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ACCI wants company tax cuts in next decade

The Australian Chamber of Commerce and Industry wants to see the company tax rate at 25 per cent within the next 10 years.

Business will disappointed if the company tax rate isn't slashed to 25 per cent over the next decade.

Treasurer Scott Morrison's first budget on Tuesday is expected to include phased-in reductions to the company tax rate from 30 per cent.

"We would like to see that glide path, if you like, over no more than the next decade," Australian Chamber of Commerce and Industry's new chief executive office James Paterson told reporters in Canberra on Monday.

"Faster would be great but we have to recognise that government's need to make trade-offs."

But the budget does provide an opportunity to build on strengthening business conditions.

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The chamber's latest business expectations survey for the March quarter found conditions at their highest in more than five years, buoyed by strong sales revenue.

Firms are also at their most upbeat about employment since 2011.

"It's important that the budget be a budget for the next two decades, not just for next two months," Mr Paterson said.

Separately, the monthly National Australia Bank survey showed that while business conditions and confidence eased slightly in April, they remain above average.

"Confidence remains crucial to the outlook, but this was still a reasonable outcome given the added uncertainties around the global economy and the upcoming federal budget and election," NAB chief economist Alan Oster said.

The survey, like last week's consumer price index, shows inflation pressures remain subdued.

This means the Reserve Bank has scope to further cement the non-mining recovery with an additional rate cut.

"A move that seems more likely than not at May's policy meeting," Mr Oster said.

The RBA board will make its decision on whether to cut the cash rate to a record low 1.75 per cent on Tuesday, just hours before Mr Morrison hands down his budget.

The rate has been at an all-time low of two per cent for a year.


2 min read

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Source: AAP



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