Australian federal treasurer Scott Morrison says Australians no longer trust big business, putting their faith in small and medium-sized enterprises to support jobs and growth.
He says it is time that Australian corporates stand up for the proposed tax cuts, as the government will no longer be left to argue the case alone.
“I have raised consistently with large business representatives the need to address the broader collective reputation issues large businesses have with the Australian public that are being cynically exploited by an opportunistic Labor Party,” he told The Australian.
“If such issues are not addressed then the casualty will be growth, jobs and the public services that depend on a strong economy.”
Last week, legislation passed parliament giving small businesses with an annual turnover of less than $10 million a new rate of 27.5% this financial year, from 30%.
The government plans a 5% cut for all Australian companies, with the rate falling to 25% by the 2026-27 financial year.
From July 1, companies with a turnover of up to $25 million will get the 2.5% reduction to 27.5%, with the drop then applying to businesses under $50 million in FY18-19.
The 5% tax cut would leave Australian company tax rates higher than the UK, which flagged cutting its rate to 17% by 2020.
British prime minister Theresa May has hinted she may even beat US president Donald Trump’s plan to cut company tax to 15%, and go as low as 10%.
In an interview with Business Insider yesterday, prime minister Malcolm Turnbull said the proposed tax cut means “Australians can win” in the global war for business investment.
He said that it wouldn’t make sense for Australia to have a tax rate of 30% if the US — the largest market in the world — was going to be 20% or lower.
This risks Australian businesses relocating overseas, he said.
Morrison is expected to discuss the issues at a banking conference in Sydney.
The Australian has more.
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