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Australia Planning June Vote On Corporate Tax Cut Package

by Mary Swire, Tax-News.com, Hong Kong

28 May 2018


The Australian Government will put its company tax reforms before the Senate in June, with the aim of securing a vote by the 28th.

Finance Minister Mathias Cormann told reporters that it is "definitely" the Government's intention to again place the package before the Senate, and to do so when the Senate returns from recess. He said that the Government "never give[s] up" and "stand[s] for the economic national interest," and is "totally committed to the reform."

Cormann explained that it is the Government's intention to deal with both its proposed company tax reforms and personal income tax reforms by the end of June.

The Government wants to increase the turnover threshold for access to the lower, small business rate each year to 2023-24 and to reduce the headline rate to 25 percent for all businesses by 2026-27. The Government has 30 seats in the Senate but needs 39 votes to pass legislation.

Last week, Pauline Hanson said that her One Nation party will no longer support the legislation. The party controls three Senate seats and had previously reached an agreement with the Government on the conditions under which the scheme could pass.

Cormann, who has been leading the negotiations in the Senate, said that the Government will "continue to work with all crossbench Senators" and that "the door is open to all non-government Senators, including Labor and Green Senators."

Cormann said that the Government will not consider a ceiling threshold for the lower, 25 percent rate because this would "be a barrier to growth." The Government is committed to securing the passage of its business tax cuts in full.

Cormann said: "Countries around the world who are focused on the best interest of working families in their respective economies are making sure that their businesses are not put at a competitive disadvantage. In Australia we must do the same. We cannot put Australian businesses, businesses here in Australia, at a deliberate, ongoing disadvantage and think that this is not going to have negative consequences for the nine out of ten working Australians who work for those businesses."

TAGS: tax | small business | business | corporation tax | Australia | tax thresholds | legislation | tax rates | tax reform

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