Big business tax cut: Government works to persuade senators Hinch, Storer
SENATOR Derryn Hinch has dismissed a ‘kumbaya’ letter from Australian CEOs, saying it will take a real pledge to increase workers’ wages to win his crucial vote for the company tax cut.
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A REAL pledge that workers will get a wage rise — not a “kumbaya” commitment — is needed to get a massive tax cut for big business across the line.
Independent senator Derryn Hinch, whose vote is crucial for the government to pass the tax cut, has scoffed at an open letter from ten of the nation’s top executives yesterday pledging to invest more in Australia if the Senate passes the tax cut.
Senator Hinch told reporters at Parliament House this morning “hard words” that guaranteed a wage rise were needed, not a “kumbaya” letter that promised to invest more.
“I don’t totally trust big business,” he said.
Qantas chief executive Alan Joyce, BHP boss Andrew Mackenzie, Fortescue Metals chairman Andrew “Twiggy” Forrest and the heads of EnergyAustralia, Origin Energy, Wesfarmers and Woolworths signed the letter yesterday, which said: “If the Senate passes this important legislation we, as some of the nation’s largest employers, commit to invest more in Australia which will lead to employing more Australians and therefore stronger wage growth.”
Pauline Hanson, whose vote the government must also secure, said the letter from big business helped “very much” in convincing her there would be a wage rise from workers as a result of the tax cut.
“They are saying they will come to the party with it — that was a sticking point. But Twiggy Forrest has been absolutely fantastic with this, and has given his guaranteed assurance to me,” she told reporters in Canberra today.
Senator Hinch said there was nothing in the letter which guaranteed workers would get more wages.
He questioned the government’s argument that the tax breaks would lead to wage rises via increased investment in Australia when business in the United States, where President Donald Trump had secured a tax break for big business, had used the boost for share buybacks and dividends, rather than workers wages.
The government must secure five more crossbench votes to pass the legislation, and hopes to do so by next week before Parliament rises ahead of the May budget.
Finance Minister Mathias Cormann is in endgame negotiations with Senator Hinch, new senator Tim Storer and Senator Hanson to secure One Nation’s three votes.
“I did get a letter from Mathias Cormann last night and there was some good stuff in it,” Senator Hinch said this morning.
“It doesn’t get it over the line.”
Senator Hinch said he and the government were still “a long way apart” and he doubted there would be much progress today.
Senator Hanson appears to be across the line but Senator Storer, who was sworn in on Monday to replace SA Best senator Skye Kakoshke-Moore, has not stated a position.
The government wants to cut Australia’s corporate tax rate for big businesses from 30 per cent to 25 per cent over a decade in a bid to drive more investment in Australia.
Prime Minister Malcolm Turnbull yesterday said it was “vitally important” the tax cuts were passed after President Trump slashed the US corporate tax rate from 35 per cent to 21 per cent earlier this year.
“We have to have a competitive company tax rate to attract investment, which will drive jobs,” Mr Turnbull said.
The government has already passed the tax cut for businesses with an annual turnover of up to $50 million after securing Nick Xenophon’s support last year. This legislation would extend the rate cut to larger businesses.
Originally published as Big business tax cut: Government works to persuade senators Hinch, Storer