Chalmers says tax changes are better than Coalition’s plans
Josh Butler
The treasurer, Jim Chalmers, has claimed the stage-three tax cuts changes, to be unveiled by the prime minister, Anthony Albanese, today, would be “superior to the tax reform that it replaces”.
But the treasurer downplayed prospects of any further cost-of-living relief – for instance, for pensioners or those who don’t pay tax – beyond the stage-three changes.
He told ABC’s 7.30 program last night:
The proposal that the prime minister will put forward tomorrow means more help for more people, it means a tax cut for every taxpaying worker, and it will be better for middle Australia.
Chalmers defended the change in stance on the stage-three tax cuts by noting that in the five years since they were legislated by the Coalition government, developments such as the Covid pandemic and global conflicts had changed the economic circumstances. Treasury analysis would also be released alongside Albanese’s speech, which he said would show that the tax changes would “be better for the economy as well”.
He also noted the Coalition’s opposition to the changes, potentially setting up a fight in which the government will accuse its opponents of prioritising richer Australians over middle-income earners:
The deputy opposition leader (Sussan Ley) said today that, if they are elected, they will unwind these changes. That means the Liberals and Nationals are going to the election with a policy to increase taxes on middle Australia in order to fund even bigger tax cuts for people on the highest incomes.
Asked if the PM’s National Press Club speech would include any other cost-of-living relief, Chalmers said the focus “will be on changes to the structure of the tax cuts”.
Key events
ABC RN host Patricia Karvelas:
Do you accept that this will add to demand and keep some upward pressure on domestically-generated inflation?
Treasurer Jim Chalmers:
That is not the view of the Treasury and it’s not my view, and it’s not the view of the independent Reserve Bank either.
Chalmers said he had been in consultation with RBA governor Michelle Bullock regarding the stage-three tax cut redesign:
She has indicated to us that she does not expect what we’re proposing today to alter the Reserve Bank’s forecasts or expectations for inflation…
The treasurer added that he will release “in full” the advice given to Treasury around changes to stage-three, which “says very clearly the redesign … will not add to inflationary pressures”.
Treasurer Jim Chalmers is speaking to ABC RN as the government is set to announce changes to the stage-three tax cuts today.
You can get all the latest details here:
Facing questions about whether the government has broken its election promise, Chalmers holds to the stance that the government is “putting people before politics”.
In addition to the pandemic (and) the higher interest rates and the spike in inflation… (it’s) increasingly clear that this sustained and persistent cost living pressure that so many of your listeners would be confronting from day to day warns us to do even more than the cost of living relief that we already budgeted for and is already in the system.
What we’re doing today is providing the same amount of tax relief overall, but doing it in a way where everyone still gets a tax cut, but more people get a bigger tax cut in recognition of these persistent and sustained cost of living pressures that people are confronting…
As we flagged just earlier, wind gusts associated with Tropical Cyclone Kirrily have already begun around the Whitsundays, with gusts over 100km/h.
In a Facebook group for Whitsundays locals, a new resident has asked an innocent question:
Hey there I’m kind of new to town from Melbourne. Does anyone know how to tie my tree down so that it doesn’t blow away?
Safe to say, they have been left with … some very colourful responses:
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“I would use fairy lights.”
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“If you hop around clockwise on your left leg 3 times and then do a Kangaroo hop to the right, the drop bears will take care of it by having the tree extend it’s roots deeper.”
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“If you’re really from Melbourne you would know how to tie down a tree with the windy crap weather down there. Ride a kangaroo to bunnings (and) get some ratchets.”
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“From the state of the supermarket shelves I’m guessing everyone is using toilet paper to tie their trees down.”
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“Take the leaves off and store inside. The rest will be fine.”
There is nothing I love more than some discourse in a local community Facebook page!
All jokes aside – the Queensland government has all the information you need on preparing your property for a cyclone here.
Captain Cook statue has history of being vandalised
The Captain Cook Memorial statue in St Kilda has a history of being vandalised, especially in the lead-up to Australia Day.
