The Coalition has announced that, if elected, it would cut the company tax rate by 1.5% from 1 July 2015. It said the proposed company tax rate of 28.5% is part of its “significant tax reform agenda to be delivered within the first term”.
According to the Coalition, the cut to the company tax rate will cost $5bn over the forward estimates. However, the Coalition said it was “confident that the company tax cut will deliver some partially offsetting benefits to the Budget bottom line over the medium term”.
The Shadow Treasurer also reaffirmed that the Coalition has “no plans whatsoever to change the GST”. “We are prepared to have a debate about tax reform but any changes arising out of the white paper process would first be put to the Australian people at the next election,” Mr Hockey said.
Sources: Opposition Leader and Shadow Treasurer’s joint media release, 7 August 2013; Shadow Treasurer’s media release, 7 August 2013
[LTN 151, 7/8/13]