Govt heading for showdown in the Senate

(AAP) - The federal government is heading for a showdown in the Senate this week as it pushes ahead with laws to raise the tax on luxury cars and change the threshold for the Medicare levy surcharge.

The opposition has vowed to block both measures but the government is pushing ahead
with plans to debate the legislation, according to the Senate program for the week.
Labor has dubbed the coalition economically irresponsible for opposing measures
which could strip $6 billion from government coffers over the next four years.
The government insists its $22 billion surplus is crucial to deal with global
economic uncertainty.
The domestic economy will be at the forefront of debate this week as the Reserve
Bank of Australia (RBA) meets on Tuesday.
The RBA is expected to shave 0.25 of a percentage point from the official cash rate
of 7.25 per cent.
It would be the first fall in official rates since December 2001 and comes amid
continuing signs of a slowing economy.
Official figures, out Wednesday, will show if the economy is slowing as much as some
economists are predicting.
Economists are forecasting gross domestic product (GDP) will increase by 0.4 per
cent in the June quarter for an annual pace of 2.9 per cent.
If correct, the growth rate would have slowed since the March quarter, when the
economy grew at 0.6 per cent, for an annual rate of 3.6 per cent.
The growth figures will be released on the same day that Liberals gather for a
dinner to commemorate the former Howard government.
Former prime minister John Howard will be guest of honour at the gala gathering in
the Great Hall of Parliament House.
However, his two right hand men, former treasurer Peter Costello and former foreign
minister Alexander Downer, won't be in Canberra for the function.
Mr Costello is heading to the United States, while Mr Downer, now the United Nations
special envoy for Cyprus, will be at official peace talks, which begin on Wednesday.