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Business Council vows to ensure Government delivers company tax cut

Wednesday, 4 May 2016 08:17:21 | Peter Ryan

Business Council of Australia chief executive Jennifer Westacott says the group will lobby the government. (ABC News Breakfast)

Big business has signalled it will be ramp up lobbying to ensure it receives a promised company tax cut within a decade.

Key points:

  • Council says budget "solid" and "responsible"
  • Council will lobby government to ensure it delivers cuts
  • Council wanted tax cuts sooner

While small and medium businesses turning over more than $10 million have won a tax cut to 27.5 per cent from July 1, big business might have to wait as long as 2026 for tax relief.

The Business Council of Australia (BCA), which represents the nation's top 100 companies, took the news on the chin, describing the budget as "solid and responsible".

But chief executive Jennifer Westacott told AM big business would hold the Government to its promise of a corporate tax cut.

"We're obviously pressing very hard that it be delivered. People forget that large businesses are responsible for over 40 per cent of economic output," Ms Westacott said.

"We would have liked [it] to have been a shorter time frame, but you've got to remember that what the Government has put forward is probably the most comprehensive plan to reduce business taxes with everyone.

"But clearly it would be good if we brought it forward. There are risks the longer we take to make our total business tax system more competitive the more uncompetitive the economy is overall."

Ms Westacott described the budget as "solid" and "responsible" while appearing to accept that tax cuts to big business or broader tax reforms were unlikely in tight financial times.

"The Government has got to do what it can do within the fiscal circumstances," Ms Westacott said.

"There isn't the political appetite so we have to get things that are pragmatic and actually doable.

"I think the Government has taken a very pragmatic approach to this and I think it will send the right signal."

But the Business Council expects the Government or future governments to deliver broader tax reform over time.

"There is still a lot of work to be done on the structural spending reform and that just cannot happen overnight," Ms Westacott said. "That's got to be phased in over a decade really."

While Australia's AAA credit rating is looking safe after the budget, Ms Westacott agreed with major ratings agencies' warnings about the need for budget repair.

"How do we preserve our AAA credit rating? Firstly we don't spend money we don't have, and secondly we get our economy growing faster," she said.

AustraliaPlus


 

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