Federal parliament returns for first sitting day of 2024 — as it happened

That's it for today's live parliament coverage. 🙂

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The first House of Representatives Question Time of the year has ended.

• The government focused much of their time on the stage 3 tax cut changes, and which Australians would benefit under the changes
• The government ridiculed the opposition at times for not asking questions about the tax cuts package, which they agreed to support at a party room meeting held this morning
• The Coalition focused more of its economic questions on whether the government had any plans to change negative gearing
  

It's been a long time coming but the Coalition is firming up the policy debate that it wants to take to the next election. In backing Labor's revised stage 3 tax cuts, Opposition Leader Peter Dutton vows a Coalition government would take them further and offer more tax cuts.

What exactly that looks like is unclear — Dutton and his economics team today vowed they need time to form their position. They also said any policy they form would be fully costed.  But the greatest indication came from something they did, not something they said. When faced with questions about whether the Coalition would look to abolish the 37 per cent tax rate (which was in the original Coalition plan but has now been ditched by Labor) or consider further lifting the thresholds where new tax rates kick in, there were firm nods from shadow treasurer Angus Taylor and finance spokeswoman Jane Hume.

So while both sides might have been on a unity ticket on stage 3 at the last election, you can rule that out happening again at the next poll. How the Coalition will pay for the cost its tax plan will bring is also unclear. One place Dutton identified was cutting Canberra's public service.

The funds won't be coming from changes to negative gearing, which the opposition firmly backed in again today. Labor too has said that it doesn't have plans to change the contentious policy, which allows tax breaks for investors to offset losses. Labor at the 2019 election had policies to change it but has said little on the issue since.

The other clear election line that has emerged from the Coalition centers on the prime minister and his integrity. The Coalition is adopting a line out of the Labor playbook for its new attack on the PM. Labor, in opposition, used to dub then-prime minister Scott Morrison the "Liar from the Shire". Now it's Anthony Albanese who's being called the "Liar in the Lodge".

Barely a minute went past at Dutton's press conference without the PM being accused of being a lying. The prime minister is betting that voters will care more about the extra money they'll have in their pocket come July and not that he broke an election promise. But you can all but guarantee the opposition will be trotting out the Liar in the Lodge at every chance they get.

Independent Dr Helen Haines, the member for Indi in Victoria, asks the prime minister what the government will do to help those below the tax-free threshold.

Anthony Albanese says the government will continue to consider what other cost-of-living help it can put in place before the May budget.

He says changes to stage 3 tax cuts will also reduce bracket creep for people around the lowest tax bracket, "compared to stage three and a no change scenario".

Liberal Paul Fletcher asks about whether the government will deliver treaty and truth-telling.

The PM says:

"This question was asked last year on a number of occasions. I indicated the Commonwealth certainly is not in any negotiations on treaty.

"And, indeed, 'treaty' implies two sides negotiating and coming to an agreement. That's what occurs.

"Various state governments are undertaking that work. I note that the Liberal Party in various states has changed its position in some states, but in New South Wales I think that process is continuing but it's occurring at the state level."

Minister for Employment, Workplace Relations and Minister for the Arts Tony Burke fields a dixer on low wages growth.

Mr Burke says the opposition has opposed "every measure" by the government to "get wages moving".

He then accuses the opposition of being "angry" about supporting the government's stage 3 tax cut changes.

"From the moment it was announced, those opposite had one simple principle — they did not want a tax cut for every Australian," Mr Burke says.

Shadow minister for Climate Change and Home Affairs, Angus Taylor, asks the negative gearing question again — pushing the government on whether it will change the tax treatment.

Treasurer Jim Chalmers says the government has already answered the question.

"And we know what this is all about. We know what this is all about," he says.

"The position that they have taken on the tax cuts which are before the parliament is so incoherent and so unintelligible, and so incomprehensible that they can't ask about the tax cuts which are before the parliament as of noon today."

Treasurer Jim Chalmers receives a dixer on the interest rates being put on hold.

Mr Chalmers says the decision will be a welcome relief to Australians "already under the pump" .

He cites a statement from the RBA, which says there are encouraging signs in the economy, as well as the recent inflation figures, to say the government's policies are helping to get inflation down.

But he says "its not mission accomplished", as people are still under pressure as inflation remains too high.

However, he says the government's tax cuts changes will help more Australians provide for their loved ones as well as service their mortgage.

Anthony Albanese is asked by the opposition whether the government will change how negative gearing is dealt with under the law.

Negative gearing is a taxable loss which can provide tax savings when the cost of owning a rental property outweighs the income it generates each year.

After a bit of back-and-forth and not really answering the question, the PM says the government is focussing on supply in order to support the housing market.

The Reserve Bank has left the cash rate on hold at 4.35 per cent at its first meeting of the year.

Economists had widely predicted rates would remain steady after inflation fell more than expected in the year to December to 4.1 per cent.

Read more on the decision in our business blog:

Anthony Albanese says he watched the new ABC series Nemesis last night, which is about the Coalition.

"An hour and a half that explains in three parts why they were such a hopeless, divided government full of hate of each other..." he calls it.

"And I was reminded that the leader of the opposition, his big commitment to be made was that he'd smile more!

"And was gonna be like Little Miss Sunshine, Mr Speaker. Was gonna be like Little Miss Sunshine. Instead, he gave us Jack Nicholson in The Shining, smashing through the walls."

