logo
Coalition of the unwilling: Climate wars will soon eclipse reunification relief

Coalition of the unwilling: Climate wars will soon eclipse reunification relief

The Age2 days ago

That gets close, but, in truth, Ley didn't even go that far. All she agreed to was that the Coalition would support an end to the moratorium on the building of nuclear power plants. She emphatically did not agree to finance and build seven nuclear power plants. Not even one.
On the other three areas that Peter Dutton's Coalition had taken to the election and that Littleproud insisted remain, Ley has agreed but so hedged them with conditions that they are almost meaningless.
Loading
And what of Littleproud's other early demand – that Nationals' members of a Coalition shadow cabinet should not be bound by the principle of solidarity? He quickly abandoned that when it was roundly rejected.
He achieved nothing he couldn't have accomplished with a quiet conversation behind closed doors, as is customary between the Libs and Nats. All he's managed to do is make himself a laughingstock with a limited leadership lifespan. And diminish the entire Coalition in the process.
So far, the Liberals have done two things right since the election. First, they elected a woman as leader. Second, that woman handled the Nat spat with calm and steely grace. But the really hard part lies ahead, and the Coalition ruction was the opening act.
'It wasn't a fight about four policies,' says a Liberal. 'It was really about us being totally fine with them running all over us in three or six months' time when we reach a policy on climate change.'
The climate wars are over. And the Coalition lost. But it will have great difficulty in accepting this fact. The Liberals have undertaken to review their policy; it will be traumatic.
Ley will want to bring the party to a recognition that climate change is not only real but a reality that the party must embrace in its policies: 'You won't see any climate denial from Sussan,' says a Liberal from her camp. 'It's about respectful engagement, so voters understand that we are believers.'
The pollster Jim Reed of Resolve Strategic says that this is an irreducible minimum for any party that hopes to win power. 'In the early to mid-2000s we regularly asked a question in our polling – do you believe in climate change? Very quickly, over two or three years, it became redundant,' he tells me. 'Speaking to tradies in focus groups, a no-nonsense group who, in the past, would have had some of the doubters in it, today, they say 'yes, and we can see it happening, we see the effects.' The ship has sailed.'
Yet climate disbelief runs deep in the surviving members of the Coalition. In the Nats, certainly. Littleproud says he supports the pre-existing Coalition commitment to reach net zero emissions by 2050. But Barnaby Joyce, Matt Canavan, Michael McCormack, Colin Boyce and Llew O'Brien, at a minimum, will fight to defeat it.
Loading
But climate scepticism also runs strongly through the ranks of the Libs, as Andrew Hastie reminded us this week: 'I think the question of net zero, that's a straitjacket that I'm already getting out of,' the new shadow minister for Home Affairs told the ABC. 'The real question is should Australian families and businesses be paying more for their electricity?'
Other Liberals, even climate sceptics, think it's time for the party to bow before the electoral reality. 'Some of the colleagues still haven't absorbed the magnitude of our loss,' says one who, like Hastie, is a frontbencher from the party's conservative side.
'When they walk into the House, and they're confronted with the wall of Labor MPs, it will be a reality check for them. We'll see the final numbers and see what we have to do if we want to get back into government – it'll be of the order of 30 seats or around a 7 per cent swing.' A daunting prospect and extraordinarily difficult to accomplish in a single term.
'I can't think of a single seat in the country that we'll be able to win without a commitment to net zero.'
Liberal Zoe McKenzie points to a statistic that should rivet the party's attention. Of the 151 seats in the House, 88 are metropolitan. Of those, the Coalition occupies just eight. This is, in effect, the banishment of the Liberal Party from the cities of Australia.
Even if the Coalition can hold those eight and win all the other 63 city seats in the parliament, it would hold a total of only 71. In other words, it's mathematically impossible for it to win a majority, which is 76, without returning to metropolitan Australia.
And belief in climate change is the price of admission to city seats. McKenzie, factionally non-aligned and freshly elected to a second term in the seat of Flinders covering Victoria's Mornington Peninsula, hopes that the party retains its net zero commitment. As it debates the policy, she wants the party to 'keep the voices of the ghosts alive,' meaning all the moderate Liberals who lost their seats in recent elections. The former MPs who'd be arguing in favour of net zero and climate-friendly policy.
Loading
Overarching all of this is the larger question of the party's political philosophy. Fundamentally, the Liberals have to decide whether they are the party of Robert Menzies or Rupert Murdoch.
Menzies was a great pragmatist, principled but not ideological, who adapted to his times. He was preoccupied with the concerns and interests of the suburban middle class, not the capitalist class but the ordinary men and women of aspiration. Murdoch is a right-wing populist interested in pressing always further rightward to build constituencies favourable to his own business interests.
The Liberals have to choose. Once they decide whether to continue following the Murdoch pied piper to electoral irrelevance or to rediscover the Menzian attachment to middle Australia, all their other choices will become clearer.
And the Nationals? They are now reduced to four senators. The same number as One Nation. And, like One Nation, the Nationals won a touch over 6 per cent of the national primary vote for the House. 'We, as Liberals, would never allow One Nation to determine our policies,' points out a Lib. So, his logic runs, why should the party accept the Nationals' terms?

