Senior Turnbull government ministers insist a push to lower company tax rates will go ahead despite Pauline Hanson backflipping on her support for the plan.
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The One Nation leader and her two other senators had second thoughts on the 10-year plan to cut the tax rate for all companies to 25 per cent last week, reeling off a list of reasons why she was pulling out of an agreement with the government and putting the package in jeopardy.
The government was already two votes short in the Senate, where it doesn't have a majority, when the deal was debated just before Easter.
Human Services Minister Michael Keenan said the government must continue the make the case for the cut.
"We can't have a business sector in Australia, a sector that creates jobs and opportunities for the Australian people being so wildly uncompetitive in relation to our international peers," he told Sky News on Sunday.
Labor and the Greens and some other crossbenchers are against the reduction from 30 per cent, although independent senator Derryn Hinch has said he would back it for companies of up to a $500 million turnover.
A reduction for firms with a turnover up to $50 million passed the upper house last year.
The Senate will next sit in the final two weeks of June.
"There is still hope in this, people do posture in the lead up to these votes but they can be persuaded by the facts and the facts are pretty compelling in this case," Mr Keenan said.
Health Minister Greg Hunt agreed, saying the government was able to achieve the first round of small business tax cuts in the Senate and many other different policies.
"I remember when we worked to abolish the carbon tax, there were ups and downs with the crossbench, but we got there," he told ABC television.
But Opposition Leader Bill Shorten believes it is not a matter of if the government will give up on its "rotten corporate tax plan" but when.
"We are a strong opposition to help put the nail in the coffin of this rotten corporate tax giveaway for the big banks and mega businesses," Mr Shorten told the Victorian Labor conference in Melbourne.
The Senate will also debate in June the government's personal income tax cuts that featured in this month's budget.
While the seven-year plan passed the House of Representatives last week, Labor will only support the reductions that begin from July 1 - a new low- and middle-income tax offset, which will provide $530 relief each year and lift the 32.5 per cent tax bracket from $87,000 to $90,000.
They do not back further cuts due to start in 2022 and 2024.
Australian Associated Press
