Thousands of employers face a $20 billion tax hike under a Labor government in the wake of a shock decision by Opposition Leader Bill Shorten to repeal most of the Coalition’s company tax cuts if he wins power, sparking claims his “roll back” plan will punish workers.

The Turnbull government is aiming to mobilise business against the new Labor policy in a bid to warn 20,000 small employers - including local supermarkets, service stations and mechanics - about the hit to their fortunes under a change of government.

Mr Shorten sparked a political furore over his policy pledge as critics accused him of a “captain’s call” that was made without consulting his shadow cabinet or the wider Labor caucus.

Industry chiefs said they wanted an urgent meeting with the Opposition Leader out of concern the move was a blow to confidence that could set tax reform back a decade.

Business Council of Australia chief executive Jennifer Westacott warned that employers were "stuck in stasis" from the political clash in Canberra when decisions were needed to help the economy grow faster.