New Tasmanian Senator Steve Martin might be the key to getting the Turnbull Government’s tax cuts for big companies through the Senate.
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Senator Martin has pointed to the needs of Tasmanian businesses and jobs in explaining his decision to back the plan.
His backing for it is in sharp contrast to his predecessor, Jacqui Lambie, who supported tax cuts only for smaller businesses.
With Labor and the Greens opposed, the government needs nine of the 11 crossbenchers to support the plan to extend a tax rate cut from 30 per cent to 25 per cent to companies with annual turnover of $50 million and above.
“After extensive consideration and stakeholder engagement, it is apparent that priority needs to be given to ensuring Tasmanian businesses big and small are competitive in global markets,” Senator Martin said.
“My position is about achieving the best deal for Tasmania and strengthening Tasmania’s global export markets, bolstering jobs creation, wages growth and building sustainable communities.
“In that regard, I support the government’s company tax bill.”
It is understood Senator Martin secured government funding for Tasmanian projects as part of the negotiations on the tax cuts.
However, his office said details of those would be announced in due course.
Senator Martin’s stance greatly increases the possibility of the tax cuts being passed by the Senate.
One Nation (three Senators) is keeping an “open mind” and Australian Conservatives Senator Cory Bernardi and Liberal Democrat David Leyonhjelm are expected to support the tax cuts.
“New Senator Steve Martin has been misled by Malcolm Turnbull on his unfair, unaffordable, illogical big business tax cuts,” Tasmanian Labor Senator Anne Urquhart said.
“Malcolm Turnbull has slashed funding to Tasmanian hospitals by $11 million and $68 million has been slashed from Tasmanian schools to pay for his company tax cuts.
“Next, he wants to legislate an income tax rise for millions of Australians effective on July 1, 2019.
“Senator Martin says his support for the company tax cuts is because it is ‘about achieving the best deal for Tasmania, strengthening Tasmania’s global export markets, bolstering jobs creation, wages growth and building sustainable communities’.
“In fact, the $65 billion company tax cut is expected to deliver in 20 years’ time just a 1 per cent increase in national economic growth and $2 a day increase in wages.”
“Did Malcolm Turnbull indicate to Senator Martin if any workers in Devonport will see their wages rise as a result of this tax cut?
“Did Malcolm Turnbull detail to Senator Martin which Tasmanian businesses will export more as a result of this tax cut?
“Did Malcolm Turnbull outline to Senator Martin how these tax cuts are good for small businesses on the North-West Coast?
“Did Malcolm Turnbull detail to Senator Martin how cuts to schools and hospitals build sustainable communities?
“I look forward to Senator Martin answering these questions in his first speech tonight.”
Tasmanian Liberal Senator Eric Abetz said: “Senator Martin’s support is very welcome and I am pleased that he has seen the real benefits of wages and jobs growth to all Tasmanians of supporting these important tax cuts.”
“It is also pleasing that Senator Martin has been much more of a fair dinkum operator than his predecessor.
“If the Enterprise Tax Plan passes the Senate, we will see more jobs in Tasmania and even more opportunity for Tasmanians to get ahead because the evidence from overseas is clear: Lower taxes mean more jobs and higher wages.”
Greens Tasmanian Senator Nick McKim said he was “very disappointed Senator Martin has sold out to the top end of town”.
“He’s putting corporate profits before Tasmanian workers and all the corporate tax cuts will do is put more money into the pockets of people of people who are already very wealthy.”
”We’ve got wages that are stagnant at best in Australia, record corporate profits and we’re not prepared to put the interests of wealthy CEOs and institutional shareholders above the needs of working people.”
Asked what he made of the view Australia had to lower company taxes to stay competitive with the US following President Donald Trump’s big corporate tax cuts, Senator McKim said: “That’s just an international race to the bottom and trickle down economics, which that argument is based on, has abjectly failed to look after people who are doing it tough.”