Labor Leader Bill Shorten Backflips on Company Tax Cuts After Party Meeting

Federal Opposition Leader Bill Shorten has backed down on his plan to repeal company tax cuts for medium-sized businesses after a meeting with his shadow cabinet.
At a news conference on June 29, the Labor leader said the party had decided to “amend” its position to reverse the legislated 27.5 percent tax cuts for businesses with turnovers between $10 million and $50 million. However, he said his party will not back down on plans to repeal the further corporate tax cuts by the government, including the government’s promise to progressively lower rates to 25 percent for small and medium-sized businesses by 2026-27.
He said he was “not too arrogant” to listen to feedback given to him by his colleagues and companies.
“We will repeal all other tax scale reductions, corporate, which have either been legislated but not implemented or indeed as the government’s trying to do, pass through the Senate.”
“He can’t keep the same policy position for a week,” Turnbull said.
Finance Minister Mathias Cormann tweeted about the Labor’s change in position on June 28.
Following the lead of the United States, the prime minister proposed to cut Australia’s corporate tax rate to 25 percent from 30 percent. He had hoped the tax break would boost employment, which would bolster his re-election chances.
The coalition’s policy will give small to medium-sized businesses with a turnover up to $50 million a tax break from July 1 this year, when the corporate tax rate will be lowered to 27.5 percent. The legislated cuts will then drop to 27 percent in 2024-25, 26 percent in 2025-26 and to 25 percent in 2026-27.
They are also trying to cut the tax rate for bigger businesses with turnovers above $50 million to 25 percent from 30 percent by 2026-27. However, these laws have been shelved until parliament resumes in August.
The Labor party, on the other hand, continued to push their “Australian Investment Guarantee,” which would provide a 20 percent instant deduction for eligible assets worth more than $20,000.
The opposition treasurer said only companies that make the decision to invest in Australia will benefit from this tax relief.