Federal Politics

Politics live: Government threatens tax rises if welfare changes not passed

Government hints at tax rises

If savings measures aren't passed, Finance Minister Mathias Cormann says the government will have to look at other options to repair the budget. Courtesy ABC.

End of the day. What happened?

  • the government is threatening people with tax rises now that its welfare savings appear doomed;
  • the opposition spent much of question time asking which taxes would go up;
  • but the government was quite happy to parlay that into an attack on Labor's record of economic management;
  • the Senate will sit late to debate amendments to the building watchdog legislation;
  • which means the changes to MPs' entitlements won't be discussed until tomorrow.

My thanks to Andrew Meares and Alex Ellinghausen for their photographic wizardry and to you for reading and commenting.

You can follow me on Facebook.

Alex, Andrew and I will be back in the morning. See you then.

I'm about to sign off but watch out for the release of a Senate report in about an hour's time.

It's about marriage equality and rumoured to be very interesting reading.

Thanks to the people who pointed out that Mr Fahour is not paid in the billions. That would be cause for outrage!

I've corrected that post.

Thanks to the people who pointed out that Mr Fahour is not paid in the billions. That would be cause for outrage!

I've corrected that post.

Anyone can see his pay packet is way to high, Senator Hanson says, except the board members.

She says the Communications Minister and Finance Minister should offer a "please explain" to the public over the matter.

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Senator Hanson says the payment "is excessive".

Such salaries would have decreased the amount in dividends paid back to the government.

"The board members of Australia Post are weak and lost," she says.

If you've just joined me One Nation leader Pauline Hanson is making a speech in the Senate calling for the board of Australia Post to be sacked.

She is most upset that Australia Post boss, Ahmed Fahour, takes home a pay packet of $5.4 million. It was a figured that startled many people.

Senator Pauline Hanson in the Senate on Wednesday.
Senator Pauline Hanson in the Senate on Wednesday. Photo: Alex Ellinghausen

The Age's economics editor, Peter Martin, would like to know why ministers have it in for the unemployed.

The Senate will not debate any other legislation (which includes the changes to MPs' entitlements) until the building watchdog amendments are dealt with.

But it will debate the entitlements legislation before the Senate rises tomorrow.

It's going to be a late night in the Senate tonight and, possibly, tomorrow.

Extended hours have been approved so it can debate amendments to the building watchdog legislation.

That's the stuff independent senator Derryn Hinch backflipped over.

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And that's it for question time.

Aged Care Minister Ken Wyatt takes his first question.

There is a general call for hush.

He is the first Indigenous minister.

Well, he was warned.

Justice Minister Michael Keenan is sent out of question time on Wednesday.
Justice Minister Michael Keenan is sent out of question time on Wednesday. Photo: Alex Ellinghausen

And, in an unusual move, a minister gets booted out.

Justice Minister Michael Keenan is forced to do the walk of shame having involved himself somewhat too robustly in an exchange with opposition MPs about infrastructure.

Justice Minister Michael Keenan is sent out of question time on Wednesday.
Justice Minister Michael Keenan is sent out of question time on Wednesday. Photo: Alex Ellinghausen

Trade Minister Steve Ciobo has been working on his lines.

He had a couple of good ones yesterday. Today he's back accusing the opposition of doing nothing but producing "black outs and black holes".

As for the Opposition Leader, he has "resting Bill face".

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Good.

The opposition moves to preference deals with One Nation in Western Australia.

It would like to know what the Prime Minister thinks of comments made by a candidate that marriage equality campaigners were using mind control techniques to get people to support their cause.

Mr Turnbull raises some Greens policies that are anathema to Labor.

We don't agree with everything they say, Mr Turnbull seems to be saying, but that doesn't mean they aren't useful.

Prime Minister Malcolm Turnbull during question time on Wednesday.
Prime Minister Malcolm Turnbull during question time on Wednesday. Photo: Andrew Meares

The Coalition will not be unhappy about arguing on the grounds of economic management.

It knows people are more likely to give it a tick for that than the opposition.

Defence Industry Minister Christopher Pyne during question time on Wednesday.
Defence Industry Minister Christopher Pyne during question time on Wednesday. Photo: Alex Ellinghausen

Further on the theme of tax increases, the opposition wants to know which taxes the government wants to raise.

Will be GST go up or be extended to fresh fruit and vegetables? Possibly state duties?

Treasurer Scott Morrison says the government has "no desire" to increase taxes but it might not have much choice given the opposition's inability to manage the economy.

Treasurer Scott Morrison during question time on Wednesday.
Treasurer Scott Morrison during question time on Wednesday. Photo: Andrew Meares

Speaker Tony Smith is going all Bronwyn Bishop.

"The level of interjections is far too high," he says, giving everyone "fair warning" not to annoy him.

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