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ABC News
an hour ago
- Business
- ABC News
Liberal dysfunction allows Labor to get away scot-free on emissions failure
One consequence of a broken, distracted and internally-focused opposition is that it gives the government leeway to do what it wants. Unencumbered. Add a thumping electoral majority to the mix and what might be considered confidence can easily morph into hubris. Labor is easily managing politically vexed problems while the dysfunction of the other side chews up endless column inches. And to be fair, the ongoing fracturing of the Coalition is indeed a compelling story. Australians voted for a House of Representatives in which as many as 110 seats out of 150 could broadly be categorised as "progressive". The remainder are conservative. That the Coalition would conclude from that result, as some conservatives loudly assert, that the answer is to veer even harder to the right by doubling down on culture wars is rather surprising. "Really? What voters really wanted was a culture war out on the right?" said former Liberal candidate and political consultant David Gazzard. "If only we'd had a big old dinger with right wing ideology they would have voted for us?" It's hard to shake the impression the Coalition continues to miss the May 3 memo from voters. Sussan Ley and David Littleproud — both perched atop the restive dragon tails of their respective party rooms — have determined that net zero needs to be debated, reviewed and potentially dumped. As one reader noted to this columnist, the whole scene is "like going to a party with old mates and realising you got your shit together and they're still on the bongs". While the Coalition figures out how to mature its energy and climate idea over the next six years — during which time the renewables rollout will continue to deepen — the real game is with the government and what it's doing and not doing to manage a series of tricky decision points. Nowhere is this more evident than Labor's move to green-light an extension to Woodside's North West shelf gas project. Given the backlash, Labor was politically canny to postpone its decision from the original deadline that would have coincided with the election. Seats the government nearly lost to climate action independents such as Fremantle in WA and Bean in the ACT would no doubt have fallen. Wills in Victoria might have gone to the Greens. Adam Bandt might still be in parliament. When it came on Wednesday, the project approval itself was no great surprise. Woodside has been jumping through existing state and federal regulatory and environmental hoops and clearing them for the best part of seven years. Manufacturing unions and WA's mining industry are delighted. Minerals Council of Australia chief Tania Constable told the ABC on Friday that future critical minerals rare earth production needs the gas at competitive prices to develop those resources. Murray Watt, who replaced Tanya Plibersek in the environment portfolio after the May 3 election, is pretty much the final rubber stamp. But by extending the operating licence for the NorthWest Shelf from 2030 to 2070, Woodside and its investment partners can now work to unlock the vast Browse Basin off the WA coast, which climate groups have branded a "carbon bomb". Watt has given Woodside until this coming week to agree to a number of final conditions. These likely relate mostly to the proximate impact on Indigenous rock art of industrial emissions released during liquefaction of gas for export. While relevant, such plant-level impacts are relatively minor. The emissions that really matter are those associated with the energy-intensive process of converting extracted gas into a liquefied form for export shipment. Alongside "fugitive emissions" from leaks and flaring, such energy use across the gas industry accounts for a significant portion of overall national emissions. Potentially up to 10 per cent a year, according to Climate Change Authority data. Critically for Labor, those "scope two" emissions don't come for free. They add to the nationwide pollution burden and they weigh on Australia's global reputation as a fossil fuel super polluter that exports "scope three" emissions at an industrial scale. Australia is about to ramp up its efforts in coming months to win hosting rights to next year's UN climate summit and younger voters continue to register alarm over the lack of urgency over climate action. All of this should be uncomfortable ground for Labor. Were the Liberals not still arguing about the basic entry-level proposition of whether net zero by 2050 should remain on their policy books, they might instead be squeezing the government over the North West shelf decision and its climate policy performance more broadly. Energy and Climate Change Minister Chris Bowen is currently awaiting advice from the Climate Change Authority on what the nation's 2035 emissions reduction target should be. Authority chairman Matt Kean — a former NSW Liberal treasurer and energy minister appointed by Labor nearly a year ago — is busy crunching the numbers on a proposed emissions target for 2035. The range the authority believes is consistent with Australia meeting its obligations to the Paris climate agreement (which seeks to limit global average temperature increases "to well below 2 degrees Celsius") would be an emissions cut of between 65 per cent and 75 per cent of the nation's level in 2005. That would extend the current 2030 target for a 43 per cent reduction. This column understands the Climate Change Authority's modelling does not currently include the impact from the Woodside extension or Browse, but that it will be significant. That work is being done now. For Bowen the yet-to-be answered question is how exactly this gets managed under his existing Safeguard Mechanism policy. A carrot and stick approach that aims to force down industrial and resources emissions in coming years, the mechanism works by penalising big polluters that fail