As Question Time in the House of Representatives gets under way, we're starting to get a sense of the debate that played out within the Coalition's joint party room meeting this morning.

Only a handful of politicians raised questions about the opposition's approach to the revised tax cuts. Only one is said to have urged the Coalition to vote against the tax changes but is said to have been "talked down".

Coalition politicians wondered if they could push for the abolition of the 37 per cent tax rate (as was the original intent of the stage 3 changes) but was told that it wasn't possible in the legislation. So with no ability to change that tax rate, Coalition politicians were told the opposition would seek to make other amendments but what exactly they are we won't know until the legislation starts working its way through the parliament.

One Coalition source said former leader Scott Morrison told the party room that the opposition had put forward a "well calibrated response" to Labor's tax changes. Peter Dutton paid tribute to the former PM, who last month announced he would retire from politics to take up a job in the corporate sector, saying his family had paid a heavy cost for Morrison's time in high office.

One mystery remains about when exactly Mr Morrison will tender his resignation. Speaker Milton Dick yesterday told the ABC he was yet to receive it. Coalition politicians too seem unsure when the resignation will be tendered.

Crime too got a mention when politicians had the chance to raise questions and issues within the party room meeting. Politicians are said to have raised issues raising from Queensland through to Ceduna in South Australia.

Time for the first question.

Opposition Leader Peter Dutton asks the PM if he will rule out any changes to how the family home is taxed.

The PM points out that the Coalition has now backed Labor's revised stage 3 tax cuts, and their first question of the day "has nothing to do with what we're doing".

Dutton asks the question again, and is told by the Speaker that the PM has already answered it.

Things are getting animated - "a bit of colour and movement", the PM says.

Minister for Indigenous Australians Linda Burney also paid tribute to Dr O'Donoghue, acknowledging her role in the National Apology to Indigenous Australians as well as her strong advocacy for constitutional recognition of Indigenous Australians.

"Lowitja O'Donoghue's legacy is one that is impossible to quantify. History will be a witness to that legacy and to Lowitja's greatness," Ms Burney said.

"Her birthday was never recorded but her life will affect all of us in this country forever. We love you, Lowitja. Thank you for your life and what you stood for."

National Party leader David Littleproud described Dr O'Donoghue as one of the "most respected and influential Aboriginal leaders this country has ever known".

"We thank her for being a formidable leader, who was never afraid to listen, speak, and act. Always with strength, determination, grace, and dignity," Mr Littleproud said.

The House then hold a moment of silence in memory of Dr O'Donoghue.

Opposition leader Peter Dutton followed Mr Albanese in paying tribute to Dr O'Donoghue by quoting exerts of an authorised biography of the former Australian of the Year.

He acknowledged Dr O'Donoghue's role in furthering the causes of Indigenous rights, representation, recognition and reconciliation.

"She was, to echo [the biography author] Stuart's words, an Aboriginal matriarch. Iconic, inspirational, indominitable, she has been awarded the highest accolades, including as an Australian of the Year and a Companion of the Order of Australia. Today, in honouring Dr O'Donoghue's life and her legacy, she takes her place in the pantheon of influential and illustrious Australians."

Prime minister Anthony Albanese has opened Question Time by moving a motion to acknowledge the death of on February 4, 2024 of Lowitja O'Donoghue.

"As we mourn her passing, we give thanks for the better Australia she helped make possible. Dr O'Donoghue had an abiding faith in the possibility of a more united Australia. It was a faith she embodied with her efforts to bring about meaningful and lasting reconciliation between Indigenous and non-indigenous Australia," Mr Albanese told the House.

He added:

"I am proud to have met Lowitja O'Donoghue. It's one of the great honours my life — has been to be in the privileged position of meeting the extraordinary Indigenous leaders that we have had in this country in the decades in which I have walked on this Earth."

You can read the ABC obituary for Dr O'Donoghue below

As Brett said earlier we should expect tax cuts, Yang Hengjun, live sheep exports and some RBA questions to be thrown out this afternoon.

Opposition Leader Peter Dutton has laughed off Malcolm Turnbull's description of him as a "thug".

Mr Turnbull offered the character assessment on the second episode of the ABC's Nemesis last night when asked to choose one word to describe his former colleague.

Speaking today, Mr Dutton implied the former prime minister was a "liar" and accused him of "retrofitting" a narrative to suit his own purposes.

"In this job [of opposition leader] it would be very difficult to go on the program as I was asked to do and give a true account of the actions of some individuals," he said today, in response to a question about Mr Turnbull's comments.

"But maybe at some stage I'll give an account of the true character of some individuals," he added.

Read more about what Mr Turnbull said below:

Earlier today senator Simon Birmingham moved to suspend standing orders to enable a motion regarding taxation to be moved — the same taxation the Coalition earlier today agreed to support.

This was the motion:

I move that the Senate –

a) notes that the Albanese Labor Government has betrayed Australian taxpayers, killed reform of the tax system, trashed aspiration for millions of workers, and can’t be trusted on negative gearing, capital gains tax, and the family home;

b) notes that under the Albanese Labor Government real net disposable income per person has fallen by 8.6 per cent, resulting in an average income earner being nearly $8,000 worse off due to rising mortgage payments, falling real wages, and increasing taxes; and

c) calls on the Prime Minister to apologise for betraying Australian taxpayers.

The move was negatived with 26 in support, 33 against.