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Business takes aim at Labor’s call to reverse company tax breaks

Company tax reversal
Article image for Business takes aim at Labor’s call to reverse company tax breaks

Business groups are contesting Federal Labor’s call to wind back company tax cuts, saying it will damage confidence.

Businesses with a turnover of up to $50 million currently see tax relief but if the Opposition wins the next election, concessions will be limited to companies making less than $10 million.

Labor leader Bill Shorten’s call comes as the federal government continues its push to get corporate tax rates slashed to 25% for all businesses.

NSW Small Business and Family Enterprise Ombudsman Kate Carnell tells Ben Fordham the Opposition is sending the wrong message.

“For small to medium business… to employ, to expand, to grow, doing all the things we want them to do, they need confidence.”

She says reversing tax cuts already in place will make business “think again about decisions they might be going to make”.

“We need to have tax rates that are competitive in an international perspective.

“At 30%, we’re not even in the ballpark.”

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CEO of the Council of Small Business Australia Peter Strong has slammed the decision, telling Ross Greenwood Labor’s move will create enormous uncertainty and hurt business decision making.

“The uncertainty that this creates is really disappointing.

“How do you take a casual person and make them permanent, or a part-time person and make them full-time, when you don’t know what the future holds?”

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Company tax reversal