Industry pushes tax cuts

Company tax cuts will increase business investment and regional jobs, according to the Minerals Council of Australia.

MCA is calling for a reduction in taxes after a recent Deloitte Access Economics study on the Australian minerals industry found the mining industry paid a 51 per cent effective-rate-of-tax in company tax and royalties in the 2015-16 financial year.

Interim chief executive David Byers said the minerals industry could contribute more to the economy and society if the company tax rate was reduced.

“Australia’s 30 per cent company tax rate is too high for a capital-hungry nation, which needs to encourage business investment,” he said.

“Competitive State and Territory royalty regimes are also critical to ensure Australia can attract mining investment capital in the face of fierce competition with other minerals-rich nations. Effective tax reform would encourage companies to invest and create more jobs, especially in regional communities.”

Debate around company tax cuts has heated up in the wake of US President Donald Trump’s slashing of corporate tax rates in the nation to 21 per cent.

Member for North West Central Vince Catania said reducing Australia’s company tax rate would not benefit the economy or mining sector employment.

“The trickle-down effect of lowering company tax rates has been refuted for decades by economists and will only lead to more money going offshore, rather than contributing towards Australia remaining the safest and most stable mining nation in the world,” he said.

The Federal Government is seeking to cut the tax from 30 to 25 per cent in a reintroduced Bill.