Turnbull goes on front foot over business tax as by-elections loom

MALCOLM Turnbull will seize on Labor’s “antibusiness” plan to repeal tax cuts for businesses of turnover more than $10 million a year ahead of a mini month-long election campaign.

An up-beat Prime Minister zeroed in on opposite number Bill Shorten yesterday as the Government targeted small and family businesses in marginal seats that would pay more tax under the Opposition Leader’s policies.

But Finance Minister Mathias Cormann yesterday raised the white flag in passing big business tax cuts before the “Super Saturday” by-elections.

However, Mr Turnbull declared the Government was committed to the policy.

Polling in the Labor-held seats of Longman in Queensland and Braddon in Tasmanian remains on a knifeedge, with Labor MPs conceding Mr Shorten could come under pressure if the Coalition won either.

The PM read a list of companies Mr Shorten had visited in recent weeks that would be adversely affected through any reversal of the company tax rate.

“He likes to hang out with people in hard hats and highvis (vests) but he’s threatening their jobs in Tasmania and all around Australia,” he said.

Labor is understood to be close to settling on its policy of reversing tax cuts for business.

Sources said despite some in shadow cabinet wanting to go down to companies with a $2 million turnover, it would likely settle at $10 million.

Labor will make cuts to penalty rates a major issue, with Mr Shorten saying Mr Turnbull had “made a choice to support pay cuts for nearly 700,000 workers”.

Shadow Treasurer Chris Bowen locked in behind Mr Shorten’s “captain’s call” in scrapping tax cuts for small and medium businesses.

Mr Bowen did not deny Mr Shorten had did not discuss the policy with him.

“He’s indicated there will need to be obviously a further shadow cabinet discussion about where the threshold lands,” he said.