"Where it is going to hit is wages. You can kiss bonuses goodbye." The business - headquartered in the Labor stronghold of Grayndler, held by frontbencher Anthony Albanese - has an annual turnover of between $10 million and $50 million, making it one of the 20,000 companies which would have a tax cut legislated by the Coalition withdrawn by a Shorten-led government. The repeal, which came as a surprise to Mr Shorten's own MPs and has set up a high-stakes contest at the impending round of 'Super Saturday' byelections, will apply to small to medium sized Australian companies including local supermarkets, service stations, manufacturers and builders. "There is never a shortage of politicians wanting to shake my hand at our success," said Mr Ashby. "I just wonder if they would be so forthcoming if they had to explain how repealing the tax cut is going to benefit my business and more importantly my suppliers and my staff."

Labor frontbencher Ed Husic - one of four shadow ministers forced to defend the policy on Wednesday - said there will always be "some businesses that will be upset and uptight". Labor has argued tough decisions are needed to fund hospitals and schools, and cuts for companies with an annual turnover above $10 million are unaffordable. KPMG enterprise tax partner Brett Mitchell said repealing the cuts from 30 to 25 cents in the dollar would hit the sector of the economy "most vulnerable" to tax change. "It is quite regrettable. It does lead to confusion in the mid-market and that market does require certainty," he said. Labor is undecided over whether to repeal tax cuts for up to 100,000 businesses earning between $2 million and $10 million, but it is understood this is now very unlikely.

Mr Mitchell said businesses in the $10 to $50 million turnover bracket had to assess whether they would take a risk and expand to become a significant player or play it safe at a lower tax threshold. That decision is particularly important for exporters like Mr Ashby, who need to take into account international markets like the US, where President Donald Trump has slashed the company tax rate to 21 per cent. "Cash flow is very important to that size of business," Mr Mitchell said. Loading Replay Replay video Play video Play video "It leads to their investment decisions and recruitment plans. Having the goal post move like that puts their planning into disarray."

PricewaterhouseCoopers Australian tax leader Pete Calleja warned the repeal would put future record employment growth at risk. He said it was critical MPs on both sides gave business a predictable tax position. "To take those tax cuts away from small business means they will have less capacity to invest and less capacity to grow," he said. Mr Ashby said he would now have to bank on “the worst rather than best case tax scenario” and the uncertainty would restrict his investment decisions. “It’s like a backhanded slap by someone that doesn’t even know our business.”