Independent senator Tim Storer won't support the government's income tax cut plan as it stands.
Senator Storer is in favour of the tax offset for low- and middle-income earners starting on July 1 and flowing through to 2022, but not the remainder.
With Labor seeking the package to be split, and the Greens opposing it altogether, the government needs the support of eight-of-10 crossbenchers to get the plan through the Senate unamended.
"Given our substantial debt and deficit challenge, I do not believe it prudent to proceed with the full income tax plan proposed by the government at this time," Senator Storer said in a statement.
The South Australian senator will move amendments to the bill removing the measures commencing from 2022 to 2024 and locking in the low-and-middle-income tax offset, rather than replacing it with tax bracket adjustments.
Senator Storer said his "back of the envelope" calculations showed the amended package could save $100 billion compared to the government's proposal.
"These savings would help us to return to surplus sooner, pay down debt quicker, and free up money to spend on critical social and infrastructure programs, including increasing the rate of Newstart."
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