The government’s previous efforts to reduce the tax rate for all businesses to 25 per cent were blocked in the Senate, with only smaller businesses receiving a cut so far.
The Coalition has continued to lobby the crossbench in the Senate, arguing Australia would be left behind as major allies like the United States pursue their own cuts to corporate tax.
Senator Pauline Hanson, who controls three Senate votes, told Sky News she was “not convinced” but had an “open mind” on the bill, which is again listed on the Senate notice paper for debate this week.
“I’m actually talking to the government, I’ve got an open mind about this,” the One Nation leader said.
“I’m not going to do anything that would jeopardise investment in the country.
“In America … a lot of the companies now are actually starting to employ more people.”
US President Donald Trump recently passed his own corporate tax cuts, sparking warnings from the Turnbull government that Australia would miss out on potential foreign investment that would be drawn to the more profitable US market.
Senator Hanson said she had recently met with resources giants Woodside and Fortescue Metals, and was seeking more meetings with the Business Council of Australia, which is actively lobbying for the cuts.
The government’s plan would reduce the company tax rate from 30 per cent to 25 per cent gradually over the decade, settling on the final rate in 2027.
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Labor and the Greens are strongly opposed to the plan, which will cost the Australian economy around $65 billion in lost tax over the decade.
The government therefore needs nine of the 11 crossbench senators to support the plan.
The two remaining Nick Xenophon Team senators are opposed, while independents Cory Bernardi, David Leyonhjelm and Fraser Anning, a former One Nation candidate, are likely to support the plan.
If the government secures One Nation’s support, it will still need to convince Derryn Hinch and two brand new independent senators: Tim Storer, who replaced Nick Xenophon but has fallen out with the party, and Steve Martin, who replaced Tasmania’s Jacqui Lambie but has also fallen out with the party.
Senator Hinch said his support would depend on some guarantee that tax cuts would be passed down to workers in the form of wages.
He said companies could sign some agreement with the Australian Tax Office to “guarantee X, Y or Z percentage wage increases” as their tax came down.
But the government’s small business minister Craig Laundy said he could not see how Senator Hinch’s idea would be “practical” or “enforceable”.
One Nation voted with the government on controversial reforms to media laws last year after it secured a promise from the government to investigate whether the ABC and SBS were creating unfair competition.
