The Labor Party clearly can’t be trusted with the economic security of our nation. They are divided on job producing company tax cuts.
Shadow Treasurer Chris Bowen has previously stated that a move towards a more competitive corporate tax rate is required. He even suggested 25 per cent as a target, compared to the current 30 per cent.
“I would like to see the corporate tax rate come down over time. I have previously said that the nation should be aiming for a 25 per cent corporate tax rate.” – AFR Tax Reform Summit, 22 September 2015
He also wrote in his 2013 book ‘Heart and Minds’:
“The United Kingdom, facing a much tougher fiscal situation than Australia’s, cut its company tax rate to 23 per cent in April 2013, to be reduced further to 21 per cent in April 2014.
“At 30 per cent, our company tax rate is now above the OECD average…It is how the rate compares to that of our competitors that counts.”
However, just this morning Anthony Albanese contradicted his colleague’s long-held view that company tax concessions benefit the Australian economy and lead to more investment and jobs.
The Minister for Revenue and Financial Services, Kelly O’Dwyer MP, said company tax concessions would boost Australian businesses and increase jobs.
“The Turnbull Government believes a reduction in the company tax rate to 25 per cent over 10 years would significantly improve the international competitiveness and the attractiveness of Australia, increasing investment, creating more jobs and increased wages,” Minister O’Dwyer said.
“According to Treasury modelling, in the long run most of the benefits of a lower corporate tax rate remain in Australia and largely accrue to Australian households through higher real wages. This was supported by independent modelling undertaken by KPMG and Independent Economics.”
With the US and the UK moving to significantly reduce their tax rates to 15 and 17 per cent respectively, Labor’s opposition to our modest tax cuts will see Australia left behind.
Once again, Bill Shorten and the Labor Party are playing politics and wrecking the chance of jobs for Australians.