Business tax cuts get thumbs down

A new poll shows little support for the Turnbull government's planned business tax rate cut to 25 per cent over the next decade.

Fewer than a third of Australians support the Turnbull government's planned tax cut for big business with many believing the money could be better spent on vital government services.

The Essential Research poll on Tuesday found half of respondents don't approve of a reduction in the corporate tax rate to 25 per cent over the next decade.

Just over three-in-10 respondents agree with the government a cut would bring the tax rate into line with other nations and attract investment needed to create more jobs.

But 46 per cent believe it would simply deliver business $50 billion more in profits when the money could be better spent on schools and hospitals.

The survey came as reports suggested the US Trump administration's business tax cut from 35 per cent to 20 per cent may be phased-in over five years rather than all at once, causing a wobble in US financial markets because it would delay some of the economic effects spruiked by the US president.

The Australian government has so far legislated a tax cut for businesses with a turnover of up to $50 million, leaving the remainder on a rate of 30 per cent.

It is committed to getting the rest of the tax plan into law, although it is unclear whether it will make any further progress this year given the numbers on the floor of the chamber in the absence of Barnaby Joyce.

Mr Joyce is fighting a by-election after the High Court found he and four senators were not eligible to stand for parliament in the 2016 election.

Government ministers insist it is business as usual but a separate survey suggests consumers are concerned about what it means for the economic outlook.

The weekly ANZ-Roy Morgan consumer confidence index rose 0.1 per cent, masking large variations between the sub-indices.

The index on views on the economic outlook dropped 4.5 per cent to its lowest level in seven weeks, but thoughts on their own financial conditions rose a solid 5.3 per cent.

"Rising political uncertainty may explain the rise in pessimism about the economic outlook, though consumers don't seem to see this uncertainty impacting their finances directly," ANZ head of Australian economics David Plank said.

He believes concerns around subdued wage growth are being offset by the strength of the jobs market.


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Published 31 October 2017 2:32pm
Source: AAP


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