Labor to repeal tax cuts for companies earning between $10 million and $50 million
Labor leader Bill Shorten will repeal already legislated company tax cuts for businesses turning over between $10 and $50 million if elected, setting up a clash with thousands of Australian small businesses ahead of the next election.
The shock policy announcement on Tuesday morning came after months of questioning over Labor's stance that has left small to medium business owners around the country wondering what would happen if Labor was elected at the next federal election.
The move will heighten Prime Minister Malcolm Turnbull's attacks on Mr Shorten's "anti-business" agenda, as Labor sets up a tax policy contest over fairness ahead of a looming federal election.
Companies turning over up to $25 million have already received a tax cut from 30 to 25 cents in the dollar this financial year, with those earning above booking in the revenue for future investments.
Mr Shorten said Labor could go even lower than the $10 million threshold, suggesting the shadow cabinet is still considering whether it would restrict any benefit from the tax cut to businesses earning up to $2 million.
"We've actually said we will support any Australian business with a $2 million turnover to get a tax reduction because we think small business can do with whatever tax cut it can get," he said in response to questions from Fairfax Media.
Mr Shorten said Labor's position was about priorities.
"I just don't agree with Mr Turnbull that the four big banks deserve a $17 billion tax cuts," he said.
"It's all a matter of values, he has made it very clear he's for the top end of town, I'm for hospital and schools funding."
He said the loss of the tax cut would be made up for by Labor's funding for "highly skilled apprentices," healthcare, a "better NBN," and bringing down power prices.
"What we offer is a trained workforce, we will make sure that you will get what you need," he said.
"If you are in the tourism industry we will help build your infrastructure, if you are in the defence industry we will make sure we buy local."
Treasurer Scott Morrison said Mr Shorten had confirmed Labor would lodge "yet another giant, job-destroying tax" on Australian businesses and the economy.
"Not only has Labor committed to ripping our personal income tax cut away from nine million Australians, they will now hit tens of thousands of businesses that employ 1.5 million Australians with high taxes," he said.
More to come