Deloitte Access Economics’ Chris Richardson and AMP chief economist Shane Oliver back the PM’s corporate tax cut

TWO of the nation’s top economists have laid waste to Labor’s claims company tax cuts are a big business “giveaway”, saying they’re the biggest drag on the economy.

TWO of the nation’s top economists have laid waste to Labor’s claims company tax cuts are merely a big business “giveaway”, saying corporate taxes are the biggest drag on the economy and therefore the best type of tax to cut.

Deloitte Access Economics partner Chris Richardson and AMP chief economist Shane Oliver said research showed cutting company tax rates would do more to boost economic growth than reducing any other Federal tax.

And said despite scare campaigns to the contrary, it’s actually a good thing if a chunk of the savings goes to foreigners.

As Labor continues to attack the Coalition’s plan to lower company tax rates in the dying days of the election campaign, Mr Richardson said Treasury modelling showed after stamp duties levied by the states, company taxes were the most burdensome tax on the economy.

“This is the Federal tax that hurts the economy more than any other,” he said.

“It shrinks the economy.”

Chris Richardson of Deloitte Access Economics.

Shane Oliver, chief economist at AMP.

Despite previously speaking out in favour of cutting company tax rates, Mr Shorten this week labelled the Coalition’s plan to progressively lower rates from 30 per cent to 25 per cent a “disastrous” policy and a corporate tax giveaway.

“It’ll be paying overseas companies and overseas shareholders by increasing their profits and reducing our budget revenue,” he said on Saturday.

But Mr Richardson said providing lower tax rates to multinational corporations would benefit Australia by ensuring workers were better equipped.

“They’re the people whose decisions you want to change,” he said.

“If they can make a bigger buck in Australia then they will put their money here.”

Australian Prime Minister Malcolm Turnbull is still confidnet he can win the election. Picture: AAP

Dr Oliver said cutting company tax rates would also provide a disincentive for large multinationals to engage in tax avoidance and stop them moving their operations offshore.

“You may find you get a double whammy benefit there, less avoidance by multinational companies and a greater tendency to invest in Australia,” he said.

Dr Oliver said on the whole the election campaign has been “very disappointing” from an economics standpoint, with both parties apparently reluctant to discuss the Budget.

“The disappointment is we’re not really debating the big issues facing Australia in terms of ways to produce stronger growth over time,” he said.

“Now obviously, corporate tax cut is part of that, but a lot of the debate seems to be what we will spend money on.”