"As a representative of South Australians, Senator Nick Xenophon should reconsider limiting company income tax cuts to small businesses only because this will represent a massive missed opportunity to revive his state’s flagging economy,” Business Council of Australia Chief Executive Jennifer Westacott said today.
“The Business Council of Australia will continue to work with Senator Nick Xenophon in an ongoing effort to gain his support for globally competitive taxes for businesses small, medium and large,” Ms Westacott said.
“South Australia is a state which is struggling for business and it can’t afford to lock any companies out of reforms that would make it more attractive for them to invest and grow jobs in the state.
“The federal government’s tax plan is the first step in comprehensive reforms to deliver a better tax and a more competitive economy, which will benefit everyone.
“The government’s plan includes lower personal taxes, and better targeting of superannuation concessions and other business tax arrangements. This is consistent with the comprehensive 3-phase 10-year tax reform package released by the Business Council earlier this year.
“The Business Council has met with Senator Xenophon and we respect and welcome his determination to fight for the revival of his state’s economy, but this will not be achieved off the back of small business investment alone.
“Neither can South Australia prosper on welfare and government handouts – it requires an economic plan and reforms that will drive investment and jobs.
“The federal government has a plan and lowering taxes for all businesses so they are more competitive is a key part of it. The South Australian Government has also recently reformed its business tax arrangements to lower the cost of doing business and jobs have flowed from that.
“The best way to attract high-tech manufacturing, resource projects, major infrastructure and company headquarters or operations to the state is to pull every lever to make the business environment more competitive.
“We should not accept Australia slipping from 10th to 22nd on the world competitiveness ranking in just 10 years. Imagine where we could be in another 10 years if we don’t take every step to help our businesses be more competitive.
“We welcome Senator Xenophon supporting lower company tax in principle, but if he accepts this makes the difference for some businesses we urge him to appreciate that the biggest dividend will come from lowering taxes for the larger businesses which drive the lion’s share of investment and create the most jobs in the economy,” she said.