Groups representing both Australian small businesses and its large corporations have joined forces to pressuring federal MPs to back company tax rate cuts for the big end of town.
Parliament already has approved a tax rate cut – from 30 per cent to 25 per cent – for businesses with a turnover of up to $50 million.
Business Council of Australia chief executive Jennifer Westacott told reporters in Canberra on Thursday, in a joint conference with small-firm lobby groups, that it was not a question of big business versus small business because one could not exist without the other.
Business software provider MYOB boss Tim Reed agreed, saying surveys have found six out of seven firms want tax cuts for all businesses.
“Individual businesses don’t exist on their own, they don’t thrive on their own,” Reed said.
COSBOA (the Council of Small Business Organisations of Australia) head Peter Strong offered similar sentiments, saying the small business tax cuts would “become meaningless” if big companies don’t get them too.
“There would be fewer jobs and less prosperity for Australia,” Strong said.
Westacott released a report earlier this week warning that Australia’s 30 per cent tax rate will become the third highest among developed countries if action is not taken to reduce it.
The rate is presently the fifth highest, but both the US and France will shortly be delivering cuts promised to their businesses.