Pauline Hanson says she could change her mind again on company tax cuts

PAULINE Hanson has pulled out of negotiations on Malcolm Turnbull’s $35 billion company tax cuts, saying she has made her final decision.

MALCOLM Turnbull’s $35 billion company tax cuts look doomed to fail with Pauline Hanson pulling out of negotiations, saying she has made her ‘final decision’.

The One Nation leader had earlier this morning left the door open to more talks with the government’s chief negotiator on the company tax cuts, Finance Minister Mathias Cormann.

“I will change my mind as many times as I want to ensure that I come up with the right decision,” she told the Nine Network’s Today Show, saying she knew Australian businesses needed tax relief.

But after meeting with One Nation colleague Peter Georgiou this morning, Senator Hanson has now confirmed she has made a final decision not to back the reform, which would cut Australia’s corporate tax rate to 25 per cent over ten years for all businesses.

Her decision scuppers the government’s chances of a victory on the tax cuts before Parliament rises for a six-week winter break on Thursday and ahead of five by-elections held on July 28.

MORE: Bill Shorten says Labor will roll back tax relief for medium businesses

EARLIER: Pauline Hanson reneges on company tax cuts support

Senator Pauline Hanson and Senator Mathias Cormann speaking in the Senate Chamber on Monday. Picture Kym Smith

“We’re standing firm on it, we’re not supporting corporate tax cuts,” Senator Hanson told 3AW radio after 9am today.

“It is not changing. I have actually sent a message to Minister Cormann this morning, so he knows.”

“Let them take it to the next election, let’s see what the people say.”

The pair had met last night to negotiate on the company tax cuts, but Senator Hanson said she had not been convinced to back the plan.

One Nation wanted the government to ramp up its crackdown on multinational tax avoidance, a coal-fired power station for Queensland to tackle rising power costs and an end to tax deductions for companies using overseas call centres in return for its support.

Earlier, she had told reporters at Parliament House she had told Senator Cormann she would not back the reform “at this stage”.

The senator also defended her decision to withdraw support for the tax cuts last month in the Senate last night, claiming: “I haven’t flip-flopped. I said ‘no’ originally, then I said ‘yes’, then I have said ‘no’ and I’ve stuck to it.”

Senator Hanson has been accused by Labor of withdrawing her support for the reform to boost her party’s vote in the upcoming by-election in the Queensland seat of Longman.

She has denied the allegation.

Fellow crossbench senator Derryn Hinch this morning predicted the government would get a “partial victory” on company tax cuts this week.

Senator Hinch told the ABC this morning he believed the government may split the package and support his proposal for tax relief for companies up to $500 million.

Prime Minister Malcolm Turnbull did not rule out Senator Hinch’s proposal this morning, saying: “I’m often invited to comment on negotiations with the Senate but we have found over the years that the best way to approach them is privately, constructively and respectfully but not to engage in public negotiation.”

Asked directly whether he had ruled out the proposal, Mr Turnbull said: “Again, we don’t engage in public negotiation.”

But Senator Hanson has ruled out backing any further tax cuts for businesses making above $50 million a year.

Prime Minister Malcolm Turnbull in Canberra this morning. Picture Kym Smith

The government needs four more votes to pass the full package.

At this stage, the two One Nation senators, two Centre Alliance senators, Senator Hinch and Senator Tim Storer will not back the reforms.

Meanwhile, Labor leader Bill Shorten is under fire for announcing the party will repeal tax cuts for businesses making from $10 million to $50 million if it wins government at the next federal election.

The tax relief for businesses up to $50 million is due to begin on July 1 after the government passed the first stage of its company tax cuts with crossbench support last year.

Labor has yet to decide if it will repeal tax cuts for businesses with an annual turnover of $2 million to $10 million.

Treasurer Scott Morrison called on the party to “come clean” on its next move today as he ramped up his attack over its decision to repeal the tax relief.

The party’s decision yesterday, which the government says was a “captain’s call” by Mr Shorten, will impose tax hikes of $20 billion on about 20,000 small and medium-sized businesses.