It's a measure of Bill Shorten's inestimable confidence and Malcolm Turnbull's perceived political ill-health that Labor should dare promise a repeal of company tax cuts that have not yet been passed.

The Labor leader's brazen pledge also shows how polarised Parliament has become and how the inequality debate has so successfully entered public argument.

It is a rare moment indeed to have the two sides of government so enormously at odds on tax policy.

If the Government wrangles two more votes to legislate the slashing of corporate tax to 25 per cent, Mr Shorten would take Labor to the election arguing that Australia should be the first OECD nation to increase tax on companies.

It's a remarkable state of affairs that's elbowed out orthodox economic thinking — that lower corporate tax rates are generally good for the economy and good for jobs.

The Opposition Leader has calculated that the Prime Minister's authority is so sickly he would not be able to withstand a Labor "fairness" assault that pits big business against the Bettys from Blacktown.

What the Prime Minister had hoped would be his signature economic reform has already been defined by Mr Shorten as a "corporate tax giveaway".

And a Turnbull tax triumph, should it come, would be afforded no time for celebration. By Mr Shorten's crafty design, it merely becomes the siren sound for a longer, lethal game.

Pressure is on senators

Labor's repeal promise has intensified pressure on the two hold-out senators.

Derryn Hinch and Tim Storer, who is barely a week into the job, know that the outcome of their deliberations puts them on one side or the other of a fight that will be central to the next federal election.

Mr Turnbull's initial reaction to his opponent's repeal pledge is that Mr Shorten stands for "fewer jobs and less well-paid jobs", but this message already lacks the gritty cut-through required in an election campaign destined to be super-charged by the demonising of big business.

Combatting those groundswell resentments will be a Herculean task, evidenced by Mr Shorten's growing confidence.

Just a fortnight after announcing an audacious $11 billion strike on cashed-out dividends for retirees, he and shadow treasurer Chris Bowen announced a backdown with a "pensioner guarantee" that effectively exempts more than 300,000 people originally targeted.

The political nature of the carve-out wasn't disguised.

"Malcolm Turnbull and Scott Morrison have nowhere to hide," Mr Bowen said.

"They've been running around with their scare campaign trying to scare Australian pensioners. Well, now they stand exposed as defending this tax concession, which goes overwhelmingly to Australia's wealthiest households with no alibi about pensioners, no alibi for their lack of willingness to take on this tax exemption."

It was a hard-headed repositioning on a policy that had supposedly been very carefully calibrated.

Another reminder to the Prime Minister that he shares at least one trait with his opponent: ruthlessness.

Bill Shorten can smell blood and is becoming bolder by the week. His announcement last week that the cash payments tied to the dividend imputation scheme would end, was just the beginning.

He is becoming more prime ministerial in his approach, made easier by a government in disarray. The 29th Newspoll showing an increase in primary support for Labor must have sent a chill down the backs of several Coalition members.

Shorten’s boldness was reaffirmed this week, firstly by announcing a tweak to the dividend imputation policy, exempting full and part pensioners. It wasn’t necessary, but it blunts any scare campaign that might be aimed at it.

Then, he announced Labor’s intention to repeal any legislation that gives our corporations a tax reduction. Another bold move, but one clearly consistent with Labor’s continued opposition to the legislation.

Whether this initiative influenced two cross-bench senators not to support the legislation thus far, is difficult to say. But the prospect of the tax cuts being included in this year’s budget looks unlikely.

It is hard to reconcile what the conservatives were thinking, given the severity of spending cuts that have hit hard at individuals and community groups who have lost their funding for social programs and health groups no longer able to extend vital community support assistance.

The government will try to paint Labor as anti-business but as far as the electorate is concerned, that train left the station months ago, as people began to absorb the reality that most of our major corporations don’t even pay tax.

With the polls showing the two-party preferred vote 53% to 47% in Labor’s favour, Malcolm Turnbull will want to delay the next election for as long as he can.

That would mean May 2019 as the date, but if he chooses that option, there are three significant roadblocks to manage; the Victorian State election in November this year, the NSW state election in March next year and the 2019 May budget.

It means that any budget sweeteners planned this year will be long forgotten, with no time to prepare for next year. All of which points to an August/September 2018 election.

Whether Labor planned an election strategy on the grassy knoll of inequality or not, that’s what will take place. A clear “us versus them” battle line.

Malcolm Turnbull can continue to boast 400,000+ jobs created this year, but the unemployment level both in percentages and raw numbers is the same as it was in 2013.

Those new job have done no more than keep pace with population growth, a natural occurrence in any economy. All of which means that in five years of government, their jobs and growth mantra is as hollow as their concern for equality.

Those who remember the months leading up to the 1972 election that saw Gough Whitlam become prime minister might see some similarities emerging. A stagnant economy, a government bleeding from within and an expectation that their time was over.

Yes well he is a "con" man.

philperth2010 wrote on Mar 28^th, 2018 at 6:21pm:



No Phil. We have a really low standard of politicians.

philperth2010 wrote on Mar 28^th, 2018 at 6:45pm:

I expect the next election will set a new record for the greatest percentage of the vote going to minor parties (including the Greens) and independents.