Australian govt defends new corporate tax cut

Australia’s government on Sunday defended its new AU$24 billion ($18.3 billion) corporate tax cut, saying the measure was necessary to help small companies stay competitive against rivals in other Western nations.
Under the tax cut passed by the Parliament on Friday, the corporate tax rate will drop from 30 percent to 25 percent over 10 years for businesses with an annual turnover of up to AU$50 million.
Treasurer Scott Morrison told the ABC that Australia needed the cuts to keep up with the US, the UK, France and other Western governments pushing for similar action.
“Where capital moves, that is where the jobs go, so we need to ensure our tax system is competitive,” he told the ABC.
But the opposition Labor Party opposed the measure, saying it would not help reduce Australia’s high debt and would provide little economic
gain.
The tax cuts, praised by business groups, were a rare political victory for the prime minister and his struggling conservative government.
Political analysts, however, do not see the win helping Turnbull attract more voters, who are increasingly turning away from the ruling Liberal-National coalition.
“I do not think it is an issue that really moves swinging voters,” said Haydon Manning, a political scientist at Flinders University.
Public support for Turnbull has plummeted since he grabbed power in a party room coup in September 2015 and he is struggling with dissent within his center-right Liberals, the senior party in the government coalition.
A Fairfax-Ipsos poll published on Monday showed his government trailed the opposition Labor Party by a 10 percent margin, 55 to 45 percent in a two-party preferred vote. The gap between Turnbull and Labor leader Bill Shorten for the preferred prime minister is also narrowing.

Source: Arab News