Shorten's plan to reverse tax cuts for medium businesses 'blow to common sense'

Labor leader Bill Shorten says he would roll back legislated tax cuts for businesses with turnovers between $10 million and $50 million.

Australian Opposition Leader Bill Shorten (left) and Australian Prime Minister Malcolm Turnbull. Source: AAP

Business lobby groups have accused Bill Shorten of delivering a “blow to common sense”, after the Labor leader revealed he would reverse recently legislated tax cuts for businesses with an annual turnover of between $10 and $50 million.

The Coalition is still trying to pass its plan to cut tax on all businesses from 30 per cent to 25 per cent, but the bill is stalled in the Senate.

One Nation leader Pauline Hanson remains opposed, despite a meeting with the government’s finance minister on Tuesday night.

“I walked out of there and I said ‘you haven’t got me over the line’,” Senator Hanson told reporters at Parliament House on Wednesday morning.

Business groups have responded with anger after Mr Shorten confirmed a future Labor government would reverse most of the company tax cuts that have already passed for those in the $10-$50 million bracket.

Business Council of Australia head Jennifer Westacott said it was a hit to confidence and questioned how business was supposed to plan for the future.

"It's a real blow to competitiveness, it's a blow frankly to common sense," she told reporters in Canberra on Tuesday.

Mr Shorten is also “considering” whether to reverse the cuts for even smaller businesses, down to $2 million.

Peter Strong, from the Council of Small Business, warned such a move would be a declaration of a “war on business”.

Mr Shorten’s decision was not telegraphed and was dropped casually in a doorstop interview with journalists. The Labor leader reportedly did not flag the announcement with the party room.

With just two sitting days left before the parliament rises for the long winter break, the Coalition still insists it wants to bring the company tax cuts to another vote in the Senate this week.

The Turnbull government is still short of votes on the crossbench.

Independent senator Derryn Hinch has offered support for a compromise deal that would cut taxes for all businesses up to a turnover of $500 million, which would carve out the big banks and multinationals, but the government has so far ruled that out.