Shorten exposed by voters backing company tax cuts

In implementing financial reform, governments need months and sometimes years to put their case to the public, clearly and often. Only then, to borrow Paul Keating’s line, do they find that “good policy is good politics”. Today’s Newspoll exemplifies the process. Since holding government by a whisker two years ago today, the Coalition has been patient and consistent in building its case for modest corporate tax cuts, an effort in which Finance Minister Mathias Cormann in particular has been indefatigable. Despite the government having no choice last week but to temporarily shelve the legislation to cut corporate taxes for companies with turnovers of $50 million or more from 30 to 25 per cent over a decade, voters are warming to the policy. The shift in public opinion leaves Bill Shorten on a hiding to nothing in opposing essential reform that would create jobs.

Despite earlier impressions that company tax cuts were unpopular, shrewd politicians should note that Newspoll, renowned for its accuracy, shows at least half the voters of all parties except the Greens now back the cuts. They are supported by 88 per cent of Coalition voters, 50 per cent of Labor supporters (up 2 per cent since late May), 72 per cent of One Nation supporters (up 12 per cent) and 42 per cent of Greens supporters. Across all parties, 65 per cent of voters — up from 63 per cent in May — favour the tax cuts; 38 per cent want company taxes reduced as soon as possible, and 27 per cent prefer the changes to be phased in over 10 years. Newspoll also shows most voters understand that company tax cuts would help create jobs.

After the five Super Saturday by-elections on July 28, when the Turnbull government is expected to reintroduce the final stage of its company tax plan, One Nation, with two votes on the Senate crossbench, will be well placed to determine the outcome. Writing today, Pauline Hanson attempts to justify her refusal last week to support the plan, after earlier agreeing to do so. Yet support for the corporate tax cuts among her voters, many of whose jobs depend on strong, competitive companies, has surged.

The fact that half of Labor supporters also back the tax cuts, including for the largest companies, should be a wake-up call for Labor. The Opposition Leader is so fixated on class warfare and loathing for the “big end of town’’ that he seems incapable of heeding the message. But the result suggests that, like frontbencher Anthony Albanese, at least half of Labor’s supporters would prefer to see a more constructive relationship between the party and business, which was one of the hallmarks of the Hawke-Keating years.

After Mr Shorten’s humiliating half-backflip last week on tax cuts already legislated for medium-sized companies, it is no surprise that his satisfaction rating and Labor’s two-party preferred support have slipped. Labor’s latest policy on company tax cuts would confuse an already complex system and build in a disincentive for companies to expand.

Less than 12 months from when the next election is due, Labor’s bad policies look like bad politics. Voters are showing a healthy regard for the national interest, jobs and opportunity.