Labor will attempt to expedite its final decision on tax relief for companies with turnovers between $2m and $10m over the coming days following the blowback that has accompanied Bill Shorten’s contentious “captain’s call” earlier this week.
Bill Shorten pledged to repeal the Turnbull government’s legislated tax cuts for firms earning between $10m and $50m in an off-the-cuff announcement on Tuesday, which has triggered a business backlash, internal confusion and Labor MPs speaking at cross purposes.
But the opposition is yet to clarify what it will do in respect to firms with turnovers between $2m and $10m, with the Coalition moving to exploit the political uncertainty over the final parliamentary sitting days before the winter recess.
Labor has been waiting on updated material from the Parliamentary Budget Office before settling its position on whether to preserve or repeal the tax relief, but party sources have signalled internal consultations will be expedited with a view to confirming the final policy in the coming days.
The Turnbull government has ended the final session before the winter break with its tail up, despite having to shelve a Senate vote on its big business tax cuts until parliament resumes because the One Nation and the Centre Alliance blocs are, for now at least, refusing to sign on.
The prime minister, energised by the Shorten stumble and the ensuing ill-discipline, declared Labor would have difficulty campaigning in the looming byelections as a consequence of rolling back tax cuts for businesses with turnovers between $10m and $50m and also pledging to repeal tax cuts for high income earners.
“Where is [Bill Shorten] going to go? He can’t go to any family business, any small and medium business. No more high vis,” Turnbull told parliament on Thursday.
“He could have a cup of tea with some seniors and talk about the 28% of their income he’s taking away. He can talk to some workers in the construction sector and talk about his assault on the property industry.”
“Or he could talk to some of the members of what he describes as the top end of town, people on average weekly earnings ... and explain how he is going to deny them, if he gets into government, the opportunity of a lower tax rate.”
“I look forward to the leader of the opposition’s tip-toeing through all the landmines he’s created around Australia”.
Shorten’s tax stumble followed a significant speech last week by frontbencher Anthony Albanese in which he was implicitly critical of Labor’s current direction.
The New South Wales left winger said Labor must always be optimistic, and outlined “a vision of progress”. He said good relations with the business community were important, and that bipartisanship around major policy questions was desirable.
The results of the looming byelections on July 28 are significant for both Turnbull and Shorten.
Albanese said on Wednesday his laying out of an alternative manifesto last week was not an attempt to signal to colleagues that he was available for the top job.
