Company tax data released today shows that large companies in Australia are paying almost two thirds of all company tax, providing $45.7 billion in government revenue to fund services and projects for the community, Business Council chief executive Jennifer Westacott said.
“Over the past four years of data, large businesses have paid $168 billion of company tax. That’s revenues that governments can invest in the projects and services that matter.
“More profitable businesses pay more tax, that’s exactly why we have to get the settings right to boost investment and grow the economy.
“Business pays its fair share of tax, with Commissioner of Taxation Chris Jordan recently declaring that company tax collections are ‘around global best practice and that many countries aspire to this level of compliance’.
“It is pleasing to see that compliance amongst large companies has increased to over 95 per cent with the vast majority of tax paid voluntarily. This data shows the tax gap has fallen around $200 million to just $1.8 billion.
“Companies pay tax on profits, the alternative would be a system which punished businesses for investing, employing, growing and creating new jobs.
“I urge people to read the ATO report, which carefully and methodically goes through how the tax system works; new and existing integrity measures; the contribution of large companies; and the ATO’s capabilities and administration.”