A coalition government will reduce the rate of company tax to 28.5 per cent from July 1, 2013, Opposition Leader Tony Abbott has announced at a press conference in Sydney today.
The measure, costing $2.55 billion over the forward estimates, will be funded from savings already announced by the coalition.
The current company tax rate is 30 per cent.
Mr Abbott said the coalition would always be the low-tax party.
"If there are lower taxes on companies we will have more successful companies, we will have a more prosperous economy, and that is good for every single Australian," he told reporters.
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"Companies deserve a tax cut and we will give them a tax cut without a mining tax to pay for it," Mr Abbott said.
"We'll give them a tax cut without a carbon tax to pay for it."
Abbott said the measure was affordable in the longer term because the coalition would be more frugal than Labor if elected.
Federal Tresurer Wayne Swan announced a similar policy several weeks ago, stating that if Labor were re-elected they would use the revenue generated by the Resources Rent Tax to cut company tax to 29 per cent in 2012/13.
