Corporate tax cuts essential for Australia’s growth and prosperity: Cormann

June 01, 2018

Conservatives leader Cory Bernardi supports Finance Minister Mathias Cormann's push to get his complete tax reform package through federal parliament.

A few crossbench senators are trying to block the reforms but Minister Cormann is intent on pushing them through.

The Minister writes today in The Australian newspaper: "We want businesses in Australia to have the best possible opportunity to grow, to create more jobs and, as demand for workers increases, pay better wages over time. More jobs and better wages mean better opportunities for families to get ahead. That’s our goal.

Higher taxes on businesses in Australia compared with elsewhere puts them at a competitive disadvantage. Higher taxes make it harder for businesses to compete for investment, which makes it harder for them to grow, create jobs and pay higher wages. In contrast, a lower, more globally competitive business tax rate helps attract more investment, which is required if businesses in Australia are to expand, generate stronger economic growth, jobs and higher wages over time.

Bill Shorten used to recognise this. As assistant treasurer in the Gillard government he made that point very succinctly when he told parliament that “cutting the company income tax rate increases domestic productivity and domestic investment”, and went on to say that “more capital means higher productivity and economic growth and leads to more jobs and higher wages”.

For self-interested political reasons he has made a calculated decision to oppose a policy for which he once fiercely argued. The economics haven’t changed and the imperative for a globally more competitive business tax rate for Australia is not going away simply because the Labor Party has decided to put politics ahead of our national interest.

This month the Senate will have the opportunity to vote for more jobs and higher wages by supporting our business tax cuts. These are in the interest of all Australians, today and in the future.

To read Mathias Cormann's full article, click here.

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