In 2018, the statue had pink paint dumped on it, with the words “no pride” painted beneath his feet, along with the Aboriginal flag.
A bluestone monument near Melbourne zoo marking Burke and Wills’ journey to Australia’s interior was also vandalised at the time, with green paint and the word “stolen” daubed on it.
In August 2017 the words “change the date” and “no pride in genocide” were spray-painted on the statue of Cook in Sydney’s Hyde Park.
Similar words were also scrawled on a monument to Lachlan Macquarie, the fifth governor of New South Wales, and a statue of Queen Victoria was also targeted.
You can read more about its history in this article from six years ago:
Captain Cook statue sawn off in St Kilda
Victorian police said it is investigating “criminal damage” to the Captain Cook statue in St Kilda early this morning.
In a statement, police said that members of the public reported the Captain Cook Memorial in Jacka Boulevard had been vandalised about 3.30am.
Police understand the statue was sawn off at the ankles. Images of the statue on social media show spray paint on the plinth saying, “The colony will fall.”
Several people were seen loitering in the area around the time of the incident, police said.
Coastal Queensland urged to prepare for Tropical Cyclone Kirrily
Senior meteorologist Angus Hines also gave an update on Tropical Cyclone Kirrily.
The weather system was officially declared a cyclone yesterday afternoon and is expected to reach the Queensland coast near Townsville as a category-two cyclone tonight.
He told ABC TV the coastal crossing may happen in the last few hours before midnight tonight, or the first few hours of tomorrow morning.
The tropical cyclone warning stretches down the coast from Innisfail down to Sarina, that includes Townsville, Bowen and Mackay. All of those places along the coast (are) likely to see a wet and windy day, particularly as we get towards the end of the day today. We have already started to see that wind whip up around the Whitsundays with gusts over 100km/h. That is only going to increase through the day today as (Kirrily) gets closer.
(Later today) that rain will begin as well with the heavy falls and thunderstorms arriving towards the end of the day today and continuing through the night tonight. It is going to get a little rough for some of those coastal areas around Queensland, so everyone in the area should be preparing for what is going to be a fairly significant weather event as it rolls through over the next 24 to 48 hours.
Weather bureau forecasts ‘absolute scorcher’
Did any of my fellow early-risers in Sydney feel like it was unusually warm this morning?
Well, you weren’t imagining things – a “bubble of searing heat” is sitting across the centre of the country, bringing heatwave conditions to inland areas and pushing the warmth out to some areas of the coast.
Sydney is forecast to reach a top of 34C today, but the inland areas will feel it much worse. Angus Hines from the Bureau of Meteorology spoke to the ABC earlier on the heatwave conditions and said:
(Today is) going to be an absolute scorcher.
We’ve got this bubble of searing heat across the centre of Australia at the moment. That’s pushed several states up over 47, 48C in the past three or four days, and today is another one – 49C for Birdsville, probably taking the cake for the warmest spot. That’s within about half a degree of the all-time record, just to show how unusual this heat is.
But it’s not alone in being warm. A number of locations through inland New South Wales, southern Queensland, northern South Australia (will reach) 46, 47, possibly 48C today. It is a very, very warm one.
Emily Wind
Good morning, and welcome back to another day on the liveblog – thanks to Martin for kicking things off! I’m Emily Wind and I’ll bring you our rolling coverage today, on what is shaping up to be a very busy one.
So grab a coffee, and let’s get into it.
Greg Jericho on why Labor right to change ‘garbage’ stage-three tax cuts
When the Coalition proposed the stage-three tax cuts back in 2018 our economics columnist called them “garbage”.
Nearly six years on Greg Jericho outlines why the uncosted plans were so egregious and why Labor has made the right decision by changing them and trying to help more modest earners:
You can pretty confidently say that 85% of income earners are better off under this new stage-three arrangement. That’s a pretty potent political weapon.
Read his full column here:
Also, check out our video explainer on the stage-three tax cuts and how they have been tweaked.
