Australia

Details

  • Service: Tax
  • Industry: Government, Federal Government
  • Type: Regulatory update
  • Date: 8/10/2013

Tax Insights

KPMG's analysis of tax issues and developments.

Jenny Wong

Jenny Wong
Director, Tax

+61 2 9335 8661

jywong@kpmg.com.au

Australia’s new Senate: From a galaxy far, far away… 

by Jenny Wong, Australian Tax Centre

From 1 July 2014, the new Australian Senate, once compared to the famous bar in Star Wars - ‘Mos Eisley Cantina’, will be made up of diverse range of cross bench microparty members.

The composition of the 76 Senators has been decided as follows:

 

Major Parties

Senate
Seats

Crossbench

Senate
Seats

Coalition

33

Palmer United Party

3

Australian Labor Party

26

Nick Xenophon

1

Greens

9

Democratic Labor Party

1

 

 

Liberal Democratic Party

1

 

 

Family First

1

 

 

Australian Motor Enthusiast Party

1

 

 

Why is the dominance of crossbenchers important? The Coalition Government requires a majority of 39 votes in the Senate to pass legislation. With already 33 votes, the Coalition will not have to rely on Labor or the Greens to pass legislation as long as they can gain support from 6 out of the 8 crossbenchers.

 

To assess whether the Coalition’s legislation to abolishing the carbon tax, the mining tax, and introduce its paid parental scheme will pass the Senate, understanding the crossbenchers’ stance on these policies will be important.

 

Here’s a snapshot on the micro parties’ stance to date:

 

 

Abolish carbon tax

Abolish MRRT

Paid parental scheme

Palmer United Party

x

Nick Xonophon

x

Democratic Labor Party

x

Liberal Democratic Party

x

Family First

x

Australian Motor Enthusiast Party

?

?

? 

 

 

As it stands, the Coalition is likely to garner crossbench support for the repeal of the carbon tax and mining tax legislation, though with strings attached. However, support from the micro parties for the Coalition’s paid parental scheme is looking less promising, raising the prospect the Coalition may need negotiate with the Greens to compromise on a paid parental scheme policy.

 

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