Pauline Hanson demands no tax cuts for banks

One Nation leader Pauline Hanson says the banks should not get any tax cut following the revelations that came out last week at the Hayne Royal Commission.

She says the money should instead be diverted into a compensation fund for victims and for future bank bailouts.

Senator Hanson had previously agreed to support the government’s enterprise tax plan so her new stance will cast doubt on Prime Minister Malcolm Turnbull’s signature economic legislation.

She said the banks should pay for their misconduct with the money – which Labor puts at $13.2 billion to 2027-28 – going into a fund for people who claim they had been cheated by the lenders.

Her demand coincides with Opposition leader Bill Shorten demanding the government establish a compensation scheme for victims of banking misconduct.

It also comes at a time when Mr Turnbull has acknowledged in hindsight it would have been better to set up the bank royal commission two years ago.

“I would like to see the money quarantined from the company tax cuts, which starts in [20]23-24 and then in 26-27, that the money is actually paid back to those people who have suffered at the hands of the banks,” Senator Hanson told the Seven Network on Monday morning.

“The people must be compensated for this, and it’s going to cost millions of dollars, and they should also pay for the royal commission, not the taxpayer.”

The Government so far has secured backing from seven of the nine crossbenchers it needs.

It now needs the support from Senator Hinch – who has also floated linking the company tax cuts to banning the live animal export trade – and South Australian independent Tim Storer, who has demanded more comprehensive tax reform.

One Nation pulling its support would effectively veto any chance of getting the company tax through the current Senate.

An award winning author and journalist, commentator, lecturer, and speaker, Leon is a freelance business journalist who covers a range of areas including politics, strategy, globalization, leadership and all the big trends ahead. His main skill is summing up all the news that’s around. For the last 30 years, his main focus has been on management issues. He also produces two podcasts for RMIT University, Talking Business and Talking Technology. Leon has worked for Fairfax, News Limited, AAP and the Herald and Weekly Times.

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