Budget 2017: Government reaffirms commitment to cutting company tax for all businesses
Tuesday, May 9, 2017/
The federal government has used the 2017 federal budget to reaffirm its commitment to cutting the corporate tax rate for companies of all sizes.
The commitment to cut the company tax rate to 25% for all companies, regardless of annual turnover, was expected, with Treasurer Scott Morrison indicating this was still the government’s position in the lead up to the budget.
In a statement accompanying the budget papers, the government said it remains committed to the plan, which it believes will “increase competitiveness, attract investment, and protect jobs from being taken overseas”.
“Higher investment in business assets like plant and equipment, buildings and systems will boost the productivity of Australian workers,” the government said.
“Lower business taxes will incentivise investment and allow businesses to create more jobs and encourage firms to hire more Australians.”
The first phase of the government’s 10-year enterprise tax plan, which cuts the corporate tax rate for companies turning over up to $50 million a year, was approved by the Senate earlier this year.
But despite the government’s enthusiasm for extending the same tax cuts to businesses with more than $50 million in annual turnover, several businesses have told SmartCompany they’d prefer not to see “major company tax cuts” at this stage.
“[I don’t want to see] a reduction in company tax [rates] for companies with turnover greater than $50 million,” said one business owner in a SmartCompany survey.