealand  Available 1 May, 2018 - 30 September, 2018   Central Otago, NEW ZEALAND –...

Heaven is the Adelaide Hills

Looking for a quick getaway? Enjoy food and wine? How about stunning countryside? Look no further! The Adelaide Hills has something for everyone. We flew to Adelaide for a weekend-getaway...

5 Amazing Australian Holiday Ideas

Australia is one of the most fantastic places in the world to travel, explore, and witness all of the beauty that Mother Nature has to offer. With so much rich...

Fashion & Beauty

Groom To Do List

Sorry Aussie Men, you no longer just pay for the alcohol, flowers and marriage license. Times have certainly changed. Wedding Expert shares what Australian Grooms are now expected to do before...

Simple Secrets To A More Confident Smile

We all know just how important first impressions are. After a handshake, what’s one of the first things people will notice about you? It’s your smile. A friendly smile is...

Improve Your Body Confidence and Feel Great

No matter how good you feel about yourself, sometimes you just can’t help but see a few little flaws that seem gigantic to you and make you feel self-conscious. Whether...

First-Timer Tips For Your First Lip Filler Appointment

Getting injectable lip fillers can be a quick and effective way to plump up your smile with minimal drama. They’re a cost-effective and safe way to boost the natural shape...

The Most Common Skin Conditions and How to Deal with Them

We often underestimate the importance of our skin, but as the largest organ in our body, and our primary layer of defense, it is constantly affected by many environmental factors...

Beach Babe Basics: Everything You Need to Look Stylish at the Beach

Summer is right around the corner, and this year, we all should make the best of it. Right now, it is not just about looking stylish on the streets, it...

HEALTH

Eye Health Dos and Don'ts

Most people take their eyes for granted and spend little to no time thinking about their eye health until they notice something wrong. This leads to plenty of common and...

Non-invasive Cosmetic Treatments

In a world where everyone is chasing perfection, plastic surgeries have become more and more common to the point where it’s odd if you don’t get one during your life...

My Health Yoga

Carrie-Anne Fields of My Health Yoga has taken her Gold Coast yoga teacher training worldwide. She started her health business 20 years ago aged 22 and has grown into a...

Fit Body 101 - Increase Your Fitness Effectiveness

You have to find some space for physical exercise in your weekly schedule in order to live a good life. Embracing this way of life is very beneficial because it...

The World of Dentistry: 5 Most Common Dental Procedures in Australia

Are you dissatisfied with the state of your pearly whites? Do you often experience discomfort and pain while eating and drinking? Well, be sure that you’re not the only one...

How You Can Conquer Your Dental Anxiety

Does the thought of going to the dentist fill you with dread? Well, you will be pleased to know that you are not the only one. A large number of...

LIFE STYLE

Dog Flea Allergy

Severe itchy skin disease in dogs causes Flea bite hypersensitivity. The itch is as a result of an allergic reaction to the saliva of the flea which is injected into...

5 Ways to Turn Your Bedroom into a True Zen Retreat

The bedroom should be our little sanctuary where we come to relax after a long day of work. However, in order to be able to unwind all the accumulated stress...

Things to Consider when Deciding on your Wedding Flowers for the Big Day

Choosing the wedding flowers is a complicated process where you have to take into account many elements, from the wedding dress to the wedding theme. You can discover in this...

Renovating tips for your house

There are very few property owners who move into a house where they don’t want to make any changes. Alterations are almost inevitable every time you move-house, but alterations can...

Tips for Decluttering Your Yard

Decluttering probably sounds like a tedious job, but it’s essential if you want to have a nice, well-decorated backyard. Bad organization habits and hoarding can eventually lead to clutter, and...

Dry Carpet Cleaning Vs Steam Carpet Cleaning: Which one to Choose?

A clean carpet not only improve your interiors, increases your comfort around the office and home but also beneficial for your health. This is why it is necessary to choose...

FOOD & DINING

Morning greens: the breakfast skincare regime

It’s safe to assume that most Aussies fail to eat enough greens. Although this was momentarily resolved with the rise and popularity of the green juice movement, the lack of...

Best Hidden Gem Hong Kong Restaurants

You finally find yourself enjoying the endless beauties of China and this fascinating city. In a place with so much variety, all your senses will be wide awake, and your...

JOHNNY DI FRANCESCO NAMED OFFICIAL AMBASSADOR OF EAT STREET MELBOURNE

Johnny Di Francesco, world champion pizzaiolo and owner of Melbourne’s Gradi Group of restaurants, is excited to announce he has been named official ambassador for Eat Street Melbourne 2018. As Ambassador...

The best Mother's Day gift EVER!

Whether it’s to celebrate a special occasion, or just wind down at the end of a long day, there’s nothing much better than pouring yourself a glass (or two…) of...

Sing for Your Supper at Chargrill Charlie’s

To celebrate the final curtain call of the Barden Bellas, Chargrill Charlie’s is giving you the chance to Sing for your Supper! Show off your best acapella vocals to win...

MAKE IT WINE TIME, ANY TIME

Whether it’s to celebrate a special occasion, or just wind down at the end of a long day, there’s nothing much better than pouring yourself a glass (or two…) of...