Company tax cuts defeated in the Senate
The Australia Institute welcomes the defeat of the Treasury Laws Amendment (Enterprise Tax Plan No. 2) Bill 2017 in the Senate.
“We welcome the defeat of the Government’s big business company tax cut legislation in the Senate,” said Ben Oquist, executive director of The Australia Institute.
“Congratulations to Labor, the Greens, and Senate crossbenchers Senators Griff, Patrick, Hinch, Hanson, Georgiou and Storer who have done the right thing by the country and helped avoid a future fiscal timebomb.
“This is a good outcome for Australia: it is a good economic outcome, it is a good budget outcome, and it is good for Australia’s long term revenue base and the services and infrastructure it can fund.
“There is no demonstrated connection, either internationally or historically in Australia, between company tax cuts and economic prosperity.
“The economic case, as well as the political case for large company tax cuts has collapsed.
“The dividend from additional public infrastructure and government services like education far exceeds any potential benefit from cutting company tax cuts.
“Australia needs a secure long term revenue base if a decent society is to be maintained and the public gets the services and infrastructure they deserve.
“While the company tax debate has been a significant one, it is important for us now to view any future proposed tax reforms in the context of the wider revenue challenges and opportunities facing Australia.”
With the company tax debate reaching a conclusion, The Australia Institute will be hosting a special Revenue Summit, Wednesday 17th October 2018. This initiative will see some of Australia’s leading experts discuss new ways Australia could efficiently and equitably increase public revenue to strengthen both our public finances and our future economy.
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