Both Turnbull and Labor seem to fear Peter Dutton

When searching for causes of national political dysfunction we might look to the fate of the government’s company tax cuts yesterday. Announced as the Coalition’s Enterprise Tax Plan in the lead-up to the 2016 election, this policy aimed to reduce business tax to 25 per cent, a goal broadly supported by Labor for years. But Bill Shorten opposed this, and even after the Coalition won an election mandate (however narrow) the ALP voted in the Senate to block the cuts for any company turning over more than $50 million annually. Senate obstruction repeatedly stymied the Abbott government’s agenda and has lowered Malcolm Turnbull’s ambitions while stopping some core measures. If government mandates continue to be routinely rejected by the Senate we will see no end of political sclerosis.

While this increases the degree of difficulty for governments, it does not absolve them of responsibility and accountability. So far this week the Prime Minister has withdrawn his national energy guarantee legislation because he didn’t have enough support in his own party, he has seen his company tax plan blocked in the Senate and he was forced to bring on a leadership spill to flush out Peter Dutton, who has resigned from cabinet after falling seven votes short of the top job. In an unusual outbreak of political frankness, Mr Dutton openly says he is canvassing for those extra votes and will challenge Mr Turnbull again when he has them.

An extraordinarily well-timed story has raised constitutional questions in the media and in parliament about Mr Dutton’s eligibility. The issue is how his wife’s childcare business is part-funded, like all centres, by federal subsidies. Labor has gone on the attack and Mr Turnbull has referred the matter for more advice. The opposition and Mr Turnbull seem to have an interest in targeting Mr Dutton; already the issue seems to have stalled his challenge. Yet former Labor prime minister Kevin Rudd’s family fortune was built on his wife’s government contracts and any referral to the High Court would see the Coalition voting with Labor to thwart the Prime Minister’s rival. If both Mr Turnbull and Mr Shorten fear Mr Dutton, it may make a telling point.

The former home affairs minister displayed clear political cut-through as he began to outline his agenda. His plan to exempt electricity bills from the GST is populist and expensive but has the capacity to deliver immediate financial relief and political rewards. Treasurer Scott Morrison was quick to point out it would cost $7.5 billion across the forward estimates and, to be sure, an economic rationalist should be looking to get rid of GST exemptions rather than add to them. But power prices are at a crisis point, the failure of the corporate tax plan frees up some funds in the out years, and the expense pales into insignificance compared with renewable energy subsidies and other spending such as Snowy Hydro 2.0. This idea is the sort of breakthrough Mr Turnbull may need to embrace if he is to revive the Coalition. Proposals to hold royal commissions into petrol and energy pricing warrant more careful consideration but at least demonstrate an affinity for voters’ concerns.

Mr Turnbull quite rightly points to job creation and recovery as signature achievements but he must strike a chord with mainstream voters and explain how his income tax cuts will underpin growth, along with the tax cuts for small and medium companies. This is not just a matter of rhetoric; actions speak louder than words. Mr Turnbull is on notice with the Labor leader at his throat and a leadership rival trying to lead him by the nose.