Companies back Coalition on corporate tax cuts to boost jobs, wages

Ten of the nation’s biggest companies have committed to boost employment and wages if Malcolm Turnbull’s corporate tax cuts pass the Senate.

BCA President Grant King, left, CEO Jennifer Westacott and Prime Minister Malcolm Turnbull. Picture: Hollie Adams

Ten of the nation’s biggest companies have committed to boost job creation and wages if Malcolm Turnbull’s corporate tax cuts pass the Senate.

The commitment to invest more in Australia was made in a letter to Senators as the government edges closer to winning over key crossbenchers.

“We believe that a reduction in the corporate tax rate, as proposed through the Government’s enterprise tax plan, is urgent and vital to keep Australia competitive,” said the letter, from the Business Council of Australia.

“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 as the tax cut takes effect.”

Signatories included BHP’s Andrew Mackenzie, EnergyAustralia managing director Catherine Tanna, Fortescue Metals chairman Andrew Forrest, Wesfarmers managing director Rob Scott and Woolworths chief Brad Banducci.

Others to put their name to the letter included MYOB chief executive Tim Reed, Qantas CEO Alan Joyce, Origin Energy managing director Frank Calabria, JBS Australia chief Brent Eastwood, and Woodside managing director Peter Coleman.

Rookie Senator Tim Storer is looming as the key to the passage of government’s tax cuts, after Tasmanian independent senator Steve Martin this afternoon revealed he would support the legislation.

The independent SA Senator, who was sworn in on Monday, was keeping his cards close to his chest today, as the bill was introduced into the Senate.

“I’m being diligent and reviewing the matter at hand, and talking with stakeholders,” he told The Australian.

Government insiders acknowledged it was a “tough assignment” for the Senator to come to a position on the tax cuts bill in his first week in parliament.

Senator Martin, a former Jacqui Lambie Network member, released a statement confirming his decision to support the bill.

“My position is about achieving the best deal for Tasmania, and strengthening Tasmania’s global export markets, bolstering jobs creation, wages growth and building sustainable communities,” he said.

“In that regard, I support the government’s company tax bill.”

The bill will extend business tax cuts to companies with turnover of more than $50 million.

The government needs to secure the support of nine of the 11 crossbench senators to pass the bill, which will reduce the company tax rate from 30 per cent to 25 per cent over ten years.

One Nation leader Pauline Hanson, who controls three Senate votes, yesterday revealed she may now be open to supporting the bill, telling Sky News she was “not convinced” but had an “open mind” on the bill, which has been debated in the Senate today.

“I’m actually talking to the government, I’ve got an open mind about this,” Senator Hanson said.

Nick Xenophon Team senators Stirling Griff and Rex Patrick remain opposed to the bill, while Australian Conservatives leader Cory Bernardi, Liberal Democrats leader David Leyonhjelm and independent former One Nation senator Fraser Anning are likely to support it.

Justice Party leader Derryn Hinch has said his support will depend on being given a guarantee that tax cuts will be passed down to workers in the form of wages.

“I’m worried that too much of it is going to be used for share buybacks by the companies, or dividends,” he said this week.

The Prime Minister said the tax cuts were “vitally important” to provide an incentive for small, medium and large businesses to invest in Australia and employ people.

“The fact is, we have to have a competitive tax rate,” Mr Turnbull said.

“The US have gone to 21 per cent.

“We have to have a competitive company tax rate to attract investment, which will drive jobs.”