Senate showdown on 18C and company tax cuts legislation

Long-running debates on company tax cuts and changes to race-hate speech laws are set to come to a head in the Senate.

Penny Wong replies to George Brandis's statement to the Senate

Penny Wong replies to George Brandis's statement to the Senate Source: AAP

Federal politicians have been forced to change their flights and stay another night in Canberra as they gear up for a fiery late night debate on two controversial bills.

On the agenda is the Treasurer's decade-long package for company tax cuts, and contentious amendments to race-hate laws.

The government wants them both passed before this year's Budget in May, with parliament ordered to debate the bills late Thursday night and into the early hours of Friday if necessary.

The leader of the House of Representatives, Christopher Pyne, announced that the lower house will sit to accommodate the expected late night debate.

"We will suspend the House late this afternoon, in the normal course of events, and then we will have the House suspended until ringing of the bells," Mr Pyne said.

He indicated the House wouldn't rise "before 9am" on Friday.


The Prime Minister used question time on Thursday to highlight the need for Australia to stay competitive and said that it remains "one of the highest taxed company regimes in the world".

"If you reduce company tax, you increase the return on investment so you get more investment, (if) you get more investment you get more employment," Malcolm Turnbull said.

As he rushed back to Canberra on Thursday, from assessing the damage of Cyclone Debbie, the Opposition Leader refused to shift Labor's position.

"The government can make it all a lot simpler by working with Labor, working on behalf of the living standards of Australians," Bill Shorten said.

The Senate is debating the proposed changes to the Racial Discrimination Act, with the government wanting to swap the words "offend", "insult" and "humiliate" with "harass and intimidate".

But the bill is expected to be blocked by Labor, the Greens, the Nick Xenophon Team and Jacqui Lambie, with the government lacking the 38 votes needed to pass the legislation into law.

One Nation Leader Pauline Hanson spoke on the legislation on Thursday and said she's not being racist by wanting to change the wording of the Act.

"Australians are not racist, Australians are very proud of their culture, their country and their heritage," Senator Hanson said in the chamber.

Ms Hanson said the left side of politics was deliberately encouraging groups to "stir the pot" by complaining about the changes.

Crossbench Senator David Leyonhjelm has refused to come back to parliament on Friday and said he "will be leaving irrespective" of whether he is needed or not.

"I'll give [my support] to the government on those issues [company tax cuts and the Racial Discrimination Act amendments] because of those issues, I support them ... as long as they don't go and introduce any other things I don't agree with," Senator Leyonhjelm said.
The government's company tax cut plan would drop the 30 per cent rate to 25 per cent for all companies in the financial year of 2026-27, however securing support for the bill in the Senate is proving difficult.

Labor wants the reduction limited to 27.5 per cent for firms, with a turnover of $2 million or less, so the government needs the support of a precarious crossbench.

Support is expected from former Liberal-now independent Senator Cory Bernardi, as well as Liberal Democrat David Leyonhjelm, but Pauline Hanson's four One Nation senators will only support a reduction for businesses with a turnover of up to $50 million.

'There is reverse racism in Australia': Hanson on 18C



Senator Xenophon has left Canberra on personal leave, however he and his two other senators will back a reduction for businesses with a $10 million turnover, as will Victorian senator Derryn Hinch.

There is speculation of a plan to split the bills so some measures will pass before the budget, however Treasurer Scott Morrison is not giving anything away.

"All of your questions on that will be answered by the experience of the next 24 hours," he told reporters on Wednesday night.


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By David Sharaz


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