The Turnbull Government’s ten year Enterprise Tax Plan will drive the business investment our nation needs to boost jobs and grow the wages of Australian workers in a globally competitive environment.
Our current uncompetitive business tax rate will make it harder for Australian businesses to continue to attract the investment they need to expand, employ more hardworking Australians, give them more hours of work and trade our goods and services on the global market.
Fifteen years ago, Australia had the ninth lowest corporate tax rate among advanced economies. But we are falling behind. Today just five of the 35 OECD nations have a corporate tax rate higher than ours.
Reducing the company tax rate for Australian businesses to 27.5 per cent, starting with hard-working Australian small businesses, will unlock business investment to drive economic activity in Australia as well as lift incomes and address economic dislocation in areas and regions adversely impacted by our economic transition from the mining investment boom.
The economic burden of company tax falls mostly on employees through lower real wages. Reducing company tax will support job security, wages and employment growth, as well as improve living standards.
Labor’s opposition to higher levels of business investment, greater jobs and higher wages growth that will result from the tax cut is not only economically irresponsible, it is rank opportunism.
Both Bill Shorten and Chris Bowen previously argued strongly for reductions in company tax:
“Cutting the company income tax rate increases domestic productivity and domestic investment. More capital means higher productivity and economic growth and leads to more jobs and higher wages.” Bill Shorten; House of Representatives – 23 August 2011
“It’s a Labor thing to have the ambition of reducing company tax, because it promotes investment, creates jobs and drives growth.” Chris Bowen; ‘Hearts and Minds’ – 2013
Labor’s economic recipe of higher taxes and falling investment will create a vicious cycle of stagnating growth and eroding living standards for Australians.
Opposing tax cuts that help Australian businesses to compete is anti-Australian jobs and does not put Australia first.
The Turnbull Government is committed to unleashing Australian businesses to invest, grow and pay their workers more in order to set up the economic future of all Australians.