Four out of five CEOs said they would boost investment and 70 per cent said they would hire more people if the Senate votes to give Australia a more competitive company tax rate.
According to a survey of Business Council CEOs a more competitive company tax rate will result in higher employment growth and investment spending, but a failure to act has seen 90 per cent of CEOs warn this would harm the economy.
“Our members employ over 1 million people in Australia, they know that to drive economic growth and create more jobs we must give Australia a competitive company tax system,” said Business Council chief executive Jennifer Westacott.
“This survey shows that businesses want to invest, to create more jobs and boost our economic growth – but that we have to get the settings right.
“The business leaders we’ve surveyed know how investment decisions are made in boardrooms around the world. Their message is clear, we need a competitive tax system to ensure that our economic potential is realised.
“It’s vital businesses can compete on a level playing field against their international rivals. Our competitors are moving quickly, just last week the United States House of Representatives voted to cut their company tax rate drastically to 20 per cent.
“Every day that Australia delays action risks putting us further behind the rest of the world.
“The International Monetary Fund, the Treasury and Australian business leaders have all made clear that Australia must act to keep itself competitive or risk seeing investment sucked out of the country.”
Key findings released today:
If the top company tax rate were reduced to 25 per cent:
- 81 per cent of CEOs said their companies would increase investment spending.
- 70 per cent said their companies would hire more staff.
If the Senate rejects the tax cut and keeps the top company tax rate at 30 per cent:
- 90 per cent of CEOs believe this will harm the economy and of that group 100 per cent say it will mean lower economic growth.
- 94 per cent believe Australia’s international trade activity and competitiveness would be harmed.