Company Tax

Some say Australia can't afford company tax cuts. 

The truth is we can't afford to not have company tax cuts.

How is it fair to let Australia fall behind, lose global competitiveness and miss out on attracting the extra investment that will create the opportunity for more jobs and drive higher incomes?

Those who attack the case for company tax cuts have no alternative credible plan to get investment growing strongly again.

Creating a competitive company tax rate is an important mechanism to give Australian business the opportunity to succeed.

If we want the nation to thrive we need business to succeed. If we reduce the tax on Australian business, you create the opportunity for more investment and more jobs. 

A business that isn't thriving can't create jobs and can't give workers a pay rise.

Australia needs a pro-growth competitive company tax system for all businesses - big and small - to stimulate investment, raise productivity and increase the real wages of working Australians.

Real fairness is about ensuring people can access good jobs and growing incomes in a more prosperous country that has the capacity to support the genuinely disadvantaged.

A lower, more competitive, company tax rate creates the opportunity for business to increase investment, which in turn is essential for future economic growth, higher paying jobs and higher living standards, particularly in regional areas.

Tax changes overseas, such as the reforms announced by the US government, will significantly change the arithmetic for global investors considering investing in Australia and can only be bad news for Australian workers and Australian businesses.

The money and the jobs will go elsewhere.

Since the 1960s, rarely has new business investment as a share of our economy is the lowest it's been since the early 1990s recession.

We are seeing welcome green shoots emerge of new business investment. But it is well below where we need it to be and it will take sustained growth to move the economy back to a stronger footing.

This is at risk if Australia’s company tax rate is not internationally competitive in the race for that investment.

Business investment is about expanding operations, building new factories and plants, buying machinery and equipment and developing and adopting cutting edge technology.

Investment drives higher output and more efficient production. It increases business revenues and profits, leads to more people being employed and increases output per worker which allows higher wages to be paid.

Business today is global and companies have to make choices about where to invest their next dollar.

Australia’s high tax rate means more and more investments are not made in Australia. We can’t just wait around for this to reverse. We need action to get investment moving strongly in the right direction.

Deloitte has found “company taxes that are ‘too high’ scare off investment in Australia”.

Without aspiration, enterprise and profitable businesses, what will create the opportunity for Australian business to drive growth, wealth creation, the jobs of the future and money to pay for the social safety net?

Locking in a path to a 25% company tax rate for all businesses will send a credible and positive signal about investing in Australia. 

A globally competitive company tax rate is one of the most direct and effective economy-wide policy levers we have to encourage higher domestic investment by local and global companies.

Other countries know this and have been reducing their company tax rates while we have stood still for 16 years.

Companies do have choices to move staff and operations and future investments overseas. Investment will follow where businesses think they can make the best return and the tax rate is a significant part of that equation.

Recent world competitiveness rankings show Australia has fallen out of the world’s top 20 countries for the first time in 21 years.