Tax cuts: Big business leaders pledge to pass on savings
A MASSIVE tax cut for big business is within reach for the Turnbull government, with top executives vowing the money would reach families.
NSW
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A MASSIVE tax cut for big business is within reach for the Turnbull government, with some of the nation’s top executives — in a last-minute sales pitch — vowing the money would reach the pockets of everyday families.
Finance Minister Mathias Cormann is still negotiating with crossbench senators Pauline Hanson, Derryn Hinch and newly minted senator Tim Storer, after Jacqui Lambie’s replacement Steve Martin signalled his intention to back the reforms.
The tax cuts would extend earlier reductions for small businesses, from 30 per cent to 25 per cent, to all companies, which the government argues is desperately needed to keep jobs in Australia after huge cuts in tax rates in the US and Europe.
The letter, signed by executives at major firms including Qantas CEO Alan Joyce, BHP boss Andrew Mackenzie, Fortescue Metals chairman Andrew “Twiggy” Forrest and CEOs and managing directors of EnergyAustralia, Origin Energy, Wesfarmers and Woolworths, and circulated to the crossbench by the Business Council yesterday, urged support for the plan.
“If the Senate passes this important legislation we, as some of the nation’s largest employers, commit to invest more in Australia which will lead to employing more Australians and therefore stronger wage growth,” it read.
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Senators Hanson and Hinch have said they could back the tax cuts if they were satisfied that major businesses would commit to employing more people instead of sending higher profits back to their shareholders in the form of bigger dividends.
The government needs Senator Storrer’s vote, with Nick Xenophon Team senators ruling out support for the measures.
Mr Storrer became an independent yesterday after being elected when NXT senator Skye Kakoschke-Moore resigned last year in the dual citizenship scandal.
Mr Hinch said the BCA’s commitment “doesn’t get me across the line” but he expected Mr Cormann would provide him a written offer, which included a pension rise.
“That would make me feel a little happier,” he said.
Mr Storrer did not respond to requests yesterday for comment.
The full tax cut is worth $65 billion, with $30 billion already legislated after the government struck a deal with Nick Xenophon last May to lower the rate for businesses with an annual turnover of up to $50 million.
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Prime Minister Malcolm Turnbull yesterday said that it was “vitally important” the tax cuts were passed in full after US President Donald Trump slashed the US corporate tax rate from 35 per cent to 21 per cent earlier this year.
“We have to have a competitive company tax rate to attract investment, which will drive jobs,” Mr Turnbull said.
Labor’s treasury spokesman Chris Bowen said the cuts were “an unfunded wrecking ball” which would cost the budget $15 billion every year in a decade.
“Ultimately it is working and middle income Australians who will be paying the price,” Mr Bowen said.