• Hannah Phillips

Tax Reform Goes Back to the Drawing Board

The Coalition is facing the prospect that it will be unable to get either of its tax plans through the Senate.

On Tuesday Pauline Hanson told Malcolm Turnbull, through the media, that she would not be supporting his corporate tax cuts for companies with turnovers more than $50 million.

She indicated that she had adopted her position because there were no provisions in the budget to fund the initiatives she wanted implemented.

Once her demands were disclosed the opposition demanded to know the details of the secret deal that the government had done with One Nation in order to get its tax cuts through the Senate.

Confronted in Senate Estimates, Finance Minister Mathias Cormann said ruefully that there was no deal and the government had only 34 votes in support of the legislation.

By Wednesday the pressure was on the government to drop its corporate tax cuts and use the money to match Labor’s personal income tax cuts.

Multiple backbenchers and some ministers were pressing this course of action.

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