Welfare recipients are to get a one-off payment to help cover their power bills under a deal that secured Senate support for a tax cut to businesses with turnovers under $50 million.
The last-minute agreement between the Turnbull government and the Nick Xenophon Team, which also included a rethink on electricity and gas policy, headed off what would have been an embarrassing defeat for Malcolm Turnbull's centrepiece economic policy.
In any case, the government did not get what it really wanted - a cut for all-sized businesses at a cost to the budget of $50 billion.
Instead, the amended package will cost $24 billion to 2026-2027 or $5.2 billion over the next four years.
The prime minister said the result was a "stimulus to growth and employment", and a great day for Australian workers and businesses.
"Today we have delivered a tax cut for over three million small and medium businesses," Mr Turnbull said in Canberra on Friday night.
Mr Turnbull insisted his government will press ahead with the full package at a later date.
"The job is not over," he said.
Finance Minister Mathias Cormann announced the deal on Friday afternoon, ending a lengthy filibuster as the government negotiated with NXT's three South Australian senators
Despite the lower house adjourning for the pre-budget break, the government had tax office advice that the business tax cuts can apply for 2016/17 once they pass the Senate and Treasurer Scott Morrison issued a statement verifying they will pass the House of Representatives at a later date.
With NXT on board, the amended bill passed the Senate at about 6.30pm on Friday night with the support of One Nation, Derryn Hinch, David Leyonhjelm and Cory Bernardi.
Senator Cormann said the tax cut would drive investment and economic growth and create more jobs.
"Both the NXT and the government are focused on making sure that we have both economic policy and energy policy settings in place to ensure our economy is as competitive internationally as possible," he said.
The government agreed to roll out by July 1, 2018 a new "power affordability and reliability policy" - informed by a joint study by the Climate Change Authority and Australian Energy Market Commission - which would push down energy prices and keep the lights on.
It will also consider a "use it or lose it" policy for companies sitting on undeveloped gas fields, and put pressure on the big gas suppliers to ensure domestic supplies.
A loan of up to $110 million would be provided for a new solar-thermal plant at Port Augusta in SA, and a study conducted into a gas pipeline from the Northern Territory to SA.
As well, single people receiving the aged pension, disability pension or parenting payment will receive a $75 payment, with couples receiving $125 as a one-off to help them with power bills.
That will cost be $260 million and the specific arrangements will be announced in the budget.
Labor senator Sam Dastyari said NXT had been sold a pup.
"It's a bunch of reviews - a few things the government had to do anyway," he said.
HOW THE TAX CUTS WILL BE PHASED IN:
* Companies with a turnover of less than $10 million will receive a reduction in their tax rate to 27.5 per cent this financial year.
* In 2017-18, it will be up to a $25 million turnover.
* In 2018-19, it will be up to a $50 million turnover.
* The tax rate will progressively reduce down to 25 per cent.
Share
