Labor pledges to repeal Coalition's big business tax cut if it passes Senate

Labor says it will junk the Turnbull government’s big business tax cut if it passes the Senate this week, but is holding out on the prospect of future tax relief for businesses prepared to invest locally.

The government is continuing to lobby the remaining two crossbenchers needed to pass the cuts, while business chiefs – in Canberra en masse on Tuesday – are on the back foot courtesy of a report in the Australian Financial Review of a survey suggesting they were cool on passing the benefits of tax relief through to their workforce.

A staff member of the Business Council of Australia initiated a survey of the membership in January in the wake of a decision by the US president, Donald Trump, to cut the company tax rate. According to the report in the Financial Review, the survey data suggested Australian executives were more likely to return the proceeds to shareholders or invest than boost wages or employment.

The BCA on Tuesday confirmed the existence of the survey, undertaken on the online tool Survey Monkey, but argued it was incomplete and was discontinued by the organisation before being properly collated.

With some crossbenchers signalling they would need public commitments from big companies about local investment before signing on for the tax cut, 10 BCA member companies last week issued a joint statement giving senators a non-specific commitment that they would invest in Australia “as the tax cut takes effect” – which is over 10 years.

The revelation of the survey is deeply unhelpful to the business lobbying effort.

The Labor leader, Bill Shorten, and the shadow treasurer, Chris Bowen, confirmed on Tuesday what they have been signalling for days – that Labor will repeal the big business tax cut in the event the Turnbull government persuades Derryn Hinch and the new South Australian independent, Tim Storer, to pass the measure and Labor wins the next election.

Shorten said Labor would outline its position on the company tax cut that had already cleared the parliament – for businesses with a turnover of less than $50m – after the budget in May.

Asked whether business could expect any tax relief announcements by the ALP between now and the next election, Bowen said the opposition’s position was to “offer tax relief which is targeted and on the condition of investment”.

Pressed on whether there was anything specific in contemplation, Bowen left the door open, saying “of course we will have more to say about a whole range of areas”.