‘Honest error’ on company tax

FORMER treasurer Wayne Swan has described Bill Shorten’s ill-fated captain’s call to repeal business tax cuts as an honest error, urging Labor to rally around its leader.

The Opposition Leader last week backtracked on his pledge to repeal the cuts for companies with turnover between $10 million and $50 million after internal pressure and criticism from business.

Three days earlier, Mr Shorten announced he would repeal the tax cut for business- es in that bracket. “He made an honest error in making that announcement,” Mr Swan said yesterday.

“He announced it before it went to the full (shadow) cabinet. That was the only error.”

If Labor wins the next federal election it will keep in place the new 27.5 per cent corporate tax rate for companies between $10 million and $50million turnover. But a Shorten Labor government would repeal the remaining legislated company tax scale reductions. Mr Swan, who was recently elected ALP president, said the plan targeted foreign companies and big banks, who he believes are going be the biggest winners from tax cuts.

“They drive inequality in our economy. That is bad for living standards, bad for economic growth, and it poisons society,” Mr Swan said.

The government hasn’t been able to convince enough crossbench senators to support the full package of company tax cuts.