Tax cut will help SMEs generate jobs but need for broader cut remains
Hundreds of thousands of small and medium businesses across Australia will be better able to invest, grow and create jobs thanks to the company tax cut that has passed the Senate, the Australian Chamber of Commerce and Industry said today.
James Pearson, CEO of the Australian Chamber, said: “We applaud the Government for pursuing the Enterprise Tax Plan and welcome the support given to parts of it by a majority of senators. The Senate has recognised the widespread benefits of reducing the tax burden on small and medium businesses, which will make it easier for those businesses to expand their operations and create jobs.
“But the Opposition and crossbenchers have missed the opportunity to help Australia’s private sector to fire on all cylinders. We continue to urge the Parliament to support tax cuts for businesses of all sizes.
“Australia’s company tax rate for larger businesses remains one of the highest of all developed countries, which hurts Australia’s economic competitiveness. This puts us at a disadvantage in seeking international investment and encouraging Australians to invest at home. We all pay a price for our high rate of company tax.
“The bulk of the benefit from the Government’s Enterprise Tax Plan goes to households and families, and that is maximised by extending the tax cut to larger businesses. It is disappointing that the cut for larger businesses did not receive support from the Opposition and crossbenchers.
“It is important that the Government remains committed to completing the job.
“As other nations with which we compete for investment, including the United Kingdom and the United States, cut their company tax rates, the case for Australia to take similar action will only get stronger.
“Cutting the company tax rate for businesses of all sizes to 25 per cent within a decade is part of the Australian Chamber's Top 10 in 10 plan to make Australia more competitive in the race to maintain the jobs of today and create the jobs of the future.”