Qantas backs Turnbull Government’s business tax plan following record results
Qantas joins government to argue the case for business tax cuts, after the airline posted its best result in its 98-year-history.
The Turnbull Government has joined forces with Qantas to argue the case for its business tax cuts, after the airline posted its best result in its 98-year-history.
The national carrier yesterday posted a $976 million half-year profit, moving it closer to paying corporate tax once again after clearing nearly $1b in tax loss credits from previous years.
Acting Prime Minister Mathias Cormann, Treasurer Scott Morrison and Small Business Minister Craig Laundy joined Qantas CEO Alan Joyce in Sydney to hammer the government’s tax reform message, as the Coalition attempts to convince Senate crossbenchers to support its Enterprise Tax Plan.
Acting Prime Minister Mathias Cormann said if Qantas was stuck with an uncompetitive tax system it would have ramifications for its employees, its suppliers, its shareholders, and the broader economy.
“If we force businesses like Qantas, and businesses all around Australia which are involved in global competition, to be less competitive because taxes in Australia are higher than in other parts of the world, then that puts pressure on our whole economy,” Mr Cormann said.
Opponents of the government’s business tax cuts have attacked Qantas, which has not been liable to pay corporate tax in recent years due to substantial historical losses.
Mr Cormann said: “All businesses in Australia should, and do, pay taxes on their profits. Qantas pays taxes on their profits but of course, Qantas has gone through a period of substantial losses.
“Now the management team here and the team at Qantas has been able to turn that around. And once the losses are paid off, Qantas, I am very certain … will pay tax on profits.”
Mr Joyce said Qantas has put on an extra 2000 employees in the last two years and had above inflation wage agreements of 3 per cent.
“If this economy is to suffer because our tax situation isn’t competitive … and investment is drained out of Australia to North America, to Europe and to other places, that will mean Australia will do less well, that will mean Qantas will do less well, and that will mean we cannot sustain that employment growth and wage growth,” he said.
Also during the event, the Treasurer said: “The only Joyce I’m talking about today is Alan Joyce.”
The government is trying to legislate a 25 per cent tax cut for all Australian businesses, in a move opposed by Labor and the Greens.
It needs the support of nine of the 11 Senate crossbenchers to get its Enterprise Tax Plan passed, but is struggling to convince key Senators.
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