Bill Shorten under fire for tax rollback pledge

BILL Shorten has been accused of making a “captain’s pick” in promising to tear up a second set of tax cuts should Labor win government.

BILL Shorten has been accused of making a “captain’s pick” in promising to tear up a second set of tax cuts should Labor win government.

The Opposition Leader vowed Labor would repeal company tax cuts for small and medium businesses earning $10 million to $50 million.

But colleagues were on Tuesday night questioning the wisdom of that pledge after it was revealed that neither Shadow Cabinet nor caucus had settled on a position.

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One Labor MP told the Herald Sun: “I’m not sure how long this position of cranking up pressure on business can go on. We want them to give their workers pay rises, not to lay them off.”

Treasurer Scott Morrison said the Labor leader’s pledge would lead to tax increases for about 20,000 businesses.

He said: “There is an average of 75 employees in those businesses.

“This is terrible news for 1.5 million Australians who work in those businesses that will have to face higher taxes under Labor if Labor is elected,” Mr Morrison said.

In the lead-up to crucial by-elections in four states, and in the wake of comments from one-time leadership rival Anthony Albanese about Labor’s poor relationship with the business community, the focus on Mr Shorten has sharpened.

The focus on Bill Shorten has sharpened in the wake of comments from one-time leadership rival Anthony Albanese. Picture: AAP/Mick Tsikas

Treasurer Scott Morrison says Bill Shorten’s pledge will lead to tax increases for about 20,000 businesses. Picture: Kym Smith

But his office last night played down the significance of his comments, saying Labor’s position on the tax cuts hadn’t changed since it voted against them in parliament.

A spokesman said: “We’ve always supported tax cuts for small businesses.

“As Bill said, we’re considering a threshold of $2 million, or $10 million turnover. That will be decided by the Shadow Cabinet, in the normal way.”

Business Council of Australia chief executive Jennifer Westacott slammed Mr Shorten for “economy-wrecking public policy”.

“For the person that says ‘I stand for workers’ — well, I’m sorry, if you stand for workers you have to stand for business, because we employ 10 million of them,” she said.

Mr Shorten said Labor had plenty to offer business, including ensuring that their workers had access to fully funded hospitals and to high-speed broadband.

“What we offer Australian businesses is the following: a trained workforce. We will make sure that when you need to invest in productivity and new technology, we will give you an extra 20 per cent depreciation,” Mr Shorten said.

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