Despite intense lobbying from the Coalition Government and its big business backers, the Senate is highly unlikely to support cutting company taxes to 25% for all businesses. From The AFR:
…sources confirmed that, at best, the government would secure Senate support next month for the first phase, which would grant a rate of 27.5 per cent to companies with an annual turnover of up to $10 million.
…the Greens oppose the package and Labor supports a tax cut for turnovers only up to $2 million, leaving the government reliant on the Senate crossbench. Nick Xenophon, whose three Senate votes are needed, has said he would allow only the first phase of the tax cut and wants more money set aside for industry assistance.
“We’ll take whatever we can,” said a government source.
To pass a Bill through the Senate, the Coalition needs 39 votes, meaning that it is nine votes short. Hence, it is highly unlikely to gain the votes needed to pass its company tax cut plan in full. And that’s a good thing.
