23 January 2018
Media Release - #2018002, 2018

US tax cuts fuel global growth, Labor still in denial

The Turnbull Government welcomes the International Monetary Fund’s (IMF) upward revision of their forecast for greater global economic growth off the back of the United States’ legislated reduction in company tax.

The IMF World Economic Outlook update backs the Turnbull Government’s optimistic ‘better days ahead’ outlook for Australia’s economy. 2018 will be another year of opportunity for the Australian economy.

Higher global growth provides more opportunities for Australian businesses and Australian workers, provided it is supported by the right policies.

Our plan to cut taxes is designed to ensure that Australia realises these opportunities, yet Labor continues to stand in the way.

And in a further blow to Labor’s economic credibility, the report shows half of the IMF’s upgrade to global growth over 2018-19 is due to the effects of the recently passed Trump tax package.

Once again Labor has misled Australians. The IMF report directly contradicts Labor’s assertions the United States’ cut to company tax would have no impact on the rate of global economic growth.

Consistent with their failing grasp on economic policy Labor’s finance spokesman was yesterday still desperately insisting the tax cuts would have no effect:

“…it would be wrong to say that the Trump tax cuts which were only recently legislated are responsible for some of the uptick in growth around the world.”
Jim Chalmers, Sky News, 22 January 2018

That’s why the Government will continue to seek support for our plan to provide tax relief for Australian businesses and the millions of Australians they employ. It will lead to more jobs and higher wages for Australians.

Australians should not have to pay the price of being left behind, because Labor want to hold our economy back.

Everything the Turnbull Government is doing is aimed at giving Australians the chance to seize more opportunities from a growing and more prosperous economy.

The release of the World Economic Outlook update follows analysis released last year in which the IMF warned that countries not maintaining competitive tax rates would see their economies suffer.

Labor’s support for company tax relief, which Treasury modelled would increase our GDP by 1 per cent, would protect Australia against the predicted loss of 1 per cent GDP as a result of other advanced economies lowering their corporate tax rates, at least ensuring we were left no worse off, and not faced with a reality of businesses shutting down and workers being laid off as Australia is left uncompetitive.

The Turnbull Government wants Australians to be able to seize the opportunities ahead of us. Bill Shorten would rather us be left behind.