Coalition is counting the numbers in revamped Senate

The latest shake-up in Senate numbers has given fresh hope to the government it can get its corporate tax cuts through parliament.

Minister for Finance Senator Mathias Cormann. Picture: Gary Ramage

The latest shake-up in Senate numbers has given the Turnbull government fresh hope it can get its corporate tax cuts through parliament, amid signs Pauline Hanson might still be convinced to support the bill.

The government was yesterday reassessing numbers in the Senate after a High Court ruling that could sideline the Nick Xenophon Team, which opposed the tax plan.

Finance Minister Mathias Cormann said he would seek a meeting with Tim Storer, set to replace NXT senator Skye Kakoschke-Moore, and Jacqui Lambie ­replacement Steve Martin.

Mr Storer, who quit NXT last year, has refused to say whether he will sit with the party or as an independent. The Australian has learned Senator Hanson, who controls three votes in the chamber, has sought a fresh meeting this week with Senator Cormann on the government’s tax plan.

The move follows demands by Senator Hanson for evidence that businesses would cut wages and employ more people if they were granted a tax cut. “There is no modelling by the government,” she said yesterday. “It’s all speculation on their behalf that it will create jobs and raise wages.

“They do need One Nation’s votes in the Senate to get this over the line.”

Senator Cormann, who is leading the tax package negotiations with the crossbench, said there was already “extensive modelling” available on the tax plan, and strong public evidence business tax cuts delivered higher wages and more jobs, but he would continue to engage with crossbenchers, answering all their questions on the plan.

The government needs the support of nine of the 11 Senate crossbenchers to pass its tax legislation, which would reduce the corporate rate for all businesses to 25 per cent by 2026-27. If NXT’s voting bloc is reduced to two, the government could ­secure the vote of the rest of the cross bench.

The High Court ruled Ms Kakoschke-Moore could not replace herself in the Senate.

Senator Martin yesterday said he had was “not across” the tax bill, and was unable to comment on ­whether he could support it.

Victorian senator Derryn Hinch yesterday said he was considering his support for the tax bill, but believed it should not be “open slather” for all companies.

He suggested extending the 25 per cent rate to businesses with turnover of up to $300 million, up from the already legislated $50m.

Australian Conservatives leader Cory Bernardi, Liberal Democrat David Leyonhjelm and One Nation defector Fraser Anning, who have formed a voting bloc in the Senate, support the tax cut.

Labor remains opposed to the legislation, but its Treasury spokesman Chris Bowen yesterday reiterated his previous support for corporate tax reform once the budget returns to the black.

Senator Cormann accused the opposition of “wibble wobble”.

“If Labor believes lower business taxes are important for jobs and wages into the future, why wait?” he said.