Hanson in crosshairs on tax cuts

Conservative crossbenchers have lashed Pauline Hanson for vowing to block Malcolm Turnbull’s business tax cuts.

One Nation Senator Pauline Hanson. Picture: AAP

Conservative crossbenchers have lashed Pauline Hanson for vowing to side with Labor and the Greens to block Malcolm Turnbull’s business tax cuts, as the government today intensifies its tax war with Bill Shorten by moving to force Senate debate on the final stage of its $65 billion plan.

Arguing the One Nation leader is putting her short-term political interest ahead of jobs, crossbench senators David Leyonhjelm, Fraser Anning and Cory Bernardi have piled pressure on Senator Hanson to reconsider her opposition to giving a tax break to businesses with annual revenue of more than $50 million.

The Senate battle comes as the Opposition Leader faces internal pressure ahead of the Super Saturday by-elections on July 28 for his “anti-business” rhetoric, while the Prime Minister had a significant political victory last week as the government’s $144bn income tax package passed the Senate.

Senator Hanson last night confirmed she would reject lowering the corporate tax rate to 25 per cent for all companies by 2026-27.

“The government have said they’re not prepared to go after multinationals, therefore One Nation are no chance of supporting company tax cuts,” she said.

Labor will this week release a by-election campaign advertisement attacking Mr Turnbull as being a beneficiary of the big business tax cut because of his investments. “Turnbull has millions invested in funds which hold shares in dozens of big businesses that would benefit from the tax cuts,” the ad will say.

The personal attack will try to capitalise on a poll released at the weekend, commissioned by the left-leaning Australia Institute, showing the proposed reform was unpopular in the by-election seats of Longman and Mayo, with support at 33 per cent and 25 per cent ­respectively. Newspoll last month showed more Labor and Greens voters as well as 60 per cent of One Nation voters supported dropping the company rate.

Senator Leyonhjelm yesterday said Senator Hanson was putting the national interest second to her ambition to win the seat of Longman in the upcoming by-election.

“What it would appear, and what I’m led to believe, is that she thinks her vote would be higher in Longman if she opposes company tax cuts,” the Liberal-Democrat leader told The Australian.

He said it was disingenuous for Senator Hanson to say she ­opposed the package because multinationals did not pay tax, ­arguing the claim was wrong. He also criticised Senator Hanson for not proposing a solution to forcing global companies to pay more tax in Australia. “She is holding all the other companies hostage to her belief that the multinationals are not paying tax,” he said.

Senator Anning, who defected from One Nation the day he ­entered the Senate in November, said the crossbench should not seek to score “cheap political points” ahead of by-elections. “When our economic future is at stake, it is imperative that minor parties engage in constructive dialogue,” said Senator Anning, who is now a member of Katter’s Australian Party. “Political posturing and attempting to score cheap political points ahead of a by-election place our international competitiveness at risk.”

Senator Bernardi, the founder of the Australian Conservatives, said the One Nation leader had been inconsistent on the company tax issue. “You either believe that lower taxes are good for the economy and for everyone that participates in Australian society or you don’t,” he said. “If you are always second guessing where you stand on these things you end up falling for any pea-and-thimble trick. The worst thing you can do for Australian workers is to have companies that are uncompetitive on a global stage.”

Senator Hanson’s stand leaves the government four votes short of passing the final stage of its company tax plan before the five by-elections, with Centre Alliance also opposed to the cuts, as well as crossbench senators Derryn Hinch and Tim Storer.

The government will seek to bring the tax bill on today with the intention of having it voted on ­before the end of the week. But the government has placed a priority on national security legislation being passed before parliament breaks for winter. The joint committee on intelligence and security will today report back on the second foreign interference transparency scheme.

Mr Turnbull said yesterday the government would not heed to crossbench demands to carve out the banks from the company tax package. “We have a comprehensive plan to ensure that Australia’s company tax regime is competitive,” he said. “We have to recognise that if you want to ensure that you continue to attract investment in a global economy into Australian businesses, you’ve got to have a competitive tax rate,’’ he said.

Finance Minister Mathias Cormann said: “Anyone who cares about protecting jobs and wages growth in Australia will vote for a lower, globally more competitive business tax rate.”