Hanson won’t support cuts

Australia’s big four banks would be carved out of the government’s corporate tax cut package under a proposal designed to woo crossbench support, including One Nation leader Pauline Hanson (above). However, Senator Hanson says she won’t support the compromise because One Nation wasn’t shown draft laws.

AUSTRALIA’S big four banks would be carved out of the government’s corporate tax cut package under a proposal designed to woo crossbench support.

Finance Minister Mathias Cormann yesterday secured the Senate’s support to debate the plan to exclude Commonwealth Bank, ANZ, NAB and Westpac. He has made the offer to key crossbenchers, including One Nation leader Pauline Hanson (right) and her colleague Peter Georgiou.

But the changes don’t extend to capping the tax rate being cut from 30 per cent to 25 per cent for businesses with $500 million – as suggested by independent senator Derryn Hinch.

While Senator Hinch is urging the government to back his threshold, he will vote in favour of carving out the banks.

But Senator Hanson won’t support the compromise because One Nation wasn’t shown draft laws.

“In a parting comment by Minister Cormann, he suggested carving out the banks to secure One Nation votes, to which I said my decision was firm,” Senator Hanson said in a statement. “No draft legislation was ever received and I can confirm Senator Georgiou did not receive this alleged document either.”

The corporate tax cuts survived an initial Senate vote yesterday, allowing the government to try to amend the

Bill to exclude the big banks. The move would make the overall tax plan $7.9 billion cheaper to 2027-28.

Senator Cormann called on Labor to support the changed tax plan.

“If it’s all about the big banks, well no doubt you will vote in favour of this amendment and you will then vote in favour of the legislation as a whole,” he said.

But Labor frontbencher Doug Cameron ruled out a compromise.

“This is not just about the banks. This is about an ideological obsession from this government that if you simply cut tax, jobs will be created,” Senator Cameron said.

Parliament has already agreed to deliver tax relief to companies with an annual turnover of up to $50 million, but the 25 per cent rate will be brought in gradually.

Labor estimates bringing forward tax cuts for businesses turning over under $50 million could cost $1.8 billion over the next four years, and $6.5 billion in the medium term.