Bill Shorten to take away tax cuts for medium-size businesses

BILL Shorten has made a surprise announcement, declaring his party would take away already legislated tax cuts from 14,000 Australian businesses if elected.

LABOR has told 14,000 medium-size businesses with a million workers it would take away their tax cuts if Bill Shorten becomes prime minister.

In reply the Government accused the Opposition Leader of being unable to promise a stronger economy, and referred to a former Labor leader’s campaign slogan.

“He has turned Mark Latham’s ladder of opportunity into a snake of envy,” Treasurer Scott Morrison said.

Mr Shorten said a Labor government would repeal Coalition government laws granting tax relief to companies with turnovers from $10 million to $50 million.

It would limit cuts to businesses with turnovers from $2 million to $10 million, effectively small businesses, but not those of medium size.

Opposition Leader Bill Shorten appeared not to have planned the announcement. Picture: Glenn Hunt/AAP

Mr Shorten told reporters: “Well we’ve actually said that we will support any Australian business with an under $2 million turnover to get a tax reduction because we think small business could always do with all of the assistance it can get.

“Beyond that, we’re considering our position between $2 and $10 million turnovers but fundamentally you have got to look at priorities.

“I just don’t agree with Mr Turnbull that the four big banks deserve $17 billion in tax cuts over the next 10 years. I would rather see $17 billion be put back into our schools.

“I don’t agree with Mr Turnbull that multinationals should get a tax cut, yet he is carrying out cuts to our hospitals and health care system. It’s all a matter of values. Now he’s entitled to his opinion, he’s made it very clear — he’s for the top end of town, I’m for our hospitals and school funding.”

It seemed Mr Shorten had not planned to make the announcement, but was prompted by reporters’ questions.

He was asked by a journalist: “So you will repeal the tax cut between $10 and $50 million as already legislated?”

Mr Shorten replied: “Yes.”

His announcement had not been through shadow cabinet but a spokesperson for the Opposition Leader said it had been foreshadowed for some time.

“We’ve never supported these tax cuts for big businesses. We voted against them and we haven’t changed our position. We’ve always supported tax cuts for small businesses,” said the statement.

“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.”

Treasurer Scott Morrison has blasted Labor’s vow to repel the cuts. Picture: Mick Tsikas/AAP

Mr Morrison later told reporters the Government’s tax plan — aimed at lowering the corporate tax rate from 30 per cent to 25 per cent over stages — should apply to all levels of business.

Mr Morrison conceded they included banks, who by the time they received a tax break would have already paid $16 billion in a separate bank levy.

“Which basically completely wipes out any benefit that they would have directly received from a lower tax rate,” said the Treasurer.

He said: “Bill Shorten cannot give you (a stronger economy. He’ll just give you his snake of envy.”

Mr Morrison said the Government would continue to get its business tax package passed.

He accused Labor of “a naked tax grab” for a “big political cash splash” to chase a Labor election victory.