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Shadow Assistant Treasurer: Businesses more worried about highschool test results than company tax

The Shadow Assistant Treasurer says big businesses would be more worried about disappointing levels of highschool test results than they would be about corporate tax rates.

The government has scrapped their corporate tax cut plan after it was defeated in the Senate today.

The cuts would have relieved the tax burden on businesses worth over $50 million.

When Ross Greenwood asks the Shadow Assistant Treasurer Dr Andrew Leigh whether Australian companies will be concerned by the nation’s high tax rate, Mr Leigh says they make investment decisions for “a whole range of reasons”.

“If you’re thinking about setting up a high-skilled business, I’d imagine you’d be more worried about the fact that Australian school kids test scores are slipping backwards on PISA tests.

“About the fact that we’ve halved the number of apprentices.

“For high-skilled businesses, the quality of the human capital probably matters more than the company tax rate.”

Mr Leigh says slashing corporate tax rates is a “bad economic call”.

Click PLAY below for the full interview