Coronavirus: Tax cuts flagged as part of economic recovery from COVID-19

Tax cuts may be part of measures brought in by the Federal Government to help the economy recover from the impact of the pandemic.

The Morrison government has flagged tax cuts and aggressive deregulation as part of a pro-business road to economic recovery.

A focus on stimulating rapid growth on the other side of the coronavirus pandemic is expected to guide October’s federal budget.

Finance Minister Mathias Cormann says the government wants to encourage businesses to invest and employ workers when the economy reopens.

“We will be presenting our plan based on lower taxes and aggressive deregulation agenda,” he told ABC Radio National on Tuesday.

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Finance Minister Mathias Cormann at a press conference at Parliament House in Canberra. Picture: Mick Tsikas/AAP

Senator Cormann refused to say whether wide-scale company tax cuts, which were shelved under the Turnbull government, would be revived.

“We are committed to lower taxes. We’re always committed to lower taxes,” he said.

“We understand that will help us strengthen the economic recovery on the other side.”

Labor leader Anthony Albanese said the government’s approach was based on right-wing ideology.

“What we have is the government foreshadowing that they’re coming after workers’ wages and conditions as soon as this crisis is over,” he told reporters in Sydney.

Mr Albanese said the government would have learned nothing if it withdrew support and relied on letting markets rip unfettered by proper regulation after the crisis.

He also said trade unions had not sought to use the pandemic to advantage, despite being in a strong position with the economy relying on a highly unionised workforce.

Reserve Bank governor Philip Lowe is expected to call for more reform when he gives a speech on Tuesday afternoon.

Senator Cormann said the RBA and the government were on the same page in wanting a pro-growth, pro-business recovery strategy.