Mathias Cormann says 28 July polls will be referendum on economic vision of Coalition and Labor

This article is more than 2 years old

This article is more than 2 years old

The Turnbull government has failed to convince the Senate to support its business tax cuts, conceding temporary defeat and setting them aside until after the super Saturday byelections on 28 July.

The government said it needs more time to convince Senate crossbenchers of the value of its tax package, despite the prime minister, Malcolm Turnbull, saying he would put the tax cuts to a vote this week.

Mathias Cormann says government will defer the tax debate – politics live Read more

The finance minister, Mathias Cormann, held a press conference on Thursday to announce the news.

He said the July byelections will now be a referendum on the Coalition and Labor’s competing economic visions.

“We need more time to make our argument to our colleagues on the Senate crossbench and we, of course, will continue to make our argument in the Australian community,” Cormann said.



“That is why we have decided to defer consideration of the legislation to implement our plan for a lower, globally more competitive business tax rate for all businesses here in Australia until after the break.

“The byelections will be a referendum on who has the better plan for a stronger economy and more jobs.

“After the byelections, who knows? We might have a more business-friendly Labor leader. All sorts of things could be different on the other side of the byelections.”

The government needs four votes from six crossbenchers to get its tax package across the line.

Turnbull happy to cut a deal on company tax with Pauline Hanson Read more

It has failed to convince One Nation (two senators), Centre Alliance (two senators), Tim Storer and Derryn Hinch to support its package.



Cormann said he believed more Australians were becoming convinced of the value of tax cuts, particularly One Nation voters – in a clear attempt to try to convince Pauline Hanson to do a deal with the government.

“There was a poll in the Australian not long ago that showed more than 60% of One Nation voters supported a lower business tax rate for all businesses across Australia,” he said.

“Today, I’m reading in the Courier Mail that 66.9% of One Nation voters in that seat support a lower, globally more competitive business tax rate for all businesses. That was even higher than the support among Liberal voters.

“More One Nation voters in Longman [the Queensland seat up for a byelection on super Saturday] are supporting a lower, globally more competitive business tax rate than Liberal voters.”

Hanson has been struggling to articulate a constant position on the business tax cuts as she attempted to read the electoral mood in Longman.

She has opposed them, supported them, retracted her support, and suggested she may eventually support them if the government builds a coal-fired power station and cracks down on multinational tax avoidance.

Don't ask who benefits from tax cuts. Do ask who will pay for them | Greg Jericho Read more

Under pressure to explain her shifting positions, she told the Senate this week that she hasn’t flip-flopped: “I said no originally. Then I said yes. Then I said no – and I’ve stuck to it.”

Labor currently holds Longman with a slim margin of 0.8%. One Nation is running a candidate in the byelection, Matthew Stephen, and his popularity could determine if Labor retains the seat.

At the federal election in 2016, One Nation’s preferences to Labor helped Labor candidate Susan Lamb unseat the then 26-year-old Liberal Wyatt Roy.

Lamb was later found to have been ineligible to sit in parliament under the dual-citizenship section 44 of the constitution, which forced the July byelection.

Cormann said voters in Longman and Braddon in Tasmania should use the byelections to send the Labor leader, Bill Shorten, a message.

But when asked if the byelection in Mayo, South Australia, could also be used as a referendum on the government’s tax cuts, Cormann was keen to turn the focus back on Labor.

Mayo is being contested by Georgina Downer, the daughter of former Liberal leader Alexander Downer, and polls show she is trailing Centre Alliance’s Rebekha Sharkie.

“In Mayo we have a candidate, in Georgina Downer, who supports our plan for a strong economy and more jobs,” Cormann said. “We are recommending a vote for Georgina Downer in Mayo.

“Labor voters around Australia have the opportunity to send Bill Shorten and the Labor party a message that they do not support his plan for higher taxes, which would hurt the economy, hurt families and cost jobs.”

In Question Time, Labor asked Turnbull if he had made a “secret deal” with Pauline Hanson to delay the vote on the tax cuts until after the by-elections, and Turnbull avoided the question.

Shadow treasurer Chris Bowen asked Turnbull if he’d made any deals with One Nation in the last 48 hours, and Turnbull avoided that question too.