Publication date: 07 Aug 13 |
Source: THE TAX INSTITUTE
Wednesday 7 August 2013: The Federal Opposition’s announced reduction in the company tax rateis a welcome development for small and medium business across the country, The Tax Institute said today.
“The Opposition’s pledge to reduce the rate of company tax by 1.5% is an overwhelmingly positivemove that will deliver economy?wide benefits,” said Tax Institute Senior Tax Counsel, RobertJeremenko.
“The Tax Institute has long?supported reducing the company tax rate in the medium term from itscurrent 30% to the 25% recommended by the Henry Tax Review.
“The proposed modest cut to a 28.5% rate is a step in the right direction and Australians across theboard will stand to share in the benefits of increasing Australia’s attractiveness as a destination forforeign investment.”
When this announcement is coupled with the Opposition’s policy to increase the company tax rateon companies with a taxable income of more than $5 million to fund a paid parental leave scheme,the company tax rate cut will be neutral to those businesses and a real reduction for companiesearning less than $5 million.
“Reducing the burden of company tax for small and medium business will encourage innovation andentrepreneurship and allow companies to pass on the savings to their workers in the form ofincreased wages or additional recruitment, increasing both productivity and employment,” MrJeremenko concluded.
- Robert Jeremenko, Senior Tax Counsel, The Tax Institute:, 0468 987 300;
- Dylan Malloch, Sefiani Communications: 0407 620 613