Malcolm Turnbull close to big win on company tax plan

The PM’s chances of securing tax cuts have received a boost with Pauline Hanson signalling her support for the big-ticket item.

Malcolm Turnbull is set to get the support of Pauline Hanson on company tax cuts. Picture: John Feder

Malcolm Turnbull’s chances of ­securing new company tax cuts have received a boost with Pauline Hanson signalling she could support the government’s big-ticket economic reform.

The One Nation leader said she was tracking the positive impact of Donald Trump’s business tax cuts in the US, and now had an “open mind” on the government’s enterprise tax plan, scheduled to be introduced into the Senate on Wednesday.

Another three Senate crossbenchers — Tim Storer, Steve Martin and Derryn Hinch — remain at the negotiating table, keeping the bill’s prospects alive.

Rio chief executive Jean-­Sebastien Jacques raised the stakes in the heated tax debate, recognising that business tax cuts were unpopular but insisting they would stimulate growth and improve livelihoods.

“The tax system needs to support the next generation of disrupters, businesses and exporters to drive prosperity for all,” Mr Jacques told a Committee for Economic Development of Australia dinner.

The corporate tax reforms, which would extend the 25 per company tax cut to businesses with a turnover of more than $50 million, are at the mercy of the crossbench, with Finance Minister Mathias Cormann leading negotiations with minor parties.

Senator Hanson and key ­adviser James Ashby met Senator Cormann on Monday to discuss the bill, raising the need for the government to fast-track gas ­development on the North West Shelf to help lower gas prices for households.

“I’m talking to the government about it. I’m actually seeing what is happening in America,” Senator Hanson told Sky News.

“In America ... a lot of the companies now are actually starting to employ more people.”

Senator Hanson, who recently travelled to Western Australia to meet with Fortescue and Woodside, said she was not across the line yet but “I’m not going to do anything that will jeopardise ­investment in the country”.

The comments represent a significant softening in Senator Hanson’s position. Writing in The Australian last month, she said One Nation would not support corporate tax cuts, arguing “no one knows what the companies will do with the additional cash”.

The government needs nine of the 11 crossbench votes to push through its company tax cuts ahead of the May budget. The Nick Xenophon Team, which has two senators, told The Australian they would not support the bill.

It has the support of Cory Bernardi, David Leyonhjelm, and Fraser Anning. If it can secure One Nation’s three votes, plus senators Hinch, Storer and Martin, it will be able to pass the bill.

Senator Hinch said he wanted companies to provide undertakings to the ATO that they would lift workers’ wages in return for the lower tax rate.

He said he had proposed a model where companies would give an undertaking to the Australian Taxation Office to increase wages before receiving the tax cut.

“If there was some manner of form where the company does a contract with the ATO and says, ‘OK, you give us a tax cut and here’s a guarantee where we give X, Y, and Z wage rises to our employees over the next three years’,” Senator Hinch told Sky News.

Senator Storer, an independent sworn in on Monday, confirmed he was holding discussions with government negotiators. Senator Martin remained undecided.