Aug 24, 01:40 AM

Chalmers Backs Report Urging 20% Company Tax, Leaves Timing Unclear

Australian Treasurer Jim Chalmers has endorsed a Productivity Commission draft report that calls for sweeping cuts to company tax rates as part of a broader drive to lift investment and productivity. Speaking on ABC television after a three-day Economic Reform Roundtable in Canberra, Chalmers said he is "open to tax changes which incentivise investment if we can afford to do it." The report, titled “Creating a More Dynamic and Resilient Economy,” recommends lowering the corporate rate to 20% from 25% for businesses with annual turnover below A$50 million and to the same 20% from 30% for companies earning between A$50 million and A$1 billion. The proposals were discussed extensively at the roundtable, which brought together business leaders, unions and community groups. Chalmers framed any future tax package around three objectives: intergenerational fairness, stronger investment incentives and a simpler, more sustainable revenue base. While he declined to confirm whether the measures will feature in the 2026 budget, he said the government would consider them over the next three budget cycles. Business groups have urged the government not to “cherry-pick” the recommendations, insisting that any reform be delivered as an integrated package that also addresses investment barriers. The conservative opposition questioned whether Labor is preparing policies it never took to voters and called for tighter fiscal rules before large-scale tax changes are made.

#Jim Chalmers #Productivity Commission #ABC #Economic Reform Roundtable #Canberra #Chalmers #Labor

Written with ChatGPT .

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