Wayne Swan says the 1% tax rate reduction for big business relies on Opposition leader Tony Abbott

Treasurer Wayne Swan said the 1% tax rate reduction for big business relies on Opposition leader Tony Abbott.

“That’s a matter for Mr Abbott and the Liberals. They’ve already said they’re vehemently opposed to that measure,” Swan told reporters in Canberra.

The Greens said in March they will only support a tax cut for small businesses, while the coalition said it will not support any business tax cut while there is a carbon tax.

There has been some media speculation the Government may abandon the cuts, arguing the carry-back provisions provide a better way of addressing the problems confronting the non-mining sector.

The carry-back tax plan would come at no cost to the budget in 2012-13.

LeadingCompany reported on March 21 the Government hopes to force through a 1% cut for all businesses, beginning on July 1 for small businesses, and a year later for their larger counterparts.

Labor cannot pass the tax cut for big business in the senate without Liberal and National party support due to the Greens blocking it, but have a year to reach an agreement.

“We will continue to fight for this in the Senate and I think the business community is going to put pressure on Tony Abbott,” Treasurer Wayne Swan told ABC Radio in March.

For the purposes of the cuts, small business is defined as having an annual turnover of $2 million or less.

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