Former treasurer Wayne Swan has described Bill Shorten's ill-fated captain's call to repeal business tax cuts as an honest error, urging Labor to rally around its leader.
The opposition leader last week back-tracked on his pledge to repeal the cuts for companies with turnover between $10 million and $50 million after internal pressure and criticism from business.
Three days earlier, Mr Shorten announced he would repeal the tax cut for businesses in that bracket.
"He made an honest error in making that announcement," Mr Swan told the ABC on Sunday.
"He announced it before it went to the full (shadow) cabinet. That was the only error."
If Labor wins the next federal election it will keep in place the new 27.5 per cent corporate tax rate for companies between $10 million and $50 million turnover.
But a Shorten Labor government would repeal the remaining legislated company tax scale reductions.
Mr Swan, who was recently elected ALP president, said the plan targeted foreign companies and big banks, who he believes are going be the biggest winners from tax cuts.
"They drive inequality in our economy. That is bad for living standards, bad for economic growth, and it poisons society," Mr Swan said.
Small Business Minister Craig Laundy said the two policy positions showed a stark divide between the major parties.
"What we're arguing for is it that it be consistent across the divide irrespective of size," he said.
The government hasn't been able to convince enough crossbench senators to support the full package of company tax cuts, but is continuing to make the case for the cuts.
Mr Laundy said he had no reason to think the numbers would shift after five upcoming by-elections.
Despite a tough week for Mr Shorten, Mr Swan is adamant there'll be no return to the leadership tensions which plagued the Rudd and Gillard governments.
"The one thing I do want to do as party president, because I have been through the good times and bad times, is to make sure we put the past behind us," he said.
He said the "stunning success" of the opposition over the past five years was down to unity and a courageous reform agenda.
"We went within a whisker of winning last time. We can win next time. We have to have the unity, the discipline and the policy," Mr Swan said.
