Media Release 19/10/2016

MEDIA RELEASE 19/10/2016

FOR IMMEDIATE RELEASE

Tax cut refusal frustrates mid-market

Pitcher Partners’ Stuart Dall today expressed his disappointment in the Nick Xenophon Team’s apparent refusal to back tax cuts for companies with more than $10 million in turnover.

“NXT’s reported stance that they will not support tax cuts for companies with turnover of more than $10 million is very disappointing,” said Dall.

“Fundamentally, a $10 million turnover threshold is too low to significantly benefit mid-market businesses – the growth engine of Australia’s economy.

“In today’s competitive markets, we often see businesses operating on a very skinny margin with high turnover, but also very high costs.

“To help mid-market businesses combat high costs, be more efficient and better able to compete on a global stage, a corporate tax cut is needed across the board.”

Stuart Dall questioned the message parliamentarians are sending to potential entrepreneurs by refusing to back the full suite of company tax cuts.

“If you were looking at setting up a new business in Australia, you might initially be encouraged by the lower tax rate, but what happens once you pass the $10 million threshold? The message is ‘we’re supportive, as long as you’re don’t get too big or successful’.

“The reality is that businesses will continue to look at setting up elsewhere in the region where lower tax rates apply across the life of the investment cycle.

Ultimately, Dall pointed to the long-term effects of a failure to cut the corporate tax rate to bring it into line with competitor economies in the region.

“The crux of the debate seems to be around the extent of the economic benefit delivered by the tax cut in the near term.

“But the fact remains that as a nation we have one of the highest headline company tax rates going around.

“Other countries aren’t going to increase their corporate tax rates anytime soon – they’re doing the opposite.

“In the pursuit for global capital it’ll be to our long-term detriment if we don’t meaningfully tackle corporate tax cuts now.”

For further information please contact:

Stuart Dall, Partner, Pitcher Partners, 0431 826 050

Sabine Wolff, Media and Communications Advisor, Pitcher Partners, 0419 529 577

Pitcher Partners is an association of independent firms located in Melbourne, Sydney, Perth, Adelaide, Brisbane and Newcastle. Pitcher Partners are independent members of Baker Tilly International.