Ms Jennifer Westacott, the chief executive of the Business Council of Australia warns, “Australia is at imminent risk of having the 3rd highest company tax rate in the developed world if the Parliament leaves the top rate frozen in time at 30%”.
“We are kidding ourselves if we think we can impose one of the highest tax rates in the developed world on Australian businesses and expect them to thrive, invest and create jobs,” Ms Westacott said.
“The average company tax rate across the OECD is 24% and falling. The average across Asia is 21%”.
“The USA’s announced intention to cut its rate from over 35% to 20% will have a dramatic impact on investment and competitiveness while even France, which has traditionally put high taxes on business, has said it will cut its rate from 33% to 25%”.
“The UK has legislated to drop from its already low 19% to 17%”.
“Australia currently has the 5th highest company tax rate in the OECD and it will be the 3rd highest once the USA and France deliver on their pledges to slash their company tax rates”.
The proposed reduction to a top rate of 25% will grow the Australian economy by 1% or $17 billion a year in today’s terms and it twice as big a benefit as the landmark tariff cuts of the 1980s and 90s.
“We are falling behind on our tax rates. We have no time to waste,” Ms Westacott said.
