MAKING OUR TAX SYSTEM COMPETITIVE
Posted on Thursday, 6 April, 2017
TAX SYSTEM COMPETITIVE
– STOPPING THE LOSS OF OUR COMPANIES &
Federal Member for Grey Rowan Ramsey said the passing of
the new tax rates for small and medium business is a huge win for business and
job seekers right throughout the electorate.
“Bills have passed the Senate implementing a timetable to
reduce tax rates for companies with a turnover less than $50m to 27.5% over the
next three years eventually moving to 25%,” he said.
“ 14,890 businesses in Grey will benefit with the first
cuts coming on July 1.
“If we are to grow the Australian economy and provide
jobs we need a signal to business to invest. We know this is what business
operators do, when they make money they re-invest and grow their business and this
in turn leads to new jobs.
“Those new employees come off the dole and start to pay
tax. It is a virtuous circle. It has taken a lot of effort to get these reforms
through the Senate, however we still have more work to do.
“This is great news for all our small to medium
businesses but it is still the Government’s aim to address the larger business
tax rate to in order to keep our biggest employers in Australia.
“When we have big Australian companies like CSL moving their operations overseas and building
their new $500m pharmaceutical factory generating 500 new jobs in Switzerland
instead of Australia primarily because of tax rates we know we are in trouble.
“This $33 billion Australian company and has
explained that Switzerland has high labour costs and strong currency, just like
Australia and yet they chose to build their new plant there. They highlighted
that Switzerland‘s lower corporate tax rate, averaging 18% as compared to our
30%, was “factored into the decision.”
“It is so important we reform and keep our company tax
rates in line with our major competitors.
“Bill Shorten knows this and used to say so when he was
in government, but political opportunism has led him to claiming Liberals are
looking after big business. That is absolute rubbish, what we are doing is
trying to keep and attract business here to generate the jobs our children
“With our current company tax rate at 30%, and places
like the United Kingdom 20%, Canada 26.5%, Hong Kong 16.5% and Ireland who have
attracted a large number new investments with a rate of 12%; it is no wonder we
are losing our industries overseas.”
Contact: Leonie Lloyd-Smith 08 8633 1744