One of the world's biggest asset managers is warning that Australia might be left behind if it does not lower its business tax rate from 30% down to 25%, a move Australian Conservatives founder and South Australian Senator Cory Bernardi supports.
The ABC reports Andrew Formica, the Australian-born co-chief executive of Janus Henderson, said Australia's current 30 per cent rate makes it uncompetitive against global rivals.
"Australia is starting to look out of line with the rest of the world," Mr Formica said during a visit to Sydney.
"For Australia to remain competitive it should seriously be looking at its corporate tax rate."
A register of companies that stand to gain from the tax relief nationwide include Billabong, Bridgestone Tyres, Bundaberg Sugar, Carlton & United Breweries, Coopers' Breweries, Country Road, Domino's Pizza, Haigh's chocolates, Kennards Hire, McCain Foods, Prouds Jewellers, Rip Curl, Thomas Foods International and Tully Sugar.
Formica continues: "We have 27 offices around the world and Australia is certainly in the top five in terms of corporate tax rates which does have an impact on our investment plans when we look across the globe where to spend. Mr Formica oversees the management of $US370 billion worth of assets globally and employs 2,000 staff worldwide.
The government is currently negotiating with the crossbench senators to support the measure, but although the vast majority have indicated they intend to support for the tax reforms, former 'Nick Xenophon Team' candidate and now independent Senator Tim Storer remains to be convinced.
Watch excerpts of Senator Bernardi’s February speech to the Senate on the urgent need for business tax relief below:
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