Productivity roundtable: BHP boss Geraldine | Australian Markets
The boss of Australia’s largest mining business has spoken out in opposition to the Productivity Commission’s plan to shake-up the company tax system.
The Commission final week really helpful slashing the tax charge for small and medium firms — with much less than $1 billion income — to twenty per cent.
The change would dramatically alter the prevailing regime beneath which large companies pay 30 per cent tax and corporations with turnover beneath $50m are levied 25 per cent.
To cowl the invoice, the Commission referred to as for a new 5 per cent money move levy that will apply to all companies.
Economists hoped the system rejig would encourage investment with out sucking money out of the Budget. The Commission reckoned it might increase the economic system by $15bn.
Australian Council of Trade Unions boss Sally McManus went a step additional simply days later, proposing new taxes on iron ore and fuel exports.
But lobbyists swiftly hit back on the Commission’s thought, with the Business Council of Australia declaring the transfer an “experimental change”.
BHP Australian boss Geraldine Slattery waded in on Tuesday with feedback circulated to the Canberra press gallery.
Ms Slattery stated Australia needed to be a aggressive place for world investment, and needed tax settings to match.
“Australia’s corporate tax rate is already among the highest in the OECD, and combined with Australia’s high energy costs and flat-lining labour productivity, increased taxes would put Australia at a clear disadvantage,” she stated.
“Other countries are actively competing for capital by creating more attractive investment environments.
“Any move to raise taxes here would make it harder for Australia to compete and harder to sustain and grow the very industries and jobs that drive the most prosperity and productivity.”
Revealing the plan final week, the Commission stated it might “move Australia from having one of the highest to one of the lowest statutory rates for small and medium-sized firms in the OECD”.
“Our proposed reforms will begin to shift the company tax system towards one that better supports investment and productivity growth,” deputy chair Alex Robson stated.
The proposed money move tax would enable large companies like BHP to instantly deduct the complete worth of their investments somewhat than doing so throughout a few years beneath the prevailing system.
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