Labor’s new president Wayne Swan has dug in on combating inequality through dramatic measures such as higher taxes on companies that overpay executives as the party wrestles with its tentative relations with the business community ahead of key byelections.

Wayne Swan at Parliament House in Canberra after he was announced as new Labor party president. Credit:Alex Ellinghausen

The former treasurer, who was elected a fortnight ago to the party’s top executive position, said on Sunday that inequality measures such as grossly disparate salaries were “ripping our society apart”.

His comments came after a tumultuous week in which Labor leader Bill Shorten was forced to change his position on repealing tax cuts for small and medium-sized companies after an outcry from business and pressure from his own colleagues.

Labor is battling to hang on to two of its seats in upcoming byelections - Longman in Queensland and Braddon in Tasmania - both of which are regarded as being very close by party insiders.