Corporate Tax Cuts
This prospective legislation is the second part of the Coalition’s large tax cut plan, with cuts for smaller businesses with turnovers of up to $50 million having already been legislated in 2017. The total cost of the two tax cuts packages is estimated at $65 billion over 10 years
The government’s case for a company tax case was weakened during negotiations when a leaked internal survey by the Business Council of Australia showed less than one in five chief executives on the Council would use the tax cut to increase wages or employ more staff
The pace of wages growth has been on a steady decline since December 2010, when annual wage growth was 3.9%, having fallen to a record low of 1.9% before increasing slightly to 2.1% in December of last year
The costing of the tax cuts to government revenues at an estimated $5 billion per year prompted newly arrived independent Senator Tim Storer to question the funding priority given to the tax cuts in a period of deficit over areas such as education, health, research and development, and industrial transition funding.
Would the proposed cuts to the company
tax rates be beneficial for the Australian economy and for stagnant wage levels?
Australian Financial Review, ‘Derryn Hinch says Business Council tax cut pledge not good enough’
Australian Financial Review, ‘Cutting Australia's corporate tax will cut inequality’
Australian Financial Review, ‘Bracket creep sends personal taxes surging, PBO warns’
The Australian, ‘Company tax cuts ‘make bracket creep inevitable’
The Australian, ‘Business piling the pressure on Senate crossbench’
The Australian’, ‘Australia must cut company tax and government spending’
The Conversation, ‘Myth busting claims on the impact of the company tax cut; The Conversation, ‘Explainer: how company versus personal tax cuts boost the economy’;
Australian Financial Review, ‘Business was wrong on company tax cuts: the effects can be immediate’
Australian Financial Review, ‘Company tax cut will build our society, not tear it up’