Labor won't rule out clawing back company tax cuts

Treasurer Scott Morrison will have to find $260 million for the one-off payments the government will make under the deal

Treasurer Scott Morrison will have to find $260 million for the one-off payments the government will make under the deal

The package will cost $24 billion to 2026/2027 or $5.2 billion over the next four years.

Finance Minister Mathias Cormann signalled the government would use the prospect of a company tax rise to fight Labor at the next poll, asking: "Are they going to support it now, or are they going to increase taxes for business if they are successful at the next election?"

The 5% tax cut would leave Australian company tax rates higher than the United Kingdom, which flagged cutting its rate to 17% by 2020.

"The government's best numbers show very small impacts on growth - one per cent growth gain and a 0.1 per cent household income gain - from the whole package, and we're looking at something now around half the size of the total package". "We hope this will build the momentum to get the whole package through".

Asked if Labor will tear up the company tax cuts, Leigh repeatedly refused to rule the option out.

"The big economic benefits will come from the whole economy being included, down to 25 percent, and we'll continue to argue for that", Business Council of Australia Chief Executive Officer Jennifer Westacott said in an interview with Sky News on Sunday.

Mr Bowen said Labor would "take account of what the government has been able to legislate" and arrive at a position.

The tax cuts will flow to companies with an annual turnover of up to $50 million after a deal was struck with the Nick Xenophon Team late on Friday.

Fouls, misses make for ugly NCAA title game for UNC, Zags
I'm very mad, sad, ticked off, any way you want to put all that terminology about it, embarrassed and all those things too. Gonzaga center Przemek Karnowski knocked the ball from North Carolina center Kennedy Meeks' hands under the basket.

Treasurer Scott Morrison says it's about businesses working with young people and the community so youths can get and keep a job.

However, Rio said the amended assessments did not relate to any tax avoidance schemes as confirmed by the ATO, and instead involved transfer pricing arrangements between Rio entities in Australia and Singapore.

Mr Morrison said in his speech that while Australians were ready to accept that supporting the efforts of small and medium-sized firms was good for the economy and jobs, "they remain less convinced about the contributions of larger businesses".

"If the Senate is in the position to look at this before the next election, we will be more than happy to bring these things forward".

Global miner Rio Tinto RIO.AX RIO.L said on Wednesday the ATO had issued amended tax assessments for the calendar years 2010 to 2013, requiring the company to pay A$447 million including interest.

The FOI is still being processed, but alongside comments made by Treasurer Scott Morrison last month, the existence of those 459 pages indicates the government has changed its thinking on capital gains tax since the last election.

She warned on Sky News on Sunday that the problem with having a two-tier tax system is that businesses approaching a $50 million turnover will start planning for their taxes, possibly carving off bits of their companies rather than growing.

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