ADAM STEER [HOST]: The big issue dominating the start of the political year is the Prime Minister's changes to the stage three tax cuts.

Under the proposal, low and middle-income Australians will receive a larger tax cut than originally planned, but those earning over $150,000 will get less than expected.

The ALPs Luke Gosling is the Northern Territory federal member for the Top End seat of Solomon. Mr. Gosling, welcome back to the program. Crossbench Senator Jacqui Lambie has signalled she'll support the government's plans to overhaul the stage three tax cuts. The Opposition yet to state their position while the Greens are demanding more measures to address the cost of living pressures.

If you don't get the support of the Opposition, you'll need to negotiate with the Greens and the crossbench. Where is exactly your government likely to manoeuvre on this?

LUKE GOSLING OAM MP: This is our plan, Adam. Every Australian taxpayer will get a tax cut and obviously as you said, there'll be more going to those on low and middle incomes but still those above 150,000 are still going to get significant tax relief - 1000s of dollars’ worth of tax relief. So that's our plan, and we'll put it to the Parliament.

ADAM STEER: A failed referendum last year, the government would not want to fail on this. What are you hearing from the crossbench and the Opposition. I know it’s early days but what’s your take on it? Is the Opposition likely to support these changes?

LUKE GOSLING: There's been some indications that their original rhetoric around this, that they would wind it all back, is softening a bit.

Probably because they've got the feedback that Australians are pretty keen on a bigger tax cut, unsurprisingly, with cost of living being a concern for a lot of families.

In Darwin and Palmerston, the electorate that I serve, we've got about 60,000 people that pay tax and all of them are getting a tax cut – and 85% of that figure are getting a bigger tax cut than they would have under the plan Scott Morrison legislated five years ago.

But even those that are on high incomes, they're still going to get significant tax relief, and that's going to be great for all the families in Darwin and Palmerston and across the Territory as well.

So it’s no surprise that the Opposition is changing its tune. And the Greens are always going to try and oppose what we put up.

But our plan has been worked through with Treasury advice and the Reserve Bank has said that it's not going to put pressure on inflation, which is incredibly important for Territorians - particularly those that have got a mortgage.

We've got a better plan than the previous Morrison stage three tax cuts and that's what we're going to put to the Parliament today.

ADAM STEER: How much of a discussion though - because this has all been done in the shadow of a by-election that's happening in three weeks – both of the parties would be keen to win. What's the gossip behind the scenes regarding that by-election?

LUKE GOSLING: It’s going to be hard fought, like every by-election is, but we've got a really positive plan – a better tax plan for the nation.

The combination of the electricity bill relief and cheaper medicines - we’ve made it cheaper and easier for people to see a doctor – all of those things would be resonating down in that seat of Corangamite because as I mentioned, like all Australian down there would be wanting to see some economic leadership and that’s what we’re providing.

The Treasurer Jim Chalmers has done a great job. He’ll go into the Parliament today and put the legislation in for these changes that will take effect on the first of July and that'll be great for people not only in Corangamite but around the country.

ADAM STEER: Meanwhile, new fuel efficiency laws are also on the table requiring car companies to supply more fuel-efficient vehicles to customers. Why is that important?

LUKE GOSLING: Well, it's important in that we have been a dumping ground for the for the world's heavy emitting vehicles. And that over time has just meant that we haven't been able to keep up with the latest fuel efficiencies and that's what every driver at the end of the day wants.

We know how expensive it is to fill up a tank of petrol and we want vehicles that are much more efficient. It's not going to stop anyone from still using their current vehicle. It’s just going to mean that in the future vehicles will be able to be bought that are much more efficient. And that’s a good thing.

ADAM STEER: The Opposition says it's an attack on four-wheel drive. It's an attack on your ute. Luke Gosling that’s got to bite in your electorate.

LUKE GOSLING: They’re just idiotic.

I mean, this is the same argument they made about destroying the weekend and all that rubbish a couple of years ago. And really it just shows how desperate they are.

They're pointing to that because the last thing they want to do is talk about our better tax plan where 85% of people – the overwhelming majority of people in my electorate, for example, are going to get more back.

They're going to get to keep more of their hard-earned cash.

So yeah, it's a bit of a scare campaign.

Territorians can be assured that whatever vehicle they're running, they can keep running that for as long as they want. There'll be a wide range of vehicles that they're able to purchase into the future and I'm sure they'd support having more vehicles that are cheaper to fill up.

ADAM STEER: Last week, the Coalition said they would bring back the cashless debit card if they were to win the next federal election. Is that something you'd back?

LUEK GOSLING: We're doing a bunch of work, including on the Community Development Program, changing it from what was not working well at all to something that is going be of more benefit to Territorians.

I know that’s something the Chief Minister is keen on seeing – more Territorians working. So that’s a good thing.

As far as income management goes, I think it's important that we have the ability to income manage people who need that. And I'm supportive of that for sure.

ADAM STEER: 30 seconds or less, anything else that's on your agenda for this first week of the sitting of Parliament?

LUKE GOSLING: There’s a lot of pain being felt in certain sections of the community regarding cost of living and we’re trying to address that by giving all Territorians more of their hard-earned cash. And that’s good for business as well because it’ll mean more money flying around the economy.

But as always, my job is to keep bringing Commonwealth dollars to the Territory and that’s what I’m about this week and every week down here in Canberra.