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

'Where is Jim Chalmers': Coalition accuses Treasurer of going into 'hiding' as opposition to unrealised gains tax ramps up
'Where is Jim Chalmers': Coalition accuses Treasurer of going into 'hiding' as opposition to unrealised gains tax ramps up

Sky News AU

time43 minutes ago

  • Sky News AU

'Where is Jim Chalmers': Coalition accuses Treasurer of going into 'hiding' as opposition to unrealised gains tax ramps up

The federal Coalition has accused Treasurer Jim Chalmers of 'hiding' from media scrutiny amid growing opposition to Labor's plans to tax unrealised gains in superannuation accounts. The Albanese government has proposed doubling the tax on superannuation accounts with a balance over $3 million. The tax would also apply to unrealised capital gains, which critics claim will set a dangerous precedent as it taxes perceived wealth rather than actual income. The legislation has also raised questions about fairness, with Employment and Workplace Relations Minister Amanda Rishworth admitting on Sunday that politicians on defined benefit schemes – such as Prime Minister Anthony Albanese - will be 'treated differently'. Speaking to Sky News Australia on Monday, newly appointed shadow finance minister James Paterson questioned why the Treasurer was leaving it to other ministers to explain his policy. 'I've got to ask the question… where is Jim Chalmers? He's barely been seen or heard from since the election,' Senator Paterson said. 'He's letting other ministers like Amanda Rishworth front the Sunday shows to try to explain his complicated and confused and contradictory policy, and he's in hiding.' Senator Paterson said different treatment for politicians grandfathered into the now-abolished defined benefits pension scheme showed how the legislation was going to be a 'mess to legislate and to implement and to administer'. 'I think he should front up today and explain the rationale for this dodgy exemption that he's given his boss and whether or not Anthony Albanese participated in the decision to grant that exemption,' he said. The legislation for the new tax scheme was introduced in 2023 and has already passed the lower house of parliament. The Coalition has come out strongly against certain elements in the proposal, specifically the tax on unrealised capital gains and indexation of the threshold. However, shadow treasurer Ted O'Brien and the shadow finance minister have flagged there is scope for a deal with the Coalition. Mr O'Brien told The Australian the opposition was willing to engage with Labor on the proposed super changes if the government ditches the two controversial elements. Yet the tax barely featured a mention during the last election campaign – a fact many Liberals are citing as one reason for the Coalition's historic election defeat. On Monday, Senator Paterson admitted that under the leadership of Peter Dutton, the Coalition had failed to put forward an economic platform which was consistent with Liberal values. 'We must be consistent with our values,' he said. 'I think our values are timeless and that past elections have earned the overwhelming support of the Australian people, but some of the policies that we took to the last election were inconsistent with those values.' The Victorian Senator pointed to the decision to oppose Labor's tax cuts as one major error. 'Even though Labor's tax cut was meagre and miserly and wouldn't have made much of a difference, it doesn't matter. The Liberal Party should never oppose a tax cut,' the shadow finance minister said. 'We should never go to an election proposing to increase taxes. And we should never allow Labor to make the audacious claim that they are the party of lower taxes. 'That is core to who we are. It is core to our DNA as a Liberal Party and our National Party colleagues as well. 'And in the next election, we must take a bold, ambitious economic policy that gives people hope for the future. That gives people the hope that their lives and their personal circumstances will be better off if they vote Liberal and National.'

Ditch unrealised gains tax, index threshold for Coalition to consider bipartisan support on super tax, shadow treasurer Ted O'Brien and James Paterson declare
Ditch unrealised gains tax, index threshold for Coalition to consider bipartisan support on super tax, shadow treasurer Ted O'Brien and James Paterson declare

Sky News AU

time2 hours ago

  • Sky News AU

Ditch unrealised gains tax, index threshold for Coalition to consider bipartisan support on super tax, shadow treasurer Ted O'Brien and James Paterson declare

