none

CALL FOR COMPANY TAX CUT FOR ALL BUSINESSES

05-02-2015
by 
in 

The Australian Chamber of Commerce and Industry (ACCI) says the federal government should keep its promise of a 1.5 per cent tax cut to all businesses – large and small.

This follows indications from Prime Minister Tony Abbott last week that the Government may keep the planned paid parental leave levy after scrapping the proposed scheme.

“Keeping the levy and reneging on a planned company tax cut for all businesses is not consistent with the claim Australia is open for business, said Mr John Osborn, ACCI Director of Economics and Industry Policy.

“The government is essentially proposing to add complexity to the corporate tax system by applying differentiated rates according to company size.

This is not something we could support,” Mr Osborn said.

Mr Osborn said the arguments for reducing the company tax rate to improve competitiveness and attract investment are still just a relevant.

“By backing away from that commitment the Government may undermine growth-oriented tax reform and limit businesses’ ability to create new jobs.” 

The ACCI has always opposed the introduction of a 1.5 per cent levy on larger companies and has consistently argued that schemes like PPL and childcare should be funded from consolidated revenue. 

“The argument that larger businesses won’t pay more tax rings hollow to those who were promised a tax cut but are now expected to pay for more general social welfare spending,” Mr Osborn said.

“Business is certainly pleased that many smaller companies will still get some relief, but a genuine small business tax cut would not exclude the majority of small business operators who pay income tax – not company tax.” 

ACCI welcomed the shift in the Government’s families’ policy.

“The key to increasing female participation in the workforce is by providing greater access to affordable childcare.”

ACCI CEO Kate Carnell said: “Improving access to affordable childcare is absolutely the right way to go, but it is part of a broader community responsibility to increase female participation in the workforce and improve productivity.

“Our challenge now is to secure reforms to the childcare sector that address the supply and price challenges plaguing working parents.

It is not simply a matter of pouring more money into childcare where successive changes by previous governments have barely moved the dial on female participation rates.” 

Related news & editorials

  1. 25.09.2018
    25.09.2018
    by      In
    Energy Efficiency Expo is a new annual trade exhibition and conference dedicated to energy productivity and affordability. Organised by Reed Exhibitions Australia in partnership with the Energy Efficiency Council, the new event will be held for the first time in October 2019 at the Melbourne... Read More
  2. 25.09.2018
    25.09.2018
    by      In
    This week has seen the opening of a unique facility at Deakin University dedicated to advanced metal development and 3D roll forming. The $1.5 million IFM Flexible Forming Facility has been set up as part of Deakin’s Institute for Frontier Materials (IFM), supported a $280,000 grant from the... Read More
  3. 24.09.2018
    24.09.2018
    by      In
    CSIRO is shooting for the Moon this week at the 18th Australian Space Research Conference on the Gold Coast with the launch of an industry roadmap designed to encourage the development of the technological expertise to help to establish a human base on the Moon.
    The report, “Space: A roadmap for... Read More
  4. 20.09.2018
    20.09.2018
    by      In
    Control Logic has set its sights on expansion, with a new leadership team incorporating key roles in products and marketing, sales and development, and operations and services. The move aims to increase the company’s skill set and focus to drive innovation and expand the company’s expertise and... Read More