AMMA, Australia’s resources and energy industry group, is calling on the Coalition to deliver on its commitment to pursue tax cuts for all businesses as a vital strategy to maintain Australia’s global competitiveness.
“The US reducing their Corporate Tax Rate to 21 per cent follows Treasurer Scott Morrison’s announcement earlier this week at the mid-year budget update that the push in the US made it imperative for Australia to follow,” AMMA’s chief executive Steve Knott, AM said.
“Last Month Prime Minister Malcom Turnbull confirmed the Coalition Government would pursue tax cuts for all business. These tax reform commitments are now overdue.”
Prime Minister Turnbull highlighted the urgent reason for this reform was that if the corporate tax rate wasn’t cut to 25 per cent, the only advanced nations that will exceed Australia’s tax rate would be Japan and Malta.
Australia ranks 21st out of 137 economies on the World Economic Forum’s Global Competitiveness Index, down from 17th in 2016.
On the same index, Australia ranks 28th on Labour Market Efficiency, directly following Kenya in 27th place.
“In addition to much needed corporate tax reform Australia needs to review its ‘horse and buggy’ workplace relations system to attract investment. This includes industrial participants complying with the rule of the law.’ Mr Knott said.
AMMA is calling for the Australia Government to ensure Australia is an attractive place to do business, secure investment and create employment.