Reforming company tax and income tax

There is an urgent need for company tax cuts and there must also be a focus on income tax reform, the Minister for Revenue and Financial Services, Hon Kelly O’Dwyer MP, said today in an address at the Centre for Independent Studies.

“Encouraging enterprise must be the driving force behind reform to Australia’s tax system. Reward for effort — not the politics of envy — is the way forward if we are to prosper in these rapidly changing times. And that is especially evident when it comes to company tax,” Ms O’Dwyer said. “A high tax environment means companies are less productive; and it means foreign investors are discouraged from doing business here.

“It is, in short, a tax on jobs and a tax on growth. And it is everyday Australians who pay for that.”

“So why is there such scepticism about a company tax cut in the community?”

“The craven politics of perpetual opposition has certainly played a part. So rather than enjoying bipartisan support on the merits and concept of a company tax cut from Labor, we have the spectacle of the Shadow Treasurer and Leader of the Opposition denouncing a policy that they once supported.”

“But it is not only reducing company tax that can make a difference. I, along with my colleagues, know that you create growth and deliver jobs by supporting enterprise, not discouraging it.”

“To do this, people also need more money in their pockets and the belief that, if successful, they will be rewarded. That is why the Government has, under our tax plan, already lowered personal tax — and further reductions will remain a goal for us.”

“Because Australia, I’m sure we can all agree, relies too much on personal income taxes — particularly when compared to other developed countries and our Asian neighbours.”