Proposed tax breaks for small media companies would be retained but reduced in scope under a proposal put by Nick Xenophon in return for his support on the Turnbull government’s media ownership bill.
The media bill is set to return to the Senate when parliament resumes on Monday, but Xenophon has put the onus on the government to respond after a deal stalled at the end of the last sitting session.
The bill would abolish the rule preventing moguls from controlling a free-to-air TV station, newspapers and radio stations in the same market, which Labor insists must be retained.
In return for his party’s three Senate votes, Xenophon asked for a new tax break for smaller publishers to encourage them to employ more journalists estimated to cost up to $50m, which the government rejected.
On Sunday Xenophon told Guardian Australia he had “put some counter-proposals to the government which would keep the principle of tax offsets for publishers intact and preserve their effectiveness”.
The suggested compromises retain tax write-offs for small publishers but include a more restrictive cap on the amount they can claim and tweaks to when and which publishers they would apply to.
“I’m still willing to talk to the government in good faith,” Xenophon said.
This week Labor will continue to pressure deputy prime minister, Barnaby Joyce, over his eligibility to sit in parliament, especially because Malcolm Turnbull is due to attend the Pacific Islands forum on Friday, during which time Joyce will be acting prime minister.
Guardian Australia understands that a parliamentary walk-out to protest Joyce’s refusal to step down while the high court considers his case is not being considered, but Labor deputy leader, Tanya Plibersek, refused to rule it out on Sunday.
In Sydney Plibersek said it was “absolutely untenable that Barnaby Joyce should be the acting prime minister while a cloud continues over his eligibility to sit in parliament”.
Plibersek said Joyce’s lower house vote was used to prevent establishment of a royal commission into banks and reversal of a penalty rate cut for retail and hospitality workers.
Asked whether Labor parliamentary stunts could detract from a focus on Australians’ concerns Plibersek said: “Yes, we do want to get on with the issues that concern Australians, things like their pay, their living standards, health, education but while it’s the deputy prime minister’s vote holding up the government [that is inflicting cuts] ... then we’ve got a right and an obligation to pursue the truth.”
Asked specifically about a walk-out, Plibersek said the parliament was in “uncharted territory” because the government was unsure of its own majority and intended to make Joyce acting prime minister when he may not be eligible to be in parliament.
“Given we are in uncharted waters I think we’d have to say that anything could happen this week in parliament.”
Earlier on Sunday the Liberal leader of the house, Christopher Pyne, said that there was no risk in Joyce serving as acting prime minister.
“The speaker has ruled that Barnaby Joyce continues as the member for New England until such a time as the high court rules otherwise,” Pyne told Insiders. “We’re very confident about our legal advice.”
Pyne said that ministerial decisions made by Joyce and Nationals deputy, Fiona Nash, whose eligibility has also been referred to the court, were both legally safe.
“The constitution allows a person to be a minister for three months after they’ve been deemed not to be eligible if that happens ... This is just another red herring.”
Asked to comment on the prospect of a Labor walk-out over Joyce’s eligibility, Pyne responded tongue-in-cheek that he was “shaking in [his] boots”.
“Yes, Labor is always making these kinds of sabre-rattling remarks about how they’re going to bring the place down.
“And if Labor chooses to walk out of the Parliament, well, that will be good news. First, it will increase the average IQ, and secondly, of course, the crossbenchers will have more time to ask questions of the government.”
The Turnbull government will attempt to keep this week’s the focus on energy prices, by addressing the limited merits review process which allows power companies to pass network costs onto consumers. It will also reintroduce legislation for company tax cuts to be extended to big companies earning more than $50m after small and medium business won tax relief in March.
