It’s key for manufacturers to maintain competitiveness – and the amount of tax businesses pay can help or hinder this. This is why the amount of tax paid has become a hot topic, when the rest of the world is reducing the burden on their companies.
At the moment Australian business pays 27.5%. This compares to 21% in Asia and the US, 19% in the UK (reducing to 18% in 2020) and France is planning to reduce its current rate of 28% to 25% by 2022.
This is prompting a serious debate in Australia over the pros and cons of company tax policy here.
This feature, in Manufacturers’ Monthly, takes us through the tax debate and outlines the proposals.
In October the federal coalition Government announced plans to bring forward by five years the planned cuts in company tax for small and medium businesses. Australian PM, Scott Morrison, says a newly proposed tax policy would lead to more investment, more jobs and higher wages.
It’s certainly a hot topic and one with pros as well as cons as the above link illustrates.