Real action on lower company tax

28/07/10

The Coalition is committed to delivering lower, fairer and simpler taxes. We have a strong track record in this area and if elected we will do it again.

A Coalition government will reduce company tax from 30 per cent to 28.5 per cent from 1 July 2013. This will provide a tax cut to all Australian companies.

This important tax reform will reduce the costs of business and deliver lower prices for consumers. It will make Australia’s tax regime more competitive on the international stage and make Australia a more attractive place to do business, helping to boost investment and jobs.

After three years of Labor, Australia is heading down the wrong track. Reckless spending, nearly $90 billion of debt, a $57 billion deficit and Labor Government borrowings of $100 million every day have put the Australian economy in a vulnerable position.

Labor’s debt has put upward pressure on interest rates at a time when Australian families are struggling to meet increased costs of living.

Under these circumstances, the Coalition will deliver modest, targeted and economically responsible tax relief in its first term.

The Coalition believes in lower, fairer and simpler taxes.

Labor believes in great big new taxes to fund its wasteful spending, such as the mining tax, which will increase the cost of electricity. Also, Labor’s carbon tax will increase the price of everything.

This reduction in the company tax rate is a further demonstration of the Coalition’s commitment to deliver lower taxes for Australians.

It is estimated that this measure will cost $2.55 billion over the forward estimates. This funding will be provided from the nearly $24 billion in recurrent savings that have been identified by the Coalition over the forward estimates.