Australian government boosts Senate numbers ahead of tax cut bill

Author: Agencies

Australian Prime Minister Scott Morrison will need to secure just three votes in the country’s upper house to pass legislation after election results on Wednesday showed his government picked up four additional Senate seats.

Morrison’s position will be tested when he seeks to pass his major re-election policy of A$158 billion in tax cuts when lawmakers return to parliament for the first time since the election — expected to be in the first week of July.

Morrison secured re-election in May when his coalition won a majority of seats in Australia’s lower house – a result he declared as a political miracle.
Confirming the final results for the Senate, the Australian Electoral Commission said Morrison’s Liberal-National coalition won 19 of the 40 seats contested.

These lawmakers will now sit alongside 16 government Senators who were not up for re-election this year, giving Morrison 35 of the 76-seats in Australia’s Senate.

The government previously held 31 seats, leaving them dependent on the support of independents to pass legislation.
While Morrison remains shy of an outright majority, several right-wing independents are expected to support the bulk of his legislation.

“The government has struggled for years to pass legislation. This Senate will be much friendlier, and the bulk of Morrison’s agenda will become law,” said Haydon Manning, a professor of political science at Flinders University, told Reuters.

The conservative government in April proposed A$158 billion in tax cuts over the next decade, primarily aimed at middle-income earners.
While Australia’s opposition Labor party has promised to support the tax cuts for the lower income earners, it has said it will oppose the third stage of the fiscal plan that delivers tax cuts that favour higher earners.

Morrison has said the tax cuts will not be split, setting the stage for a political fight amid calls for urgent fiscal stimulus to boost a flagging economy.
Australia’s central bank earlier this month cut interest rates for the first time in nearly three years, though it warned the economy needed additional support.

Should Morrison win enough support for his tax plan, about 10 million middle- and low-income earners – will receive up to A$1,080 ($742.72) per person.
Economists have estimated the tax breaks would inject about A$7.5 billion into the economy over 2019/20.

Share
Leave a Comment

Recent Posts

  • Business

Huawei Envisions Plan for Digital Corridor in Pakistan; Planning Ministry To Materialize Digital Economy Collaboration

A strategic collaboration between Huawei Pakistan and the Ministry of Planning, Development & Special Initiatives…

2 hours ago
  • Pakistan

Pakistan embarks on first lunar mission

Pakistan's space programme achieved a historic milestone on Friday as the country's first-ever lunar orbiter…

5 hours ago
  • Pakistan

Imran accuses CJP of being ‘biased’ against PTI

Former prime minister and Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan on Friday urged the courts…

5 hours ago
  • Pakistan

IHC rejects IB’s request to withdraw plea for Justice Sattar’s recusal

The Islamabad High Court (IHC) rejected on Friday a plea by the Intelligence Bureau (IB)…

5 hours ago
  • Pakistan

Names finalised for Balochistan, Punjab, KP governors

In a significant development, the appointments of new governors for Punjab, Khyber-Pakhtunkhwa, and Balochistan have…

5 hours ago
  • Pakistan

Journalist among three killed in Khuzdar blast

An explosion in the Chamrok area of Balochistan's Khuzdar district claimed the lives of at…

5 hours ago