Morrison set to announce company tax cut in budget

Treasurer Scott Morrison is set to announce a company tax cut when he hands down Tuesday's federal budget.

Treasurer Scott Morrison

Treasurer Scott Morrison is set to announce a company tax cut when he hands down the federal budget. (AAP)

The federal government will fund company tax cuts through a crackdown on multinational tax dodging.

Treasurer Scott Morrison has told The Australian his "enterprise tax plan" will channel increased revenue into tax relief aimed at supporting the non-resources sector.

He says the tax office now has enough information about the structures of major multinational companies to estimate the additional tax revenue.

Mr Morrison has also flagged modest tax relief for people earning more than $80,000.

But it's unlikely there will be tax cuts for those on lower income brackets.

"People shouldn't expect measures to produce a next day better off/worse off comparison," he told Fairfax Media.

Cabinet minister Simon Birmingham says the government wants to help middle Australians who want to earn a few extra dollars but are facing disincentives because of tax brackets.

Lower income families already have a high tax-free threshold when family tax benefits and other measures are taken into account, and welfare payments are indexed, he told Sky News.


Share
Published 2 May 2016 8:36am
Updated 2 May 2016 10:33am
Source: AAP


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world