Amidst One Nation’s sudden retraction of support and debate within Government ranks about how to proceed with the Company Tax cut package Alan Joyce has come out again to strongly lend his support to reduce Company Tax from 30c to 25c in the dollar for all companies. He has been even urging other business leaders to follow his suit. The Business Council of Australia (Qantas’ employer association) has also led a vocal campaign.
Joyce claims that everyone benefits when good companies do well, and we need to make sure we don’t mess up the Australian economy. He warned that Australia is in danger of losing investment and jobs to countries with lower tax rates. Earlier in the year, the US reduced its corporate income tax rate from 35% to 21%. The OECD average is 24% and the Asia average is 21%. China’s company tax rate is 25%.
A compromise proposal being bandied around is to only reduce company tax rates for companies with turnovers up to $500 million would exclude bigger companies like Qantas.
Qantas expects to be paying company tax again from July 1 as carry forward losses from previous years are set to expire. Company tax law allows companies like Qantas to offset losses against future profits.
Source: Everyone benefits: Qantas boss urges business to join tax cut fight by E Bagshaw SMH May 24th.