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26 July 2010

NSW’s largest business organisation, NSW Business Chamber, has welcomed the Federal Coalition’s policy announcement cutting the company tax rate to 28.5% from 1 July 2013. 

“Business welcomes the Coalition’s policy to cut Australia’s company tax rate from 30% to 28.5%. It’s a step in the right direction towards the rate of 25% that was recommended in the Henry Tax Review,” said Stephen Cartwright, CEO of NSW Business Chamber. 

“Small and big businesses got the Australian economy through the GFC and kept thousands of Australians employed through the economic downturn. Cutting the company tax rate would make Australian businesses more competitive in a global economy and will further enhance job prospects. 

“The Henry Tax Review stated that Australia’s current company income tax rate is high relative to similar sized OECD economies and that the company income tax rate should be reduced to encourage investment in Australia, particularly highly mobile foreign direct investment. 

“As the Prime Minister has pointed out in recent days, the company tax rate impacts on competitiveness, jobs and prices. We agree and welcome this announcement by Tony Abbott today. 

“In a competitive international economy, cutting company tax encourages the growth of Australian businesses and creates more opportunity for investment and jobs in Australia.” 

Mr Cartwright said that while business wholeheartedly supported a cut to Australia’s company tax rate, there was still concern about the levy the Coalition was proposing on businesses with a taxable income in excess of $5 million to fund the Coalition’s paid parental leave scheme. 

“We will be looking carefully at the official launch of the Coalition’s paid parental leave scheme during the election campaign to see how these two policies will interact with each other and the impact they will have on businesses.” 

Mr Cartwright said the Coalition’s small business policy was commendable by establishing a Small Business Ombudsman, extending protections to small business regarding unfair contracts and its commitment not to change the existing Independent Contractor laws.

“The Small Business Ombudsman proposal is very similar to NSW Business Chamber’s proposal to establish a Small Business Commissioner in NSW, mirrored on the success of the Victorian Small Business Commissioner. 

“The Ombudsman can provide a low cost, effective mechanism to deal with disputes and to assist in mediation. The Ombudsman will provide an advocacy, dispute resolution and support role for the small business sector within the Commonwealth Government. 

“Every big business starts out as a small business. We do need to be a country that has an incubator approach to small business – providing every encouragement to Australia’s two million small businesses."