Prime Minister Scott Morrison facing uphill tax cut battle after Pauline Hanson doubles down

Prime Minister Scott Morrison is facing a battle to pass his promised tax cuts after Pauline Hanson has said she was “not likely” to support the package.

The One Nation Leader revealed she was planning on holding the $158 billion tax cut plan to ransom demanding a new coal-fired power station, a family law royal commission and a water diversion scheme.

“We’re talking about $158 billion over the next few years. I think there are more important issues out there that are of concern to the Australian people,” Senator Hanson said.

It comes as other crossbenchers including Centre Alliance’s two senators and Tasmanian Senator Jacqui Lambie are yet to confirm their support for the plan.

Labor has indicated they will support the first two phases of the package, but are yet to decide whether it will support the third phase for 2024-25 which benefits high income earners.

Following the election, the Coalition has 35 Senate seats meaning it will need the support of at least four of the six crossbench Senators should Labor seek to block the tax cuts.

Centre Alliance Senator Rex Patrick told The West Australian he and his colleague Senator Stirling Griff had met with Finance Minister Mathias Cormann last week as well as RBA Governor Philip Lowe, Treasury officials and ACCC chairman Rod Sims.

“We are in favour of hardworking Australians getting a tax cut, but this is a $158 billion dollar decision and we need to be very careful about a softening economy and the effect that would have on health, education and aged care and so forth,” Senator Patrick said.

“Rod Sims has been suggesting that gas prices will again start to rise...We don’t want to have a situation where we hand money back to tax payers which does help stimulate the economy, only to have in a couple of years time all of that money taken away by energy companies.”

A spokesman for Australian Conservatives Senator Cory Bernardi yesterday said he would support the package.

A spokesman for Tasmanian Senator Jacqui Lambie said she would not be commenting until the results of the election were final.

Senator Cormann yesterday said other parties should “respect the verdict of voters” and support the package.

“We took a plan to the election, the Australian people voted for income tax relief for all hardworking Australians, it is incumbent on the Senate, all parties of the Senate, to respect the verdict of the Australian people at the last election,” Minister Cormann said.

Labor leader Anthony Albanese said the party clearly supported phase one of the package and would consider its position on phases two and three once it saw the Government’s legislation.