The government has moved one step closer to getting its tax cuts through the Senate after it struck a deal with Pauline Hanson’s One Nation party.
The deal will see One Nation supporting the government’s changes lowering the company tax from 30 per cent to 25 per cent in exchange for an apprenticeship pilot program targeting young Australians.
Under the agreement struck between the One Nation leader and the Government’s Senate leader Mathias Cormann yesterday, the Government will fund a pilot program for 1000 taxpayer-funded private sector apprentices.
Now that he has secured the support of One Nation’s three senators, all Senator Cormann needs now is the support of crossbenchers Derryn Hinch and Tim Storer.
He has already locked in the votes from Cory Bernardi (Australian Conservatives), David Leyonhjelm (Liberal Democratic Party) and independents Fraser Anning and Steve Martin.
Pauline Hanson had also been talking to business leaders like Andrew “Twiggy” Forrest who had pledged to expand his operations by reinvesting every dollar saved from the Turnbull government’s company tax cuts back into job creation.
Senator Hinch has hinted he might sign up too but he hasn’t yet because he is not convinced by the assurances from the Business Council of Australia which has written to all cross-bench senators giving its commitment to boost investment if they passed the legislation.
Senator Hinch wants big companies benefitting from the tax cut to deliver wage increases for their workers.
“I’m worried that too much of it is going to be used for share buybacks or dividends,” he told Sky News on Tuesday.
He also wants a boost for pensioners as a trade-off for his support.
Image – Daily Telegraph.