Company tax cuts back on agenda

 

THE Morrison Government has ramped up signals that it will revive company tax cuts, which were killed-off by Labor and the crossbench ahead of last year's election.

Warning Australia needed to become competitive on the other side of COVID-19, Treasurer Josh Frydenberg yesterday refused to rule out the measure - a policy that was shelved after the Coalition was returned to office.

The political teaser redraws battle lines in the tax debate between the Coalition and Labor, which argued large companies should not get a windfall gain from taxpayers.

 

 

Speaking at the National Press Club, Mr Frydenberg said the economy would get worse before it got better and hinted he would need to consider all economic arsenals.

"As a Government we've always looked for opportunities to cut taxes,'' Mr Frydenberg said. "The rate here in Australia is uncompetitive. We have cut SME company tax cuts, tax rates, down - legislated down to 25 per cent.

"But you have also got larger companies that are paying higher rates. We did announce in the first package an accelerated depreciation initiative, which would see businesses with a turnover of up to $500 million assisted with a 50 per cent accelerated depreciation.

 

Treasurer Josh Frydenberg at the National Press Club in Canberra. Picture: AAP Image/Mick Tsikas
Treasurer Josh Frydenberg at the National Press Club in Canberra. Picture: AAP Image/Mick Tsikas

 

"That's an added benefit to some of those bigger companies, but at 30 cents in the dollar here in Australia, for larger companies, 21 cents in the dollar in the US, 19 cents in the dollar in the UK and 17 cents in the dollar in Singapore, Australia has now the second highest company tax rate to Portugal in the OECD.

"That is a reversal of the position we were when we got the 30 cents in the dollar. tax rates, like flexible work places, like infrastructure, like deregulation, they are all key factors that businesses consider when they establish their businesses around the world, but also when they decide to hire more people."

Originally published as Company tax cuts back on agenda



Where Coast’s first parkour circuit will be located

Premium Content Where Coast’s first parkour circuit will be located

Region’s first outdoor parkour facility begins to take shape

Man hurt in late night crash south of Gympie

Premium Content Man hurt in late night crash south of Gympie

Paramedics were called out just before midnight

Watch live as candidates go head to head for Gympie seat

Watch live as candidates go head to head for Gympie seat

The Gympie Times and the Chamber of Commerce are giving you the chance to grill the...