Opposition leader Bill Shorten has reversed his recently-announced plan to repeal the Coalition’s existing tax cuts for medium businesses.
The Labor leader backed down under pressure from within his party to abandon the plan, following a meeting of the shadow caucus in Sydney on Friday morning.
Labor is now promising to keep tax relief in place for businesses with a turnover between $10 million and $50 million.
“Today I have recommended to the shadow cabinet that Labor at the next election commit to not changing the existing legislated company tax scale at 27.5 per cent,” Mr Shorten told reporters after the meeting.
"What we’ve done today is to provide certainty."
Labor will keep the existing cut for medium and small businesses, which reduced the rate from 30 percent to 27.5 percent, but will not support future rounds of cuts that would eventually take it down to 25 percent.
Mr Shorten's intial decision caused a backlash from his colleagues.
Speaking to reporters, the Labor leader says he's taken that feedback on board.
"It's become clear in recent days after lengthy consultation with business and colleagues that the proposition to change already implemented tax rates, in other words, tax rates which are already applying from 1 July this year, before a federal election, was creating great uncertainty.
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