Morrison May Revive Australian Business Tax Push Before Election

Randall Craig
April 7, 2017

The tax rate will fall over time to 27.5 per cent, at a cost to the budget of $5.2 billion over the next four years, and eventually to 25 per cent over the medium term.

Labor finance spokesman Jim Chalmers said Mr Morrison should be fixing his own mess just weeks out from the budget rather than engaging in another "red-faced rant".

"When we were starting the discussions with the crossbench previous year, they weren't prepared to go any further than 10 [million dollars turnover] and we got to 50 in the course of the week".

"Large business needs to apply itself collectively and urgently to this task of communicating their value, not about necessa- rily even advocating particular measures, and not for the sake of the Government, not for any partisan interest, but to do so in the interests of the Australian economy". "Tax cuts will not do that", she said.

"The government's best numbers show very small impacts on growth - one per cent growth gain and a 0.1 per cent household income gain - from the whole package, and we're looking at something now around half the size of the total package".

"It's a pragmatic parliament and I think we've demonstrated a lot of capability to get things done in this parliament", he said.

Mr Willox will say that other elements of President Trump's proposed program, including increased infrastructure and defence spending, could deliver potential benefits to Australia.

Mr Bowen said Labor would "take account of what the government has been able to legislate" and arrive at a position.

"Our obligation is to get the policy settings right, since May a year ago we've been absolutely clear we would support a company tax cut for businesses up to $2m, but we didn't feel the budget could bear a higher company tax cut".

Treasurer Scott Morrison says it's about businesses working with young people and the community so youths can get and keep a job.

" Our position is that, right now, what we need as a country is a pay rise, we need investment that creates real jobs, we need policies that raise the standard of living". Morrison doesn't like playing rule-in-rule-out games before the budget, saying Australians would find out what was in the budget on the second Tuesday in May: "They are matters for the Commonwealth government, and the budget will be in May, and it will address our housing affordability package".

Dr Dixon said the company tax cuts are only going to make a difference to people who actually pay company tax, mostly foreign investors and people whose personal tax rate is above the company tax rate.

The tax office's tougher powers and penalties are already producing results, raising $2.9 billion from the tax liabilities of seven multi-national companies, Treasurer Scott Morrison says.

Westacott called for the full tax cuts to be passed, or else there would be a "two-tiered" tax system, with small and medium businesses enjoying a 25% tax rate compared with 30% for big business. "And we'll continue to argue for that".

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