Company tax rate cuts: Turnbull close to win with Hanson backflip
IN an unprecedented move, Australia’s biggest companies have committed to invest more in a bid to get a tax rate cut across the line — but a deal on wages remains a sticking point.
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ALMOST a dozen of Australia’s biggest companies have committed to invest more in a bid to get a historic cut to Australia’s company tax rate across the line.
Qantas, BHP, Wesfarmers and Woolworths bosses are among the employers who have signed an open letter pledging to invest more in Australia in a bid to encourage the final crossbenchers to back the cuts.
They argue cutting the corporate tax rate is “urgent and vital to keep Australia competitive”.
The group stopped short of guaranteeing to directly boost wages if the Senate passes the tax rate cut, which has been a sticking point for One Nation and independent Derryn Hinch.
After the Business Council of Australia posted the letter on social media this afternoon, Senator Hinch said the message was not enough to get his support.
“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 as the tax cut takes effect,” the letter had said.
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Some of Australia’s biggest employers have committed to investing more in Australia with a more competitive tax rate #auspol pic.twitter.com/M1nac5qGBJ
— The Business Council (@BCAcomau) March 21, 2018
The heads of Fortescue Metals Group, Origin Energy, Woodside Energy, Energy Australia, JBS Australia, MYOB and the Business Council of Australia were also signatories.
The Turnbull Government is just five votes away from being able to pass the bill.
But its understood Finance Minister Mathias Cormann is now in endgame negotiations with One Nation, Senator Hinch and new senator Tim Storer to lock in their votes.
Jacqui Lambie’s replacement, new senator Steve Martin, backed the cut to Australia’s company tax rate earlier this afternoon, saying his position was about ensuring Tasmanian businesses were competitive in global markets.
“My position is about achieving the best deal for Tasmania, and strengthening Tasmania’s global export markets, bolstering jobs creation, wages growth and building sustainable communities,” he said.
It’s expected One Nation leader Pauline Hanson, and her three votes, will also come on board after her backflip on the tax rate cut yesterday.
Senator Hinch said he had not yet reached an agreement with the government but expected to speak with Minister Cormann again today after initially speaking to him on Monday.
“They are going to throw some stuff up,” Senator Hinch told reporters in Canberra.
“We haven’t got to tangibles yet. I’ll look at it ... if (Senator Cormann) had the numbers he wouldn’t be talking to me.”
Senator Hinch’s core concern remains “sluggish” wages.
He was open to a deal if there was an arrangement that would oblige companies that received the tax cut to gradually increase wages.
“That could be looked at. But we’re a long way from that yet,” he said.
The government needs nine out of the 11 crossbenchers to pass its bill.
Senator Hanson reversed her stark opposition to the corporate tax rate cut yesterday, saying she had reconsidered after seeing the effect of US President Donald Trump’s corporate tax rate cut in America.
“In America ... a lot of the companies now are actually starting to employ more people,” she told Sky News.
Senator Hanson, who controls three votes in the upper house, is the only crossbencher with the numbers now to block the legislation, which will reduce the tax rate for big businesses from 30 per cent to 25 per cent.
Nick Xenophon’s team, SA Best, previously could block legislation but lost numbers in the citizenship saga.
Mr Storer, who replaced Skye Kakoschke-Moore, officially announced his intention to sit as an independent today after earlier splitting for Xenophon’s party.
On Tuesday, Hanson said she was not across the line yet but also indicated that some kind of guarantee from businesses that they would lift wages would secure her vote.
She and chief of staff James Ashby had also met with Senator Cormann about the bill on Monday.
Workplace Minister Craig Laundy has said he was not fan of government telling companies what they could or could not do.
“I can’t see how (requiring a wages guarantee) would be practical and enforceable and measurable,” he told ABC radio.
“The reality is here that when companies ... are more profitable, there are more jobs created, they are better-paying jobs. There’s a historic link.”
Originally published as Company tax rate cuts: Turnbull close to win with Hanson backflip