A two-tier corporate tax regime would be messy and "stupid", a leading business group says.
Prime Minister Tony Abbott has confirmed tax cuts for small business of at least 1.5 per cent.
But it's still unclear whether a planned levy on big business meant to pay for his now scrapped paid parental leave scheme will remain to pay for a new childcare package, or if a promised tax cut will proceed.
Australian Chamber of Commerce and Industry chief Kate Carnell and other business groups like the Business Council of Australia are writing to the prime minister and treasurer to seek clarification about the tax cut.
"It would be an absolute mess if we ended up with different tax rates for different corporations based on how big they are," she told ABC radio on Friday.
"It would be stupid."
The 1.5 per cent levy on the nation's 3400 largest companies is due to operate from July 1, coinciding with a 1.5 per cent cut in the corporate tax rate to 28.5 per cent.
Social Services Minister Scott Morrison says it shouldn't be assumed the levy receipts will be used for the new childcare package.
"The business community would appreciate knowing where we're coming from and I'm seeking to make that far clearer," Mr Morrison told News Corp Australia.
Ms Carnell said Mr Abbott's leadership woes couldn't come at a worse time, when business and consumer confidence was low and hampering investment and employment.
"That's not in anyone's best interest," she said.
"This sort of instability causes confidence problems which does flow through to such things as unemployment rates."
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