MAKING OUR TAX SYSTEM COMPETITIVE
– STOPPING THE LOSS OF OUR COMPANIES & INDUSTRY OVERSEAS
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 need.
“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.”
Media Contact: Leonie Lloyd-Smith 08 8633 1744
April 6 2017