to adopt low-emissions alternatives or by making them buy a limited pool of carbon offsets. Kean, who has plenty of experience in this space, will no doubt be urging Labor to make Woodside pay its own emissions bill rather than socialising the cost on the rest of the economy. Kean might indeed be telling Bowen that the company, which maintains an official "aspiration of net zero by 2050 or sooner", be required to source the energy it needs for its export operations from renewables rather than fossil fuels. That would be expensive. But so is decarbonising an entire economy. Watt does not appear to have put any such condition on Woodside, but that does not mean the issue now goes away. Labor is racing to pass its environmental protection legislation when parliament resumes next month. The Greens, whom Labor needs in the Senate, will again likely insist that climate impacts of big new projects like Browse be taken into consideration. Labor counters that its Safeguard Mechanism should be the primary policy of industrial emissions action. But Australians are yet to see firm evidence it's working as advertised. Indeed the government continues to whistle past the graveyard on national emissions. Official quarterly data released on Friday shows Australia's greenhouse gas reduction performance has tanked. Emissions inched lower last year by an essentially invisible 0.05 per cent to an estimated 446.4 million tonnes, the fourth year in a row that progress has stalled. To get emissions down to 350 million tonnes — the legislated 2030 target — will now require six straight years in which pollution falls by an average 3.6 per cent. A tall order, you might say. The reasons behind this weak performance are equally discouraging. Agricultural emissions fell 2 per cent last year because crop production declined. Energy emissions were up 2.2 per cent because lower hydro generation led to more reliance on coal power. Meanwhile transport was up 1.9 per cent as aviation consumption reached a record. The only good news was from industry, where emissions fell 5 per cent thanks to technology and production changes in chemicals and metals sectors. Labor's safeguard mechanism is "inadequate" for the challenges facing the nation because of emissions such as the NorthWest Shelf, warns Amanda McKenzie, CEO of the Climate Council, a group that campaigns against climate pollution. "There's no way to sequester those emissions," McKenzie says. "If you allow your fossil fuel sector to expand and you don't have tight enough targets in the safeguard that put pressure on those projects to cut emissions, then other sectors like agriculture and transport have to do more. "The idea that this is an offshore problem is entirely false because any fossil fuel project is using fossil fuels for export. "So we have to account for that climate pollution in Australia." It's a point the opposition might care to make. If it wasn't so busy toying with a world where doing nothing is the apparent answer.
Forbes
6 hours ago
- Business
- Forbes
The Big Beautiful Bill Moves Forward: A First Look At 10 Key Tax Cuts
WASHINGTON, DC - MAY 22: U.S. Speaker of the House Mike Johnson (R-LA) speaks to the media after the ... More House narrowly passed a bill forwarding President Donald Trump's agenda at the U.S. Capitol on May 22, 2025 in Washington, DC. The tax and spending legislation, in what has been called the "One, Big, Beautiful Bill" Act, redirects money to the military and border security and includes cuts to Medicaid, education and other domestic programs. Johnson was flanked by House Committee Chairmen who helped craft the legislation. (Photo by) During his presidential campaign, Donald Trump vowed to make major changes to U.S. economic policy. That effort began with significant shifts in tariff strategy, but tax reform remained the cornerstone of his agenda. This week, the House of Representatives approved the initial version of new tax and spending legislation, dubbed the "Big Beautiful Bill." The proposal includes tax changes that reflect many of Trump's original campaign promises. Although the bill is still in its early stages and subject to change, the current version outlines substantial tax cuts that aim to benefit Americans across all income levels. Below is a summary of the top 10 tax cuts and breaks featured in the bill. The new legislation makes the lower income tax rates created during the first Trump Administration in the 2017 Tax Cuts and Jobs Act (TCJA) permanent. These tax rates are currently due to expire at the end of 2025, and the current bill extends these rates indefinitely. The current bill extends the increased standard deduction at the rate provided in the TCJA. Here's a breakdown of the increases in the standard deduction created by TCJA, which will remain with the passing of the current bill. Further, the bill will increase the standard deduction for all filing types by an additional $1,000 to $1,500 until 2029 in an effort to combat inflation. Beginning with the 2026 tax year, the new bill provides for the qualified business income deduction to be permanently increased from 20% to 23%. This provision is currently set to expire at the end of 2025 and would result in a significant tax increase for small business owners when combined with the elevated tax brackets that will be created by the expiration of the TCJA. This provision would save a business owner earning $1 million over $111 thousand in taxes, as illustrated in the table below. The Proposed enhancement of the Qualified Business Income (QBI) deduction saves business owners a ... More significant amount in taxes. Prior to the TCJA, the child tax credit was up to $1,000 per child under the age of 17 as of the end of the tax year. Trump's TJCA increased the credit to $2,500; however, this increase was set to expire at the end of the year. The new bill extends this increase to the child tax credit until 2029, and keeps it at a minimum of $2,000 indefinitely. Further, the value of the credit is indexed to