Finance Minister Mathias Cormann has again pressed the case for lower business taxes, saying they will help the success of firms and allow them to hire more and pay higher wages.
“We want to secure more jobs and higher wages. More jobs and higher wages don’t grow on trees, they are created and paid for by successful, profitable businesses,” Senator Cormann told Sky News on Sunday.
The remainder of the Turnbull government’s 10-year tax plan to cut the corporate rate for all businesses to 25 per cent passed the House of Representatives last week.
But this looks like being blocked in the Senate with One Nation and Nick Xenophon Team senators already indicating they will join Labor and the Greens in opposing the legislation.
Senator Cormann declined to comment on whether there was room to compromise to get the legislation through, saying it had just arrived in the Senate and conversations were yet to get under way.
The government has pledged to take the issue to the next election if necessary.
“Business tax cuts are even more important today, they will be more important at the next election than they were at the last election because since then more countries have reduced their business tax rate,” he said.
The government has so far legislated a tax cut for businesses with turnovers of up to $50 million, leaving the remainder on a rate of 30 per cent.
The rest of the plan will see the tax rate for all corporate entities drop to 27.5 per cent by 2024/25 and eventually to 25 per cent by 2026/27.
The government is also committed to a personal income tax cuts package in the May budget.
Again he wouldn’t say whether they will exceed the increase in the Medicare levy next year which helps pay for the national disability insurance scheme.
“We are always focused on making sure that taxes are as low as possible, as high as necessary to pay for the important services that are provided by the government,” the minister said.