Reducing the company tax rate for businesses of all sizes will deliver the greatest benefit to jobs and investment by sending a much-needed green light to investors at home and abroad, the Australian Chamber of Commerce and Industry said today.
James Pearson, CEO of the Australian Chamber, said: “We need to encourage more investment in our job-creating private sector, so it will be disappointing if the Parliament opposes the Government’s plan for a steady and modest reduction in the company tax rate that extends over time to businesses of all sizes.
“We encourage all MPs and Senators to consider the benefits that will flow to their communities through the reduction in company tax, including increased investment, the creation of new jobs, improved wages and increased consumption.
“Tax cuts for small businesses are welcome, and the proposed tax cuts for larger businesses in future years will encourage investors to put their money into Australian companies, helping those businesses to grow. This is why we urge the Parliament to pass the plan in full.
“We need internationally competitive company tax rates across the entire economy. As other countries reduce their company tax rates, Australia will put its economic competitiveness at risk unless we take action.
“The company tax cut will improve Australian living standards. Treasury research shows that two-thirds of the benefits of the company tax cut go to households. If the company tax cut is only implemented in part, households will receive less benefit.
“Politicians on both sides of Parliament have previously expressed support for the principle of company tax cuts, so we urge them to act on this support.
“Australian Chamber research has shown that the government revenue from company tax has remained robust following previous cuts to the company tax rate, having increased within two years of three previous cuts.
“The plan to introduce this latest reduction over 10 years means it can be achieved alongside the important task of returning the budget to surplus through containing spending and lifting economic growth.”