Meg Webb and Luke Edmunds expected to be returned, third Legislative Council seat still unclear
Elections were held in three of the 15 Legislative Council divisions on Saturday.
Political analyst Kevin Bonham said the two southern electorates of Nelson and Pembroke would be held by sitting members, independent Meg Webb and Labor's Luke Edmunds.
Dr Bonham said Ms Webb had won "very convincingly" and could win on primaries alone.
He said Mr Edmunds had a "huge" primary vote lead from which no other candidate would be able to catch him.
In a statement released on Saturday night, the Tasmanian Electoral Commission (TEC) said Ms Webb held a majority of first-preference votes in Nelson, with 51 per cent.
Ms Webb described it as "a resounding vote for an independent Upper House, and for greater integrity, transparency and accountability in politics".
About 1,800 early votes were yet to be counted in Nelson.
The TEC said Mr Edmunds held a "strong lead" in Pembroke, with almost 44 per cent of first preference votes.
The north-west seat of Montgomery was a bit more uncertain, following the retirement of Liberal Leonie Hiscutt.
Her son, independent Casey Hiscutt, has almost 32 per cent of first preference votes, followed by the Liberal candidate, former senator Stephen Parry with 29 per cent, and the Greens' Darren Briggs with 21 per cent.
Tasmanian Electoral Commissioner Andrew Hawkey said Montgomery would be decided on preferences.
"[There are] two candidates on very level pegging … I would think for Montgomery we're going to have to distribute [the preferences given to] those lower candidates to see who comes out on top," Mr Hawkey said.
Dr Bonham said he expected Mr Hiscutt to win unless Mr Parry did better than expected on preferences.
If Mr Hiscutt wins, there will be nine independent members in the Upper House.
"That will make things hard for the government on things where Labor supports but the independents are sceptical," Dr Bonham said.
He said the Liberals' biggest obstacle in Montgomery was going up against the "Hiscutt family name".
But he said Mr Hiscutt's pro-stadium stance may have tipped some voters towards the Greens and the Shooters, Fishers and Farmers party.
Counting will continue Monday, with pre-poll, provisional and out-of-division votes added. Postal votes will be counted on Thursday.
Mr Hawkey said Saturday was a successful voting day despite the wet and windy weather.
"It looks like we've had good turn outs in all three divisions," he said.
He said 66 people with a print disability used the telephone voting service, which was expanded for the first time this year.
Members of the Legislative Council are elected for six-year terms on a rolling election cycle, which means two or three divisions are up for election each year.
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Former Treasury secretary Ken Henry agrees, but reluctantly, saying any tax reform package should be designed to be revenue neutral at first, but over time lift revenue as a share of GDP over time in a way that would do the least economic damage. Chalmers has already stipulated that any package brought to the round table should be budget neutral at a minimum and ideally budget positive. The Coalition has said it will only support changes that are revenue neutral, meaning it would only support a package that repairs the budget if the improvements came from the spending side. But the tax debate is about "how", not just "how much", and here there is likely to be much disagreement. Participants in the tax debate tend to complain about one of two things: that the tax system is unfair or that it is inefficient (that is, it distorts people's choices). The objectives of fairness and efficiency do not always align. The GST, for example, is considered an efficient tax because it applies the same rate to everything and so does not distort spending decisions as it would if different rates applied to different products. There are exceptions, which create inefficiencies, but the efficient character of the tax is one reason why some economists say raising it could be a worthy option. But the other side of the coin of a flat rate is that it can be regarded as unfair because it is "regressive" — the same 10 per cent tax is a greater imposition on someone with a smaller income than someone with a larger income. That is one reason why the proposal has been regarded as politically toxic, and Labor has given no indication it is enthusiastic to adopt it. But there is one feature of our tax system where inefficiency and inequity are broadly aligned: our system's heavy reliance on the taxes of wage earners, and comparatively low tax on those who make passive income from their wealth. Australia's tax system is wildly inconsistent in this regard. A couple with no assets, both on the minimum wage, could pay more than a couple with three homes, shares, and hundreds of thousands in annual income. The second couple might even pay no tax. As e61's Greg Kaplan put it at Spender's round table, this can not only be seen as unfair but can also distort choices in an undesirable way because wage earners pay a higher rate of tax than asset owners who can use deductions and discounts to lower their tax. "The absolute worst case you can be in is to earn all of your income as an employee working for somebody else," Kaplan said. "The message that we are sending to our young people is that if you want to be rich … choose a career plan where you can generate capital gains, strive for property development or funds management, not for engineering. That matters for productivity." But nobody needs a long memory to recognise the political perils of taking on issues such as tax discounts for superannuation, capital gains or the treatment of franking credits, several of which were in Bill Shorten's rejected 2019 policy platform and one of which — super tax — is the source of a current controversy. Those ghosts — and the ghosts of the carbon and mining taxes in the Rudd-Gillard era — are fresh in the minds of many in the Labor fold, not least the prime minister, and will weigh strongly against the case for any sweeping reform. While Labor could balance out any of these tax-raising proposals with large income tax cuts or even company tax cuts, any of them risks igniting a political firestorm, and those close to Chalmers have privately sought to lower expectations that this is his plan. But Ken Henry, perhaps Australia's most prominent tax reform authority, who has been consulted by Chalmers in recent weeks and will attend the round table, has a different view: go big or go home. "Tax reform cannot be done piecemeal," he told Spender's forum last month. "This is the lesson I take from Australia's tax reform adventures of the last 40 years. If it's going to be successful, it's going to have to be big."