Tropical Cyclone Kirrilly likely to cross Queensland coast between Ingham and Bowen tonight
Tropical Cyclone Kirrilly is likely to cross the Queensland coast between Ingham and Bowen tonight, according to the 5am advice from the Bureau of Meteorology.
Gale-force winds are already hitting the Whitsunday Islands and will extend to the mainland as the day goes on.
At 4am the cyclone was a category-one storm, with sustained winds near the centre of 75km/h, with wind gusts up to 100km/h. It was about 420km east-north-east of Townsville and moving west at 17km/h.
The storm is expected to continue strengthening as it tracks towards the coast, which it will cross in the vicinity of Townsville as a category-two storm.
The Bom is forecasting gales with damaging wind gusts up to 120km/h for coastal and island communities between Ayr and Innisfail, including Townsville, this afternoon and evening.
Destructive wind gusts up to 140km/h will develop this evening between Ayr and Bowen, including Townsville, tonight.
Those in affected areas should visit www.disaster.qld.gov.au for advice and use the daylight hours to prepare before taking shelter.
A storm tide is expected between Townsville and Mackay, bringing large waves that may produce minor flooding on the foreshore.
“People living in areas likely to be affected by this flooding should take measures to protect their property as much as possible and be prepared to help their neighbours,” the Bom says.
Heavy, intense rainfall which may lead to flash flooding is expected today and Friday.
After that it will move inland as a tropical low, resulting in intense rain in parts of Queensland’s northern interior and western areas.
Chalmers says tax changes are better than Coalition’s plans
Josh Butler
The treasurer, Jim Chalmers, has claimed the stage-three tax cuts changes, to be unveiled by the prime minister, Anthony Albanese, today, would be “superior to the tax reform that it replaces”.
But the treasurer downplayed prospects of any further cost-of-living relief – for instance, for pensioners or those who don’t pay tax – beyond the stage-three changes.
He told ABC’s 7.30 program last night:
The proposal that the prime minister will put forward tomorrow means more help for more people, it means a tax cut for every taxpaying worker, and it will be better for middle Australia.
Chalmers defended the change in stance on the stage-three tax cuts by noting that in the five years since they were legislated by the Coalition government, developments such as the Covid pandemic and global conflicts had changed the economic circumstances. Treasury analysis would also be released alongside Albanese’s speech, which he said would show that the tax changes would “be better for the economy as well”.
He also noted the Coalition’s opposition to the changes, potentially setting up a fight in which the government will accuse its opponents of prioritising richer Australians over middle-income earners:
The deputy opposition leader (Sussan Ley) said today that, if they are elected, they will unwind these changes. That means the Liberals and Nationals are going to the election with a policy to increase taxes on middle Australia in order to fund even bigger tax cuts for people on the highest incomes.
Asked if the PM’s National Press Club speech would include any other cost-of-living relief, Chalmers said the focus “will be on changes to the structure of the tax cuts”.
Welcome
Good morning and welcome to our rolling news coverage. I’m Martin Farrer and I’ll be bringing you the best of the overnight stories before Emily Wind guides you through the main part of the day.
It’s going to be a day of two storms. First, the political one.
Anthony Albanese will use a speech today to explain why he is breaking an election promise to put more money into the pockets of modest earners – by giving less than was planned to high earners. The prime minister will defend his decision at the National Press Club at lunchtime today, arguing it will deliver “a tax cut for every taxpayer”.
It comes along with good news for those shaking their heads at their power bills: wholesale prices have halved since last January, at the same time as carbon emissions fell to record lows, thanks to our expanding renewables sector. More coming up on these two stories and how Jim Chalmers has called Labor’s tax changes “superior” to the Coalition plans.
In Queensland Cyclone Kirrily is now a category one storm and still strengthening off the coast, with its forecast path running straight over the top of Townsville tonight. More on that soon.
And the Australian of the year for 2024 will be revealed tonight, with finalists gathering in Canberra before the announcement. The finalists for the main award include Western Australian Mechelle Turvey, who has campaigned for victims of crime after her son Cassius was killed by a group of attackers in 2022. It comes as thousands of people prepare to mark the national holiday with Invasion Day rallies, events and protests.