Some of Australia's largest companies have made a desperate, last-minute plea to the Senate crossbench to pass $48 billion in company tax cuts, warning Australia had no alternative to secure its nation's economic future.
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BHP chief executive Andrew McKenzie, Wesfarmers' chief Richard Goyder, Qantas boss Alan Joyce and Energy Australia boss Cath Tanner joined a Business Council of Australia delegation in Canberra to deliver a blunt message about the Turnbull government's tax-cut plan.
The business leaders were due to have dinner with the cabinet on Wednesday evening, meet Labor on Thursday morning and have also met crossbench senators.
BCA president Grant King said the government should keep on the table the full company tax cut, which would reduce the rate from 30 to 25 per cent over 10 years to 2026-27, even if the Senate crossbench passed only part of it this week.
"It may be curtailed in some form, but it's imperative it stays on the table because it is the only plan Australia has got to drive growth and investment," he said.
"It's large businesses that make the big investment, that create meaningful numbers of jobs, and it's investment in business that creates income growth.
"It is very clear that the leadership of the Labor Party at the moment, when in government, gave elegant arguments for a reduction in the tax rate. Something has changed their mind, it's not clear to us what."
Mr McKenzie delivered a blunt warning that Australia was missing out on international investment.
"We are about stimulating that [investment] and ensuring Australia is competitive for international capital. It is not at the moment. Without the change the government is proposing, it will remain uncompetitive and the economy will suffer – not just for a few years, but for decades to come."
Negotiations are set to go right down to the wire, with Senator Nick Xenophon and his two colleagues holding the key to how much of the package will pass through the Senate.
The Nick Xenophon Team have said they could only support a cut to 27.5 per cent for companies with a turnover of up to $10 million.
Senator Xenophon left Canberra early on Wednesday because of a family bereavement and it was unclear whether he would be able to return late on Thursday to vote on the package.
Negotiations continued with the government through the day on a possible move to allow a cut for businesses with a turnover of up to $50 million.
That rate would be backed by the four One Nation senators, plus independents Cory Bernardi, David Leyonhjelm and potentially Derryn Hinch - handing the government the majority it needs to bypass Labor and the Greens and pass some of the package.
But a move by the Xenophon team to $50 million is contingent on the Turnbull government delivering an emissions intensity scheme to drive down electricity prices - a move that would face stiff internal resistance in the Coalition.
Senator Xenophon told colleagues late on Wednesday he did not think the government could "pull a rabbit out a hat" and meet his demands - meaning a cut for companies earning up to $10 million was the most likely outcome.
BCA chief executive Jennifer Westacott praised Pauline Hanson's team for moving to $50 million and pleaded with the South Australian senator: "I think Senator Xenophon understands the importance of investment … you won't get investment in South Australia if you can't get investment into Australia.We are hoping he will move way beyond his $10 million cut-off."
The Australia Institute on Wednesday released modelling that showed a cut for companies with a turnover of up to $10 million would benefit the "vast majority of businesses in Australia".
Companies with a turnover of more than $10 million made up 1.4 per cent of companies, but 78 per cent of tax collected.
"If the government plan were fully phased in, just 15 companies would net almost a third of the benefit of the tax cut. Those bigger businesses also have higher proportions of foreign shareholders who would get reduced franking credits," senior research fellow David Richardson said.
