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Labor supports fast-tracking tax cuts for small to medium-sized businesses

ABC News logo ABC News 12/10/2018 Ellen Coulter

Opposition leader Bill Shorten. © AAP Image/Wayne Taylor Opposition leader Bill Shorten. Company tax rates for small and medium-sized businesses will be slashed five years earlier than expected after Labor announced it will back the Coalition's plan to fast-track tax relief.

The Federal Government announced on Thursday that it would seek to accelerate its tax cuts for businesses with a turnover of up to $50 million.

The tax rate for those companies has already been reduced from 30 to 27.5 per cent and is scheduled to drop to 25 per cent by July 2026, but the Coalition wants to bring those tax cuts forward so that the plan is fully implemented five years earlier.

On Thursday, Opposition Leader Bill Shorten said he was keeping an open mind on the proposal and was not ruling it in or out.

Now Mr Shorten and Shadow Treasurer Chris Bowen say they have crunched the numbers and decided to support the plan.

"We're prepared to compromise in the national interest," Mr Shorten said.

Mr Shorten said he would not oppose an idea simply because someone else had it.

"The good news is that people in small and medium business enterprises can vote Labor or Liberal," he said.

"But if they vote Labor they'll be getting the same tax reductions as they would if they voted Liberal."

Mr Shorten and Mr Bowen said they would accommodate the decision in the budget bottom line by delaying the introduction of the Australian Investment Guarantee by a year.

The Government will introduce the legislation to Parliament next week.

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