Derryn Hinch proposes a way ahead for government’s company tax cuts

Crossbench senator Derryn Hinch has hatched a plan to move the government’s company tax cuts forward.

Derryn Hinch in the Senate. Picture: AAP

Crossbench senator Derryn Hinch has urged the government to consider limiting company tax cuts to companies with a turnover of up to $500 million if it wants to pass the package through the upper house.

Senator Hinch also hinted he would be more prepared to back the reduction in the corporate rate from 30 to 25 per cent if the Turnbull government took action to stamp out the live export trade following the emergence of damning footage of sheep on separate voyages from Fremantle to the Middle East last year.

“I think the time is right to get rid of live exports ... I think they need my vote on a few things and on this one we’re just going to hold out,” Senator Hinch told Sky News. “We’re going to fix it this time.”

The government fell two votes short of reaching the nine crossbench votes it needs to pass its company tax cuts through the parliament in March with Senator Hinch joining South Australian independent Tim Storer and Centre Alliance Senators Stirling Griff and Rex Patrick in blocking the legislation.

The government had previously legislated a reduction in the corporate rate to 25 per cent for companies with a turnover of up to $50 million, but is seeking support to extend the cut to all businesses over the next decade.

Labor has confirmed it will repeal the next stage of the company tax cuts if they pass the Senate with the cuts for companies with a turnover of up to $500 million not due to enter into force until 2021-22.

Senator Hinch said he had not spoken with Finance Minister Mathias Cormann since parliament rose last month, but suggested the government was focusing its negotiation efforts on winning over the two Centre Alliance senators who were part of the Nick Xenophon Team which is in the process of changing its name.

He urged the government to consider limiting tax cuts for companies with a turnover of up to $500 million to exclude the big banks, and argue the merits for further cuts at the next election.

“I think they’ve given up on me for now. I suspect they’re now trying to work on the former Xenophon Team,” Senator Hinch said.

“I put an idea up to them (the government) ... I can’t see why they can’t go to $500 million now and then take it to the next election for the big banks.

“You can’t have the big banks being investigated by a royal commission into their tawdry, disgusting behaviour towards working men and women and then reward them with a 5 per cent tax cut”.

Senator Patrick said negotiations were ongoing but stressed that Centre Alliance was still opposed to the package.

He confirmed the government had furnished crossbench senators with a list of companies that fell into the following turnover brackets — $50 to $100 million; $100 to $250 million; $250 to $500 million; $500 to $1bn and those companies with a turnover of greater than $1bn — as part of its push to win support.

“We’re not supportive of the tax cuts,” Senator Patrick said. “But that doesn’t mean we don’t talk to government.”.