Tony Abbott under pressure to dump treasurer Joe Hockey: Ministers want to salvage coalition’s appeal and an early poll

Pressure is reportedly high on Prime Minister Tony Abbott to axe Treasurer Joe Hockey, and confront any electoral backlash on the coalition from the Canning by-election and prepare for the Federal election quite early with a refurbished image.

Two cabinet ministers reportedly told Fairfax Media that they held talks with the PM on the issue of dumping Hockey. The treasurer’s continuance is seemingly tied up with the outcome of the Sep. 19 Canning by-election. If the coalition loses, the PM will be left with few options. The likely replacement of Hockey will be Scott Morrison, the current social services minister, reports 9 News.

The by-election, caused by the death of long-serving Liberal MP Don Randall in July, has put the coalition under pressure as the ruling coalition’s seat is on a razor's edge, with large swings in favour of opposition Labor party. The Canning seat, long held by the Liberal Party for almost 15 years, may likely to go to Labor, as opinion polls suggest an almost 10 percent swing in favour of it.

The detractors of Hockey believes that sacrificing the treasurer would strengthen Mr Abbott's leadership and pre-empt further voter backlash in future polls. Fairfax had also reported that an early federal election is also being pushed through, presumably for March 2016.

However, axing Hockey can also be a potential risk for Mr Abbott, as he had promised that the treasurer would stay in his job until the next election irrespective of the popularity of his second budget. Historically, any political back-stabbing, departing from stated positions never favoured any party in the past, reports Business Insider.

Tax mix imbroglio

The treasurer has been at work to fulfill the Coalition’s promise to cut personal income tax before it faces the next election. But signals were also out that more tightening of the belt by the government is on the anvil as it wants to reduce spending, to stay within the resources of the budget, reports The Guardian. The austerity seems to be the undoing of Hockey.

In a recent statement, before the tax review was over, the federal treasurer said Australia’s top marginal tax rate is higher than other countries and the tax burden is too heavy at the top end. He did not rule out further increase in GST as part of potential changes to the “tax mix,” wanting a mature debate on tax reforms.

For feedback/comments, contact the writer at feedback@ibtimes.com.au or let us know what you think below.