Pauline Hanson is standing by her decision to back the Turnbull government's business tax cuts, but wants the money due to the big banks set aside for victims of their misconduct.
Create a free account to read this article
or signup to continue reading
The One Nation leader wants the banks to lose the tax relief following their "inexcusable" behaviour exposed at the financial services royal commission.
"I will be calling on the government to recover 100 per cent of the royal commission cost from banks, (and) quarantine any form of corporate tax cuts until banks and financial institutions have paid compensation to victims for their actions," she told reporters in Brisbane on Monday.
Prime Minister Malcolm Turnbull, who is relying on the three One Nation votes to pass the tax cuts, wouldn't be drawn on her calls.
"Where banks have done the wrong thing they must pay compensation," Mr Turnbull told reporters in Germany.
Opposition Leader Bill Shorten, who is against the entire $65 billion 10-year business tax plan, said the compensation should not be coming from taxpayers as Senator Hanson is suggesting.
"The banks ought to compensate the victims out of their own pocket," Mr Shorten told reporters in Melbourne.
Independent senator Derryn Hinch has also said banks should not be rewarded for their bad behaviour, but would support tax cuts for companies with a turnover of up to $500 million - like the Senate did for firms with a turnover of up to $50 million last year.
But Financial Services Minister Kelly O'Dwyer on Sunday dismissed the idea of quarantining banks from the tax cut, insisting it's not a "morality tax".
Acting prime minister Michael McCormack said the banks employed Australians and serviced a lot of small businesses.
"I am well aware of what has been talked about in the media ... but we need our 10-year enterprise tax plan to get through the Senate," he told reporters in Brisbane.
The government delayed putting its legislation to a vote in the upper house just before Easter, admitting it didn't have the numbers.
On Tuesday a Senate committee will grill the Business Council of Australia, and some of its corporate members, over its commitment to investing in Australia if the upper house passes the tax legislation, saying it will lead to more employment and stronger wage growth as the cuts take effect.
The council and several large companies made such claims in a letter to every senator last month urging support for the tax plan.
"A globally competitive company tax rate is one of the most direct and effective economy-wide policy levers we have at hand for boosting investment," the council says in its submission to the hearing.
Australian Associated Press
