A fresh row has erupted over support for small business following attempts by the government to scrap provisions that enable firms that do not pay their tax on time to deduct the late fee charged by the Australian Taxation Office.

The Coalition and the Senate crossbench oppose the measure, first announced in December 2023 and designed to raise $500 million a year, but the government has included it in an omnibus bill that includes unrelated but popular measures that the Coalition or the crossbench support.