Parliament is back so we are back with our parliamentary wrap-up.
The first sitting week back for the year meant Canberra was a hive of activity this week. It’s not just politicians returning, it’s hundreds of staff, lobbyists and business leaders who descend on the ACT during a sitting week. This week, most return refreshed and energised to get to work. It is truly a privilege and an honour to work in Parliament House and be able to help shape policies designed to improve the lives of all Australian.
Parliament is back for 2024!
Federal politicians returned to our nation’s capital this week for the first parliamentary sitting week of the year. We all expected it to be a big week, but it’s fair to say that it actually exceeded expectations.
Many political commentators have highlighted the government’s lack of momentum since the outcome of The Voice referendum in October and recent polls reflect a slide in popularity for the government. However, after the first sitting week it looks like they are turning things around. Only time will tell if they can utilise the success of this week and build momentum as they work towards the May Budget.
Cost of living will continue to be the number one concern of the Australian people, and therefore the number one priority for the Parliament. The changes to stage three tax cuts have been well-received by the public, but the government will need to do more if they want to build support.
It’s fair to say that it feels like both major parties are switching on campaign mode despite being 16 months out from when the next federal election is due. All eyes will be on the Dunkley by-election on March 2, and it will be a test for both parties to see how they are connecting with the Australian people.
Stage three tax cuts
The Parliament is set to pass the government’s changes to the previously legislated stage three tax cuts. The Opposition, after initial criticism, has agreed to not oppose the changes but has moved amendments, unsuccessfully, to make other changes to the bill.
This legislative change aims to adjust the tax brackets, reducing taxes for lower income earners while reintroducing a 37% tax rate for incomes between $135,000 and $190,000, among other changes. The Prime Minister defended the changes, citing the need to address broad financial pressure on families due to high inflation.
While the Opposition ultimately chose not to oppose the ‘backflip’, we expect the Coalition to feature the ‘broken promise’ heavily in their campaign in the lead up to the next federal election. They certainly used it in Question Time this week with several questions focusing on the broken promise and the Shadow Treasurer accusing the Prime Minister of lying over 100 times.
Interestingly, this week senior Treasury officials were grilled by Senators about the timeline and decision making for the changes to the tax cuts. They revealed it was their idea to amend the tax cuts and they put the proposal to the government for consideration.
While the changes will pass the Parliament, this issue is far from over!
Cost of living number one focus
The Government claims the changes to stage three tax cuts are necessary to ease cost of living pressures for many Australians who are doing it tough. However, they will need to do a lot more to improve the situation and convince voters they are addressing the issue.
Ultimately, the government needs to reset the agenda and narrative when it comes to cost-of-living. They need to demonstrate to the Australian people that they understand the inputs causing the household budget the most pressure and that they are actively addressing them. Interest rates, groceries, fuel and electricity are arguably causing the most pain right now.
These tax cuts will put money back in the pockets of some lower-income earners, but it is the ones in the middle really suffering. It’s those two income families with a mortgage, two cars and dependents to feed, clothe and educate that are really being squeezed.
A review of a cut to the fuel excise tax and immediate relief on rising electricity costs would go a long way to help Australian families right now. However, they must balance these measures against inflation to ensure interest rates don’t increase. There is no doubt addressing cost-of-living is a difficult task, but the government must take immediate action.
IR Bill
Yesterday, Industrial Relations Minister Tony Burke declared it was “a good day for casuals, a good day for gig workers, a good day for truck drivers and people in road transport”, thanks to Labor’s signature industrial reforms that passed the Senate.
The government has been trying to pass their Closing Loopholes legislation for many months and yesterday, with the support of the Greens and independent Senators David Pocock and Lidia Thorpe, they succeeded.
The reforms address several issues in the industrial relations sector, but three of the most contested reforms are:
- Casual Workers: Enhancing the rights of casual workers, including provisions to make it easier for them to convert to permanent employment after a certain period of employment, and clarifying the definition of casual employment to prevent employers from wrongly classifying permanent employees as casual.
- Gig Economy Workers: Introducing measures to provide more security and benefits for gig economy workers, by providing them with standards like minimum rates of pay or paying them superannuation.
- Right to Disconnect: Employees will be given the “right to disconnect” from their employers, enabling them to disengage from work-related communications outside of their normal working hours without repercussions.
The “right to disconnect” provision wasn’t in the original bill and was a late addition as a result of negotiation with the Greens. Sky News reported this week that the ‘disconnect’ provision could result in jail time if employers breached it. The Coalition blocked a late amendment lodged by the government in the Senate to fix the issue, a move slammed by the government. They will now be forced to pass a separate bill to remove the possibility of criminal penalties.
Industry associations like the Business Council of Australia campaigned against many of the reforms, however they have ultimately passed the Senate this week. These reforms will have a huge impact on the private sector and we will have to wait and see if any unintended consequences arise.
Historic Address by a Pacific Leader
Papua New Guinea Prime Minister James Marape became the first Pacific leader to address Australia’s Parliament. His address comes after talks about policing with China caused a stir, with PNG emphasising its commitment to the security agreement with Australia and clarifying that no security pact with China is being pursued.
His speech focused on urging Australia to not “give up” on his country, recognising the shared history of the two nations, and looking towards future cooperation. He also emphasised the need for Papua New Guinea to stand on its own.
During his visit to Australia, Marape is expected to highlight the strong relationship between PNG and Australia, following a recent security pact and a $200 million commitment for policing measures in PNG.
Prime Minister Marape is also expected to progress negotiations for a PNG side to become the 18th National Rugby League franchise. This is something the PNG government has been working on for some time and there are media reports that the Australian Government is assisting. Last year, the Australian government invested $5.5m in PNG’s junior rugby league pathways.
Outside the bubble
This week’s update is rather long, so we are going to keep this section short.
The Palace announced this week that King Charles is being treated for cancer. This quickly led to media commentary about the possibility of a royal family reconciliation.
Mortgage holders sighed a sigh of relief on Tuesday when the Reserve Bank kept interest rates on hold. However, the RBA did indicate future rises are possible if inflation rises.
Celebrities seem to be flocking to our shores this month. P!nk and her family arrived this week ahead of her Australian tour. She took to social media to declare her love for our beautiful country and described it as her “home away from home”.
Pop culture superstar Kourtney Kardashian also touched down in Australia with her husband Travis Barker who is here to perform with his band Blink182.
We are most excited for Taylor Swift’s arrival next week!