Tradie-off gets Pauline Hanson’s support for Malcolm Turnbull’s corporate tax cuts
BIG cuts in the corporate tax rate could be signed off by early next week with Derryn Hinch – one of two key independents whose support the Turnbull government still needs after Pauline Hanson agreed to the reforms – close to striking a deal.
NSW
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BIG cuts in the corporate tax rate could be signed off by early next week with Derryn Hinch – one of two key independents whose support the Turnbull government still needs after Pauline Hanson agreed to the reforms – close to striking a deal.
The Daily Telegraph understands Senator Hinch has abandoned demands for the major banks to be carved out of the tax cut – from 30 per cent to 25 per cent – but has secured a number of benefits for pensioners, renters and low-income earners.
However, Finance Minister Mathias Cormann, who is leading the negotiations, is also expected to have to put additional measures penalising the banks on the table before the deal is done.
That could include, for instance, a small rise in the bank levy among other options.
Prime Minister Malcolm Turnbull yesterday ruled out excluding banks from the tax cuts, citing the bank levy in the last budget.
“Derryn could not, or no one could, accuse us of not raising revenue from the banks, so I think the argument is very simple,” Mr Turnbull told 2GB.
“If you have a company tax rate, it should be uniform across all businesses, otherwise you get into incredible problems about defining which businesses are in and which are out.”
If Senator Cormann gets Senator Hinch’s support, the government will only need to convince former Nick Xenophon Team senator Tim Storrer before it has the numbers to pass the $35 billion tax cut.
Major employers have urged the crossbench to pass the measures, vowing it would be used to inject money into the economy, leading to more work and higher wages.
But the Australian Council of Trade Unions yesterday joined a push to stop the tax cuts, telling the Senate independents: “These cuts are a taxpayer-funded handout to some of the most profitable companies, 732 of whom paid no tax in 2015-16”.
Jacqui Lambie’s Senate replacement Steve Martin this week backed the tax cuts, which have already been rolled out for businesses with annual revenues of less than $50 million.
While the Nick Xenophon Team supported those changes last year, the party’s two remaining senators are opposed to further cuts.
Senator Hinch wants the government to cut banks out of the tax reforms in exchange for his support.
He described a last-minute attempt by the Business Council of Australia to convince crossbench senators to support the cuts in exchange for a vow to use the money to invest in the economy and add jobs as “very Kumbaya”.
“I hadn’t had a call from Twiggy Forrest or Alan Joyce in months, so I suspect it was government-orchestrated, but it didn’t go far enough,” he said yesterday.
“I did get a letter from Mathias Cormann last night. It has some good stuff in it, but it doesn’t get it over the line.”
Liberal Democrat David Leyonhjelm, who supports the tax cuts, said he would withdraw his backing if a special exemption was made to disadvantage the banks.
Prime Minister Malcolm Turnbull said that was not being considered and the banks were hit with a special tax in the last budget.
“Derryn could not, or no one could, accuse us of not raising revenue from the banks, so I think the argument is very simple,” Mr Turnbull told 2GB.
“If you have a company tax rate, it should be uniform across all businesses, otherwise you get into incredible problems about defining which businesses are in and which are out.”