Senior federal government minister Arthur Sinodinos has indicated support for company tax cuts at the upcoming budget, saying they boost the economy and benefit workers.
Speaking on Sunday, the NSW senator said business tax cuts would buoy gross domestic product and lead to higher wages for workers.
"Putting money in the hands of consumers obviously encourages more spending and disposable income and it has good incentive effects," he told ABC television.
"But cutting company tax also has good effects, it can encourage investment, it can encourage higher productivity it can encourage more investment from overseas."
He would not be drawn about the content of the May budget and refused to engage in "speculation" about whether the income deficit levy on high income earners would be retained.
"I'm not going to rule things in or out," he said.
Sinodinos' comments come after Treasurer Scott Morrison confirmed this week that company tax cuts, and no cuts to income tax, would be his budget priority.