inflation to ensure it continues to provide a meaningful benefit to parents. The bill provides for an extension of the increased alternative minimum tax (AMT) exemption. AMT is applied in addition to regular income tax for taxpayers who are subject to it. When it was established in 1969, it aimed to ensure that high-income taxpayers paid a minimum amount of tax, even after using various deductions and tax preferences. However, the calculation was not indexed to inflation; therefore, after 5 decades, the calculation began affecting middle-income earners. The TCJA increased the exemption amount for AMT to protect middle-income taxpayers, and this extension maintains that protection. In addition to the standard deduction increases, the new legislation provides for an additional $4,000 deduction for eligible senior taxpayers aged 65 years or older. This deduction can be applied if the senior taxpayer takes the standard deduction or elects to itemize deductions. The full deduction would be available for single filers with a modified adjusted gross income (MAGI) of $75,000 or less, and for married couples filing jointly with a MAGI of $150,000 or less. The U.S. Bureau of Labor Statistics estimates that the total amount of overtime and premium pay in the United States was approximately $5.7 trillion in 2024. This additional income may cause a taxpayer's income to exceed higher tax brackets, resulting in a higher tax rate for hourly workers. In contrast, the exemption for taxes on overtime pay is projected to increase take-home pay and contribute to economic growth. The No Tax on Tips Act was initially introduced in January 2025 by Texas Senator Ted Cruz. That bill was proposed and passed the U.S. Senate on May 20, 2025. The bill was passed unanimously and would create a tax deduction on tips up to $25,000. The components of this original bill were incorporated into the larger spending and tax reform bill that was passed by the House of Representatives days later. However, the latest bill included no cap on the deduction amount, allowing all tip income to be excluded. The bill explicitly states that Income from tips claimed must be from an occupation "which traditionally and customarily" has received tips. This change would allow taxpayers to deduct a larger portion of their state and local tax payments on their federal returns. The existing tax law limits deductions for state income taxes, property taxes, and sales taxes to $10,000. The proposed bill raises that cap by 400%, with benefits phasing out for households that make more than $500,000. This is arguably one of the most unexpected features of the new legislation. If passed in its current state, children born in the United States between January 1, 2025, and January 1, 2029, will be eligible to receive $1,000 via a federal government contribution in the child's "Trump Accounts.' The money will be invested in financial markets on their behalf, and they will be able to access it when they reach adulthood. The funds can be used for specific purposes, such as education expenses, purchasing a first home, or capital to start a business. These accounts will be established and funded by the US Treasury. Parents and third parties will also be allowed to contribute up to $5,000 per year. Earnings grow tax-deferred, and qualified withdrawals are taxed at the more favorable long-term capital gains rate. Children can withdraw up to 50% of the account balance at 18 years old. Between the ages of 25 and 30, they can access their full balance for approved uses. After the age of 30, the funds are available without restriction. The Big Beautiful Bill has passed the House, but lawmakers have signaled that it will undergo changes as it moves through the Senate. Most expect the Senate to revise the bill, after which the updated version will return to the House for a second vote. Legislators have expressed their intention to finalize and pass the legislation by July 4th.
Bloomberg
11 hours ago
- Business
- Bloomberg
Thailand's $115 Billion Budget Clears First Parliamentary Hurdle
Thailand's lower house of parliament backed a 3.78 trillion baht ($115 billion) annual budget as Prime Minister Paetongtarn Shinawatra's multi-party coalition buried differences to support the spending plan. The budget bill for the fiscal year starting Oct. 1 was supported by 322 lawmakers in its first reading in the 500-member House of Representatives on Saturday. A total of 158 lawmakers voted against it following a four-day debate.
Reuters
11 hours ago
- Business
- Reuters
Thai government's $115 billion budget clears first parliamentary vote
BANGKOK, May 31 (Reuters) - The Thai government's 3.78 trillion baht ($115 billion) budget for the 2026 fiscal year passed its first parliamentary vote on Saturday, but there will be a series of further votes before it can be enacted. After a four-day debate, the draft budget bill, aimed at supporting a sluggish economy facing steep U.S. tariffs, passed with 322 votes in favour and 158 against. The Pheu Thai Party-led government has a majority in the House of Representatives, but there have been some tensions in the coalition. The budget vote is crucial to the government as a defeat could have forced Prime Minister Paetongtarn Shinawatra to either resign and make way for a new premier elected by parliament, or dissolve the house and call a general election. The budget will still need to pass second and third readings in the lower house, expected in August, before being sent for Senate and royal approval. The 2026 fiscal year starts on October 1. ($1 = 32.85 baht)
Reuters
a day ago
- Business
- Reuters
Trump wants to see bigger tax cuts in the budget bill
WASHINGTON, May 30 (Reuters) - President Donald Trump said he wants to see bigger tax cuts in the budget bill passed by the U.S. House of Representatives. "I'd like to see a bigger cut in taxes," Trump told reporters. " The bill is a great bill. It's going to be jiggered around a little bit, it's going to be negotiated with the Senate."
