The government’s plan to cut the big business corporate tax rate from 30% to 29% looks set to be torpedoed by the Greens, Liberals and Nationals, whose representatives have vowed to vote it down.
The Greens hold the balance of power in the Australian Senate, so the tax cut can only go ahead if the Liberal and National parties votes with Labor to approve the cut.
The Liberal and National coalition says it will not support the tax cuts because they will be paid for by the mining tax. “We oppose the mining tax package. Therefore we will be opposing the mining tax in the Senate as we did in the House of Representatives, and any spending associated with the mining tax we will oppose,” Shadow treasurer Joe Hockey says.
The Greens support the small business tax cut, but not the reduction for big business.
“The Greens have a long-standing opposition to the $2.4 billion tax cut for big corporations and to the Commonwealth reimbursing increased state royalties on mining,” Greens leader Bob Brown says.
“Better still, the Greens are wanting government to seriously consider such Henry tax review recommendations as lifting the definition of small business from $2 million to $5 million income, or lifting the instant tax write-off for new equipment from $6,500 to $10,000. Some red tape could be cut as well.”
The Greens have pushed for the small business tax cut to be implemented by its July 1 deadline.
“Giving a tax cut to small business is a pretty good tonic for this economy that we’re in,” Greens MP Adam Bandt told ABC Radio. “There’s no case economically, or on fairness, for giving a tax cut to big business in the order of $2.4 billion.”