Government should worry about investment not dividends
Extending the small business instant asset write-off to large companies, or something akin to Labor’s accelerated depreciation for major new investments above historic levels would help.
It is all well and good for Treasurer Josh Frydenberg to implore business to invest more and stop showering investors with special dividends and share buybacks.
But ultimately it is the government’s responsibility to foster an economic environment where business feels confident to invest.
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John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
