Richard Di Natale says both parties’ plans will worsen inequality and cut vital revenue for essential services

This article is more than 2 years old

This article is more than 2 years old

The Greens have ruled out supporting both major parties’ planned tax cuts, accusing them of attempting to “bribe” Australian voters, by “giving away cheques like a breakfast TV show trying to increase ratings”.

The Turnbull government has promised a $530 tax offset for workers earning between $41,000 and $90,00 from next year, as the first tranche of the tax reform plan revealed in the budget earlier this month.

But Scott Morrison is so far having trouble convincing the crossbench the final stage of its $140bn reform plan, which would see a flat rate tax for earners between $41,000 and $200,000 kick in for the year 2024, is workable.

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This week in parliament, with the Senate holding estimates hearings, Labor is expected to continue hounding the government to reveal the cost of its reform plan to the budget beyond the forward estimates.

The government is also bracing itself for further revelations from the banking royal commission, which is due to resume on Monday.

While a total tax cut figure of $140bn has been given, the treasurer and prime minister have both proven reluctant to give more detail, with the bulk of the plan’s cost falling in the final years, despite extremely uncertain revenue predictions.

Like the government’s benched company tax cut plan, Morrison’s reform package is expected to pass the House, given the government’s one-seat majority, but falter in the Senate, with the government, at this stage, insisting on passing the reforms as an “all or nothing” deal.

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One Nation has expressed concern over the cost of the flat-tax plan, as have crossbenchers Derryn Hinch and Tim Storer.

But the Greens have confirmed they will oppose all tax cuts, including Labor’s promise to almost double the Turnbull government’s income tax offset.

“Both parties’ plans will worsen inequality, and see us lose vital revenue for the essential services people rely upon,” Richard Di Natale said.

“And neither of the old parties have a plan to address the tax avoidance system that’s allowing multinational companies to avoid paying a fair share of tax in Australia.”

The Greens want a commitment from the major parties to increase Newstart. Labor has only promised a “root and branch” review of the payment, which has not increased in real terms, for 24 years.

Di Natale also wants the money redirected to services.

“This reckless tax auction is nothing more than a distraction from the millions of dollars stripped from our schools, hospitals and social safety net over the past decade,” he said.

The tax debate is set to dominate both the House proceedings and senate estimates, as both major parties seek ammunition in the lead up to the ‘super Saturday’ byelections, which are still waiting on a date.

The Labor frontbencher Anthony Albanese accused the prime minister of “running scared” on the ABC on Sunday.

“I think Malcolm Turnbull, just like he’s running away from the public in Perth and Fremantle, is delaying these byelections for reasons that he needs to explain,” he said.

“I can’t understand why these byelections have not be called.”

The Speaker, Tony Smith, is consulting with the major parties, and the Australian Electoral Commission over the date, however the LNP, which is not running in either WA byelection, is yet to choose a candidate to run against Susan Lamb in the Queensland seat of Longman.

That preselection vote will be held on Tuesday night, with one-term Newman government MP Trevor Ruthenberg considered the front runner.

There is growing speculation the byelections will be held in July, when parliament is on its winter break, giving Turnbull, and by extension, Bill Shorten, an opportunity to campaign on the ground, with the government seriously eyeing picking up both Braddon in Tasmania and Mayo in South Australia.

Longman is considered more of a long-shot, despite its wafer-thin margin, although both Labor and the Greens will run in Mayo with the aim of helping to bolster crossbencher Rebekha Sharkie’s vote against the Liberal candidate, Georgina Downer.

The inclusion of the banks within the company tax cut plan proved a deal breaker for Hinch, following revealations AMP had misled the regulator, while the Commonwealth bank admitted to charging deceased customers.



Last month Turnbull was forced to admit that in hindsight, the government would have had “less political grief” if it had established the royal commission earlier, but maintained the government had acted in passing reforms to rein the financial services industry in.