Tax cuts for companies, voters, as Turnbull snubs Canberra for Queensland

The Prime Minister today will deliver his first major speech of the year in the regional city of Toowoomba in the key battleground state of Queensland in a clear sign that he has one eye on the next federal election, which is expected in a little more than 12 months.

Mr Turnbull will say that his government will again attempt to cut taxes for businesses with a turnover of more than $50 million to 25 per cent while highlighting the US move to cut company taxes to 21 per cent. And a Coalition push for personal tax cuts will follow soon afterwards.

"We won't compromise our return to surplus in 2020-21 but our next tax priority is further tax relief for middle-income earners ... the Treasurer and I have been working over the Christmas break on how we can provide more tax relief for hard-working, middle-income Australian families," he will say.

Rather than making a major policy announcement, Mr Turnbull is expected to highlight policies already implemented by his government – including changes designed to make childcare cheaper and reduce energy prices, needs-based funding for schools and a tax cut for small and medium-sized business – in a direct pitch to voters.

He will also highlight growing consumer and business confidence and record jobs growth and emphasise his economic leadership – a key reason he challenged Tony Abbott in 2015 – and the importance of staying the course with his government's economic program.

"2016 and 2017 were the years of reform; this is the year we really start to see the rewards of that hard work," he will say.

"We are starting to see what happens when government policies are all pulling in the same direction – to build a strong and resilient economy that gives every Australian the opportunity to pursue their dreams."

Mr Turnbull has consistently trailed Opposition Leader Bill Shorten in the polls since the July 2016 election and has a razor-thin one-seat majority.

Support for the Coalition in regional cities and towns such as Toowoomba – where One Nation candidates picked up about 15 per cent of the vote in the Queensland state election late last year – will play a crucial role in deciding whether Mr Turnbull can hang on to government.