Hanson closes door on tax deal

THE four big banks would have been excluded from receiving corporate tax cuts under an 11th hour compromise with Pauline Hanson, but the deal has been knocked back in another setback for Malcolm Turnbull.

The One Nation leader and other crossbench senators were offered the deal, which would have passed tax cuts for all businesses in Australia except for the major banks.

The Bill was expected to be voted down in the Senate last night with Labor, the Greens and One Nation voting against it before the Government had the chance to insert the last-minute amendments. Draft amendments to the Bill — seen by News Corp — would have excluded banks with $500 billion or more in assets.

Treasurer Scott Morrison said the Government had given Senator Hanson every opportunity to support lower taxes for companies without supporting the big banks.

“Pauline Hanson’s decision to vote for higher taxes regardless will be a big disappointment to all those businesses especially in regional Australia that would benefit from the change,” Mr Morrison said.

“Instead of encouraging businesses to invest, create more jobs and pay their workers higher wages, One Nation has voted for every single business, except the banks, with a turnover above $50 million to pay more of what they earn to Canberra.”

The Government will now have to decide whether to drop the Bill entirely or try to come to another compromise, such as raising the threshold for companies paying 25 per cent tax from $50,000 to around $400,000.