Australian businesses will be left globally stranded and jobs will be threatened if the company tax rate is not cut, Treasurer Scott Morrison is warning.
In a speech on Friday to business leaders in London Mr Morrison will lay down a challenge to Labor and other parties to support the government’s plan to cut the company tax rate to 25 per cent.
He’s told News Corp that Australia will rapidly lose its competitive place in the world if it doesn’t follow the example of the UK, which has cut its tax rate to 20 per cent and plans a further cut to 17 per cent by 2020.
Mr Morrison is urging Senate crossbench support for cutting the company tax rate to stay competitive with other countries that are cutting their tax rates.
“If both the parliament and the Labor Party choose not to support keeping Australian businesses competitive, then we run the great risk of stranding our businesses and the jobs that rely on them, as our competitors and friends continue to move on,” Mr Morrison told News Corp.
Australia as a net importer of capital risked falling behind and becoming uncompetitive, he’s set to tell the London meeting.
Labor and the Greens have ruled out supporting the tax cuts, saying it’s unaffordable and there’s no evidence they would stimulate economic growth or investment.
Mr Morrison has also backed the use of “robo-advisers” as a way of providing affordable superannuation advice.
But Mr Morrison also acknowledged at a G20 meeting in Germany there would be privacy concerns about consumer information, and appealed for data sharing not to “become a victim of fear”.
“Yes, there are undeniable risks in enabling data to become more widely available. But the risk of harm needs to be assessed based on the likelihood and the scale of potential damage,” Mr Morrison told Fairfax Media.