Nick Xenophon backs company tax cut in exchange for electricity package

NICK Xenophon will vote for the Turnbull Government’s company tax cuts — in exchange for more money for pensioners, a solar plant for Port Augusta and a possible gas pipeline between the NT and SA.

• Company tax rates showdown begins in the Senate
• Port Augusta power station offered $25m to keep running

PENSIONERS will get a one-off $75 payment and a gas pipeline could be built between the Northern Territory and South Australia, under a deal between the Nick Xenophon Team and the Federal Government on company tax cuts.

The government will also guarantee the go-ahead of a solar power plant in Port Augusta by offering a concessional loan of up to $110 million for the project

The NXT on Friday afternoon agreed to vote for tax cuts for companies with a turnover of up to $50 million.

Under the deal negotiated by Senator Xenophon, the government will commission an independent report into increasing power affordability and reliability, with legislation to be introduced by mid-2018.

Aged pensioners, disability pensioners and recipients of parenting payments will receive one-off payments to help cover power bills. The payments will be $75 for singles and $125 for couples.

The Nick Xenophon Team and the Federal Government have struck a deal on company tax cuts.

TheFederal Government will consider investing in a gas pipeline between the Northern Territory and Moomba in South Australia.

In order to boost gas supplies, the government will work with the states to develop a “use it or lose it policy” on gas deposit leases. Resource companies will have to surrender gas leases they fail to use.

Senators had faced being forced to stay in Canberra for a late night Friday sitting as the Federal Government desperately tried to finalise a deal on company tax cuts.

Treasurer Scott Morrison this afternoon said negotiations were continuing with Senator Xenophon and his two NXT Senate colleagues on the government’s plan to cut tax rates for Australian businesses.

Government senators have been conducting a “filibuster”, or stalling for time, in the Senate.

The House of Representatives has adjourned until the May Budget but the government said the Australian Taxation Office could begin implement the changes as soon as they were approved by the Senate.

The NXT had supported a tax cut for companies with a turnover of up to $10 million, but the government had to persuade the South Australian-based party to back tax relief for companies with a turnover of up to $50 million

Labor Leader Bill Shorten said Senator Xenophon should stand up for South Australia by voting against the tax cuts.

Mr Shorten said his message to Senator Xenophon was: “Every other time you’ve done a deal with the government, the government’s pulled one over you,’’ Mr Shorten said.

“Stick to your guns. These business tax cuts cannot be afforded by the nation at this stage.

“Stick to your guns and stand up for jobs and people in South Australia.’’

Pauline Hanson’s One Nation and crossbench senators Cory Bernardi, Derryn Hinch and David Leyonhjelm are all supporting tax cuts for companies with turnovers of up to $50 million.

Under the tax plan the Government took to the election last year, the company tax rate would be gradually reduced to 25 per cent over the next decade.

The tax rate for businesses with a turnover of up to $25 million would be cut to 27.5 per cent in 2017-18. Companies with a turnover of between $25 million and $50 million would receive a tax reduction the following year.

Business groups have backed the tax cuts, which Prime Minister Malcolm Turnbull says will encourage companies to take on more staff.

Federal Parliament today approved minor changes to the way the Human Rights Commission handles complaints. The Senate on Thursday night rejected the Government’s attempt to amend the controversial Section 18c of the Human Rights Act.