static image

Tax delay disappointing but renewed commitment welcome

"While disappointed that the plan to phase in a reduction in the company tax rate to 25% over the coming decade has not attracted sufficient support to be put to the Senate in this current session, we are heartened by the Government's commitment to stick to its guns and renew its efforts in the months ahead to enact this important program," Ai Group Chief Executive, Innes Willox said today.

"It is deeply regrettable that this sensible and affordable reform proposal has become caught up in the divisive, anti-business industrial and political campaigns currently underway. Stifling business investment will not help us build a more prosperous economy and a better and more inclusive society. In fact the opposite is true: encouraging business investment will build productivity and the capacity to generate more and better paid jobs; it will help grow the economy and the domestic tax base on which we can raise the revenue to support further investments in health, education, and the physical infrastructure needed to improve urban and rural communities.

"Reducing the company tax rate would sharpen the incentive to invest and lift the quantity of new investment. By raising capital per worker it will raise productivity and incomes and will improve Australia's competitiveness. While the reduction in the company tax rate is proposed to be phased in, as with the corporate tax cuts already in place its benefits would begin to be felt as soon as the program was enacted because it would impact on the future returns on investments currently under consideration. These investment proposals would be more likely to be approved if projected income would be taxed under the more competitive company tax rate," Mr Willox said.  

Media enquiries: Tony Melville – 0419 190 347