Swan defends Gillard's radio slip

Wayne Swan (L) defended the PM who appeared to stumble on radio when asked about company tax cuts.

AAP Images

TREASURER Wayne Swan has defended Prime Minister Julia Gillard, who appeared to stumble on radio when asked to outline when company tax cuts would come into effect.

On Tuesday, Ms Gillard was grilled on Sydney radio about when the company tax rate would drop from 30 per cent to 29 per cent.

She eventually said 2012.

However radio announcer Alan Jones quoted budget papers, saying the company tax rate of 29 per cent would come into effect in two stages - to 29 per cent in 2013/14 and 28 per cent in 2014/15.

However, since the budget papers were released, the government has said the company tax rate would be lowered to 29 per cent only after the mining tax was renegotiated.

The prime minister later clarified her comment saying tax rates for small companies would come into effect in 2012/13.

"You asked me about the company tax rate before, well the company tax cut comes into effect early for small businesses," she said.

Her deputy, Mr Swan, has defended the prime minister's slip-up on radio saying she got it "absolutely correct".

"She outlined the fact that we have a cut in the company tax rate which cuts in early for small business and for everybody else a year later," he told reporters in Perth.