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Morrison tells NXT don't squib budget duty

AAP logoAAP 25/10/2016

Scott Morrison has told Senate powerbroker Nick Xenophon and his team not to "squib" their responsibility to back tax cuts for businesses in their South Australian state and support measures to repair the federal budget.

"When the Labor Party is going to vote against improving the budget ... (the Xenophon team) sit in the box seat here and they can't squib it," Mr Morrison told 5AA Adelaide radio on Wednesday.

The treasurer is holding a business roundtable in Adelaide on Wednesday about the government's plan to give tax cuts to firms that have an annual turnover of up to $50 million as part of its 10-year company tax plan.

If successful, the company tax rate will be cut to 25 per cent from 30 per cent for all businesses by 2026/27.

In the interim, it would be lowered to 27.5 per cent for business earning under $10 million now, for those with a $25 million turnover in 2017/18 and then to $$50 million in 2018/19.

"We would like it to go well beyond that because we know that is good for investment," Mr Morrison said.

The government has had some discussions with Senator Xenophon, who supports only the initial tranche of cuts.

"What we are saying to Senator Xenophon is, we took this plan to the people at the last election, we were returned and we would like to implement that," Mr Morrison said.

Labor supports cutting the rate for companies with an annual turnover of up to $2 million.

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