The federal government has secured a tax cut for companies with turnovers of up to $50 million after the Nick Xenophon Team dropped its original demands on energy policy in return for other assurances, including one-off energy payments for pensioners of up to $120.

In what the government has heralded as a win and Labor has condemned as a failure, companies with turnovers up to $50 million will pay a corporate tax rate of 27.5 per cent.