Company tax cuts vital for Australia to succeed: Scott Morrison
AUSTRALIA risks being left behind in the global economy if the Federal Opposition continues to block company tax cuts, Treasurer Scott Morrison has warned.
NSW
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AUSTRALIA risks being left behind in the global economy if the federal Opposition continues to block company tax cuts, Treasurer Scott Morrison warned yesterday.
In the wake of US president Donald Trump slashing off corporate tax rates in America to 21 per cent, Mr Morrison said the Turnbull Government would renew its push to “get the tax monkey” off the back of the Australian businesses when Parliament resumes next month.
While Australian small businesses had tax rates reduced to 25 per cent last year, bigger companies still pay 30 per cent tax rates after Labor, the Greens and crossbench senators voted to block the government’s legislation.
“We are already seeing the dramatic impacts in the US of the changes to their tax rates for businesses in America,” Mr Morrison said.
“We have the opportunity now to catch up.
“We had the opportunity before to get ahead and as a result of the obstruction from the Labor Party we were unable to do that.”
READ MORE: US tax cuts could cost Australian home buyers
Mr Morrison said recent positive economic news — record jobs growth during 2017 of 1000 new jobs a day and “surging investment” — were partly due to the small business tax cuts but more needed to be done.
“We have already seen in more recent times when the small business tax cuts passed through parliament the strong lift in jobs growth,” he said.
“We want to go further to make sure it goes right across the economy.”
“Now we have to pass these tax cuts to ensure our businesses can compete and continue to create jobs they were so successful in creating in 2017.”
The Treasurer will reintroduce the legislation to cut taxes for companies with turnover of more than $50 million when Parliament resumes on February 5.
He said he would “obviously work with the crossbench” in the Senate, but the “responsibility to ensure that Australian companies remained competitive and generated jobs rested with Opposition Leader Bill Shorten.
“After all, it’s the Labor Party that used to support these precise changes when they’ve previously been in government,” Mr Morrison said.
He predicted “better days are coming” with a “resurging” global economy and that tax cuts would create more investment, boost jobs and lift wages.