The Abbott government has voted against bringing on an urgent vote on its small-business tax incentives, despite repeatedly urging Labor to deliver certainty to the sector and pass the budget package.
In a power play in the House of Representatives on Wednesday, the opposition leader, Bill Shorten, proposed a surprise motion to cut short the debate on the measures and proceed straight to a vote.
But the motion was defeated because the government, which commands a majority in the lower house, opposed what the prime minister, Tony Abbott, described as “yet another childish stunt”.
Although the Coalition was not voting against the substance of its own budget measures – the decision being a procedural matter – Labor framed the development as an embarrassment due to the government’s previous rhetoric on the urgency of the package.
Abbott said on Monday that it was “important that these budget measures to help small business get through the parliament as quickly as possible”.
“Some small businesses are reluctant to invest until the measure has passed the parliament,” he said on Monday. “I say to the leader of the opposition, let us not let politics get in the way of economics. Let us not let self-interest get in the way of national interest. Let us pass this bill straight away.”
The small-business minister, Bruce Billson, had also previously urged the opposition to “get behind this package and secure its early, safe and certain package” and said that “the only thing that stands in its way is Labor”.
On Wednesday, MPs were debating the government’s bill to cut the company tax rate from 30% to 28.5% for small businesses with turnover of less than $2m.
It was being debated with a related bill to change accelerated depreciation rules to allow small businesses to write off assets of up to $20,000. The measure is backdated to 12 May – budget night – but legislation is needed to implement it.
In his contribution to the parliamentary debate, Shorten said Labor had made clear straight after the budget that it would support the small business measures, but the Coalition was determined to sow doubt and division.
“So we say to the government, and I say to Tony Abbott, enough is enough – enough playing of the silly political games which are your trademark,” he said.
“We are not going to delay this legislation for one minute longer. We were always going to vote for it. We always said we would support it. Let’s get on with it. And, therefore, this is why I move that the question be put.”
Shorten’s motion to close off the debate and proceed to a decision on the substantive matter failed 77 votes to 47. Billson, the small business minister, was among the government MPs who voted against the urgency. After the procedural motion was defeated, MPs continued to make speeches about the content of the bills.
When challenged about the government’s handling of the vote during question time on Wednesday, Abbott said parliament “certainly should pass these bills straight away” but the Senate was not sitting this week.
The prime minister said the House of Representatives would be able to pass the bill on Wednesday night or Thursday morning without holding up debate in the Senate, which is next due to sit on 15 June. The bill must pass both houses of parliament to become law.
Abbott said the opposition’s stunt, if successful, would have denied 11 Labor MPs and 31 Coalition MPs the opportunity to contribute to the parliamentary debate.
Billson said he wanted small business “to have a parliamentary day in the sun” and so he voted against gagging a discussion about the sector’s needs.
The minister denounced Labor’s “shabby tactics” and said the real test was whether the party would delay passage of the bill in the Senate by referring it to a committee inquiry. Labor has previously said it would not support such an inquiry.
Shorten said the government was “crazy” to vote against fast-tracking its own budget measures and it now had “some explaining to do to small business”.
“It was one of the silliest acts of political stupidity the Abbott government’s done,” Shorten said.
“Remember Tony Abbott making a hero of himself in question time? [He] loves to sort of stand up there and yell at the opposition and [say] will you agree with small business reform? And we said yes and today we said, ‘Bring it on.’ ”
The government’s chief parliamentary tactician, Christopher Pyne, said: “Labor are a joke. Ending the debate on small business won’t get the bills to the Senate any faster. The Senate isn’t in session.”
