Tuesday, February 13, 2018
It does not "make any sense" to keep Australia's business taxes high, Treasurer Scott Morrison has said.
Morrison told Parliament that "anyone who thinks that's good economic policy has absolutely lost their economic compass and cannot find their way around the economic debate in this country."
Morrison made the comments during a speech on the Government's Enterprise Tax Plan Bill, which was passed by the House of Representatives on February 8 but is expected to face resistance when it goes up to the Senate.
This is the second time the Government has attempted to pass the company tax cuts first unveiled in the 2016-17 Budget. Last year it succeeded in passing a reduction to the small business company tax rate and an increase in the turnover threshold for accessing the rate. These changes affect income for the 2016-17 to 2018-19 tax years.
However, it was unable to secure support for the full Enterprise Tax Plan, which includes increases to the SME threshold each year to 2023-24 and a reduction in the tax rate to 25 percent for all businesses by 2026-27.
Morrison accused the Labor Party, which opposes the cuts, of wanting Australia "to be stranded on a high-tax island."
"How on earth does keeping business taxes high help one business employ one more Australian or give one more Australian a wage rise or help them invest one more dollar in their business – in plant, in equipment, in technology, in training, in developing new products, or in going after new markets?", he asked.