What's interesting is what part of the carbon tax repeal bills it was. Few people seemed to realise in the Abbott hysteria about the carbon tax pre-election, was that it was funding tax cuts to lower and middle income people. Like the move from a $6,000 tax free threshold to an $18,000 one when the carbon tax was bought in. This was one of the many things Labor failed to articulate both in it's time in office and during the election campaign itself. If Abbott get's rid of the carbon tax, then does he also get rid of the tax cuts being funded by it?
Yes. Well at least the tax cuts marked down for the future being funded by it, I haven't heard anything about the existing tax cuts being taken back. Yet another thing that Abbott didn't say anything about during the election, that he was going to abolished already legislated tax cuts planned for the future.
Alas for Abbott, this was the bill that failed in the senate:
In a sign of the volatility of the new Senate, the Federal Government has lost a vote on one of its bills to axe the carbon tax, and seen one of its own senators cross the floor on an amendment to another.
The legislation that failed to pass would have abolished future income tax cuts brought in under the previous Labor government to compensate for increased household costs under a floating carbon price.
The tax cuts are due to come in for low income earners on July 1, 2015 and will cost the budget at least $1.5 billion over four years.
The Government argues that without the carbon tax, the tax cuts are not necessary.
But the Senate voted against the Government's legislation 40 votes to 33 with all but one of the eight crossbenchers siding with Labor and the Greens. more
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