Chalmers faces ‘Keating moment' as business slams company tax plan
As one of the proponents of a 5 per cent cashflow tax on all businesses said that winning support for the concept would be Treasurer Jim Chalmers' 'Paul Keating moment', a group of organisations – including the Business Council, the Insurance Council, the National Farmers' Federation, the Minerals Council and the Tech Council of Australia – slapped down the plan.
On Friday, the commission released its recommendations to overhaul the company tax system under which the current 25 and 30 per cent rates would be sliced to 20 per cent for all firms with a turnover of less than $1 billion.
The cashflow tax would apply to all companies, but its impact would be reduced by firms investing more heavily in new technology, equipment and buildings.
While it would have a neutral effect on the federal budget, the nation's 500 largest firms, including multinationals such as Netflix, Apple, Transurban, Amazon and News Corp, would pay more tax.
The commission estimates the tax switch will boost the economy by $15 billion and lift productivity.
But 24 separate business organisations used a joint statement to completely reject the cashflow tax as an experiment that risked putting more financial pressure on Australians.
'While some businesses may benefit under this proposal, it risks all Australian consumers and businesses paying more for the things they buy, [like] everyday groceries, fuel and other daily essentials,' they said.
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