Date issued: 7 August 2013
Businesses large and small have scored an early win in the election campaign with the Coalition’s commitment to reducing the company tax rate.
The Coalition has announced it will reduce the company tax rate by 1.5 per cent to 28.5 per cent from 2015.
CPA Australia chief executive Alex Malley says today’s announcement will be warmly welcomed by business operators in all sectors across the country.
“The company tax rate impacts business decisions such as where and when to invest and when to lay off or take on staff,” Mr Malley said.
“Relieving pressure on business means an injection of confidence and a boost to competitiveness, and when business is confident jobs are created.
“CPA Australia has been one of the most vocal and persistent advocates for a cut to Australia’s company tax rate. As recently established by the Business Tax Working Group, a one per cent cut in the corporate tax rate would increase GDP by around $3 billion, it will lift wages by 0.2 per cent and add around 10,000 jobs.
“Setting a company tax framework that allows business to be more competitive is all about sustaining and creating jobs,” Mr Malley said.
Australia’s current tax systems remain a serious impediment to productivity growth and Australia’s international competitiveness. Substantive reform proposals that would remove or reduce such handicaps must be reconsidered. Tax reforms and expenditure savings initiatives need to be undertaken to ensure sufficient revenue exists to fund these reforms.
Contact: Stuart Dignam
P: 03 9606 9601