20 November 2017
Media Release - #2017120, 2017

More evidence backs Turnbull tax cuts

A survey of CEOs employing over one million Australian workers confirms the Turnbull Government's Enterprise Tax Plan will increase investment and generate more jobs, and that Bill Shorten's alternative of higher taxes would saddle Australia with less jobs, lower investment and lower economic growth.

Modelling already confirms the Turnbull Government's fully-funded Enterprise Tax Plan will lead to a permanent increase in the size of the economy and lift Australian wages. Today's CEO survey confirms employers will drive this economic activity with more investment and Australian jobs.

The economic growth dividends of lower company tax are clear. They are why the United States is moving to reduce its tax rate and other nations like France, the United Kingdom, Japan, Israel, have or are acting to do likewise.

The Labor alternative is to keep Australia stranded with punitively high taxes, drying up investment and resulting in lower jobs growth, lower wages, lower investment spending and lower overall economic growth. Less Australian business and taxpayers means less Australian tax and less ability to provide vital services.

The CEO survey follows a recent warning from the IMF that nations refusing to lower tax would face negative spill-over effects on their economies and budget bottom lines.

This finding was backed by a Treasury research paper released earlier this month which too highlighted the real risks to Australian economic growth and wages should our company tax rate remain less internationally competitive.

The paper raised serious concerns that should the United States implement the Trump company tax cut, investment in Australia will potentially fall, leading to flow on effects including lower wages for hard-working Australians and lower economic growth.

It's clearer than ever before that Labor's dark economic vision of higher taxes on workers and the companies that employ them would slam the brakes on our economic growth, lower jobs growth and hit Australian wages.

The Turnbull Government is acting to ensure our nation can secure another generation of economic prosperity.

Our national economic plan has helped Australia to record jobs growth this year, with 370,000 Australians getting a job since January, and the unemployment rate at its lowest in four and a half years.

As the global economy improves it is critical that we both hold the line and build on this plan, so we can continue to grow jobs and ultimately boost the wages of Australians.