Prime Minister Malcolm Turnbull’s policy change plan to thwart Coalition rebellion

MALCOLM Turnbull will move to save his job by vowing to set price caps on energy prices and preparing to dump his signature big business tax cuts — in a move designed to quell a backbench revolt pitching Peter Dutton as an alternative PM.

MALCOLM Turnbull will move to save his job by vowing to set price caps on energy prices to drive down bills — at the same time as preparing to dump his signature big business tax cuts.

In a move designed to stave off a backbench revolt, the Prime Minister and Treasurer Scott Morrison will put the package to a Cabinet dinner at the Lodge on Sunday night with MPs able to promise voters cheaper bills by January.

However, the final sign-off on the measures is not expected until a formal Cabinet meeting this week, which will finalise the details of penalties to be imposed on companies that refuse to lower prices.

Australian Prime Minister Malcolm Turnbull has the support of Peter Dutton (right), the Queensland MP said on Saturday.

In a Facebook video post, Mr Turnbull will pitch the NEG and his price-cap sweetener to voters and restive MPs who have been urging Home Affairs Minister Peter Dutton to challenge Mr Turnbull’s leadership.

“We will set a price expectation which should be the most anyone pays,” Mr Turnbull says in the video.

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“Through more competition and our other changes, that price will come down … If the prices remain too high, we will implement the toughest penalties.”

The dinner discussion will also touch on Mr Turnbull’s plan to reduce the business tax rate from 30 to 25 per cent, which is expected to be dumped after its impending rejection by the Senate, due this week.

Mr Turnbull’s policy retreat has failed to quell a revolt within the Coalition. Picture: Kym Smith

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Several marginal seat holders told The Sunday Telegraph the government has no chance of winning an election if it is forced to campaign for company tax cuts.

It comes as exclusive polling, seen by The Sunday Telegraph, reveals 61 per cent of voters think the Senate should block company tax cuts.

The new polling, by The Australia Institute, found only 45 per cent of Coalition voters supported the business tax cut.

Speculation about tax cuts comes less than 48 hours after the Prime Minister caved to the demands of conservatives and agreed to put a 26 per cent emissions reduction in regulation rather than legislation.

A senior Right source said the Prime Minister was “a dead man walking” unless his ­fortunes change before September. Picture: Kym Smith

But the policy retreat has failed to quell a revolt within the Coalition, with MPs concerned the compromise has alienated Mr Turnbull’s moderate support base.

“If he ploughs through with the NEG as it stands, his prime ministership will be over sooner than later,” one minister said.

The backdown triggered a tweet from Mr Dutton yesterday, pledging his allegiance to Mr Turnbull. “To make it very clear, the Prime Minister has my support,” he tweeted.

A senior Right source said the Prime Minister was “a dead man walking” unless his ­fortunes change before September.

The source said a leadership challenge would be less likely after October given the distraction of Christmas and May being the last opportunity to hold a federal election.

“He will need a quick turnaround, not just in policy, but the ability to take it to Shorten or Peter, who does not want to challenge, (but) will be forced to by everyone around him.”

The source said Tony Abbott, a leading figure in the NEG revolt, was likely to be given the defence or home affairs ministry in the event of a Dutton coup.

Originally published as Prime Minister Malcolm Turnbull’s policy change plan to thwart Coalition rebellion