Senate powerbrokers target ‘ridiculous’ $254 billion tax cuts to fund subs

Pocock said revisiting the cuts – which Labor supported through parliament in 2019 – was necessary because it was “clear that circumstances have changed substantially since these tax cuts were legislated, and they need to be redesigned”.

“In the midst of a cost of living crisis where we are now being asked to find hundreds of billions for defence, we simply can’t afford these tax cuts for the wealthiest.

One Nation leader Pauline Hanson said she strongly supported the purchase of nuclear submarines but blasted the idea of raising any taxes to pay for them.

“We are so overtaxed in this country, people can’t pay any more – government spending is out of control,” she said.

“I think the personal tax cuts should go ahead. They don’t have to find money, they have to curtail their spending.”

The submarine deal also triggered calls from the lower house crossbench for a broader debate about reforming Australia’s tax system.

NSW independent MP Dai Le said the stage three tax cuts should be redesigned to better target middle-income households and families.

“I have been asking for a redesign to the stage three tax cuts for some time now and these reforms were designed at a time when the economic outlook was extremely different. We cannot continue to put our head in the sand and ignore the realities of the current economy,” Le said.

Four of the lower house teal independents – Sophie Scamps, Kate Chaney, Zoe Daniels and Allegra Spender – all said the submarine announcement should prompt a broader debate about reforming the tax system.

Scamps said Opposition Leader Peter Dutton’s call to curtail NDIS spending was wrong and “I believe that we should use this opportunity to have a broader discussion on reforming the way we tax corporates”.

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Spender said savings should be found in defence, but added: “It’s time for a holistic conversation about the balance between our different taxes … I’m bringing together a round table to consider how we can get real tax reform back on the national agenda.”

Daniel said that “we need reform of our taxation system to address our budget revenue problem”, and called for the government to commission an independent comprehensive review of the tax system.

Chaney said that “to ensure that we can address our changing demographic and strategic challenges, we need a broad long-term review of our tax system”.

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