Two leading Coalition ministers have called on Labor to scrap taxing unrealised gains and index the threshold in its controversial superannuation proposal if the opposition is to consider bipartisan support for the plan. The Albanese government's proposal to double the tax rate to 30 per cent on funds in super accounts above $3 million has drawn backlash over plans to hit unrealised gains and maintain the threshold over time despite inflation pushing more Aussies into the higher bracket. It has sparked fears for small business owners, farmers who hold properties in their self-managed super funds, and startup investors, who use SMSF's as an investment vehicle. The groups are are particularly concerned about paying tax on paper gains they have not realised. Newly appointed shadow finance minister James Paterson said the two controversial components of the bill were core reasons why the Coalition continues to oppose it. 'We're going to fight this every step in the way because we think it's wrong in principle,' Mr Paterson said on Sky News' AM Agenda. 'Unless the government was willing to walk away from the two key principles in this bill, which is taxing unrealised gains and failing to index the threshold, then there's no conceivable world in which we could support it. 'We're very proud to oppose it because we think it is bad tax law.' It follows shadow treasurer Ted O'Brien telling The Australian the opposition is willing to engage with Labor on the proposed super changes if the government ditches the two controversial elements. 'We will be constructive, but (Treasurer) Jim Chalmers has to be prepared to change his direction on this,' Mr O'Brien said. 'What is being put forward ­really does breach a red line in taxing unrealised capital gains. 'But if Jim Chalmers is prepared to be humble for a moment and realise he's made a mistake and wishes to engage with me, my door is open.' The Coalition's call for negotiation on the super tax comes as Labor needs only the Greens' support in the senate to legislate the change. The Greens expressed support for taxing unrealised gains but urged Labor to lower the threshold to $2m but index this with inflation. Labor's plan will hit more people than the Greens' counterproposal over the long term, according to the Australian Financial Review. The Greens' lowered threshold would immediately capture an extra 16,000 taxpayers in the first year but would hit less Aussies after about 16 years. Mr Chalmers has claimed the tax would initially only hit 80,000 Australians, however, Assistant Treasurer Danile Mulino conceded about 1.2 million, or 10 per cent of taxpayers, will face the tax within 30 years. Leading fund manager and Wilson Asset Management founder Geoff Wilson supports the Greens' call, but wants the threshold indexed well above the rate of inflation. 'With the Greens indexing it to the CPI (consumer price index), the risk there is young people are going to be significantly disadvantaged again because superannuation (is something) you effectively invest in assets,' Mr Wilson told in May. 'What it would make sense for them to be looking at is growth in asset prices, which runs at probably double, if not more, than the CPI growth. 'If you want young people not to be disadvantaged, that's what you need to do.' Modelling by AMP deputy chief economist Diana Mousina shows a 22-year-old on an average income would breach the $3m threshold by the time they turn 62. She took to LinkedIn last month with a diagram showing how an Aussie earning a three per cent annual wage growth and receiving the 12 per cent super guarantee would breach the threshold. Ms Mousina also told Sky News her diagram may have even underestimated how quickly the 22-year-old's super account would hit $3m. 'Average super returns have been about nine per cent in Australia in the last 30 to 40 years and I'm using assumptions closer to six per cent,' she said. On plans to hit unrealised gains, Mr Wilson said this would impact the 'lifeblood of Australia' as people would restructure their investments away from risk. He also warned it could 'destroy innovation' and entrepreneurialism as a large amount of investment into technology start-ups comes from self-managed super funds.

NSW Premier Chris Minns rejects proposal to redevelop Sydney's Long Bay prison into housing
NSW Premier Chris Minns rejects proposal to redevelop Sydney's Long Bay prison into housing

West Australian

time2 hours ago

  • West Australian

NSW Premier Chris Minns rejects proposal to redevelop Sydney's Long Bay prison into housing

NSW Premier Chris Minns has rebuked a proposal to close Sydney's Long Bay prison and to instead use the site for housing following the failed Rosehill racecourse purchase. Former Liberal minister David Elliott suggested closing the Matraville prison and hospital on Monday and instead using the 45ha of land for a new housing development. It comes after the Australian Turf Club shot down a $5bn proposal by the government to redevelop the historic Rosehill racecourse into 25,000 homes and a Metro stop. Asked about the Long Bay site, Mr Minns told reporters on Monday that he was 'grateful that different ideas for housing are coming up' but voiced concerns about transport. 'The real challenge with Long Bay jail is the public transport … the closest heavy rail station from Maroubra is Central Station – it's a long way' Mr Minns said. 'If we're going to have a dramatic or massive increase in population, we have to take that into consideration.' Mr Elliott suggested closing the prison and relocating it to regional NSW in an interview with The Daily Telegraph. The former minister said he had pushed for the plan almost 10 years ago while serving as prisons minister, but it had faced resistance. 'For the life of me I don't understand why we've still got Long Bay jail,' Mr Elliott said. 'This is not a modern prison. It was designed along Victorian-era prison principles. All the rehabilitation programs and facilities are last century. 'You could sell that and build a new state-of-the-art, fit-for-purpose correctional facility in the outer suburbs or regional NSW where you'd get so much more bang for buck.' Mr Elliott said the Long Bay site could provide 'a magnificent place to live' for people working in the CBD and floated extended the existing city to southeast light rail. The state government's long-term plan for housing in Sydney was back under the spotlight last week when the ATC voted down the 'once-in-a-generation' plan. ATC leadership had supported the buyout, which chairman Peter McGauran said would have provided fiscal security for the club for the next '100 years'. The project would have involved 25,000 new homes and a Metro West station but faced pushback from stalwarts of the horse racing community. Mr Minns has, so far, failed to outline his 'Plan B' but revealed on Friday that the state government was discussing 'contingency' plans. 'I'm very disappointed by the Rosehill decision, but I don't regard it as a waste of time,' Mr Minns said. 'I think it's really changed the nature of the discussion about where people will be living in Sydney.' Mr Minns said the state government had specific projects in mind moving forward from the Rosehill failure but was also hoping for developers to bring projects to them.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store