Few voters want company tax cut

Few voters believe Treasurer Scott Morrison should be considering a company tax rate cut in his first budget on May 3.

It's not surprising that voters aren't hot on the idea of a company tax cut in a week that saw figures showing a third of large private businesses don't pay any.

There's speculation Treasurer Scott Morrison could cut the company tax rate as part of his tax package to be released in the May 3 budget.

However, a new poll conducted by Omnipoll for Sky News found just three per cent of voters supporting such a reduction.

Instead, almost half of the more than 1100 voters surveyed chose returning the budget to surplus as the top priority for the government.

New government data on Thursday shows that after eight months of the 2015/16 financial year the deficit still stood at a hefty $38.7 billion.

That compares with the $37.4 billion deficit full-year forecast.

Even so, Liberal senator Zed Seselja wants to see the overall burden of tax reduced whether it be through personal tax cuts or a reduction in the company tax rate.

"The benefits of cutting company tax is that you do see greater productivity, you do see more jobs and that of course benefits Australians and the entire economy," he told Sky News.

Opposition Leader Bill Shorten said the Turnbull government will always pick the big end of town, but that is out of touch with what people want.

Advisory firm Grant Thornton says there should be more help for the nation's 54,000 middle-sized businesses.

"We're once again calling for a minister for mid-size business to create a simpler life for the engine room of the economy," its CEO Greg Keith says.

He wants the budget to simplify the tax system, reduce the red-tape burden on a multitude of state-based taxes and a lower corporate tax rate.

Mid-sized businesses aren't entitled to small-business tax concessions and don't have the resources large corporates do to navigate the complex tax system.

In last year's budget the company tax rate was cut to 28.5 for small firms - those with an annual revenue of $2 million of less - but was left at 30 per cent for larger firms.

Small business also got a $20,000 instant asset write-off until mid-2017.

Business Council of Australia chief executive Jennifer Westacott argues the 30 per cent company tax rate is a burden on firms, being five percentage points higher than the OECD average and seven percentage points higher than the Asian average.


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Source: AAP


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