The Prime Minister is under pressure to ditch his corporate tax cuts after the Coalition failed to pick up any seats in the Super Saturday by-elections.
The Government has so far been unable to get enough crossbench support for its plan to slash the company tax rate from 30 per cent to 25 per cent for businesses with a turnover of more than $50 million.
But it plans to try again when Parliament resumes in August with talks continuing with the independents and minor parties.
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Senior Coalition MPs have reportedly told Mr Turnbull that he faces a voter backlash at the next federal election if he persists with the tax cuts.
Former Prime Minister Tony Abbott has also weighed in saying voters are more concerned about issues like power prices and immigration.
“There are no votes in company tax cuts because what the public wants is money in their pocket directly, not indirectly,” Mr Abbott said.
Opposition Leader Bill Shorten has also called on the Government to dump the plan.
“They’re a dud idea, they should go in the dud bin and that’s it,” Mr Shorten told Sky News.
Shadow Treasurer Chris Bowen says if the company tax cuts go, so should Malcolm Turnbull and Treasurer Scott Morrison.
“If Malcolm Turnbull drops his key economic policy then the Australian people are entitled to ask, what is the point of Malcolm Turnbull,” Mr Bowen told reporters.