The newest estimate of the 10-year cost of the government's company tax cuts is $65.4 billion, reflecting the large annual cost of the measure once all companies are paying the reduced rate of 25 per cent.
The figure does not represent a blowout in the cost of the package to the budget. It remains at about $48.2 billion for the 10 years from July 1, 2016 during which a reduction from 30 per cent to 25 per cent for all companies is phased in.
But for the decade from July 1, 2017, the cost increases to $65.4 billion. This indicates the cost of the package for the year 2027-28, the second year in which every corporation will be paying 25 per cent, will be about $15 billion.
This is consistent with the already published estimates by Labor in last year's election campaign which show the cost of the tax cut in 2026-27, the first year everyone is paying 25 per cent, will be $14.2 billion.
Nonetheless, Labor seized on the new big number to ramp up its campaign against the company tax cut.
"The Government has just announced a $65.4 billion hand-out to business, including big business. How are you going to pay for it?," Bill Shorten asked Malcolm Turnbull in Parliament.
Mr Turnbull stressed there had been no blowout and the package remained fully funded.
"The budget goes into surplus in 2020-21 and remains there over the medium term. That is all set out in the budget papers and honourable members know it," he said.
He again argued for the tax cuts.
"If (Labor) seriously think Australian business can compete with a tax rate of 30 per cent when other comparable countries are at 20 per cent or 18 per cent or, in terms of the United States, heading to 15 per cent, they are dreaming," he said.
" Australian businesses need to be competitive. They need the incentives to invest. They need the incentives to employ. The cost of the company tax cuts are fully calculated, fully taken into account. They are vital. Those cuts are vital to retain the competitiveness of Australian business, Australian workers and ensure they get the investment and the jobs they need."
