by Alan Thornhill
Julia Gillard says her government is prepared to consider a cut in the present company tax rate, but warns that it must be “affordable.”
The Prime Minister was speaking at the close of her Economic Forum in Brisbane.
Business leaders at the forum urged the government to cut the present rate of 30 per cent, to 25 per cent, so that they could match their Asian competitors.
Ms Gilllard recalled that she and her senior ministers had, many times, acknowledged the need to cut this rate.
“Now I’ve lost count of the amount of times that Wayne, Penny (Wong) or I have said we’re in the cart for a lower company tax rate,” the Prime Minister said.
“But it has to be affordable and that means that it has to be funded by other changes in the business tax system.
“So today though, let’s be very clear.
From today I want to see achieving this company tax rate reduction as the absolute top priority of the Business Tax Working Group.
“ I want it to be the focus, and I want it to be the outcome,” Ms Gillard said.
The government did offer, before its May budget, to cut its company tax rate to 29 per cent, to help business offset the extra costs that will come with the new carbon tax, which will apply from July1.
However it could not get the support it needed from the Greens, to make that change.
Alan Thornhill is a parliamentary press gallery journalist.
Private Briefing is updated daily with Australian personal finance news, analysis, and commentary.
Saturday December 7
The Dow Jones index rose 198.69 points to 16,020.20
Nelson Mandela dies
Australia’s first same sex marriages have taken place in Canberra, the first just after midnight
ACCC puts a cap on the fuel shopper dockets offered by Coles and Woolworths.
Qantas shares placed in trading halt
|Aud To Usd||0.9102||N/A||N/A|
|Bhp Blt Fpo||36.750||-0.030||-0.08%|
|Macq Group Fpo||51.850||-0.750||-1.43%|
|Nat. Bank Fpo||33.470||-0.190||-0.56%|
|Qbe Insur. Fpo||15.450||0.000||+0.00%|
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