Tax cuts in next budget

Finance Minister Matthias Cormann has confirmed the government will deliver tax cuts in the next Budget in the lead up to the next election.

Senator Cormann said the government would keep negotiating with cross benchers who have refused to support its package of tax cuts for business. 

He said the tax rate for all companies would be reduced to a low 25 per cent by 2027. 

The government would negotiate the next phase of the enterprise tax plan with the stalling backbenchers providing tax relief to businesses with turnovers greater than $50 million.

“They have only just passed the House of Representatives, they have barely arrived in the Senate, so the conversations are yet to get underway in earnest,” Senator Cormann told Sky News. 

“We always talk to non-government senators when we want to secure the passage of legislation and that is what will happen on this occasion. “ 

He said wages would rise if the Senate passed the legislation as business has told the government it would be able to increase wages if the tax burden was lower. 

“We talk to business all the time and what business is telling us is, of course, if we have a more competitive business tax rate, it will lead to more investment, it will lead to higher wages over time,” he said. 

“That is the experience in the past, that is the experience around the world and that is what would happen in Australia should those tax cuts be legislated.” 

He said the government would fight the next election on a platform of reducing company tax if it couldn’t get its legislation through the Senate.

“These business tax cuts were necessary st the last election, they are even more necessary now, they will be more necessary at the next election,” he said.

“When we go to the next election, our business tax rates in Australia will be nine per cent higher than in the United States, at the last election our business tax rate was lower.”

Business First is a peer-to-peer magazine: written by CEOs and other high level executives, with interviews with some of the country’s best leaders.

Leave a Reply

Your email address will not be published. Required fields are marked *